Doing Business in 2006: Creating Jobs

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The just-released 2006 edition of Doing Business reminds us that improving regulations and helping entrepreneurs is essential to generating jobs and growth. In just its third year, the report has already inspired reforms in more than 20 countries. Aiming to build upon this success, the latest edition introduces global rankings as well as three new topics: dealing with licenses, paying taxes and trading across borders. These are some of the findings in this years report: Increasing the regulatory ease of doing business is associated with less unemployment and informality. Nordic countries, as well as others in the top 30 for ease of doing business, do not have to choose between making it easy to do business and providing social protection. Every country in Eastern and Central Europe reformed last year, with Serbia and Montenegro and Georgia leading the way. African and Middle Eastern nations continue to impose heavy burdens and enact only piecemeal reforms. Poor countries levy the highest and most complex business taxes in the world. Administrative barriers to importing and exporting (such as getting signatures on customs forms) can be even more costly than transport costs to and from the port to the factory gate. Discussion Questions Do you have any comments on the new indicators, the global rankings, or the methodology? What do you think are the most interesting results? How would you rate the importance of the regulatory costs of doing business measured in this analysis verses other factors not covered, such as proximity to large markets, security, and macroeconomic stability? How does the importance of business regulations differ in countries such as land-locked states, small island states, and conflict-affected countries? What other types of analysis should the Doing Business report cover?