INTERNATIONAL BUSINESS ANALYSIS

WORLD BANK’S
EASE OF DOING BUSINESS INDEX
Bushra Khalid

Waqar Sajid

Hina Aftab

Zara Zubair

Romana Mehmood

Sahrish Kousar

Group Members
Ease of Doing Business Index
 Created by World Bank
 Measures regulations directly affecting business.
 The Doing Business Index was launched 7 years ago.
 Looks at domestic small and medium size companies.
 Economies are ranked on their ease of doing
business, with first place being the best.
 A high ranking means regulatory environment is
conducive to the operations of business

(Source: http://en.wikipedia.org/wiki/Ease_of_Doing_Business_Index)
 10 Indicators
1. Starting a Business
2. Dealing with construction Permit
3. Employing Workers
4. Registering Property
5. Getting Credit
6. Protecting Investors
7. Paying Taxes
8. Trading Across Borders
9. Enforcing Contract
10. Closing Business
(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
The World Map of the Ease of Doing
Business Index (2009)

Ranks Lower Ranks Higher Insufficient Data

(Source: http://en.wikipedia.org/wiki/Ease_of_Doing_Business_Index)
 1. Starting a Business

This indicator includes factors such as

procedures, time cost and minimum capital to
open a new business in any economy.

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
Main Factors:

 Business
 Procedures
 Time
 Cost
 Paid-in Minimum Capital

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 2. Dealing With Construction
Permits

This indicator deals with submitting all relevant

project specific documents to the authorities. It
includes obtaining all necessary clearances,
licenses, permits and certificates, completing
all required notifications and receiving all
necessary inspection.

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
Main Factors:

 Assumptions about the business

 Assumptions about the warehouse
 Assumptions about the utility connections
 Electricity Connection
 Water & Sewerage Connection
 Telephone Connection
 Procedures
 Time
 Cost

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 3. Employing Workers

This variable deals with the regulation of

employment, specifically as it affects the
hiring and redundancy of workers, the rigidity
of working hours and the minimum wage ratio.

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
Main Factors:

 Assumptions about the worker

 Assumptions about the business
 Rigidity of employment index
 Redundancy Cost

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 4. Registering Property

This variable deals with the necessary

procedures for a business to purchase a
property from another business and to transfer
the property title to the buyer’s name.

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
Main Factors:

 Assumptions about the parties

 Assumptions about the property
 Procedures
 Time
 Cost

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 5. Protecting Investors
 Extent of disclosure index (0–10)
 Extent of director liability index (0–10)
 Ease of shareholder suits index (0–10)

Requirements on approval and disclosure of

related-party transactions

Extent of
disclosure
Type of evidence that can index
be collected before and Extent of
director
during the trial liability index
Ease of
shareholder
suits index

Liability of CEO and board of directors

in a related-party transaction

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 6. Getting Credit
 Strength of legal rights index (0–10)

 Depth of credit information index (0–6)

Strength of legal rights index

Scope, quality and (0–10)

accessibility
of credit information
through public
Depth of credit information
and private credit index (0–6)
registries

Regulations on
No possessory
security interests
in movable
property

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 7. Enforcing Contracts
 Procedures (number)
 Time (days)
 Cost (% of claim)
Steps to file claim,
obtain judgment and
Attorney, court and enforce it
enforcement costs
as % of claim value Procedures

Time

Cost

Days to resolve
commercial sale dispute
before the court

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 8. Paying Taxes

This variable addresses the taxes and

mandatory contributions that a medium-size
company must pay or withhold in a given
year, as well as measures of administrative
burden in paying taxes.

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
Main Factors:

 Number of tax payments

 Time to prepare, file and pay taxes
 Amount of taxes on profits
 Amount of taxes on labor
 Amount of other taxes

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 9. Trading Across Borders

This variable looks at the procedural

requirements for exporting and importing a
standardized cargo of goods. Every official
procedure is counted.

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
Main Factors:

 Required documents

 Time

 Cost to export or import.

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 10. Closing A Business

This variable identifies weaknesses in

existing bankruptcy law and the main
procedural and administrative bottlenecks in
the bankruptcy process.

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
 Main Factors:

 Time to complete a procedure

 Cost of the bankruptcy proceedings

 Recovery rate

(Source: Doing Business 2010, A co publication of Palgrave Macmillan, IFC and The World Bank)
Importance of Ease of Doing Business

 Recover from the economic crisis

 Increases the competitiveness of firms and economy

 The ability to see business patterns