received fairly respectable ratings of 73
, respectively of 183countries. However, similar to their performance last year, they continued to decline in rankings by -3 placeseach. Interestingly too, these outcomes are as a result of ‘doing nothing’ in these areas to improve on theprotection of the rights of investors or increasing investors’ access to credit.
Areas for Improvement
The last three business indicators, listed in Table 1 above, represent areas for immediate attention insofar asthey fall in the latter half of the overall rankings or have not shown significant signs of improvement. Withreference to
Trading Across Borders
, both registered a 2-place slide in rankings (from102
, respectively) There was a 1-place improvement in
). All three outcomes were the result of ‘doing nothing’ to improve the respective sub-categories.
What can be done to improve Jamaica’s ranking?
Jamaica’s performance in DBR 2010 was less than impressive, but it need not continue in that vein. Severalreforms have been proposed by local government agencies and suggested by the World Bank that, onceimplemented, should help significantly in improving the ranking in the DBR and, by extension, the country’scompetitiveness. Table 2 details reforms posited by both parties.
Table 2Categories Short-Term Reforms Medium-Term Reforms Comments
Consolidate limited liability companyestablishment forms.2.
Delegate the authority to collect stampduty to the COJ.3.
Complete the online system forcompany name-checking.1.
Make online ‘One-Stop Shop’registration possible.2.
Facilitate registration with relevantagencies by assigning one companyidentification number for thecompany as applicable for allagencies.A strategic approach forestablishing a virtual ‘One-Stop Shop’ for companyregistration was outlined inresearch commissioned bythe TGCC. The Cabinet hassince approved related policyproposal.Closing a Business 1.
Consider the introduction of prepackaged or other expeditedbankruptcy proceedings1.
Effectively regulate insolvencypractitionersThe TGCC has developed aTOR to execute research onthe short-term reform.Dealing withConstructionPermits1.
Incorporate time limit for the issuanceof building permits in the law.2.
Eliminate NEPA’s approval requirementfor low-risk projects.1.
Consider lowering fees for buildingpermits2.
Investigate shifting responsibility forquality control to privateprofessionals.ProtectingInvestors1.
Mandate disclosure of personal conflictsof interest by company directors andofficers.2.
Require disclosure of transactions inannual report.3.
Require shareholder approval of relatedparty transactions.4.
Require a review of transactions byexternal body.5.
Allow court to void harmful transactions.1.
Allow shareholders to request theappointment of governmentinspectors.2.
Allow shareholders to have access tointernal corporate documents.Getting Credit 1.
Make collateral registry unifiedgeographically and by asset type.2.
Grant secured creditors the highestpriority reasonable in bankruptcyproceedings.1.
Establish a credit information bureau. The TGCC’s policy proposalfor the creation of acollateral registry wasapproved by Cabinet and theCredit Reporting Bill iscurrently before Parliament