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2016

Procedures, time, cost and paid-in minimum capital to start a business


Procedures, time and cost to complete all formalities to build a warehouse
Procedures, time and cost to get connected to the electrical grid
Procedures, time and cost to transfer a property Movable collateral laws
and credit information systems Minority shareholders rights in relatedparty transactions and in corporate governance Payments, time and
total tax rate for a firm to comply with all tax regulations Time and cost
to resolve a commercial dispute Time, cost, outcome and recovery rate
for a commercial insolvency and strength of the legal framework for
insolvency
Additions Quality of building regulation and its implementation
Reliability of electricity supply, transparency of tariffs and price of
electricity Quality of the land administration system Quality of judicial
processes Changes Time and cost to export the product of comparative
advantage and import auto parts
Measuring the quality of regulation is not new for Doing Business; some
indicator sets have always addressed aspects of regulatory quality, such
as those on getting credit and protecting minority investors. But the
improvements being introduced in Doing Business indicators are
increasing the emphasis on the quality of regulation as a complement to
the initial emphasis on its efficiency. Last years report expanded the
indicator sets for three topics to capture aspects of quality; this years
report introduces changes in the indicator sets for five others, in most
cases also by expanding them to measure quality as well as efficiency
(figure 1.1).
There are different ways to assess the quality of regulation. One way is to
evaluate the process leading to the creation of new regulations, by looking
at such aspects as whether consultations take place with stakeholders or
whether regulatory impact assessments are carried out. Another is to
analyze the perceptions of citizens or experts about a governments ability
to formulate sound policies and regulations and implement them in a
predictable fashion. Doing Business uses a different approach to
measuring the quality of regulation. It focuses on whether an economy has
in place the rules and processes that can lead to good outcomes, linked in
each case to Doing Business measures of efficiency. In the area of dealing
with construction permits, for example, Doing Business now measures the
quality of building regulations and the qualification requirements for the
people reviewing building plans as well as the efficiency (as measured by
time and cost) of the process for completing all the formalities to build a
warehouse. Doing Business does not assess the process for designing
building regulations; instead, it gauges whether an economy has the kind
of building regulations and quality controls that enable well-constructed

buildings. Doing Business continues to focus on regulation that affects


domestic small and medium-size enterprises, operating in the largest
business city of an economy, across 11 areas.1 Ten of these areas
starting a business, dealing with construction permits, getting electricity,
registering property, getting credit, protecting minority investors, paying
taxes, trading across borders, enforcing contracts and resolving insolvency
are included in the distance to frontier score and ease of doing business
ranking. The distance to frontier score captures the gap between an
economys performance and a measure of best practice across the entire
sample of 36 indicators, where 100 is the frontier and 0 is the furthest
from the frontier. Doing Business also analyzes labor market regulation,
which is not included in the distance to frontier score or ease of doing
business ranking.2

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United Kingdom
Sweden
Norway
Finland
Macedonia, FYR
Germany
Estonia
Ireland
Iceland
Lithuania
Austria
Latvia
Portugal
Georgia
Poland
Switzerland
France
Netherlands
Slovak Republic

Slovenia
Spain
Czech Republic \
Romania
Bulgaria Croatia
Hungary
Belgium
Belarus
Italy
Cyprus
Moldova
Serbia
Greece