(lavoixdesentreprises.info) – The business climate plays a crucial role in the economic prosperity of nations, but a new World Bank report, « Business Ready, » reveals significant challenges in 50 countries. While regulations are improving, the implementation of public services remains inadequate, hindering the growth potential of businesses and economies as a whole.
This first « Business Ready » report provides an in-depth analysis of the business climate using a comprehensive set of 1,200 indicators for each country, aiming to identify areas that require significant improvements. This assessment is expected to expand to 180 economies by 2026, becoming an essential reference for governments and investors.
The findings highlight a striking disparity between the quality of regulatory frameworks and that of public services. On average, the assessed countries score 65.5 for their regulations, while their performance in public services does not exceed 49.7. This gap not only obstructs the daily functioning of businesses but also limits the benefits that society could derive from an optimal business environment. High-income economies exhibit a smaller gap, while regions in Sub-Saharan Africa and the Middle East suffer the most severe consequences.
Indermit Gill, Chief Economist at the World Bank, emphasizes that a favorable investment climate is essential to harness the ingenuity of the private sector. To overcome challenges such as growing demographics, debt, and conflicts, it is crucial to provide entrepreneurs with the necessary conditions to thrive. The « Business Ready » report aims to equip decision-makers with the information needed to establish an environment conducive to wealth and job creation.
The approach taken in this report, which succeeds the « Doing Business » project, is more balanced and transparent. It incorporates contributions from experts across various backgrounds, including the private sector and civil society organizations. This new evaluation framework does not only measure regulatory barriers to market entry; it also assesses the quality of existing regulations. For example, safety requirements in the labor sector and conditions for identifying entrepreneurs in startups are closely examined.
Another essential dimension of « Business Ready » is the assessment of public services necessary for implementing regulations. Countries must facilitate tax payments through integrated online systems and ensure public databases to promote transparency and access to credit for businesses with good track records.
Significant variations exist among the studied countries. For instance, the time required to register a business can range from three to 80 days, and power outages affect businesses an average of four times a month, with peaks reaching up to 22 interruptions in some cases. Likewise, the time to resolve commercial disputes can range from 105 days to five years, illustrating concerning inequalities.
With such a wealth of data, « Business Ready » enables businesses to make informed decisions regarding their locations and operations, while helping governments calibrate the necessary reforms to stimulate the private sector.
It is also important to note that creating a favorable business environment does not solely depend on a country’s income level. As Norman Loayza, Director of the World Bank’s Indicators Unit, highlights, low- or middle-income countries like Rwanda, Georgia, and Vietnam demonstrate that it is possible to establish an attractive business climate through solid regulations and effective public services.
The « Business Ready » report represents a valuable tool for understanding the current challenges of the business climate. By making its data publicly accessible, it paves the way for greater transparency and integrity, essential for sustainable and inclusive economic growth. Governments and private sector actors are now better equipped to collaborate in creating an environment conducive to innovation and prosperity.
S.N.
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