DR ranked 84th of 189 in World Bank Doing Business report
The Dominican Republic has been ranked 84th in the 189 economies researched by the World Bank for its “Doing Business 2015: Going Beyond Efficiency” annual report that measures the regulations that enhance business activity and those that constrain it. The report analyzed regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes and resolving insolvency from June 2013 to June 2014.
Doing Business measures regulations affecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: 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.
The ranking for the Dominican Republic in the Doing Business 2015 stayed the same as in the previous report at 84th in the world.
The World Bank report says that it takes 19.5 days to start a business in the DR compared to the average 30 days for the Latin American and Caribbean region. The insolvency bill proposed by the National Competitiveness Council that is pending for approval by Congress is one of the main reasons for the mid-range score of the Dominican Republic in the 2015 Doing Business Report of the World Bank. The DR also scored poorly in getting electricity, another of the key factors.
The World Bank highlights that the Dominican Republic improved its credit information system by enacting a new law regulating the protection of personal data and the operation of credit reporting institutions. During the same period, the country also strengthened minority investor protections by introducing greater shareholder rights and requirements for greater corporate transparency. In addition, the Dominican Republic made trading across borders easier by reducing the number of documents required for exports and imports. Conversely, it made dealing with construction permits more costly by increasing the building permit fees.
The DR did well in the ranking in the ease of paying taxes, trading across borders and enforcing contracts.
In Latin America and the Caribbean, the DR at 84th ranked below Colombia (34), Peru (35), Mexico (39), Puerto Rico (47), Panama (52), Jamaica (58), Guatemala (73), Trinidad & Tobago (79), Uruguay (82) and Costa Rica (83).
The DR’s island neighbor, Haiti is ranked 180th of 189 countries. Colombia (ranked 34th) is in the first place in the Latin America and Caribbean grouping, while Venezuela is in the last place on the ranking with 182.
The report finds that Singapore tops the global ranking on the ease of doing business. Joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand, Hong Kong SAR, China, Denmark, South Korea, Norway, the United States, the United Kingdom, Finland and Australia.
Doing Business measures regulations affecting the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: 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.
Source: DR1. Doingbusiness.org
Category: DR News |