Home' Trinidad and Tobago Guardian : October 30th 2014 Contents OCTOBER 2014 • WEEK FIVE www.guardian.co.tt BUSINESS GUARDIAN
NEWS4 | BG5
T&T has jumped 12 places in the 2015 Ease of Doing Business,
which was issued on Tuesday night, but still lags six countries
in the Latin America and the Caribbean region.
T&T moved from a ranking of 91 in the 2014 version of the
closely watched global ranking to 79 in the 2015 edition, but
is surpassed by Colombia ranked in 34th place, Mexico at 39,
Chile at 41, Panama at 52, Jamaica at 58 and Guatemala at
73.In a news release on Tuesday night, the World Bank Group
said the report found that 50 per cent of economies in the
Caribbean implemented at least one reform making it easier
for local entrepreneurs to do business---12 reforms in total, a
historical high for the region.
Washington, D.C., October 29, 2014---A new World Bank
Group report finds that over the past year, 50 per cent of
economies in the Caribbean implemented at least one reform
making it easier for local entrepreneurs to do business---12
reforms in total, a historical high for the region.
The Caribbean region analysed by the study comprises the
following economies: Antigua and Barbuda, The Bahamas,
Barbados, Dominica, the Dominican Republic, Grenada, Haiti,
Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the
Grenadines, and Trinidad and Tobago.
Doing Business 2015: Going Beyond Efficiency found that
Jamaica had the region s biggest improvement in the ease of
doing business in the past year, thanks to three reforms in
areas measured by the report.
Jamaica streamlined the requirements for starting a business,
reduced the cost of getting an electricity connection, and
established new credit bureaus while also adopting a new
secured transactions law that broadens the range of assets
that can be used as collateral.
Joining Jamaica in implementing multiple regulatory reforms
were the Dominican Republic and T&T.
The Dominican Republic made cross-border trade easier
by reducing the number of documents required to import and
export, improved the regulatory framework for credit reporting,
and strengthened minority shareholder protections.
T&T jumped 12 places because it improved access to credit
by adopting the Bankruptcy and Insolvency Act, which estab-
lishes clear grounds for relief from a stay of enforcement
actions by secured creditors during reorganization procedures
as well as a time limit for the stay.
In addition, T&T made resolving insolvency easier by intro-
ducing a formal mechanism for rehabilitation, establishing a
public office responsible for the general administration of
insolvency proceedings, and clarifying the rules on appointment
And it made starting a business easier by introducing online
systems for employer registration and tax registration. Such
reforms are leading to tangible benefits for entrepreneurs. For
example, starting a business now takes 11.5 days for an entre-
preneur in T&T---on par with international best practice---
down from 35.5 days in 2013.
"Entrepreneurs in the Caribbean continue to see gains in
the business environment. With half the region s economies
making regulatory reforms in the past year, the Caribbean
continues to move in the right direction," said Rita Ramalho,
Doing Business report lead author, World Bank Group. "Yet
while the region continues to reform, there is still room for
further improvement in the business environment."
T&T got special mention in the report as being among the
ten top improvers worldwide in implementing reforms that
make it easier to do business.
Among the ten countries that improved the most in per-
formance on the Doing Business indicators: Tajikistan, Benin,
Togo, Côte d Ivoire, Senegal, Trinidad and Tobago, the Dem-
ocratic Republic of Congo, Azerbaijan, Ireland and the United
As a whole, according to the report, Latin America and the
Caribbean and South Asia remain the two regions with the
smallest share of economies implementing regulatory reforms
as captured by Doing Business.
As in previous years, however, Europe and Central Asia had
the largest share of economies implementing at least one reg-
ulatory reform, with some 85 per cent doing so.
Sub-Saharan Africa had the second largest share of economies
implementing at least one reform and the second largest
average improvement in distance to frontier scores.
According to the report: "Many of the 10 top improvers still
face many challenges on their way to international best practices
in business regulation, including high bureaucratic obstacles,
political instability and weak financial institutions."
The report this year expands the data for three of the 10
topics covered, and there are plans to do so for five more
topics next year. In addition, the ease of doing business ranking
is now based on the distance to frontier score. This measure
shows how close each economy is to global best practices in
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 envi-
ronments are New Zealand; Hong Kong SAR, China; Denmark;
the Republic of Korea; Norway; the United States; the United
Kingdom; Finland; and Australia.
The ease of doing business ranking ranges from 1 to 189.
The ranking of economies is determined by sorting their aggre-
gate distance to frontier scores. These are calculated as the
simple average of the distance to frontier scores for each of
the 10 topics included in the aggregate distance to frontier
score in Doing Business 2015. This aggregate score does not
include the labour market regulation indicators.
The distance to frontier score, introduced in Doing Business
2012, shows the distance of each economy to the "frontier"---
which represents the best performance observed on each of
the Doing Business indicators across all economies since 2005
or the third year in which data for the indicator were collected.
The measure is normalized to range between 0 and 100, with
100 representing the frontier. The measure does not include
the labour market regulation indicators.
To make the data comparable across economies, the indicators
are based on standardized case scenarios with specific assump-
tions about the enterprise---generally a domestic limited liability
company operating in the largest business city.
According to the World Bank Group: "While Doing Business
captures several important dimensions of the regulatory envi-
ronment as they apply to local firms, it does not measure all
aspects of the business environment that matter to firms and
investors or that affect the competitiveness of an economy.
"For example, it does not measure security, macroeconomic
stability, corruption, the skills of the labour force, the underlying
strength of institutions, or the quality of infrastructure services
(other than services related to trading across borders and
getting electricity). Nor does it focus on regulations specific
to foreign investment."
About the Doing Business report series
The annual World Bank Group flagship Doing Business
report analyzes regulations that apply to an economy s busi-
nesses during their life cycle, including start-up and operations,
trading across borders, paying taxes, and resolving insolvency.
The aggregate ease of doing business rankings are based on
the distance to frontier scores for 10 topics and cover 189
economies. Doing Business does not measure all aspects of
the business environment that matter to firms and investors.
For example, it does not measure the quality of fiscal man-
agement, other aspects of macroeconomic stability, the level
of skills in the labor force, or the resilience of financial systems.
Its findings have stimulated policy debates worldwide and
enabled a growing body of research on how firm-level regulation
relates to economic outcomes across economies.
Each year the report team works to improve the methodology
and to enhance their data collection, analysis and output. The
project has benefited from feedback from many stakeholders
over the years. With a key goal to provide an objective basis
for understanding and improving the local regulatory envi-
ronment for business around the world, the project goes
through rigorous reviews to ensure its quality and effectiveness.
This year s report marks the 12th edition of the global Doing
Business report series.
T&T improves Ease of Doing Business
....but still lags Jamaica
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