The investment climate is the fundamental socio-economic framework in which firms operate – the macroeconomic and trade policies they face, the labor and financial markets in which they recruit and raise money, the available infrastructure and imposed regulations, as well a
|Restaurants in Mongolia can face fines for not having the right number of forks.|
One area fully in Government control is business inspections. This is an important function: inspections protect the health and safety of the general public. But when inspections run wild, they can become a major burden to businesses, especially small ones. Inspections can impose large costs on businesses in terms of time and money, encourage firms to bribe their way out of violations, and even encourage entrepreneurs to operate in the shadows. That means less tax revenue and potentially dangerous products and services being offered to the public.
Is this a problem in Mongolia? Absolutely.
On Thursday, October 30, at 2 p.m. Washington time, Second Life users will be able to learn the results of the Doing Business 2009 report when it is launched on this island. Doing Business, a report published by the World Bank and the International Finance Corporation, ranks economies around the world based on how easy it is to do business, considering the level of laws and regulations in a region. The report aims to improve business environments, in part through dialogue and reform.
BusinessWeek reports that an annual study by one of Europe's top business schools indicates that Asian economies are overtaking the U.S. and Northern Europe to become the most competitive in the world.
The IFC's Rapid Response Unit that is behind the successful Doing Business map has expanded on it and created Business Planet, adding info from their other databases: enterprise surveys (70,000 firms in 104 countries), privatization transactions, and trends in private infrastructure projects.