Doing Business 2017 finds that 137 economies worldwide implemented 283 business regulatory reforms last year. This represents an increase of more than 20% over the previous year. Areas of reform include starting a business, paying taxes, getting credit and registering property. Notably, 54 IDA countries implemented 113 reforms.
Private Sector Development
60% of economies do not have laws mandating gender nondiscrimination in hiring and equal remuneration. Such laws are more common in OECD high-income economies, followed by economies in Europe and Central Asia. Gender equality can make institutions more representative, improve social cohesion and increase productivity.
The Financial Data Team of the Development Economics Data Group (DECDG) is pleased to announce the launch of our Online Quarterly Bulletin’s second edition, an e-newsletter spotlighting debt statistics news, trends, and events. The current issue features the following:
Organizing Public Sector Debt (QPSD) statistics to maximize their analytical use and international comparability
Bond Issuance by low- and middle-income countries in 2015
- External debt trends for high-income countries in 20105
- Debt statistics-related event summaries
One highlight in this edition is the introduction of the D1-D4 matrix, a cascading approach used to present the QPSD data. The primary aim of the QPSD initiative is to institute a standardized measure for each dimension of public sector debt. The QPSD database displays country data for the same set of debt instruments such as 1. debt securities, 2. loans, 3. currency and deposits, 4. Special Drawing Rights, 5. Other accounts payable, and 6. insurance, pensions, and standardized guarantee schemes for the following institutional sectors of the economy: 1) general government, (2) central government, (3) budgetary central government, (4) non-financial public corporations (5) financial public corporations, and (6) the total consolidated public sector debt.
The private sector continues to be a critical driver of job creation and economic growth. However, several factors can undermine the private sector and, if left unaddressed, may impede development. Through rigorous face-to-face interviews with managers and owners of firms, the World Bank Group’s Enterprise Surveys benchmark the business environment based on actual experiences of firms.
This blog focuses on surveys conducted of 781 Kenyan firms across five regions (including Nairobi and Mombasa) and six business sectors—i) food, ii) textiles and garments, iii) chemicals, plastics and rubber, iv) other manufacturing, v) retail, and vi) other services.
Under Kenya’s new constitution, the country recently embarked on several major business reforms that promoted a more market-friendly environment. Some examples of positive benefits include boosts in public investment in infrastructure, increased interest from foreign investors, and lowered transaction costs from information technology improvements. The Kenya Enterprise Surveys sheds light on how the country’s private sector fared amidst these reforms.
More firms use financial services than before
According to the Kenya Enterprise Surveys (ES) data, the use of financial services has improved since 2007. On average, 44% and 41% of Kenyan firms use banks to finance investment and working capital, respectively. The corresponding figures in 2007 were much lower at 23% and 26%. Moreover, the percentage of Kenyan firms with a bank loan is 36%, which is on par with the global average yet higher than the average of countries in the same income group (do note that when this survey was conducted, Kenya was classified as a low income country, having since graduated to a lower middle income country).
The World Bank Group’s Enterprise Surveys benchmark the business environment based on actual experiences of firms. In a new blog series we kicked off last week, we’re sharing these findings from recently analyzed surveys conducted through extensive face-to-face interviews with managers and owners of firms in several countries.
In this post we focus on Afghanistan. We’ve conducted a survey with 410 firms across five regions and four business sectors—manufacturing, construction, retail, and services.
The International Monetary Fund (IMF) has noted that considerable political and security uncertainties have posed challenges for Afghanistan. Furthermore, the financial sector has been vulnerable with eight out of 15 banks classified as weak in late 2014. Within this context, the Afghanistan Enterprise Surveys (ES) shed light on several interesting findings:
Corruption is a challenge
According to the Afghanistan Enterprise Survey, firms face almost a 50 percent chance of having to pay a bribe if they applied for an electricity connection, tried to obtain permits, or met with government officials for tax purposes (“Bribery incidence”). This is more than double of what private firms in landlocked developing countries experience on average.
The private sector continues to be a critical driver of job creation and economic growth. However, several factors can undermine the private sector and, if left unaddressed, may impede development. Through extensive face-to-face interviews with managers and owners of firms, the World Bank Group's Enterprise Surveys benchmark the business environment based on actual experiences of firms. A series of blogs, starting today, share the findings from recently analyzed surveys conducted in several countries.
The Namibia Enterprise Surveys consisted of 580 interviews with firms across three regions and three business sectors – manufacturing, retail, and other services. So what are some key highlights from the surveys?
Exports take on average 8 days to clear through customs but varies according to firm size
In 2013, it took a firm in Namibia about eight days to clear exports through customs, which is considerably more than the two days it took in 2006. Despite this increase, the average time to clear direct exports through customs is still about the same as in the upper middle income countries (8 days) and lower than the Sub-Saharan Africa regional average (10 days). Moreover, there is a wide variation across firm size. For a small firm, it takes about 17 days on average to clear exports through customs, compared to around six days for medium-sized firms and about two days for large firms.
Clearing imports, in contrast, through customs is considerably faster in Namibia (five days) than the average for upper middle income countries (11 days) and Sub-Saharan Africa average (17 days).
Open data for economic growth continues to create buzz in all circles. We wrote about it ourselves on this blog site earlier in the year. You can barely utter the phrase without somebody mentioning the McKinsey report and the $3 trillion open data market. The Economist gave the subject credibility with its talk about a 'new goldmine.' Omidyar published a report a few months ago that made $13 trillion the new $3 trillion. The wonderful folks at New York University's GovLab launched the OpenData500 to much fanfare. The World Bank Group got into the act with this study. The Shakespeare report was among the first to bring attention to open data's many possibilities. Furthermore, governments worldwide now routinely seem to insert economic growth in their policy recommendations about open data – and the list is long and growing.
Geographic distribution of companies we surveyed. Here is the complete list.
We hope to publish a detailed report shortly but here meanwhile are a few of the regional findings in greater detail.
One of the key policy drivers for Open Data has been to drive economic growth and business innovation. There's a growing amount of evidence and analysis not only for the total potential economic benefit but also for some of the ways in which this is coming about. This evidence is summarised and reviewed in a new World Bank paper published today.
There's a range of studies that suggest that the potential prize from Open Data could be enormous - including an estimate of $3-5 trillion a year globally from McKinsey Global Institute and an estimate of $13 trillion cumulative over the next 5 years in the G20 countries. There are supporting studies of the value of Open Data to certain sectors in certain countries - for instance $20 billion a year to Agriculture in the US - and of the value of key datasets such as geospatial data. All these support the conclusion that the economic potential is at least significant - although with a range from "significant" to "extremely significant"!