Wednesday, February 14, 2007
Pakistan, India reforming: WB
By Khalid Hasan
WASHINGTON: India and Pakistan have been credited by a new World Bank report with taking steps to improve their business environment. However, the pace of reform in South Asia during 2005-06 was found to be slower than in any other region of the world.
The report finds that entrepreneurs in South Asia face large regulatory obstacles to doing business. For example, it takes 18 months of salary, on average in the region, to dismiss a redundant worker. More than a year (425 days) is needed to register property in Bangladesh.
Taxes are high and a standard company in India pays 81 percent of commercial profits in taxes, while in Pakistan, it takes 560 hours per year to comply with all tax regulations. However, good practices do exist within Bangladesh, India, and Pakistan.
The report team found that if each city in these countries mimicked the best practices followed in other cities within the country. For India to jump 55 places in the ease of ââ¬ÅDoing Businessââ¬Â rankings, it would need to adopt Jaipurââ¬â¢s regulations on starting a business, Bhubaneshwarââ¬â¢s rules on contract enforcement and taxes, and Chennaiââ¬â¢s trade practices.
Adopting these would move Indiaââ¬â¢s current global ranking from 134th to 79th. In Pakistan, implementing each cityââ¬â¢s best practice would result in a 22-place jump in the global Doing Business rankings, from 74th to 52nd place.
The report says as a region, South Asia performs comparatively well in business start-up and protecting investors. It lags far behind, however, on the ease of employing workers, enforcing contracts, and trading across borders. For example, resolving commercial disputes through the courts is more time-consuming in South Asia than in any other region. On average it takes almost three years or 969 days.
The report finds that complex and costly business regulations push workers into the underground economy. In India, over eight million workers have formal jobs in the private sector. Sri Lanka has over four million workers in formal private sector jobs.
In Bangladesh, seven million workers have formal jobs in the private sector. In northern European countries, where it is easy to do business and people benefit from social protection, less than eight percent of all economic activity occurs in the underground economy.
http://www.dailytimes.com.pk/default.asp?page=2007\02\14\story_14-2-2007_pg7_6
Pakistan, India reforming: WB
By Khalid Hasan
WASHINGTON: India and Pakistan have been credited by a new World Bank report with taking steps to improve their business environment. However, the pace of reform in South Asia during 2005-06 was found to be slower than in any other region of the world.
The report finds that entrepreneurs in South Asia face large regulatory obstacles to doing business. For example, it takes 18 months of salary, on average in the region, to dismiss a redundant worker. More than a year (425 days) is needed to register property in Bangladesh.
Taxes are high and a standard company in India pays 81 percent of commercial profits in taxes, while in Pakistan, it takes 560 hours per year to comply with all tax regulations. However, good practices do exist within Bangladesh, India, and Pakistan.
The report team found that if each city in these countries mimicked the best practices followed in other cities within the country. For India to jump 55 places in the ease of ââ¬ÅDoing Businessââ¬Â rankings, it would need to adopt Jaipurââ¬â¢s regulations on starting a business, Bhubaneshwarââ¬â¢s rules on contract enforcement and taxes, and Chennaiââ¬â¢s trade practices.
Adopting these would move Indiaââ¬â¢s current global ranking from 134th to 79th. In Pakistan, implementing each cityââ¬â¢s best practice would result in a 22-place jump in the global Doing Business rankings, from 74th to 52nd place.
The report says as a region, South Asia performs comparatively well in business start-up and protecting investors. It lags far behind, however, on the ease of employing workers, enforcing contracts, and trading across borders. For example, resolving commercial disputes through the courts is more time-consuming in South Asia than in any other region. On average it takes almost three years or 969 days.
The report finds that complex and costly business regulations push workers into the underground economy. In India, over eight million workers have formal jobs in the private sector. Sri Lanka has over four million workers in formal private sector jobs.
In Bangladesh, seven million workers have formal jobs in the private sector. In northern European countries, where it is easy to do business and people benefit from social protection, less than eight percent of all economic activity occurs in the underground economy.
http://www.dailytimes.com.pk/default.asp?page=2007\02\14\story_14-2-2007_pg7_6
