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Georgia Number One Worldwide in Registering Property According to Doing Business 2012

Published: October 20, 2011 | 12:29 pm
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The COMMERCIAL TIMES

Washington D.C., October 20, 2011— A new IFC and World Bank report finds that for the ninth consecutive year, Eastern Europe and Central Asia led other regions in improving regulations for entrepreneurs.

Released today, Doing Business 2012: Doing Business in a More Transparent World assesses regulations affecting domestic firms in 183 economies. The report ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency, and trading across borders. The study’s methodology expanded this year to include indicators on getting electricity connections.

This year, Georgia, ranked 16th among 183 economies, has made yet another step forward progressing to 16th rank globally from 17th in 2011 in accordance with changed methodology and a new indicator getting electricity, which resulted in recalculation of last year’s 12th rank. Georgia leads the region in the ease of doing business remaining the only transition economy in the top 20, and the highest ranked economy in the Central and Eastern Europe. The report also praises Georgia for being the most successful country in the period of 2005-2011 in advancing to close the gap to the frontier.

Georgia continued its broad program of reform by simplifying business start-up, and expanding access to credit. Since 2005, it has introduced new company and customs codes, a revamped property registry, broad judicial reform, and a credit bureau. Past year Georgia reformed in the following areas of business regulation: Starting a business, Getting credit (legal rights), Protecting investors, Paying taxes. It ranks in the top ten in four indicators, and for the first time leads the ranking in Registering Property being #1 worldwide.

Specifically, Georgia made it easier to start a business by eliminating the requirement to visit a bank to pay the registration fees. In addition, the country expanded access to credit by amending its civil code to broaden the range of assets that can be used as collateral. Georgia strengthened investor protections by introducing requirements relating to the approval of transactions between interested parties. Finally, it made paying taxes easier for firms by simplifying the reporting for value added tax and introducing electronic filing and payment of taxes.

This past year, 21 of the region’s 24 economies improved business regulations for domestic firms by implementing a total of 53 reforms in areas such as resolving insolvency, dealing with construction permitting, enforcing contracts, and protecting investors. Amid a global economic crisis, 40 percent of the region’s economies improved insolvency proceedings by implementing such measures as amended bankruptcy laws.

New data show that improving access to information on business regulations helps entrepreneurs.  “Increasing transparency and access to regulatory information is important to creating a healthier business environment,” said Sylvia Solf, lead author of the report. “To date, 60 percent of economies in Eastern Europe and Central Asia provide easy access to fee schedules or documentation requirements for trade, business start-up, construction permits, or electricity connections.”

A new measure that looks at how economies changed their business regulations over the past six years shows that all economies in Eastern Europe and Central Asia have made their regulatory environments more business-friendly. “Research shows that a streamlined business regulatory environment helps a country’s economic growth,” said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group. “By simplifying regulations and expanding access to credit, countries in Eastern Europe and Central Asia continue to enhance opportunities for entrepreneurs.”

About the Doing Business report series

Doing Business analyzes 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. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, the level of skills, or the strength of financial systems. Its findings have stimulated policy debates in more than 80 economies and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. For more information about the Doing Business report series, please visit: www.doingbusiness.org. Join us on Facebook: http://www.facebook.com/DoingBusiness.org.

About the World Bank Group

The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.

 

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