Ulaanbaatar, October 29, 2014 - Budding local entrepreneurs in East Asia and the Pacific continue to see improvements in the business environment, according to a new World Bank Group Doing Business 2015: Going Beyond Efficiency. The region’s economies implemented 24 regulatory reforms in the past year alone. Indonesia improved prospects for local entrepreneurs by implementing three regulatory reforms in 2013/14 in areas measured by the report. Across cities, the approval process for business incorporation was streamlined and labor taxes were reduced. In Jakarta, the process for getting an electricity connection was speeded up by eliminating the need to obtain multiple certificates.
The data show that many economies in the region, including Mongolia, made it easier for businesses to pay taxes in the past year. Vietnam reduced the corporate income tax rate, and China enhanced its electronic filing and payment system—while also making business incorporation less expensive. Mongolia introduced a new electronic payment system for taxes. Such reforms are saving entrepreneurs valuable time. In Mongolia, for example, local businesses saw the average time for tax compliance fall from 192 hours a year in 2013 to 148 hours—less than in Austria. Mongolia was also highlighted for improving transparency for investors by expanding disclosure requirements for related-party transactions.
The World Bank Group’s Trade and Competitiveness Global Practice has worked closely with the Mongolian government to support regulatory reforms. Streamlining permits and inspections, for example, will help ease the administrative burden on SMEs, allowing them to focus on growth and job creation.
“The important thing is for Mongolia to keep moving forward in its efforts to make the regulatory environment simpler and more efficient. Mongolia’s reforms have been highlighted in the Doing Business series for several years now, and we hope this continues,” said James Anderson, World Bank Country Manager for Mongolia. “We know from experience how important a clean and efficient business environment is for small and medium enterprises, and for reducing poverty. The World Bank Group will continue to support Mongolia’s business environment reform agenda.”
Doing Business 2015 finds that Singapore continues to provide the world’s most business-friendly regulatory environment. Also among the top 10 economies in the ease of doing business ranking are New Zealand; Hong Kong SAR, China; the Republic of Korea; and Australia.
About the Doing Business report series
The annual World Bank Group flagship Doing Business report 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. 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 management, 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 environment 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. For more information about the Doing Business reports, please visit doingbusiness.org and join us on doingbusiness.org/Facebook.
About the World Bank Group
The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and ifc.org.