Transcript Presentation - Doing Business

DOING BUSINESS
IN ITALY 2013
Smarter Regulations for
Small and Medium-sized Enterprises
Augusto Lopez-Claros
Director, Global Indicators & Analysis
World Bank-IFC
Rome, Italy - November 14, 2012
Doing Business indicators reflect on some of
the most important obstacles firms face
 Based on Enterprise
Surveys in 118
countries around the
world
 Direct responses from
representative
samples of the
private sector
 Access to finance,
electricity, informality
and tax rates are the
top obstacles across
the developing world
Percent of firms identifying the problem as the main
obstacle to their business activity
0%
2%
4%
6%
8%
10%
12%
14%
16%
Access to finance
15.8%
Electricity
14.3%
Informality
11.1%
Tax rates
11.0%
Political instability
7.9%
Inadequately educated workforce
7.8%
Corruption
6.7%
Crime, theft and disorder
5.8%
Customs and trade regulations
3.3%
Transport
3.3%
Access to land
3.1%
Tax administration
2.9%
Business licensing and permits
2.8%
Labor regulations
Courts
18%
2.6%
0.9%
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The Doing Business indicators have a
strong theoretical foundation
 The Regulation of Entry: Countries that regulate entry more heavily have greater corruption and
larger unofficial economies, but not better quality of public or private goods.
 Private Credit in 129 Countries: Creditor protection through the legal system and information
sharing institutions such as credit bureaus are associated with higher ratios of private credit to
GDP. Credit rises after improvements in creditor rights and in information sharing.
 Trading on Time: Each additional day that a product is delayed prior to being shipped reduces
trade by more than one percent.
 Courts: Procedural formalism is associated with higher expected duration of judicial proceedings,
more corruption, less consistency, less honesty, less fairness in judicial decisions, and inferior
access to justice
 The Regulation of Labor: Heavier regulation of labor is associated with a larger unofficial
economy, lower labor force participation, and higher unemployment, especially of the young
 The Effect of Corporate Taxes on Investment and Entrepreneurship: The corporate tax rate has a
large adverse impact on aggregate investment, FDI, and entrepreneurial activity. It is also
correlated with investment in manufacturing as well as with the size of the informal economy.
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Doing Business indicators – 11 areas of business
regulation (10 included in the DB2013 ranking)
covering 185 economies
Start-up
Expansion
Starting a business
Registering property
Minimum capital
requirement,
procedures, time and
cost
Operations
Procedures, time and cost
Dealing with construction
permits
Resolving
insolvency
Getting credit
Procedures, time and cost
Credit information systems
Paying taxes
Time, cost and
recovery rate
Movable collateral laws
Payments, time and Total
Tax Rate
Protecting investors
Trading across borders
Disclosure and liability in
related party transactions
Documents, time and cost
Getting electricity
Enforcing contracts
Procedures, time and cost
Procedures, time and cost
to resolve a commercial
dispute
Entry
Insolvency
Property rights
Investor protection
Access to credit
Employing workers (annex)
Administrative burden
Flexibility in hiring
4
Recovery rate
Reallocation of
assets
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How does Doing Business measure
a country’s ease of doing business?
1
Singapore
Top ranked countries in DB2013
 The overall ease of doing business:
2
Honk Kong SAR, China
3
New Zealand
(2) Dealing with construction permits
4
United States
(3) Getting electricity
5
Denmark
(1) Starting a business
(4) Registering property
(5) Paying taxes
6
Norway
7
United Kingdom
(7) Enforcing contracts
8
Korea, Rep.
(8) Protecting investors
9
Georgia
(6) Trading across borders
(9) Getting credit
(10) Resolving insolvency
10
Australia
5
Economies that rank high on the ease of doing
business tend to combine efficient regulatory
processes with strong legal institutions
OECD high-income economies have the most business-friendly regulatory
environment on both dimensions
6
Italy’s performance in Doing Business 2013
 Italy, represented by Rome, ranks 73 out of 185 economies
on the ease of doing business.
 Since 2005 Italy has implemented a total of 14 institutional or
regulatory reforms.
7
Italy’s reforms improved various
regulatory processes since 2005
8
What do Subnational reports add?
•
Expand Doing Business indicators beyond the city measured by
the annual report
•
Include rules and regulations at all levels of government
•
Capture local differences in regulations or enforcement
•
Provide information on good practices within the same country that
can be easily replicated
•
Give specific locations an opportunity to tell their story
•
Provide a tool for locations to compete with 185 economies
•
Combine Doing Business media appeal with active participation of
subnational governments in the reform process
9
Subnational reports in over 50 countries
•
Government buy-in
7 reports funded directly by
client governments
• 15 economies with 2nd or
3rd-round reports
Broad coverage
Over 50 economies included
•
• Over 350 cities covered
• BRICs + M included
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What does Doing Business in Italy 2013
cover?
 4 indicators in 13 cities
Port of Trieste
1. Starting a business
Padua
Milan
Turin
2. Dealing with construction
permits
Bologna
3. Registering property
Port of Genoa
4. Enforcing contracts
L’Aquila
Campobasso
Rome
Cagliari
and the
port of
Cagliari
Palermo and
the port of
Catania
Naples and the
Port of Naples
Potenza
Bari and
the port
of Taranto
 Trading across borders
indicator in 7 ports
 Data collected from 370
contributors is current
as of June 2012
Catanzaro and the
port of Gioia Tauro
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No city outperforms
the others in all areas
City
Ease of starting
a business
Ease of dealing
with construction
permits
Ease of registering
property
Ease of enforcing
contracts
Bari, Apulia
Bologna, Emilia-Romagna
Cagliari, Sardinia
Campobasso, Molise
Catanzaro, Calabria
L’Aquila, Abruzzo
Milan, Lombardy
Naples, Campania
Padua, Veneto
Palermo, Sicily
Potenza, Basilicata
Rome, Latium
Turin, Piedmont
6
4
11
13
1
9
8
12
2
5
3
7
10
9
1
2
8
10
3
3
11
5
12
13
6
7
7
1
6
3
5
9
7
3
12
2
11
13
9
13
11
5
5
7
8
10
2
12
9
3
4
1
12
Trading across borders
Transshipment and
regional ports
Gateway ports
1
2
3
Genoa, Liguria
Trieste, Friuli Venezia Giulia
Naples, Campania
1
2
3
4
Catania, Sicily
Taranto, Apulia
Gioia Tauro, Calabria
Cagliari, Sardinia
13
Registering property in Bologna, Naples or
Palermo — faster than in Japan
14
Local building permits drive time and cost
variations in Dealing with construction permits
h
15
Starting a business
is fast but expensive
16
It is faster to enforce a contract inTurin
17
Exporting — slower than in the
average EU economy
18
Italian cities can learn from each other
Doing
Business
indicator
Best practices within Italy
6 procedures
Starting a
business
6 days
12.2% of income per capita
9.7% of income per capita
minimum capital requirement
11 procedures
Dealing with
construction 151 days
permits
45.1% of income per capita
Registering
property
Enforcing
contracts
Bari, Bologna, Cagliari,
Catanzaro, L’Aquila, Milan,
Naples, Padua, Palermo,
Potenza, Rome, Turin
Milan, Padua, Rome
Bari
78
84
33
103
26
39
123
160
All cities
Cagliari, Rome
Milan
Naples
13 days
4.3% of property value
Bologna, Milan, Naples,
Palermo, Rome, Turin
Bologna, Naples, Palermo
Catanzaro
41 procedures
All cities
855 days
20.5% of claim value
Turin
Potenza
3 procedures
Italian best
Italy’s performance
practices compared
in DB2013,
internationally
represented by
(global rank)
Rome (global rank)
Ease of doing business (Hypothetical city “Italiana”)
56
19
73
More new firms are registered after reforms making
it easier to start a business
20
Good business regulations and governance
In countries where business regulation is efficient and information
on documentation requirements and fee schedules is easily
accessible, the costs to start a business are much lower.
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Thank you. For more information:
www.doingbusiness.org
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