1. Doing Business Report- Fiji Aniruddha Kolekar S11109999 MBA434 TRIMESTER 3 2014 South Pacific Business Environment 23December2014 1 2. Contents A. INTRODUCTION --------------------------------------------------------- B. KEY INDICATORS FOR FIJI The business environment Starting a business Protecting investors Paying taxes Enforcing Contracts ---------------------------------------------------------- C. ANALYSIS OF REPORT Limitations to the Report Counterview Conclusion Recommendations References 23December2014 2 3. Introduction The ease of doing business index ranks economies from 1 to 189 These are percentile rankings on each of the 10 topics included in the index in Doing Business 2014: 1. Starting a business 2. Dealing with construction permits 3. Getting electricity 4. Registering property 5. Getting credit 6. Protecting investors 7. Paying taxes 8. Trading across borders 9. Enforcing contracts 10. Resolving insolvency. Note-: The Employing Workers indicators are not included in this years aggregate ease of doing business ranking. 23December2014 3 Doing Business 2014 4. Introduction Fiji Fact Sheet 23December2014 4 5. The business environment 1-EaseofdoingBusiness-Overall 23December2014 5 6. The business environment 1-EaseofdoingBusiness-MajorEconomicView Source: The World Bank and International Finance Corporation, Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises (released 29 October 2013); Austrade 23December2014 6 7. The business environment 2-FijiRankingonDoingBusinessKeyIndicators Highlights-: Resolving Insolvency Tops the list Investor protection is better than Austria (98),Australia (68) Starting a business is pain !!! 23December2014 7 8. Starting a Business 1-Whatittakes? Highlights-: 1. Requires 11 procedures 2. Takes 59.0 days 3. Costs 23.1% of income per capita 23December2014 8 9. Starting a Business 2-DidReformsHelped? 23December2014 9 10. Starting a Business 3-WhatisGlobalGoodPractice? 10 New Zealand Australia Canada Singapore Macedonia FYR Hong Kong SAR, China Georgia Rwanda Belarus Ireland No or minimal minimum capital requirement Standardized forms No courts involved Fixed registration fee No publication in legal journal required 10 23December2014 11. Protecting Investors 1-WheredoesFijistand? 1111 Highlights-: 1. Best ranking among all indicators 2. Better in Region 3. Indicates Govt. Policies 23December2014 12. Paying Taxes 1-Current Position 1212 Highlights-: 1. On average, firms make 38 tax payments a year 2. Spend 185 hours a year filing, preparing and paying taxes 3. Pay total taxes amounting to 31.2% of profit 23December2014 13. Paying Taxes 2-MoreInsight! 1313 23December2014 14. Enforcing Contracts 1-Current Position 1414 Highlights-: 1. Contract enforcement takes 397 days 2. Costs 38.9% of the value of the claim 3. Requires 34 procedures 23December2014 15. 1515 1. The collected data refer to only businesses in the economys largest business city. 2. The data often focus on a specific business form generally a limited liability company. 3. Transactions described to a specific set of issues and may not represent the full set of issues a business encounters. 4. The measures of time involve an element of judgment by the expert respondents. 5. The methodology assumes that a business has full information on what is required and does not waste time when completing procedures Doing Business Report Limitations 23December2014 16. Doing Business Report ACounterview! .World Bank that says the 'Doing Business' index should be overhauled. Using the index components to get an understanding of the business environment is the proposed alternative. The Doing Business report has the potential to be misinterpreted, says an independent panel of the World Bank. It should not be viewed as providing a one-size-fits-all template for developmentThe evidence in favor of specific country reforms is contingent on many auxiliary factors not captured by Doing Business report topics, the paper specified. 23December2014 16 17. Doing Business Report Conclusion 1. The indicators document the complexity of regulation, such as the number of procedures to start a business or to register and transfer commercial property. 2. They gauge the time and cost to achieve a regulatory goal or comply with regulation 3. They measure the extent of legal protections of property, for example, the protections of investors against looting by company directors 4. A set of indicators documents the tax burden on businesses 5. A set of data covers different aspects of employment regulation 23December2014 17 18. Doing Business Report Recommendations 1. Mandate and Alignment with other knowledge products What world bank wants to achieve by this report? 2. Selection and construction of indicators Can one measure fit for all? 3. Ranking Can create controversies and the bank can choose individual indicator ranking and dropping overall ranking 4. Governance Total reliance on report team can be harmful and bank may consider third party review of the team and reports 23December2014 18 19. Doing Business Report References 1. Youtube- World bank surveys 2. Doing Business Report Review Panel-World Bank 3. Doing Business-Australia Report 4. Wikipedia.com 5. IMF website 6. FIRCA website-Fiji Factsheet 7. Linked In Group-GGP in surveys 8. Slideshare.com- Economic survey indicators 23December2014 19