Luis Aldo Sánchez-Ortega

3rd Regional Competitiveness Conferencein Southeast Europe

Przno, May 20-22, 2008

in South East Europe 2008

• Extends Doing Business indicators beyond the most populous city to other cities

• Combines the media appeal of Doing Business with a strategy to actively involve local governments in reform process

• It creates demand for other WB/IFC products and converts WB/IFC BEE teams into reform facilitators

Why expand Doing Business to the subnational level?

Diagnostic tool Reform instrument M&E instrument

• Creates baseline• Allows locations to compete

locally and globally• Entry point in countries averse

to international comparisons• Puts regulatory reform on

political agenda

• Comparisons within countries are strong drivers of reform

• Uncovers bottlenecks and local good practices

• Promotes peer to peer learning

• Measures progress over time

• Creates an incentive to maintain reform effort even when governments change

Albania: ShkodraVlora

Bosnia and Herzegovina: Banja Luka

Mostar

Croatia: Osijek ŠibenikVaraždin

Macedonia: Bitola

Montenegro: Nikšić Pljevlje

Kosovo: PrištinaPrizren

Serbia: KruševacUžice

Vranje Zrenjanin

Doing Business in SEE… covering 16 cities

Doing Business in SEE… measuring 4 indicators

• Benchmarking the ease doing business in the SEE region

• Selected indicators: Starting a businessDealing with construction licensesRegistering propertyEnforcing contracts

• Why these indicators? Because these are areas where local governments have administrative and legislate competence

Subnational Doing Business has projects all around the globe

2005200620072008

Countries: 32

Cities: 230

Countries/RegionsGlobal ranking DB 2008

Hypothetical city ranking

South East Europe 75-136 9India 134 79*Pakistan 76 52OECS 27-85 14* Colombia 66 35México 43 33*Egypt 126 106Morocco 129 113China 83 67

Subnational DB uncovers best practices within a country

*2007 data

• Great initial impact. Political support for reform efforts has continued even after two rounds of local elections and one presidential election since first benchmark.

• Capacity-building strategy: methodology transferred to local think-tank with support from Mexican Government and FIAS quality control

• Led to reform assistance requests to IFC from 3 states.

Doing Business in Mexico 2006, 2007 and 2008: sustained development results

75%

2006 - 2007 2007 - 2008

94%

12 states

31 states

Reformers Non-reformers

9 reformers

29 reformers

http://Subnational.doingbusiness.org

Links to specific country subnational websites

General description

Detailed information in 5 languages

2nd phase: Merge global

and SDB databases

Launching conference

presentations

Names of all the people involved in SBD projects

Services for clients and

public in general

http://Subnational.doingbusiness.orgCountry reports’

general description

Main findings

Data analysi

s

Rankings

Free reports in local language

and English

National reform simulator

http://subnational.doingbusiness.org

Doing Business