Sub-National Doing Business in the Philippines 2011

8/3/2019 Sub-National Doing Business in the Philippines 2011

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Sub-Nationa l Doing Business in the Philipp ines 2011Asian Urban Forum, November 15, 2011

Lai-Lynn A. B. BarcenasAIM Policy Center


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What does Doing Business measure?

Why expand the Doing Business to the subnational level?

What are the key findings of the study?

How easy is it to get the necessary permits to start a business,

construct a warehouse, and transfer land title?

What are the global good practices in the Philippines?

Outline of Presentation


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What does Doing Businessmeasure?

Doing Businessindicators:

Focus on regulations relevant to the lifecycle of a small to medium-sized domesticbusiness in the largest business city

Are built on standardized case scenarios

The objective: efficient regulations,accessible to all, and simple to implement

DO NOT measure all aspects of the business environment such as macroeconomicstability, corruption, level of labor skills, proximity to markets, or of regulation specific toforeign investment or financial markets.

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Closer to an apples- to- apples comparison

Expands Doing Businessbeyond the largest business city

Captures local differences in regulations or enforcement

Gives specif ic locations an opportunit y to tell their story

and provides a tool for locations to compete globally

Provides informat ion on good practices within the samecount ry that can be easily repl icated

Why expand Doing Businesstothe subnational level?


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Doing Business in the Philippines

2011 covers 25 cities

Doing Business in the Philippines2011 updates 2008 data and expandsthe analysis to 25 cities. The studymeasures national and localregulations across the country in 3areas of the life of a business:

1. starting a business

2. dealing with constructionpermits

3. registering property

Second in a series of reportsundertaken in partnership with theAsian Institute of Management Policy

Center

Data collected with the help ofmore than 500 private sectorcontributors and public sector officials


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65% of cities benchmarked in 2008 and again in 2010 haveimproved in at least one area measured

Computerization and multiple service providers make it easier todo business, lower transaction costs and increase transparencyacross the Philippines

High number of procedures continues to be a challenge forentrepreneurs

Wide variation in local business regulation across the countrypoints to ample room for further business reforms

National level business reforms needed for more results Cities can learn from the existing good practices of their peers and

become more competitive nationally and globally

Key findings


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19 business reforms since 2008made it easier to do business in thePhilippines

City or departmental reforms Implementation of national reforms

Start ing abusiness

Dealing withconstruction

permits

Registeringproperty

Start ing abusiness

Dealing withconstruction

permits

Registeringproperty

Caloocan Cebu City Davao City Las Pias

Makati

Malabon Mandaluyong

Mandaue Manila Marikina

Muntinlupa

Navotas Paraaque Pasay Quezon City San Juan Taguig

Valenzuela


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Too many requirements to start abusiness


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Majority of permit requirementsduring pre- and post-constructionphases


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Variation in time and cost toregister property


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Philippine cities have goodpractices

Indicator

Global Rank

(183 economies)

Days to deal with construction permits

Zamboanga City (46 days) 5

Days to register property

Mandaluyong (22 days) 49

Cost to register property

Mandaue (3.35% of property value) 64

Cost to deal with construction permitsDavao City (94.24% of income per capita) 67


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but there is room forimprovement

Indicator

Global Rank Range

(183 economies)

Number of procedures to register property

8-9 procedures 137-159

Number of procedures to deal with construction

permits

25-36 procedures 155-178

Number of procedures to start a business15-22 procedures 175-183


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Thank youwww.doingbusiness.org/philipines

www.policy.aim.edu

The project was funded by the

International Finance Corporation of the World Bank Group,

Australian Agency for International Development (AusAid),

Canadian International Development Agency (CIDA), and

United States Agency for International Development (USAID) through theirLocal Implementation of National Competitiveness for Economic GrowthProgram (LINC-EG).

Sub-National Doing Business in the Philippines 2011

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