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Starting a business in Madagascar

Starting a business in Madagascar. China Penelope J. Brook, Director, Indicators and Analysis Financial & Private Sector Development. Doing Business Indicators. Focus on Steps, Time and Cost is Doing Business Basic Methodology.

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Starting a business in Madagascar

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  1. Starting a business in Madagascar China Penelope J. Brook, Director, Indicators and Analysis Financial & Private Sector Development

  2. Doing Business Indicators

  3. Focus on Steps, Time and Cost isDoing Business Basic Methodology Starting a business in Mexico  8 procedures that take 27 days and 13.3% of income 14% 30 Cost (right axis) 12% 25 10% 20 8% Cost (% of GNI per capita) Time (number of days) 15 6% 10 4% Time (left axis) 5 2% Register at the SIEM 0% 0 File a notice with INEGI Authorize company name Register with IMSS Register with federal tax authorities Notice of opening of mercantile establishment Register public commercial register Notarize company deeds & register for tax

  4. Top 30 on the Ease of Doing Business —2007

  5. Top Reformers in 2006-07

  6. China and the Region Singapore 1 Hong Kong, China 4 Japan 12 Thailand 15 Malaysia 24 Korea 30 Brunei 78 China 83 Vietnam 91 Indonesia 123 Philippines 133 Cambodia 145 Lao PDR 164 Timor-Leste 168

  7. China Highlights • A top 10 reformer globally for second year in a row in 2007 • #83 in ease of doing business, up by 9 places • Improved in 3 of the 10 indicators studied by Doing Business: • Dealing with licenses • Getting credit • Closing a business

  8. China’s Overall Ranking: #83

  9. More Reforms, Higher Equity Returns 90% 80% Egypt 70% Colombia 60% Brazil 50% Poland 40% India China 30% Sri Lanka 20% 10% Venezuela 0% -6 -4 -2 0 2 4 6 8 10 12 Number of reforms, 2003-06

  10. Business Friendly Regulation Leads toMore Registered Businesses and Start-ups Business Density (registered firms per capita) Business Entry (new firms in % of registered firms) Most difficult Most difficult Easiest Easiest Countries ranked by ease of doing business, quintiles Source: Doing Business database

  11. …Which Means More Formal Employment Informal Sector (% of GDP) Unemployment (% of labor force) Most difficult Most difficult Easiest Easiest Countries ranked by ease of doing business, quintiles Source: Doing Business database, WDI

  12. Why Expand Doing Business to the Sub-National Level? Diagnostic tool Reform instrument M&E instrument • Comparisons within countries are strong drivers of reform • Uncovers bottlenecks and local good practices • Promotes peer to peer learning • Creates baseline • Allows locations to compete locally and globally • Entry point in countries averse to international comparisons • Puts regulatory reformon political agenda • Measures progress over time • Creates an incentive to maintain reform effort even when governments change • Extends Doing Business indicators beyond the most populous city • Actively involves local governments in the reform process

  13. Subnational DB Uncovers Best Practices within a Country *2007 data

  14. To learn more about Doing Business http://chinese.doingbusiness.org

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