Makati City, December 08, 2010

1. Makati City, December 08, 2010 JanamitraDevan Vice President Financial and Private Sector Development The World Bank and International Finance Corporation Tanya Lat Project Manager AIM Policy Center

2. What does Doing Business measure? • Doing Business indicators: • Focus on regulations relevant to the life cycle of a small to medium-sized domestic business 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 macroeconomic stability, corruption, level of labor skills, proximity to markets, or of regulation specific to foreign investment or financial markets. 2

3. Doing Business indicators – 11 areas of business regulation (9 included in the ranking) Property rights Investor protection Access to credit Recovery rate Reallocation of assets Administrative burden Flexibility in hiring Entry • 1 Footnote goes here (add tab after number for proper alignment). 10 pt Arial regular. • Source: Place here. 10 pt Arial regular.

4. Top 30 economies on the ease of Doing Business 2009/10 148. Philippines

5. Economies in East Asia & the Pacific were among the most active in making it easier for local firms to do business in 2009/10 Percentage of countries with at least one positive improvement in 2009/10 Eastern Europe and Central Asia OECD high Income 61% 75% 47% 63% 59% 67% 84% Middle East and North Africa East Asia and Pacific South Asia Latin America and Caribbean Sub-Saharan Africa 5

6. Why expand Doing Business to the subnational level? • Closer to an apples-to-apples comparison • Expands Doing Business beyond the largest business city • Captures local differences in regulations or enforcement • Gives specific locations an opportunity to tell their story and provides a tool for locations to compete globally • Provides information on good practices within the same country that can be easily replicated

7. Doing Business in the Philippines 2011 covers 25 cities Luzon: Batangas City, Caloocan, Las Piñas, Makati, Malabon, Mandaluyong, Manila, Marikina, Muntinlupa, Navotas, Parañaque, Pasay, Pasig, Quezon City, San Juan, Taguig, Valenzuela Visayas: Cebu City, Iloilo City, Lapu-Lapu, Mandaue Mindanao: Cagayan de Oro, Davao City, General Santos, Zamboanga City • Doing Business in the Philippines 2011 updates 2008 data and expands the analysis to 25 cities. The study measures national and local regulations across the country in 3 areas of the life of a business: • 1. starting a business • 2. dealing with construction permits • 3. registering property • Second in a series of reports undertaken in partnership with the Asian Institute of Management Policy Center • Data collected with the help of more than 500 private sector contributors and public sector officials

8. Key findings • 65% of cities benchmarked in 2008 and again in 2010 have improved in at least one area measured • Computerization and multiple service providers make it easier to do business, lower transaction costs and increase transparency across the Philippines • High number of procedures continues to be a challenge for entrepreneurs • Wide variation in local business regulation across the country points 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

9. 19 business reforms since 2008 made it easier to do business in the Philippines

10. Manila made starting a business easier in 2009/10 thanks to local level reforms Manila introduced a one-stop shop for the municipal license and cut the inspection by the mayor’s office, reducing start-up time by 15 days Time cut from 53 to 38 days 1 procedure cut

11. Why business regulation reform matters • Easier business entry means more new firms: evidence from empirical research Mexico • Impact of the reduction of registration procedures through the introduction of One-Stop Shops and the elimination of federally required procedures • Increase in the number of new firms of about 6% • Increase in employment by 2.6% • Consumer Price Index decrease by 1% due to competitive pressures of new entrants Colombia • Impact of the introduction of One-Stop Shops in 6 cities: • Increase of 5.2% in the number of new firms India • Impact of the elimination of License Raj in 16 states over 64 industries: • Increase in the number of new firms by 6%

12. Too many requirements to start a business

13. Wide variation in time and cost to start a business

14. 9 of 20 cities benchmarked in 2008 made it easierto start a business

15. Majority of permit requirements during pre- and post-construction phases

16. 90% of construction permit cost relates to electricityconnection

17. Variation in time and cost to register property

18. 6 of 20 cities benchmarked in 2008 made it easier to register property

19. Philippine cities have good practices…

20. …but there is room for improvement

21. Thank you www.doingbusiness.org/philippines

22. Annex slides

23. Davao, General Santos and Valenzuela each leads one area measured by Doing Business