Russia enters top-40 World Bank ranking

08.11.2016

Russia has risen up to 40th position in the World Bank and International Finance Corporation Doing Business-2017 ranking. According to the report of these international organizations Russia ranked 51st last year.

The Doing Business report is being drawn up already for the 14th time, it ranks 190 countries. The report measures business regulations which contribute or hinder business development during the whole process. It    provides    quantitative    indicators  on  regulation  for  starting  a  business,    protecting   minority   investors,  paying  taxes,  trading  across  borders and others.

The President of Russia Vladimir Putin instructed the Government of the Russian Federation to take measures in order to improve Russia’s positions from 120th in 2011 to 50th in 2015 and up to 20th in 2018 in the World Bank Doing Business ranking.

This year New Zealand has headed the world ranking in terms of creating the most favorable conditions for doing business. The country has superseded Singapore on the 2nd position which had been heading the ranking for 10 years. Besides them, Denmark, Hong-Kong, Republic of Korea, Norway, Great Britain, USA, Sweden and Macedonia entered the top-10.

Authors of the report make annual changes to the methodology in order to assess actual trends. As Valentina Saltane, the co-author of the report has explained to RIA Novosti, one more country – Somali was included in the ranking this year. She also noted a number of updates of indicators which made last year’s results irrelevant.

“According to this recalculation Russia ranked 36th position last year and 40th position this year,” noted Valentina Saltane.

Reforms in Russia

According to the report, Russia is among European and Central Asian countries which since 2004 have conducted the greatest number of reforms that are taken into account in the Doing Business ranking. In Russia, Georgia, Kazakhstan, Macedonia and Armenia the number of such reforms exceeded 30.

“This year (in Russia – ed.) we have noted one positive reform in the sphere of obtaining construction permissions. The number of procedures has been reduced in this area, … Russia is now ranking 115th and we hope this position will get better soon,” said Saltane.

She explained that a “negative” reform was revealed in terms of the indicator of enforcing contracts where a mandatory pre-court settlement of disputes was introduced. “The result is that 30 days were added to settle disputes between the two parties,” she added.

According to Valentina Saltane, this year there are no significant changes in assessment methodology as it was in the last year. “We have expanded one indicator – taxation, in which we included procedures after the company paid taxes (postfiling). For example, we estimate the process of the tax audit, the process of VAT recovery,” told the co-author of the report.

“Russia and countries of Europe and Central Asia have shown very good results in this sphere as a result of using e-services. Thus, processes in these countries are going well and abreast with advanced practices. Currently Russia is ranking 45th position in terms of taxation,” added Valentina Saltane.

Throughout the world

Amongst the countries of the post-Soviet space a leader of the ranking is Estonia, it is followed by Latvia (14th position), Georgia (16th position), and Lithuania (21th position). They are followed by Kazakhstan (35th position), Belarus (37th position) and Armenia (38th position).

A number of countries are listed below Russia: Moldova (44th position), Azerbaijan (65th position), Kyrgyzstan (75th position), Ukraine (80th position) and Tajikistan (128th position).

The World Bank experts highlight 10 economics which have made the most prominent economic progress according to the Doing Business indicators in 2015-2016. These are Brunei, Kazakhstan, Kenia, Belarus, Indonesia, Serbia, Georgia, Pakistan, UAE and Bahrain.

According the DB-2017 review, for the first time this year Doing Business added gender dimension in three topics included in the ease of doing business ranking: starting a business, registering property and enforcing contracts.. According to the report women represent about 40% of the global job market and 50% of universities students. In some countries they face considerable difficulties in hiring, entrepreneurship and doing business.

According to the report authors, this factor is directly linked with the growth prospects of the world economy. “The removal of regulatory barriers on the way towards the women access to the job market will allow to increase efficiency and socio-economic results,” note the authors.

RIA Novosti