Doing Business 2017 - India Improves, but still at the bottom
Ease of Doing Business
THE opportunity to find a job or develop one's business idea is crucial for most people's personal satisfaction. It creates a sense of belonging and purpose and can provide an income that delivers financial stability. It can raise people out of poverty or prevent them from falling into it.
But what does one need to find a job or to start a business, especially if that job or business is in the private sector?
Many things are needed, but well-functioning markets-that are properly regulated so that distortions are minimized-are crucial. Governments play a pivotal role in establishing these well-functioning markets through regulation. If the land registry is not required to provide reliable information on who owns what, for example, the efficacy of the property market is undermined making it difficult for entrepreneurs to acquire property, put their ideas to practice and create new jobs. Without well-regulated credit information sharing systems it is difficult for credit markets to thrive and be more inclusive. A properly functioning tax system is also key. Where the burden of tax administration is heavy-making it difficult to comply with tax obligations-firms will have an incentive to avoid paying all taxes due or may opt for informality, thereby eroding the tax base.
To start a business, entrepreneurs need a business registration system that is efficient and accessible to all. Failure is part of taking risks and innovating. For people to be willing to start a new business there needs to be a well-developed system in place for closing businesses that do not succeed.
In its Doing Business 2017 Report released yesterday, the World Bank seems to be appreciative of India's efforts, but India remains at the bottom rank of 130 out of 190 economies in the ease of doing business.
New Zealand, Singapore, Denmark, Hong Kong, Korea, Norway, UK, USA, Sweden and Macedonia are the top 10 countries for ease of doing business. If you are looking for ease of doing business, you will not go to Somalia which is ranked 190 at the very bottom of the list.