Washington, D.C., November 4, 2010
—Among the world’s 174 economies, Georgia improved its business environment the most in the last five years, according to
Doing Business 2011: Making a Difference for Entrepreneurs,
the eighth in a series of annual reports published by IFC and the World Bank.
Doing Business
2011
pioneers a new measure showing how much business regulation has changed in 174 economies since 2005.
By this measure, Georgia has been the most active worldwide in reforming business regulation and is number one in the list. Among the 174 economies covered by the
Doing Business
change score, 85 percent have made it easier for local entrepreneurs to operate, through 1,511 improvements to business regulation.
This year, Georgia made yet another step forward, progressing to 12
th
rank globally from 13
th
in accordance with changed methodology, and it remains the only Eastern European country in the top 15, setting the pace for business regulatory reforms. Georgia reformed in the following areas: closing a business, enforcing contracts, getting credit (legal rights), and protecting investors.
In particular, Georgia improved insolvency proceedings by streamlining the regulation of auction sales. It made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing private enforcement officers, and modernizing its dispute resolution system. In addition, it improved access to credit by implementing a centralized collateral registry, with an electronic database accessible online. Georgia also strengthened investor protections by allowing greater access to corporate information during a trial.
For eight consecutive years, Eastern Europe and Central Asia has been the most active region in improving business regulation for domestic firms. In the past, many changes were driven by the prospect of joining the European Union. More recently, the financial crisis has triggered new activity. This past year 21 of 25 economies improved business regulation for local firms.
“The economies most affected by the financial crisis—especially in Eastern Europe—have been targeting regulatory reforms over the past year to make it easier for small and medium enterprises to recover and create jobs,” said Svetlana Bagaudinova, an author of the report. Half the reforms to insolvency procedures captured by the report in the past year took place in Eastern Europe and Central Asia. Measures making it easier to start up, reorganize, and pay taxes were also common.
About the
Doing Business
report series
Doing Business
analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and closing a business.
Doing Business
does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems. Its findings have stimulated policy debates in more than 80 economies and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. For more information about the
Doing Business
report series, please visit
www.doingbusiness.org
.
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit
www.worldbank.org
,
www.miga.org
, and
www.ifc.org
.
Contacts for region-specific queries on
Doing Business 2011:
In Tbilisi, Georgia
Tamar Barbakadze +995 32 23 43 00/01/02
Central and Eastern Europe and Central Asia
Ilya Sverdlov +7 (495) 411-7555 Nezhdana Bukova +7 (985) 411-3986
Southern Europe
Slobodan Brkic +381 (11) 30-23-750 Kristyn Schrader +1 (202) 458-2736
