Doing Business Report 2010: Status quo in ranking, thanks to lack of reforms

The nation has seen no tangible reforms in the last one year, as per the annual Doing Business Report 2010. The report, published by the World Bank, examines business environment on the basis of the 10 indicators — facilities and sops offered for a start-up, access to construction permit, recruitment procedure, registration of property, tax benefits, cross-border trade, investors’ safety and security and closure of a venture. Last year, Nepal ranked 123rd. And the status remained virtually the same this year as well.
“The government has done precious little to improve any of the indicators as far as entrepreneurship is concerned,” said Dr Shanker Sharma, former vice-president, National Planning Commission and envoy-designate to the US. Of the 10 indicators, the only discernible improvement, albeit marginal, is in the process of registration of property. The ranking has gone up by three notches, from 29 to 26.
“The ongoing political instability and the government’s apathy towards economic growth are largely responsible for the poor report card. The powers that be have no time for reforms. Add to that, overdependence on remittance has made it even more laggard,” he explained.
Last year, Nepal stood 75 in Starting Business. And in a year’s time, the ranking has fallen to 87. Inordinate procedural delays are a hallmark of the problem. Recruitment, too, is a major hurdle. Interestingly, the nation fared better than Bhutan and India, who have been ranked 126 and 133, respectively. While the rest of the South Asian nations are ahead of Nepal. China ranks 85.
The rankings do not factor in macro-economic policy, security, labour skills or the strength of the financial system or financial market regulations.
Singapore, a consistent reformer, tops the chart for the fourth consecutive year. The city state is followed by New Zealand. The action, however, is in the developing economies. For the first time, a Sub-Saharan economy, Rwanda, is the world's top reformer for its liberal policies in business regulation.

Ups and downs of indicators in comparision to last year
Ease of doing Business — 123 (status quo)
Starting Business — 87 (down 12)
Dealing with Construction Permits -- 131 (down 1)
Employing Workers -- 148 (down 1)
Registering Property -- 26 (up 3)
Getting Credit -- 113 (down 4)
Protecting Investors -- 73 (down 3)
Paying Taxes -- 124 (down 13)
Trading Across Border -- 161 (down 2)
Enforcing Contracts -- 122 (status quo)
Closing a Business -- 105 (status quo)