The latest World Bank’s Doing Business 2010 Report present a broad group of countries all over the world where the ease of doing business in 2010 is a reality. Among those countries where the World Bank study has been conducted during the period covering June 2008 through May 2009, there are many countries from the African continent.
From 1 to 183, with first place being the best, economies are ranked on their ease of doing business. According to the World Bank 2010 Report, the key indicators taken into consideration are areas where reforms have been undertaken: Conditions of starting a business, employing workers, getting credit (legal rights), protecting investors, registering property, closing a business and trading across borders.
As it’s clearly said in this 2010 Doing Business edition, Singapore has once again gotten the first place ranking in this World Bank’s global study of 183 economies for its “Ease of Doing Business”. In the second place comes New Zealand, Hong Kong is third, fourth is USA and the UK is fifth. This annual report put the Rwandan Republic in the 5th highest ranking of African countries. Then comes Mauritius (17th), South Africa (34th), Botswana (45th) and Namibia (66th).
Doing Business 2010 recorded 287 reforms between June 2008 and May 2009, up 20 percent from the previous year. Reformers around the world focused on making it easier to start and operate businesses, strengthening property rights, and improving commercial dispute resolution and bankruptcy procedures. Two-thirds of the reforms recorded in the report were in low- and lower-middle-income economies. For the first time a Sub-Saharan African economy, Rwanda, is the world’s top reformer of business regulation, making it easier to start businesses, register property, protect investors, trade across borders, and access credit.
As every businessperson knows it well, being successful requires the businessman to have a clear sense of the reality in terms of connections with the local culture before considering the need to invest, to create, to sell and to deliver products that people want to buy in a way that makes this businessman a profit.
While considering joint ventures agreements and other similar arrangements; anticipating issues is always a better way of protecting an investment.
Moreover, in this still struggling global economy, it’s also important to have a broad view of the world as a place where investments can be made anywhere as long as basic requirements are figured out with meticulous care. And while thinking about the right place to invest your capital, the Central African region – with countries like the Rwandan Republic, Nigeria and Cameroon – is increasingly becoming a sound economic market to watch closely. Many tips given in the following video can be useful in any given place – the Central African region, included.
For businessmen, researchers, analysts and policy-advisors interested in trade policy and other open economy issues embracing international trade and the environment, international finance, and trade and development; here is what need to be kept in mind in 2010 when it comes to investment making these days.
It is unlikely that market reforms will have the same impact in a country with open trade as in one where trade is still restricted. Trade liberalization is associated with faster economic growth when accompanied by comprehensive domestic macroeconomic reforms. There is no doubt opening up Africa to global trade integration will present domestic challenges in the form of fiscal pressures and short term adjustment costs. In the same time, the acknowledgement of the local culture and markets particularities by foreign investors would be an act of good faith that would prompt confidence and attract more domestic and international private firms. While african States need to continue with the process of regional liberalization and integrated economic reforms, to achieve the much needed economic integration of Africa; it is debatable whether African countries should continue with the process of multilateral economic liberalization in the face of continued agricultural support measures by OECD countries and WTO predatory policies.
Tell us what you think. Are more african countries going to be ranked among the World Bank best reformers in the coming years?