Doing Business is series of annual reports with their benchmark regulations affect small and medium size enterprises. The 2014 year report presents quantitative indicators on 11 areas of business regulations for 189 economies. It is a tool that allows economies to track progress over the time by comparing each other in respect of building blocks for business. The report further helps policy makers to reduce cost and complexity of government procedures. The report tracks and changes for regulations applying to small or medium companies in 10 areas of life cycle: starting business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, resolving insolvency, enforcing contracts and trading across borders. Because of this report, every year formalities require to setup business getting reduced. On comparing indicators, the year 2013 regulatory witnessed 300 fewer formalities compare to previous year 2012. Of all the indicators, the construction permits is one of regulatory reform where top improvers focused for year 2014. Property registration is another reform where top 7 out of 10 top improvers have implemented changes. 4 out of top 10 have implemented changes in electricity by reducing complexity and cost of getting connection. The report uses simple average approach for weighting component indicators and calculating rankings and distance to frontier (it is a measure that shows how far economy is from highest performance)

Here we will compare and contrast two economies for all 11 indicators briefly with details on ranking, distance to frontier and major changes affected:

1) Out of 189 countries, please pick two countries (see pp. 173-236) that carry the same economic, social, business and industrial characteristics (GDP, GDP/capita, etc.).

Here are the two countries which carry same GNI per capita: * COMOROS * BANGLADESH

2) Compare and contrast their “Ease of Doing Business” (i) Starting business: Based on international rankings, a comparative analysis between Djibouti and Togo shows that Djibouti is a better jurisdiction for business as compared to Togo. The following contrasts between two economies is highlighted below

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Togo 157 159 2
Djibouti 160 172 12

START OF BUSNIESS
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Togo 168 165 -3
Djibouti 127 188 61

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Togo 51.49 50.50 0.99
Djibouti 59.90 31.73 28.17

Djibouti: As per the data listed above, the doing business rank raises up 12 points from 2013 ranking. The improvements include making starting business easier by simplifying registration process and eliminating minimum capital required for limited liability companies. In addition to this it has adopted commerce code where movable assets can be used as collateral for credit. The indicators: 9 procedures, it requires 17 days to start a business, Cost (% of income per capita) is 184.7.
Togo: As per the data listed above, the doing business rank raises up 2 points from 2013 ranking. There are no improvements for reforms implemented in start of business and resulted a change of 3 points compared to previous year. The indicators: 7 procedures, it requires 19 days to start a business, Cost (% of income per capita) is 121.4.

(ii) Dealing with Construction permits:

Based on international rankings, a comparative analysis between Kosovo and Congo Dem Rep shows that Kosovo is favorable for construction permits compare to Congo Dem Rep as highlighted below:

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Kosovo 86 96 10
Congo Dem Rep 183 183 0

CONSTRUCTION PERMITS
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Kosovo 136 152 16
Congo Dem Rep 90 85 -5

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Kosovo 81.97 71.71 10.26
Congo Dem Rep 26.42 46.37 -19.95

Kosovo: As per the data listed above, the doing business rank raises up 10 points from 2013 ranking. The construction permits and registration of property procedures have significantly improved. The continued structural reforms have been implemented. The indicators: 15 procedures, it requires 151 days to construction permits, Cost (% of income per capita) is 514.7.
Congo Dem Rep: As per the data listed above, there is no change in doing business rank from 2013 ranking. No reforms as measured by doing business. It ranks 81 out of 189 economies due to poor regulations. The indicators: 11 procedures, it requires 117 days to construction permits, Cost (% of income per capita) is 1366.9.

(iii) Getting Electricity:

Based on international rankings, a comparative analysis between Afghanistan and Zimbabwe shows that Afghanistan is favorable for getting electricity easier compare to Zimbabwe as highlighted below:

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Afghanistan 164 170 6
Zimbabwe 170 168 -2

GETTING ELECTRICITY
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Afghanistan 104 111 7
Zimbabwe 157 158 1

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Afghanistan 93.72 90.52 3.20
Zimbabwe 42.12 40.66 1.46

Afghanistan: As per the data listed above, the doing business rank raised by 6 points from 2013 ranking. The improvements have been made in Kabul for getting electricity easier and introducing new fee schedule for connections. The indicators: 4 procedures, it requires 109 days to construction permits, Cost (% of income per capita) is 1731.7.
Zimbabwe: As per the data listed above, the doing business rank lowered by 2 points from 2013 ranking. DB Rank for getting electricity is 157 slight improvement from previous year. The most drastic decline of resolving insolvency indicator where it dropped 14 points. The indicators: 6 procedures, it requires 106 days to construction permits, Cost (% of income per capita) is 3686.8.

(iv) Registering Property

Based on international rankings, a comparative analysis between Guinea-Bissau and Slovenia shows that Guinea-Bissau is favorable for getting registering property easier compare to Slovenia as highlighted below:

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Guinea-Bissau 180 181 1
Slovenia 33 31 -2

REGISTERING PROPERTY
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Guinea-Bissau 170 183 13
Slovenia 83 80 -3

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Guinea-Bissau 60.44 62.12 -1.68
Slovenia 94.84 94.85 -0.01

Guinea-Bissau : As per the data listed above, the doing business rank raised by 1 points from 2013 ranking. The improvements include transferring property easier by including number of notaries dealing with property transaction. The indicators: 8 procedures, it requires 51 days to registering property, Cost (% of income per capita) is 10.6.
Zimbabwe: As per the data listed above, the doing business rank lowered by 2 points from 2013 ranking. There is no improvement for registration of property where more hindrance on taxes levied for registration including vat taxes on land purchase. The indicators: 5 procedures, it requires 36 days to registering property, Cost (% of income per capita) is 7.8.

(v) Getting Credit:

Based on international rankings, a comparative analysis between Palau and Venezuela shows that Palau is favorable for getting credit easier compare to Venezuela as highlighted below:

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Palau 100 114 14
Venezuela 181 180 -1

GETTING CREDIT
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Palau 86 189 103
Venezuela 130 154 24

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Palau 80.54 80.19 0.35
Venezuela 45.72 46.67 -0.95

Palau: As per the data listed above, the doing business rank raised by 14 points from 2013 ranking. The improvements include the Palau has strengthened its secured transactions through new law which establishes centralized collateral registry. The indicators: 9 strength of legal rights index, 0 depth of credit information index, 0 public registry coverage, 0 private bureau coverage.
Venezuela: As per the data listed above, the doing business rank lowered by 1 points from 2013 ranking. The improvements include access to credit information by starting to collect data on firms from financial information. The indicators: 2 strength of legal rights index, 5 depth of credit information index, 0 public registry coverage, 16.7 private bureau coverage.

(vi) Protecting Investors:

Based on international rankings, a comparative analysis between Greece and Swaziland shows that Greece is favorable for Protecting Investors easier compare to Swaziland as highlighted below:

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Greece 72 89 17
Swaziland 123 120 -3

PROTECTING INVESTORS
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Greece 80 113 33
Swaziland 128 127 -1

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Greece 89.36 75.96 13.40
Swaziland 68.82 65.33 3.49

Greece: As per the data listed above, the doing business rank raised by 17 points from 2013 ranking. The improvements include strengthening the investor protections by introducing requirement for shareholder approval. The indicators: 7 extent of disclosure index, 4 extent of director index liability index, 5 ease of shareholder suits, 5.3 strength of investor protection index.
Swaziland: As per the data listed above, the doing business rank lowered by 3 points from 2013 ranking. No reforms changes by doing business. The indicators: 2 extent of disclosure index, 5 extent of director index liability index, 6 ease of shareholder suits, 4.3 strength of investor protection index.

(vii) Paying Taxes:

Based on international rankings, a comparative analysis between Ukraine and Sierra Leone shows that Ukraine is favorable for Paying Taxes easier compare to Sierra Leone as highlighted below:

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Ukraine 112 140 28
Sierra Leone 142 137 -5

PAYING TAXES
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Ukraine 164 168 4
Sierra Leone 128 126 -2

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Ukraine 86.44 84.41 2.03
Sierra Leone 83.26 78.89 4.37

Ukraine: As per the data listed above, the doing business rank raised by 28 points from 2013 ranking. The improvements include paying taxes easier by implementing electronic filing and payment for medium and large size enterprises. The indicators: 28 payments (number per year), 390 time (hours per year), 11.2 profit tax (%), 43.1 labor tax contribution(%), 0.7 other taxes(%), 54.9 total tax rates(% profit).
Sierra Leone: As per the data listed above, the doing business rank lowered by 2 points from 2013 ranking. There is no improvements or no reforms changes by doing business. The indicators: 33 payments (number per year), 353 time (hours per year), 18.2 profit tax (%), 11.3 labor tax contribution(%), 2.9 other taxes(%), 32.4 total tax rates(% profit).

(viii) Trading across borders:

Based on international rankings, a comparative analysis between Lesotho and Zambia shows that Lesotho is favorable for trading across borders compare to Zambia as highlighted below:

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Lesotho 136 139 3
Zambia 83 90 7

TRADING ACROSS BORDERS
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Lesotho 144 146 2
Zambia 163 163 0

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Lesotho 81.69 81.50 0.19
Zambia 88.32 84.33 3.99

Lesotho: As per the data listed above, the doing business rank raised by 3 points from 2013 ranking. No new reforms implemented by doing business. The indicators: 7 documents to export, 31 time to export days, 1695 cost to export, 7 documents to import, 33 time to import, 1945 cost to import.
Zambia: As per the data listed above, the doing business rank lowered by 1 points from 2013 ranking. No new reforms implemented by doing business. The indicators: 7 documents to export, 44 time to export days, 2765 cost to export, 8 documents to import, 49 time to import, 3560 cost to import. (ix) Enforcing contracts:

Based on international rankings, a comparative analysis between Malaysia and Côte d'Ivoire shows that Côte d'Ivoire is favorable for enforcing contracts compare to Malaysia as highlighted below:

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Malaysia 6 8 2
Côte d'Ivoire 167 173 6

ENFORCING CONTRACTS
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Malaysia 30 29 -1
Côte d'Ivoire 88 127 39

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Malaysia 94.31 93.41 0.90
Côte d'Ivoire 77.77 52.31 25.46

Malaysia: As per the data listed above, the doing business rank lowered by 1 points from 2013 ranking. No major new reforms implemented by doing business. . The indicators: 29 procedures, it requires 425 days to enforce contracts, Cost (% of claim) is 27.5.
Côte d'Ivoire: As per the data listed above, the doing business rank lowered by 1 points from 2013 ranking. The improvement includes enforcing contracts made easier by creating specialized commercial court. The indicators: 32 procedures, it requires 585 days to enforce contracts, Cost (% of claim) is 41.7.

(x) Resolving Insolvency

Based on international rankings, a comparative analysis between Philippines and Rwanda shows that Philippines is favorable for resolving Insolvency compare to Rwanda as highlighted below:

Doing Business RANK
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Philippines 108 133 25
Rwanda 32 54 22

RESOLVING INSOLVANCY
ECONOMY DB 2014 RANK DB 2013 RANK CHANGE
Philippines 100 164 64
Rwanda 137 166 29

DTF
ECONOMY DB 2014 DTF DB 2013 DTF CHANGE
Philippines 94.31 93.41 0.90
Rwanda 97.36 97.15 0.21

Philippines: As per the data listed above, the doing business rank raised by 25 points from 2013 ranking. It has adopted new insolvency law that provides legal framework for liquidation and reorganization of companies. The indicators: 2.7 time (years), Cost (% of estate) is 22, outcome 0, recovery rate 29.9.
Rwanda: As per the data listed above, the doing business rank raised by 22 points from 2013 ranking. The improvement includes setting up new law for insolvency proceedings; setting clear time limits, implementing automatic stay of creditors. The indicators: 2.5 time (years), Cost (% of estate) is 29, outcome 0, recovery rate 19.0.

REFERENCES:
World Bank/IFC’s “Doing Business 2014 doingbusiness.org Chapter 2 Understanding the International Context