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Economy Profile: Burundi - Doing Business

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<strong>Doing</strong> <strong>Business</strong> 2013<br />

<strong>Burundi</strong><br />

9<br />

THE BUSINESS ENVIRONMENT<br />

Just as the overall ranking on the ease of doing business<br />

tells only part of the story, so do changes in that ranking.<br />

Yearly movements in rankings can provide some indication<br />

of changes in an economy’s regulatory environment for<br />

firms, but they are always relative. An economy’s ranking<br />

might change because of developments in other<br />

economies. An economy that implemented business<br />

regulation reforms may fail to rise in the rankings (or may<br />

even drop) if it is passed by others whose business<br />

regulation reforms had a more significant impact as<br />

measured by <strong>Doing</strong> <strong>Business</strong>.<br />

Moreover, year-to-year changes in the overall rankings do<br />

not reflect how the business regulatory environment in an<br />

economy has changed over time—or how it has changed<br />

in different areas. To aid in assessing such changes, last<br />

year <strong>Doing</strong> <strong>Business</strong> introduced the distance to frontier<br />

measure. This measure shows how far each economy is<br />

from the best performance achieved by any economy since<br />

2005 on each indicator in 9 <strong>Doing</strong> <strong>Business</strong> indicator sets.<br />

Comparing the measure for an economy at 2 points in<br />

time allows users to assess how much the economy’s<br />

regulatory environment as measured by <strong>Doing</strong> <strong>Business</strong><br />

has changed over time—how far it has moved toward (or<br />

away from) the most efficient practices and strongest<br />

regulations in areas covered by <strong>Doing</strong> <strong>Business</strong> (figure 1.4).<br />

The results may show that the pace of change varies widely<br />

across the areas measured. They also may show that an<br />

economy is relatively close to the frontier in some areas<br />

and relatively far from it in others.<br />

Figure 1.4 How far has <strong>Burundi</strong> come in the areas measured by <strong>Doing</strong> <strong>Business</strong>?<br />

Note: The distance to frontier measure shows how far on average an economy is from the best performance achieved by any<br />

economy on each <strong>Doing</strong> <strong>Business</strong> indicator since 2005. The measure is normalized to range between 0 and 100, with 100 representing<br />

the best performance (the frontier). The overall distance to frontier is the average of the distance to frontier in the 9 indicator sets<br />

shown in the figure. See the data notes for more details on the distance to frontier measure.<br />

Source: <strong>Doing</strong> <strong>Business</strong> database.

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