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Box 3 Most Difficult Places toDo Business(by specific category)Starting a Business• 17 Procedures in Uganda/Paraguay,• 694 days in Suriname• 1,194 percent of income per capita required as costin Sierra Leon• 4,233 percent of income per capita minimum capitalrequired in SyriaDealing with Licenses• 186 Procedures in Egypt• 668 days in Iran• 5,869 percent of income per capita required as costin MontenegroRegistering Property• 16 Procedures in Nigeria• 683 days in Haiti• 28 percent of property value as cost in SyriaEmploying Workers• On diffi culty of hiring index (100=worst) in Morocco,Nigeria and Tanzania• On diffi culty of fi ring index (100=worst) in Boliviaand Egypt• 329 weeks of salary as fi ring cost in Sierra LeoneTrading Across Borders• 16 number of documents required to export inZambia• 20 number of documents required to import inRwandaGetting Credits• 0 Strength of legal rights in Cambodia, from an Index0-10 (0 is the worst)• 0 Depth of credit information in 48 countries, froman Index 0-10 (0 is the worst)Paying Taxes• 130 times payment per year in Uzbekistan• 291 percent of profi t as total tax rate in GambiaClosing a Business• Takes up to 10 years in India• Cost (percent of estate): 76 in Lao PDRSource: World Bank: Doing Business 2007(prepared by Mahmood Iqbal)economy; a worse environment for doing businesscorrelates with a larger informal economy. Theanalysis also examined the relationship betweenthe individual measures of ease of doing businessand the size of the informal economy.The World Bank has conducted a comprehensivestudy, 58 in identifying and quantifyingthe cost of barriers for all regions of the worldand individual countries. The extreme cases aresummarissed in Box 3.The World Bank study also shows that regulatoryenvironment and informality are highly correlated:the greater the difficulty in business operation,the larger the size of the informal sector. In otherwords, barriers or extent of difficulties in doingbusiness force many operators to take the informalroute.Administrative barriers are the bureaucraticrequirements that flow from regulations, their implementationand enforcement. A regulation maybe well-designed, proportionate and efficient, butits true effect on enterprises comes from the wayin which it is administered. Administrative barriersare the hassle that dissuades informal enterprisesfrom wanting to interact with governmentofficials; 59 they include excessive paperwork; civilservice inefficiency leading to delays in decision-making;low levels of civil service capacity,i.e. poor skills levels so that mistakes are made,and too few people and access points providingservices; inaccessibility, as when there is too littledelegation to the front-line and decisions have tobe referred up to the management chain; generalbureaucratic obstruction (perhaps stemming frominherent distrust of the private sector by officials)contributing to delays, and abuse of position(linked to corruption).The time and money spent complying with governmentregulations impose significant transac-224