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6 DOING BUSINESS IN 2006 other words, reform expands the reach of regulation by bringing businesses and employees into the formal sector. Female and young workers would benefit the most from these changes. Both groups account for a large share of the unemployed (figure 1.7), and burdensome regulations significantly affect their job opportunities. In Iran, for example, an employer cannot write a term contract unless the job is seasonal. And women are not allowed to work more than 8 hours a day. Not coincidentally, only 28% of women in the labor force are formally employed. Governments in conflict-affected countries are especially hard-pressed to create jobs. Continued peace depends on demobilizing rebel armies and finding livelihoods for thousands of refugees and former combatants. This year Doing Business studies 5 conflict-affected countries: Afghanistan, Eritrea, Iraq, Sudan and Timor-Leste. Among these, Afghanistan was the top reformer in 2004. The number of entry procedures for new businesses was cut from 28 to 1, and the time to complete the process from 90 days to 7. Transport infrastructure on major Afghan trading routes was improved. Property records are being compiled and digitized—providing the base for a new property registry (even though the records cover only a quarter of the country). There are also plans to establish a credit registry, owned by the central bank and private commercial banks. Property and credit registries will make it easier for creditors to provide loans. Successful regulatory reforms abound, with payoffs for job creation. Since 2002 Slovakia’s reforms have helped cut the number of unemployed by 43,000. 9 In Colombia reforms of employment and business startup regulations have created 300,000 jobs in the formal economy. 10 Another success story comes from Peru, where in the past decade the government has issued property titles to 1.3 million urban households. Secure property rights have enabled parents to find jobs rather than staying home to protect their property. Similarly, children can now attend school. As a result, the incidence of child labor has fallen by nearly 30%. 11
CREATING JOBS: AN OVERVIEW 7 Notes 1. Defined as sales less material and labor cost. 2. WEF (2004). 3. UNDP (2004). 4. Kagame (2002, p. 8). 5. See also Fields and others (2002). 6. Blanchard and Portugal (1998). 7. Holmes (1998). 8. Analysis based on cross-country regression controlling for the standard variables used in the labor literature. 9. Slovak Statistical Office (2005). 10. Echeverry and Maria (2004). 11. Field (2002).
Page 1: Creating Jobs
Page 5: Contents Doing Business in 2006: Cr
Page 8 and 9: 2 DOING BUSINESS IN 2006 to registe
Page 10 and 11: 4 DOING BUSINESS IN 2006 Less costl
Page 15 and 16: 9 Starting a business Who is reform
Page 17 and 18: STARTING A BUSINESS 11 duced the mi
Page 19 and 20: STARTING A BUSINESS 13 Introduce st
Page 21 and 22: 15 Dealing with licenses Who is ref
Page 23 and 24: DEALING WITH LICENSES 17 plain that
Page 25 and 26: DEALING WITH LICENSES 19 Not in Sie
Page 27 and 28: 21 Hiring and firing workers Who is
Page 29 and 30: HIRING AND FIRING WORKERS 23 TABLE
Page 31 and 32: HIRING AND FIRING WORKERS 25 raised
Page 33 and 34: 27 Registering property Who is refo
Page 35 and 36: REGISTERING PROPERTY 29 In Latin Am
Page 37 and 38: REGISTERING PROPERTY 31
Page 39 and 40: 33 Getting credit Who is reforming?
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Page 43 and 44: GETTING CREDIT 37 But public regist
Page 45 and 46: 39 Protecting investors Who is refo
Page 47 and 48: PROTECTING INVESTORS 41 TABLE 7.2 I
Page 49 and 50: PROTECTING INVESTORS 43 TABLE 7.6 W
Page 51 and 52: 45 Paying taxes Who is reforming? W
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Page 55 and 56: PAYING TAXES 49 What to reform? Tax
Page 57 and 58: PAYING TAXES 51 2004, despite the n
Page 59 and 60: 53 Trading across borders Who is re
Page 61 and 62: TRADING ACROSS BORDERS 55 Who is re
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TRADING ACROSS BORDERS 57 documents
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TRADING ACROSS BORDERS 59
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62 DOING BUSINESS IN 2006 Who is re
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64 DOING BUSINESS IN 2006 loans at
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67 Closing a business Who is reform
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CLOSING A BUSINESS 69 What to refor
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CLOSING A BUSINESS 71 Such measures
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74 DOING BUSINESS IN 2006 Working P
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76 DOING BUSINESS IN 2006 Slovak St
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78 DOING BUSINESS IN 2006 Economy c
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80 DOING BUSINESS IN 2006 a procedu
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82 DOING BUSINESS IN 2006 • Is 10
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84 DOING BUSINESS IN 2006 Protectin
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86 DOING BUSINESS IN 2006 Assumptio
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88 DOING BUSINESS IN 2006 Assumptio
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91 Ease of doing business: an appen
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APPENDIX 93 countries all rank in t
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96 DOING BUSINESS IN 2006 Starting
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98 DOING BUSINESS IN 2006 Hiring an
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100 DOING BUSINESS IN 2006 Hiring a
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102 DOING BUSINESS IN 2006 Getting
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104 DOING BUSINESS IN 2006 Paying T
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106 DOING BUSINESS IN 2006 Paying T
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108 DOING BUSINESS IN 2006 Enforcin
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110 DOING BUSINESS IN 2006 AFGHANIS
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112 DOING BUSINESS IN 2006 AUSTRALI
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114 DOING BUSINESS IN 2006 BENIN Su
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116 DOING BUSINESS IN 2006 BULGARIA
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118 DOING BUSINESS IN 2006 CENTRAL
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120 DOING BUSINESS IN 2006 CONGO, R
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122 DOING BUSINESS IN 2006 DOMINICA
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124 DOING BUSINESS IN 2006 ETHIOPIA
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126 DOING BUSINESS IN 2006 GHANA Su
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128 DOING BUSINESS IN 2006 HONDURAS
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130 DOING BUSINESS IN 2006 IRAN Mid
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132 DOING BUSINESS IN 2006 JAPAN OE
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134 DOING BUSINESS IN 2006 KUWAIT M
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136 DOING BUSINESS IN 2006 LITHUANI
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138 DOING BUSINESS IN 2006 MALI Sub
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140 DOING BUSINESS IN 2006 MOLDOVA
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142 DOING BUSINESS IN 2006 NETHERLA
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144 DOING BUSINESS IN 2006 OMAN Mid
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146 DOING BUSINESS IN 2006 PERU Lat
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148 DOING BUSINESS IN 2006 RUSSIA E
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150 DOING BUSINESS IN 2006 SERBIA A
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152 DOING BUSINESS IN 2006 SOUTH AF
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154 DOING BUSINESS IN 2006 SYRIA Mi
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156 DOING BUSINESS IN 2006 TONGA Ea
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158 DOING BUSINESS IN 2006 UNITED K
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160 DOING BUSINESS IN 2006 VIETNAM
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163 Acknowledgments Contact details
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ACKNOWLEDGMENTS 165 Tibor Fabian BI
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ACKNOWLEDGMENTS 167 Barthélémy Ke
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ACKNOWLEDGMENTS 169 Ghislane Moise
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ACKNOWLEDGMENTS 171 Bernt Juthstrom
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ACKNOWLEDGMENTS 173 Kari Hrafn Kjar
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ACKNOWLEDGMENTS 175 Ivan A. Zaitsev
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ACKNOWLEDGMENTS 177 Samuel Tembenu
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ACKNOWLEDGMENTS 179 Russell Lawn BU
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ACKNOWLEDGMENTS 181 Jazmin Banal RO
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ACKNOWLEDGMENTS 183 Ivan Petrovic L
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ACKNOWLEDGMENTS 185 Wen-Horng Kao P
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ACKNOWLEDGMENTS 187 Katherine Stone
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Doing Business in 2006: Creating Jo
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