60 Doing Business <strong>2009</strong>Africa’s Development and TransparencyInternational conference Alliance forIntegrity—Government & Business Rolesin Enhancing African Standards of Living,Addis Ababa, March 7–8. TanzaniaInvestment Center, Dar es Salaam.van Stel, André, David Storey and RoyThurik. 2007. “The Effect of BusinessRegulations on Nascent and Young BusinessEntrepreneurship.” Small BusinessEconomics 28 (2): 171–86.Wangda, Pema. Forthcoming. Reformingthe Labor Administration in Bhutan. IFCSmart Lesson Series. Washington, DC:World Bank Group.WEF (World Economic Forum). 2007. TheGlobal Competitiveness Report 2007–2008.New York: Palgrave Macmillan.Wojkowska, Ewa. 2006. “Doing Justice: HowInformal Justice Systems Can Contribute.”Oslo Governance Centre, United NationsDevelopment Programme, Oslo.World Bank. 2003. Doing Business in 2004:Understanding Regulation. Washington,DC: World Bank Group.———. 2004. Doing Business in 2005:Removing Obstacles to Growth. Washington,DC: World Bank Group.———. 2005. Doing Business in 2006: CreatingJobs. Washington, DC: World BankGroup.———. 2006a. Doing Business in Mexico2007: Comparing Regulation in the 31States and Mexico City. Washington, DC:World Bank Group.———. 2006b. Doing Business 2007: How toReform. Washington, DC: World BankGroup.———. 2006c. “Vietnam: Report on theObservance of Standards and Codes(ROSC).” World Bank Group, Washington,DC.———. 2007a. Celebrating Reform 2007.Washington, DC: World Bank Group andU.S. Agency for International Development.———. 2007b. Doing Business 2008: ComparingRegulation in 178 Economies. Washington,DC: World Bank Group.———. 2007c. Reforming Collateral Laws andRegistries: International Best Practices andthe Case of China. Washington, DC: WorldBank Group. http://www.ifc.org/ifcext/fias.nsf/Content/FIAS_Resources_Country_Reports.———. 2008a. Doing Business: Women inAfrica. Washington, DC: World BankGroup.———. 2008b. World Development Indicators2008. Washington, DC: World BankGroup.World Bank Independent Evaluation Group.2008. Doing Business: An IndependentEvaluation—Taking the Measure of theWorld Bank–IFC Doing Business Indicators.Washington, DC: World Bank Group.WTO (World Trade Organization). 2005.“Customs Border Cooperation betweenNorway, Sweden and Finland.” Communicationfrom Norway. DocumentTN/TF/W/48. Negotiating Group onTrade Facilitation, WTO, Geneva.Yakovlev, Evgeny, and Ekaterina Zhuravskaya.2008. “Deregulation of Business.”New Economic School, Moscow. http://ssrn.com/abstract=965838.(c) The International Bank for Reconstruction and Development / The World Bank
Data notesThe indicators presented and analyzedin Doing Business measure businessregulation and the protection of propertyrights—and their effect on businesses,especially small and medium-size domesticfirms. First, the indicators documentthe degree of regulation, such as thenumber of procedures to start a businessor to register and transfer commercialproperty. Second, they gauge regulatoryoutcomes, such as the time and cost toenforce a contract, go through bankruptcyor trade across borders. Third,they measure the extent of legal protectionsof property, for example, theprotections of investors against lootingby company directors or the range ofassets that can be used as collateral accordingto secured transactions laws.Fourth, they measure the flexibility ofemployment regulation. Finally, a set ofindicators documents the tax burden onbusinesses. For details on how the rankingson these indicators are constructed,see Ease of doing business, page 79.The data for all sets of indicators inDoing Business <strong>2009</strong> are for June 2008. 1Three new economies—The Bahamas,Bahrain and Qatar—were added to thesample, now comprising 181 economies.MethodologyThe Doing Business data are collected ina standardized way. To start, the DoingBusiness team, with academic advisers,designs a survey. The survey uses asimple business case to ensure comparabilityacross economies and over time—with assumptions about the legal formof the business, its size, its location andthe nature of its operations. Surveys areadministered through more than 6,700local experts, including lawyers, businessconsultants, accountants, freightforwarders, government officials andother professionals routinely administeringor advising on legal and regulatoryrequirements (table 12.1). Theseexperts have several (typically 4) roundsof interaction with the Doing Businessteam, involving conference calls, writtencorrespondence and visits by theteam. For Doing Business <strong>2009</strong> teammembers visited 73 economies to verifydata and recruit respondents. The datafrom surveys are subjected to numeroustests for robustness, which lead to revisionsor expansions of the informationcollected.The Doing Business methodologyoffers several advantages. It is transparent,using factual information aboutwhat laws and regulations say and allowingmultiple interactions with localrespondents to clarify potential misinterpretationsof questions. Having representativesamples of respondents isnot an issue, as the texts of the relevantlaws and regulations are collected andanswers checked for accuracy. The methodologyis inexpensive and easily replicable,so data can be collected in a largesample of economies. Because standardassumptions are used in the data collection,comparisons and benchmarks areTable 12.1How many experts does Doing Businessconsult?Number ofIndicator setcontributorsStarting a business 1,166Dealing with construction permits 739Employing workers 810Registering property 907Getting credit 1,033Protecting investors 653Paying taxes 862Trading across borders 817Enforcing contracts 767Closing a business 72761valid across economies. Finally, the datanot only highlight the extent of specificregulatory obstacles to doing businessbut also identify their source and pointto what might be reformed.Limits to what is measuredThe Doing Business methodology has5 limitations that should be consideredwhen interpreting the data. First, thecollected data refer to businesses inthe economy’s largest business city andmay not be representative of regulationin other parts of the economy. To addressthis limitation, subnational DoingBusiness indicators were created for 6economies in 2007/08: China, Colombia,Egypt, Morocco, Nigeria and the <strong>Ph</strong>ilippines.2 Six other subnational studies areunder way, in Central Asia, SoutheastEurope, Indonesia, the Russian Federation,Southeast Asia and Ukraine. Andsome existing studies are updated annually,such as those in India, Mexico andPakistan. These subnational studies pointto significant differences in the speed ofreform and the ease of doing businessacross cities in the same economy.Second, the data often focus ona specific business form—generally alimited liability company (or its legalequivalent) of a specified size—and maynot be representative of the regulationon other businesses, for example, soleproprietorships. Third, transactions describedin a standardized case scenariorefer to a specific set of issues and maynot represent the full set of issues a businessencounters. Fourth, the measures oftime involve an element of judgment bythe expert respondents. When sourcesindicate different estimates, the timeindicators reported in Doing Businessrepresent the median values of severalresponses given under the assumptionsof the standardized case.Finally, the methodology assumesthat a business has full information onwhat is required and does not wastetime when completing procedures. Inpractice, completing a procedure maytake longer if the business lacks informationor is unable to follow up promptly.(c) The International Bank for Reconstruction and Development / The World Bank