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Subnational Doing Business

http://subnational.doingbusiness.org

Marialisa MottaMierta Capaul

Luis Aldo Sanchez-Ortega

7 June 2010

Launched 8 years ago

Focuses on regulations relevant to the life cycle of a small to medium-sized domestic business based on a standardized case

Does not measure all aspects of the business environment

The objective: efficient regulations, accessible to all, and simple to implement

Doing Business compares business regulation in 183 economies

What is SNDB and what does it do?

Reform Instrument

Diagnostic Tool

M&E Device

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► Expand Doing Business indicators beyond the country’s most populous city

► Measure progress over time and create an incentive to maintain the reform effort even when governments change

► Create a powerful public policy tool capable of guiding policymakers throughout the entire regulatory reform cycle

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Countries: 41

Cities: 299

Where do we work?

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Data Collection

Data collection

-Customized surveys to reflect local particularities

-Training national government on DB methodology

-Local governments involved in surveying process

Period of Reply

Right-of-Reply period

-Presentation of preliminary results

-Dialog with local / national governments about reforms

-Active participation from local governments

-Final data collection

Preparation Phase

Preparation Phase

-Demand driven -National and local governmentsinvolvement: Selection cities / indicatorsCoordination local governments

-Road-Show with national government:Present projectTrain local governments on the methodologyEnsure commitment local governments

Active national and local government participation required at all stages

Strong focus on knowledge sharing at all stages

How do we work: design and implementation

Follow-up

Demand for reform at local and national level

Peer-to-peer learning and rapid response

Sustainability strategy / transfer of methodology

Report Compares

performance of different cities in same country

Identifies bottlenecks and local good practices

Provides reform recommendations

Launch Media coverage

Country ownership

“We only have winners in Colombia: winners of today and winners of tomorrow” President Alvaro Uribe

Active national and local government participation required at all stages

How do we work: design and implementation

Indicators covered at the subnational level

Subnational Doing Business typically measures those indicators where there are local differences in business regulations and their enforcement across locations with a shared legal and regulatory framework.

4 indicators typically measured at the subnational level:1. Starting a business 2. Dealing with construction permits3. Registering property4. Enforcing contracts

3 indicators added depending on degree of subnational independence: paying taxes, trading across borders, closing a business. 3 indicators are legal indexes only: Protecting investors, Employing workers, Getting credit.

City profiles: measure all indicators to benchmark additional city internationally. Examples: Veneto, Abu Dhabi, Juba in Southern Sudan

We measure Procedures, Time and Cost related to these 4 indicators We also gather info on recent & planned reforms

The logic behind time and motion indicators

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Incorporate/register the business

Inspection by local authorities

Pay license fees Register with the Social Security

Off ice

Make a company seal

Time(No. of days)

Cost(% of GNI per capita)

• Follow the entrepreneur from the beginning to the end of a basic transaction

• Record every step of the process, and the associated time and cost• Gather all the relevant laws, regulations, decrees, and fee schedules

Time and motion indicators focus on the process.

Subnational Doing Business uncovers reform potential by identifying goodpractices within the country

Large regional variations in regulations and implementation remain

IndicatorBest

performing city

Global rank

Days to deal with construction permits

Hyderabad 19

Cost to enforce a contract

Patna 31

Days to register property

Jaipur 49

Days to import Bhubaneshwar 50

Time to pay taxes Jaipur 91

Cost to start a business

Patna 124

Recovery rate for closing a business

Hyderabad 133

To climb 55 places in the rankings,

India would need to adopt:

• New Delhi’s regulations on starting a

business

• Hyderabad’s rules on contract

enforcement and bankruptcy

• Bhubaneshwar’s trade practices

No need to go outside India for good practices

Remarkable progress in regulatory reforms across Colombia

National and local reforms implemented in all cities benchmarked in 2007

Detailed information in 5 languages

http://Subnational.doingbusiness.org

General description

Links to specific country subnational websites

Launching conference presentations

Services for clients and public in general

http://Subnational.doingbusiness.org

Country reports’ general

descriptionRankin

gs

Data analysi

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Main findings

National reform

simulator

Free reports in

local language (Italian)

and English

Grazie

http://www.doingbusiness.org/subnational

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