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Doing Business in Russia 2009

Igor ArtemievInvestment Climate Advisory Services

The World Bank Group

Kazan, October 14, 2009

Click to edit Master title styleDoing Business project overview

Doing Business measures the regulations applying to domestic small and

medium-size companies through their life cycle

10 indicators in 183 countries

The objective: well-designed, streamlined regulations, accessible to all

Every economy is represented by its largest business city in the global Doing

Business study but several countries requested a Subnational Doing Business

study…

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Click to edit Master title styleSubnational Doing Business Project

Expands the DB indicators beyond the most populous city

Captures local differences in regulations or enforcement

Includes rules and regulations at all levels of government

Gives specific locations an opportunity to present themselves

Provides a tool for locations to compete globally

Provides information on good practices within the same country

that can be easily replicated

Combines media appeal of DB with active participation of

subnational governments in the reform process

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Countries: 41

Cities: 299

Subnational Doing Business has projects all around the globe

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Doing Business in Russia 2009

Measuring 4 topics in Russia:

Starting a businessDealing with construction permitsRegistering propertyTrading across borders

Analyzing required procedures, time and cost to start and operate a business.

Data were collected with the help of 200 public officials and private sector experts

Click to edit Master title styleDoing Business in Russia covers 10 locations

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Click to edit Master title styleDoing business in Russia: Where is it easiest?

Click to edit Master title styleStarting a business: Time to start a business varies across Russia due to implementation

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Click to edit Master title styleStarting a business:

Costs vary across cities as well

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Click to edit Master title styleDealing with construction permits: Too many clearances before breaking ground

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Dealing with construction permits: More than 3 years to complete procedures in Voronezh

Click to edit Master title styleRegistering property: Time varies significantly across cities

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Click to edit Master title styleRegistering property: Kazan has the least expensive process to transfer property

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Trading across borders: The time and cost vary across Russia

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Variations across cities show potential to learn from the existing local best practices

Indicator Best practice Difficult

Procedures to start a business Moscow (9 procedures) Voronezh (14 procedures)

Days to start a business Rostov-on-Don (22 days) Petrozavodsk (37 days)

Cost to start a business Kazan (3,000 rubles) Moscow (6,200 rubles)

Procedures to deal with construction permits Rostov-on-Don (22 procedures) Moscow (54 procedures)

Days to deal with construction permits Rostov-on-Don (194 days) Voronezh (1,207 days)

Cost to deal with construction permits Petrozavodsk (270.3% GNI) Moscow (2,612.8% GNI)

Procedures to register property Kazan, Voronezh, Rostov-on-

Don (5 procedures)Petrozavodsk (7 procedures)

Days to register property Tomsk (47 days) St. Petersburg (117 days)

Cost to register property Kazan (16,706 rubles) Rostov-on-Don (40,360 rubles)

Time to export Kazan (24 days) Moscow (36 days)

Time to import Voronezh (23 days) Moscow (36 days)

Cost to exportPetrozavodsk

(1,050 USD per container)Moscow

(2,150 USD per container)

Cost to importPetrozavodsk

(933USD per container)Moscow

(2,150 USD per container)

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75%

9 reformers

90%

28 reformers

Number of states

2006 - 2007 2007 - 2008

► Great Initial Impact Political support for reform efforts has continued even after two rounds of local elections and one presidential election since first benchmark

► Great “bang for the buck” 58 reforms in 3 years for

$1,125,000

reformers Non reformers

Doing Business in Mexico 2005, 2007 & 2009

Competition and peer learning drive reforms

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Improving business start up is associated with an increase in economic growth and investment rate and with a smaller informal sector.

Efficient property registration can make it easier to transfer property and can help boost the number of new title registrations.

Good construction regulations that ensure safety standards while making the permitting process efficient, transparent and affordable result in increased construction activity, improved public safety with less projects in the informal economy, and higher revenues from construction spending and property taxes.

Why does it matter?

Click to edit Master title styleTHANK YOU!

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