The Government of Canada

The Government of Australia

Zenaida HernandezMay 26th, 2008

Doing Business Indicators

• Update of 2008

• Research program on regulation and business opportunities for women

• Update of 2007

• Add 3 countries

• Reformer’s Club:

• 11 case studies

• Starting a business

• Dealing with licenses

• Employing workers

• Registering property

• Getting credit

• Protecting investors

• Paying taxes

• Trading across borders

• Enforcing contracts

• Closing a business

200920082007

0

5

10

15

20

25

30

35

1 2 3 4 5 6 7 8

Tim

e, D

ays

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

Cost

, % GNI p

er cap

ita

Focus on Procedures, Time and Cost isDoing Business basic methodology

Registering a property in the Philippines --- 8 procedures that take 33 days and 5.7% of property value.

Notary prepares deed

of sale

Obtain CTC of tax declaration

Pay stamp tax at bank

Obtain certificate of real estate taxes at CTO

Obtain CAR at BIR

Payment of transfer tax at

CTO

Apply for new tax declaration

Registration at Registry of

Deeds

Reforms across the w orld –less so in East Asia and Pacific

Countries with at least one positive reform in 2006-07 (%)

E. Europe + Central

Asia

78.6%

62.5%

South Asia

OECD

62.5%

Middle East + N. Africa

Sub-Saharan Africa

East Asia+ PacificLatin America

+ Caribbean

35.5%

58.8%

52.2%

45.8%

Business entry reforms = more businesses

Countries ranked by ease of doing business, quintiles

Business Density (registered firms per capita)

Business Entry(new firms in % of registered firms)

Source: Doing Business database

Easiest Most difficult Most difficultEasiest

…Which Means More Formal Employment

Source: Doing Business database, WDI

Informal Sector (% of GDP)

Unemployment (% of labor force)

Easiest Most difficult Most difficultEasiest

Countries ranked by ease of doing business, quintiles

Doing Business subnat ional series

CaloocanLas PiñasMakatiMalabonMandaluyongManilaMarikinaMuntinlupaNavotasParañaquePasayPasigQuezon CitySan JuanTaguigTanauan Valenzuela

CebuLapu-LapuMandaue

Doing Business in the Philippines 2008

Davao

Measures 3 indicators across 21 cities:

Starting a business

Dealing with licenses

Registering property

• Indicators selected because they cover areas of national and local government jurisdiction

• Provides objective measures on procedures, time and costs

• Information collected from private professionals and public officials that administer or advice on regulatory requirements in each of the 21 cities

Procedures to start a business

4

4

4

5

5

5

6

6

6

6

7

7

7

8

8

9

10

11

11

11

12

11

11

11

11

11

11

11

11

11

11

11

11

11

11

11

11

11

11

11

11

11

Manila

Marikina

Taguig

Caloocan

Cebu

Lapu-Lapu

Mandaue

Parañaque

Pasay

Quezon City

Makati

Mandaluyong

Muntinlupa

Las Piñas

Malabon

Navotas

San Juan

Pasig

Tanauan

Valenzuela

DavaoCity level (includes Barangays) National level

15

15

15

16

16

16

17

17

17

17

18

18

18

19

19

20

21

22

22

22

23

Days to start a business

52

42

40

39

37

37

36

35

35

34

33

33

33

33

32

32

31

29

28

2827

0 5 10 15 20 25 30 35 40 45 50 55

Manila

Davao

Muntinlupa

San Juan

Quezon City

Valenzuela

Tanauan

Pasay

Pasig

Mandaue

Lapu-Lapu

Las Piñas

Navotas

Parañaque

Cebu

Makati

Malabon

Mandaluyong

Caloocan

Marikina

Taguig

Singapore (5 days) Malaysia(24 days)

Indonesia(104 days)

Cost to start a business (% of income per capita)

45

373635

3331

282828252524

23232222212121

1817

0

5

10

15

20

25

30

35

40

45

50

Las P

iñas

Makat

i

Calooc

an

Pasay

Manila

Malabo

nPas

ig

San Ju

an

Mariki

na

Muntin

lupa

Parañ

aque

Cebu

Taguig

Manda

luyon

g

Navot

as

Quezo

n City

Manda

ue

Valenz

uela

Davao

Tanau

an

Lapu

-Lap

u

Indonesia(80%)

Thailand(5.6%)

Malaysia(18.1%)

Procedures to deal w ith licenses

16

12

15

15

16

12

11

10

11

11

13

10

9

11

11

10

9

9

9

7

7

2

2

2

2

1

2

2

2

1

1

2

2

2

2

2

1

2

2

2

0

2

7

12

7

7

7

10

10

10

10

10

7

9

10

7

7

7

7

7

7

10

7

8

7

8

7

7

7

7

7

7

7

7

7

7

7

7

7

7

7

7

7

7

Mandaue

Pasig

Lapu-Lapu

Cebu

Parañaque

San Juan

Muntinlupa

Caloocan

Malabon

Mandaluyong

Tanauan

Davao

Quezon City

Navotas

Pasay

Las Piñas

Makati

Marikina

Valenzuela

Manila

Taguig

Pre-construction During construction Post-construction Utilities

23

24

25

25

25

25

27

27

28

28

29

29

29

29

30

31

31

31

32

33

33

Days to deal w ith licenses

203

175

173

161

155

155

145

141

141

137

135

134

125

123

121

121

90

83

70

6058

0 15 30 45 60 75 90 105 120 135 150 165 180 195 210 225 240

Manila

San Juan

Pasig

Pasay

Malabon

Mandaluyong

Navotas

Muntinlupa

Quezon City

Parañaque

Caloocan

Las Piñas

Makati

Valenzuela

Marikina

Taguig

Lapu-Lapu

Cebu

Mandaue

Davao

Tanauan

Korea(34 days)

Indonesia(196 days)

Thailand(156 days)

Cost to deal w ith licenses(% of income per capita)

1072

558

481477465

146143140137136135135132129128127123123116102102

0

200

400

600

800

1000

Tanau

an

Lapu

-Lap

u

Manda

ueCeb

u

Davao

Malabo

n

Navot

as

Pasay

Parañ

aque

Taguig

Manda

luyon

g

San Ju

an

Calooc

an

Valenz

uela

Pasig

Muntin

lupa

Mariki

na

Quezo

n City

Las P

iñas

Makat

i

Manila

Thailand (11%) Malaysia (10%)

Indonesia(287%)

Days to register property

43

41

39

33

33

33

33

32

32

32

32

32

32

31

30

30

27

26

26

2521

0 5 10 15 20 25 30 35 40 45 50 55

Mandaue

Lapu-Lapu

Quezon City

Caloocan

Davao

Makati

Manila

Cebu

Malabon

Marikina

Pasay

Taguig

Tanauan

Navotas

Pasig

Valenzuela

Parañaque

Muntinlupa

San Juan

Las Piñas

Mandaluyong

Thailand(2 days)

Indonesia(42 days)

Singapore(9 days)

Cost to register property (% of property value)

4.84.84.74.74.74.64.54.54.54.54.54.54.54.54.54.5

4.2

3.73.53.5

3.3

0

1

2

3

4

5

Calooc

an

Davao

Mariki

na

Quezo

n City

Pasay

Makat

i

Las P

iñas

Malabo

n

Navot

as

Taguig

Parañ

aque

Pasig

San Ju

an

Manda

luyon

g

Muntin

lupa

Valenz

uela

Manila

Lapu

-Lap

uCeb

u

Tanau

an

Manda

ue

Malaysia(2.4%)

Indonesia(10.5%)

Vietnam(1.2%)

Doing Business indicators are a tool to reform

Best pract ices in the Philippines can improve the ease of doing business

168Manila, Marikina, TaguigNumber of procedures to start a business

142TaguigNumber of procedures to deal with licenses

124All citiesNumber of procedures to register property

79Lapu-LapuCost to start a business (% of GNI per capita)

76TaguigDays to start a business

61Makati, ManilaCost to deal with licenses (% of GNI per capita)

54MandaueCost to register property (% of property value)

35MandaluyongDays to register property

6TanauanDays to deal with licenses

Global rank per indicator

(178 economies)

Best performing cityIndicator

www.doingbusiness.org/philippinesSubnational.doingbusiness.org

zhernandez@ifc.org

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