New Zealand is first in the world for ease of doing business for the second consecutive year.
. . . Doing Business measures aspects of regulation a ecting 11 areas of the life of a business. Ten of these areas are included in this year’s ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation, which is not included in this year’s ranking. . .
For eight of the 11 Doing Business indica- tor sets, the report’s traditional focus on e ciency—de ned as the time, cost and number of interactions necessary to incorporate a new business or connect a warehouse to the electrical grid—has been complemented with a new focus on regulatory quality. Doing Business data shows that e ciency and quality go hand in hand, reinforcing each other.
Despite these additions and improve- ments, one aspect of Doing Business has remained unchanged: its focus on pro- moting regulatory reform that strengthens the ability of the private sector to create jobs, lift people out of poverty and create more opportunities for the economy to prosper. The notion that the private sector has substantial economic, social and development impact is now universally recognized. Responsible for an estimated 90% of employment in developing economies, the private sector is ideally placed to alleviate poverty by providing the opportunities to secure a good and sustainable standard of living.
Policy reforms catalyze private investment. Promoting a well-functioning private sector is a major undertaking for any government. It requires long-term policies of removing administrative barriers and strengthening laws that promote entrepreneurship.
Hard data helps do that. It gives a voice to the people to demand improved public services. It also increases government accountability. . .
There is a message here for people who think capitalism has failed. It’s the private sector which is ideally placed to alleviate poverty. The government’s role is to remove barriers and strengthen laws that promote entrepreneurship.
The rankings are here.
While New Zealand does well overall, there’s lots of room for improvement in four areas: getting electricity, enforcing contracts and resolving insolvency.