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Private sector

The fight for the top Doing Business.
Since the middle of last year, the famous Doing Business rating is subjected to fierce criticism from China and, to a lesser extent, a number of other developing countries. From the World Bank – organization, making this ranking – need to abandon its publication. Under this pressure, the head of the bank was forced to gather a group of experts for a full assessment of the rating methodology. A month ago, the group finished its work and published its views on this matter. Adequate to Doing Business as a comparative assessment of the business climate in different countries? Is it appropriate for Ukraine, which officially is trying to correlate the ongoing reforms in the country to improve its position in the ranking?

Doing Business – research which is published by the World Bank since 2004. Its purpose is to assess the conditions of doing business in 183 countries around the world on 10 criteria, such as ease of logging in and starting a new business, dealing with construction permits, ease of cross-border trade, etc.

This report is one of the main products of the World Bank in the development of the private sector, and probably most of the ratings promoted economic development in the world media.

In addition, a number of successful programs of economic reform in recent years, took into account the indicators published in Doing Business, and even set a goal to improve the situation of the country in this ranking. A striking example – the reform in Georgia that last two years, is in the top 10 ranking of countries.

However, a number of countries, showing not so good results, dissatisfied rating. One of them – China – was displeased with him so much that the World Bank is trying to get minimize the program and generally cease to conduct research Doing Business. Although the head of the World Bank refused to such radical ideas, under Chinese pressure, he was forced to appoint a group of experts, which has recently published evaluation of the adequacy of the rating methodology and a number of comments (for example, it was proposed to abandon the overall country ranking, ranking them only on selected indicators ).

Chinese claims caused, most likely, a matter of national prestige, and not a real dissatisfaction rating methodology. However, this methodology has been criticized before the current conflict around her and leads the Chinese side, in fact, the arguments which applied previously by various researchers and organizations. At the same time, these arguments are disputed or partially challenged supporters of the current methodology.

Potential foreign investors

Does Doing Business Ukraine.

In Ukraine, for Doing Business watched many – and the media, and investors (including potential foreign investors), and the government, and international organizations such as the IMF or the Bank, and the EU, with which Ukraine is trying to converge. Justification for such attention in relation to our country?

In the latest ranking of Ukraine has risen to 15 degrees, despite increasing concerns of investors.

Poor conditions of doing business in Ukraine – almost the biggest problem of the local economy. Ranking of the World Bank, in which our country takes 137th place, adequately reflects this. Moreover, the problem for us are almost all categories, estimated in the rankings, with the exception of the rules of the loan, for which Ukraine is in 23th place. Thus, even if the World Bank refused to general rank, or no longer taken into account in the rating of the tax rate in Ukraine is basically nothing would have changed – we still would lag behind other countries. Perhaps the all-pervading corruption is somewhat easier situation than that picture painted by the figures of the World Bank, but this very corruption is a key element of the problems with a poor business climate in the country.

Whatever political games are not arranged around the Doing Business world powers concerned about questions of their own prestige, the ranking remains a useful tool to assess the conditions of doing business in different countries. In this sense, for Ukraine, for which the improvement of these conditions is a matter of life and death, it is an important indicator that can, in the event of the success of the truly qualitative reforms, immediately attract the attention of international investors to the country.

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