US Ranks 3rd in Ease of Doing Business 2009

According to the latest Doing Business Report 2009 published by the World Bank, the USA ranks third in ease of doing business. This report is based on comparison of 181 economies from around the world.

The following regulations affecting 10 stages of a business’s life were measured : “starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. ” All data used were based on data collected upto June 1, 2008.

Chart #1: Ease of Doing Business


Chart #2: US Ranking in various measures

2-us-edb-table.JPG Source: World Bank

The lower the number the better the rank.So the tiny city state of Singapore ranks 1st in ease of doing business.Doing business in China is much easier than in Brazil and India.This is interesting since Brazil and India follow democracy. Some of the factors which are take more time in the US are processes involved in calculating and paying taxes, dealing with construction permits. As the data in Chart #2 shows US ranks 5th in getting credit. In countries like Brazil, Mexico, China it is much harder to get loans for businesses. On protecting investors with strong regulations, New Zealand ranks 1st. While US takes the 5th spot, it is questionable as investors are finding out since the credit crisis began.It is widely accepted notion that the US has some of the strictest and wide array of regulations,they were not enforced properly by the government entities involved. For example, the SEC was asleep at the wheel all along when some financial institutions were going insolvent and reported rosy earnings to investors.

To download the full Doing Business 2009 Report – Country Profile for USA, click here.

Related ETFs:

iShares MSCI Singapore Index Fund  (EWS)
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