EASE OF DOING BUSINESS

Ease of Doing Business is a term used to describe the quality of regulations and processes that are faced by businesses when starting up, operating and closing down. It is a measure of the overall burden of bureaucratic procedures and administrative requirements that companies encounter when conducting business in a particular country. A high ranking on the ease of doing business index indicates that a country has good quality business regulations and processes.

The World Bank Group publishes an annual report called the Doing Business Report, which ranks countries according to their ease of doing business. The report scores countries on 10 indicators, each of which is assigned a weight of 0 to 100

Indicators of Ease of Doing Business:

The report scores countries on 10 indicators, each of which is assigned a weight of 0 to 100. The indicators are:

The indicators of ease of doing business are metrics used to assess the regulatory environment and business climate in a country. These indicators provide insights into how easy or difficult it is for businesses to operate, invest, and grow within a particular economy. The World Bank's "Doing Business" report is a widely recognized publication that assesses these indicators annually. Some key indicators typically considered include:

1. Starting a Business: This indicator assesses the procedures, time, cost, and minimum capital required to start a new business entity.

2. Dealing with Construction Permits: It examines the procedures, time, and cost involved in obtaining construction permits for commercial or industrial facilities.

3. Getting Electricity: This indicator measures the reliability of electricity supply, procedures, time, and cost required to obtain a new electrical connection for a business.

4. Registering Property: It evaluates the procedures, time, and cost involved in registering property and obtaining land rights.

5. Getting Credit: This indicator examines the strength of credit reporting systems and legal frameworks that facilitate access to credit for businesses.

6. Protecting Minority Investors: It assesses the protection of minority shareholders' rights in corporate governance and the ease of shareholder suits against directors for misconduct.

7. Paying Taxes: This indicator measures the ease of paying taxes, including the number of payments, time taken, and the total tax rate as a percentage of profits.

8. Trading across Borders: It examines the time and cost associated with importing and exporting goods, including border compliance, documentation, and administrative procedures.

9. Enforcing Contracts: This indicator assesses the efficiency of the judicial system in resolving commercial disputes, measuring the time, cost, and quality of contract enforcement.

10. Resolving Insolvency: It evaluates the ease of bankruptcy proceedings, including the time, cost, and recovery rate for insolvent businesses.

• A high EODB rank signals to foreign investors that a country is open for business and has a stable and predictable regulatory environment. This can encourage FDI, which can lead to job creation, economic growth, and technology transfer. 
• FDI and domestic investment can lead to increased economic growth. A study by the World Bank found that a one-point improvement in the EODB ranking can lead to an increase in GDP growth of 0.38%.
• FDI and domestic investment can lead to increased job creation. A study by the International Labour Organization found that a one-point improvement in the EODB ranking can lead to an increase in employment of 1.3%
• A high EODB rank can lead to increased productivity by reducing the time and cost of compliance with regulations. This can free up businesses to focus on innovation and growth.
• A high EODB rank can help a country to become more competitive in the global marketplace. This can make it easier for businesses to export goods and services and attract foreign investment.
• Increased economic growth, job creation, and productivity can help to reduce poverty. A study by the World Bank found that a one-point improvement in the EODB ranking can lead to a reduction in poverty of 0.5%.