12 Years of Doing Business and countingDominik Wanner
When the World Bank started to work on the first Doing Business Report
(DBR) back in 2003 they presumably did not expect that it will become of the most
influential, but also most controversial international business rankings in the world.
For the first time the legal systems of jurisdictions worldwide would be analysed and
such data later on statistically as well as mathematically processed to produce
worldwide doing business rankings. This was an ambitious project as part of the
relatively new discipline of Law and Economics. The results of DBR would make
economies and their legal system around the world comparable. And this would put
the World Bank also into the position to push for economic and business legal reforms
in countries or economies that would underperform. It became an important tool of
the World Bank. Therefore it is very important to have a close eye on DBR and its
development.
When DBR was published for the first time in 2004 it looked quite different from
DBR we can read in 2015. But the foundation for all that was laid about 15 years ago.
It started with only five different factors that have been analysed: Starting a
Business, Hiring and Firing Workers, Enforcing Contracts, Getting Credit, and
Closing a Business. Three of them survived until today, Starting a Business,
Enforcing Contracts, and Getting Credit. Hiring and Firing Workers became by far
the most controversial one. Labour Unions, academia, as well as governments
complaint about it as it was encouraging to have very flexible labour laws leaving
workers with not much protection. Therefore this DBR factor first got renamed into
Employing Workers, but then finally did not survive as an official DBR factor. But
the World Bank still evaluates it and keeps it as an unofficial annex factors in its
published statistics. It did not want to give it up as they set up the structure for the
necessary data collection and data processing. And they do not want to loose this tool
when it becomes necessary to suggest economic reform measures to various countries.
Closing a Business is still around as an official DBR factor, but it got redesigned as
is now called Resolving Insolvency. As the World Bank has been continuously
updating and redesigning the methodology of almost all DBR factors the collection
and processing of DBR data has been adapted and changed during the more than
twelve years of existence quite significantly.
Also new factors have been added over time. So already in the second edition
two more factors have been evaluated:Registering Property and Protecting Investors.
Adding factors involves a immense amount of work and preparation. Therefor adding
two of them is very remarkable and both of them still exist today. And again one year
later even three more factors have been added: Dealing with Licences, Paying
Taxes, and Trading across Boarders. And again one of them became politically
tremendously controversial. The evaluation of Paying Taxes preferred tax regimes that
have been very much favouring low tax burden for corporations. Therefore it was
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