The improvement in ranking on Doing Business indicators is a clear signal to investors that Nepal has created a better environment for entrepreneurs, says Doing Business 2012: Doing Business in a More Transparent World. Nepal had slid four positions last year.[break]
The report released on Thursday attributes the improvement to improved oversight and monitoring in the legal system, something which sped up the process for filing claims by investors, thereby strengthening the enforcement of contracts.
According to the report, Nepal improved its rankings mainly on indicators like registering property, getting credit, paying taxes, and trading across borders. However, its rankings fell on indicators like starting a business, dealing with construction permits, protecting investors, and resolving insolvency.
Interestingly, even though country is reeling under serious power deficit, Nepal ranked 99 on electricity supply - the newest indicator that the IFC and the WB used this year to measure business environment.
The improvement has come as the good news, particularly as the government has announced it will celebrate 2012-13 as Nepal Investment Year and is working out different programs to lure investors.
However, the report suggests the government to further improve on indicators like starting a business, dealing with construction permits, paying taxes, and trading across borders -- areas in which Nepal lags at present. “If the government managed to significantly improve these indicators, IFC officials said it will further bolster Nepal´s Investment Year Campaign 2012-2013,” reads a statement.
Doing Business 2012 report further cites that three other South Asian countries -- Bhutan (146 to 142), India (139 to 132) and Sri Lanka (98 to 89) -- also improved their positions in Doing Business rankings this year.
Bangladesh, however, fell by four places and ranked 122. Maldives also fell from 78 to 79th position during the year.
The report notes that all eight economies in South Asia have made their regulatory environment more business-friendly over the past six years.
Given that entrepreneurs in developing economies play a vital role in creating economic opportunities, Augusto Lopez-Claros, director, Global Indicators and Analysis, World Bank Group lauded the South Asia´s governments for empowering entrepreneurs by implementing regulations that are efficient, accessible, and sustainable.
“They should continue to seek avenues for improvement,” the statement quoted Lopez as saying
Doing Business analyzes regulations that apply to businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency.
It does not measure aspects like security, macroeconomic stability, corruption, the level of skills, or the strength of financial systems that matter to firms and investors though.
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