Tuesday, August 28, 2012

Business Bureaucracy 5: Doing Business 2012 Report

The WB-IFC's "Doing Business 2012 Report was released several months ago. and the result for the Philippines was as ugly as in previous years: Long procedures to start and continue a business, lots of taxes and mandatory contributions to pay. The Country Tables are available here,

Singapore, Hong Kong and New Zealand took the 1st, 2nd and 3rd places, respectively. To start a business: Number of procedures, number of days, minimum capital: 3, 3, 0 for Singapore and HK, 1, 1, 0 for NZ. For the Philippines? 15, 35, 5.2 percent of per capita income.

In paying taxes: number of payments per year, number of hours, percent of profit: 5, 84, 27.1 for Singapore; 3, 80, 23.0 percent for HK; and 8, 172, 34.4 percent for NZ. For the Philippiines? 47, 195, 46.5 percent.

Then S. Korea, Australia and Thailand also got high ranks, meaning their business bureaucracies are not that complicated or parasitic.

To enforce contracts: number of procedures, number of days, cost (percent of claim): 33, 230, 10.3 percent for Korea; 28, 395, and 21.8 percent for Australia; and 36, 479, 12.3 percent for Thailand. For the Philippines? 37, 842, 26.0 percent.

Also Malaysia, Japan and Taiwan. In resolving insolvency, number of years, cost (percent of estate), recovery rate (cents on the dollar):  1.5, 15, 44.6 for Malaysia;  0.6, 4 percent, 92.7 for Japan; and 1.9, 4 percent and 82.1 for Taiwan. For the Philippines? 5.7, 38 percent, 4.7!

 And the more bureaucratic governments follow: communist China and Vietnam, then Indonesia...

The Philippines is within striking distance by Cambodia. Or just slightly less bureaucratic than Cambodia and Laos.

And many people here blame the poor why their population expand fast even if they cannot find enough jobs. So the blamers call for population control of the poor. They hardly if ever, blame the government for its mostly interventionist and parasitic policies towards entrepreneurs and job creators, which contributes to more poverty.

Meanwhile, see these two headline stories in interaksyon.com today. The institution that requires lots of papers and permits from the private sector supposedly to enhance transparency, is itself lacking transparency. At the Judiciary and Legislative branches alone.

The Executive branch is definitely among the least transparency, both national and local government units. Doing business and dealing with bureaucracies, both are not exactly easy things to do.

See also:
Business Bureaucracy 1: Avoiding government: Egyptian experience, March 12, 2007
Business Bureaucracy 2: We don't need a new DICT bureaucracy, July 13, 2010
Business Bureaucracy 3: Their Rules and Life,July 15, 2011
Rule of Law 1: Entrepreneurship and Government Permits, September 16, 2008
Welfarism 11: Bureaucratizing Entrepreneurs, April 11, 2011

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