Doing Business

Ease of Doing Business Report, World Bank, October 2019.

DOING  BUSINESS  2020 – Comparing Business Regulation in 190 Economies, World Bank

In October 2019, the World Bank published its annual report on the ease of doing business, Doing Business 2020 – Comparing Business Regulation in 190 Economies.

Doing Business 2020 is the 17th annual report tracking the regulations that improve business activity, as well as those that constrain it, and the data in the report relates to the period from June 2018 to May 2019. This year's report presents the results on the ease of doing business in 190 economies worldwide across twelve business regulatory areas, in order to assess the business environment in each economy. Ten indicators were used to assess the ease of doing business over a 12-month period, namely: starting a business, obtaining a building permit, getting electricity, registering property, getting a credit, protecting minority investors, paying taxes, trading across borders,& contract enforcement and insolvency resolution. Doing Business also measures the flexibility of employment regulation, as well as the efficiency, quality, transparency, accountability and integrity of the public procurement system, but these indicators are not included in the report.

Between June 2018 and May 2019, 115 economies implemented 294 regulatory reforms and introduced significant improvements that make it easier to do business in all areas. The Middle East and North Africa are the regions leading in the total number of regulatory changes (57) implemented that ease doing business. Economies in Europe and Central Asia have accelerated an already strong momentum to improve the business climate and implemented 56 reforms (Georgia in 7th place and North Macedonia in 17th place). Despite the improvements, there are still significant differences between developed and developing economies on most indicators. The economies with the most improvements (reforms implemented) across the greatest number of areas are: Bahrain (9), Saudi Arabia (8), China (8), Kuwait (7).

The countries that are best for doing business are: New Zealand (with a score of 86.8 out of 100), Singapore, Hong Kong SAR, China, Denmark, the Republic of Korea, the United States, Georgia, the United Kingdom, Norway and Sweden. The lowest-ranked countries in terms of ease of doing business, as in the previous year, are the Republic of Yemen, Venezuela, Eritrea and Somalia.

The best-ranked country in our region is still North Macedonia - in seventeenth place, while Slovenia is in 37th place.  Of the countries in the region, Croatia (up 7 places to 51st), Serbia (up 4 places to 44th) and Slovenia (by 3 places to 37th), while Montenegro has retained the same position (50th), and Kosovo has fallen thirteen places in the ranking compared to last year's report (from 44th to 57th). Albania also fell in the global ranking (from 63rd to 82nd place).

Bosnia and Herzegovina has again worsened its ranking compared to last year's report and remains the lowest-ranked country in our region and Europe (tied with San Marino in 92nd place). With a score of 65.4, it is clear that BiH is stagnating, while other countries are progressing more rapidly, which year on year increases the gap compared to other countries in the region and Europe. In terms of individual sets of indicators, the results achieved are similar to last year's. Of the ten indicator sets included in this year's 'Doing Business' report ranking, BiH is best placed in the cross-border trade indicator (27th position), where it has improved by ten places (compared to last year's position of 37th). In the area of insolvency resolution, we have retained last year's 37th position, and for obtaining credit, BiH is ranked 67th (in the previous report, it was ranked 60th out of 190 countries worldwide). In areas that are very important for foreign investors, such as the protection of minority investors, BiH is ranked 88th (up from 72nd), and in the area of contract enforcement, it is 93rd on the global list (up from 75th). In terms of property registration, we are in 96th place, with seven procedures required and a timeframe of 35 days. Bosnia and Herzegovina is lowest-ranked in the area of starting a business, where we are 184th, and have worsened our position compared to the previous year (we were 183rd in the world). Starting a business in Bosnia and Herzegovina requires 13 procedures, which takes 80 days, and the costs amount to 13.7% of per capita income, with a minimum capital requirement of 10.2% of per capita income, which is far from the regional average. Bosnia and Herzegovina is also poorly ranked in the area of obtaining building permits, where it is ranked 173rd (and was 167th in the world). Obtaining building permits requires going through 17 procedures and waiting 180 days, the costs are 20.3% of the property's value, and the construction quality control index is 13.0 (which is a positive rating considering the index range of 0-15). BiH has made significant improvements in the category of electricity availability, where we are ranked 74th (in the previous report - 130th). It takes 5 procedures and 69 days to obtain electricity, with costs amounting to 289.0% of per capita income. For years, we have been poorly ranked for tax payment, and according to the latest report, we are in 141st position. A total of 33 procedures are required to pay taxes, and it takes 411 hours per year.

The following is a graphical representation of the ranking for Bosnia and Herzegovina and the countries of the region in the Doing Business 2018–2020 reports, which relates to the period from 2017 to 2019.