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Doing Business in Veneto 2009

Michael KleinVice President - Financial and Private Sector

Development, World Bank-IFC, and Chief Economist, IFC

February 16, 2009

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About Doing Business 20092007 2008 2009

Starting a business

Dealing with construction permits

Employing workers

Registering property

Getting credit

Protecting investors

Paying taxes

Trading across borders

Enforcing contracts

Closing a business

Update of 2007

Add 3 countries

Reformer’s Club:

16 case studies

New “About DB” chapter

Trends analysis DB04-DB09Most popular reformsMost effective reformsLessons learned

Add 3 new countries (Bahamas, Bahrain, Qatar)

Methodology change in Getting Credit (Legal Rights)

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Top 30 on the ease of doing business - 2009

1. Singapore 16. Saudi Arabia

2. New Zealand 17. Sweden

3. United States 18. Bahrain

4. Hong Kong, China 19. Belgium

5. Denmark 20. Malaysia

6. United Kingdom 21. Switzerland

7. Ireland 22. Estonia

8. Canada 23. Korea

9. Australia 24. Mauritius

10. Norway 25. Germany

11. Iceland 26. Netherlands

12. Japan 27. Austria

13. Thailand 28. Lithuania

14. Finland 29. Latvia

15. Georgia 30. Israel

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Eastern Europe and Central Asia reformed the most

93%

63% 63%61%

50% 50% 50%

E. Europe &Central Asia

East Asia &Pacific

Middle East &N. Africa

Sub-SaharanAfrica

Latin America& Caribbean

OECD South Asia

Countries with at least one positive reform in 2007/2008 (%)

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Doing business in Veneto 2009

7 topics measured in Veneto (Padua):

• Starting a business• Dealing with construction permits• Registering property• Enforcing contracts• Trading across borders• Paying taxes• Closing a business

3 topics based on national laws and covered by Doing Business 2009:

• Employing workers• Protecting investors• Getting credit

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Ease of doing business in the EU: global rankings of member states

5. Denmark

6. United Kingdom

7. Ireland

14. Finland

17. Sweden

19. Belgium

22. Estonia

25. Germany

26. Netherlands

27. Austria

28. Lithuania

29. Latvia

31. France

36. Slovakia

41. Hungary

45. Bulgaria

47. Romania

48. Portugal

49. Spain

50. Luxembourg

54. Slovenia

67. Padua

(Veneto)

68. Rome

75. Czech Republic

76. Poland

96. Greece

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Veneto’s global ranking by topic

IndicatorVeneto (Padua)

RomeEU

Average

Closing a business 26 27 39

Starting a business 47 53 55

Trading across borders 47 60 39

Protecting investors* 53 53 65

Employing workers* 75 75 102

Registering property 79 93 65

Dealing with construction permits

80 83 62

Getting credit* 84 84 42

Paying taxes 133 128 72

Enforcing contracts 156 156 42

* No subnational analysis was conducted for these topics. Rankings are based on Doing Business 2009 and are the same for Padua and Rome.

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Time to start a business in Padua and Rome

Tim

e (

days)

Rome 10 days

Padua7

days

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Cost of dealing with construction permits in Padua – international comparison

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Time and cost to register property in Padua

Click to edit Master title stylePaying taxes: little variation between Padua and Rome

Click to edit Master title styleTime and cost to export from Veneto

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Enforcing contracts in Padua: long duration

Veneto ranks 156th globally and last in the EU when it comes to the ease of enforcing contracts

Resolving a simple commercial dispute takes 1,808 days, and costs 27.3% of the value of the claim

Delays due to long duration of court proceedings and debt enforcement

Eliminate case backlog and reduce court delays by empowering judges

Implement an electronic case management system

Encourage alternative methods of dispute resolution

Current Situation What to reform

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Closing a business : gradual reforms since 2003

Two major legal reforms in 2003 and 2007

Reforms in the legal framework for bankruptcy redefined the scope of bankruptcy proceedings moving from punishing debtors to satisfying creditors

Gives distressed firms tools to overcome the crisis

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Business Friendly Regulation Leads toMore Registered Businesses and Start-ups

Countries ranked by ease of doing business, quintiles

Business Density (registered firms per capita)

Business Entry (new firms in % of registered firms)

Source: Doing Business database

Easiest Most difficult Most difficultEasiest

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www.doingbusiness.org/veneto

Grazie