Connect with us

Reports

Asia-Pacific Business Environment Improves 7.3%

MD Staff

Published

on

Doing business in APEC member economies continues to get easier, according to a new report, helping to open up trade and growth opportunities in the Asia-Pacific against the backdrop of rising uncertainty.

An analysis of business conditions in APEC economies by the APEC Policy Support Unit reveals a 7.3 per cent improvement over the last two years, boosted by their ambitious ease of doing business initiative being taken forward by economic officials in Port Moresby.

The initiative is focused on five priority areas: 1) Getting credit; 2) starting a business; 3) dealing with construction permits; 4) enforcing contracts; and 5) trading across borders.

“APEC region officials’ efforts to raise the quality of their regulations are steadily making it cheaper and more efficient to do business in the Asia-Pacific,” explained Carlos Kuriyama, a Senior Analyst with the APEC Policy Support Unit and report co-author.

“Getting credit is the area where APEC has had the biggest business environment breakthrough, driven by stronger legal rights and credit information systems,” Kuriyama noted. “The average availability of credit information in the region increased from about 74 per cent to over 77 per cent of adults.”

Starting a new business meanwhile improved 11.8 per cent, taking nearly three fewer days and with all but one APEC economy eliminating minimum capital requirements.

Other measures employed in select instances which contributed to this trend included halting the need for a company seal to register a business as well as the introduction of an e-platform to expedite business permit applications.

Progress in trading across borders was marked by a 6.5 per cent reduction in the average time it takes businesses in APEC economies to export, from 70 to just over 65 hours. Dealing with construction permits took one less day to obtain.

“The move in the APEC region towards smarter, more modernized regulations is timely as digital development creates new avenues for businesses to engage in cross-border trade, including small and micro enterprises with limited resources,” said Kuriyama.

APEC economies are targeting a 10 per cent improvement in the region’s business environment by the end of 2019, based on 2015 levels in the five APEC Ease of Doing Business initiative priority areas. The initiative is inspired by the World Bank’s Doing Business program.

The exchange of good regulatory practices and implementation guidance, drawing upon experiences and recommendations garnered from public-private sector engagement in APEC, is at the center of the initiative’s work.

“Collaboration across APEC economies to improve their ease of doing business has achieved good results so far,” said Kuriyama. “The area with the most room for improvement is in enforcing contracts, with gains mostly stemming from higher quality of judicial processes.”

“Sustained reform and capacity building activities in APEC that focus on qualitative aspects of regulation like sustainability are critical to ensuring the momentum of business development and trade in the region at this challenging juncture,” Kuriyama concluded.

Continue Reading
Comments

Reports

Brazil must immediately end threats to independence and capacity of law enforcement to fight corruption

Newsroom

Published

on

The OECD Working Group on Bribery urges Brazil, one of the founding Parties to the Anti-Bribery Convention since 1997, to preserve the full capacity and independence of law enforcement authorities to investigate and prosecute foreign bribery and corruption. Despite being recognised by the Working Group for its significant anti-corruption enforcement efforts following its previous evaluation in 2014, there are now concerns that Brazil, due to recent action taken by the legislative and judiciary branches, risks backsliding on progress achieved, that could seriously jeopardise Brazil’s ability to meet its obligations under the Anti-Bribery Convention.

The Working Group has continuously alerted Brazil since 2016 of risks posed by attempts to broaden the definition of what constitutes abuses of authority by judges and prosecutors. Despite these warnings, a Law on abuses of authority (13. 869/2019) characterised by vague concepts will enter into force in January 2020. The Working Group has also expressed concerns that, following injunctions of the Supreme Court, limitations on the use of reports by Financial Intelligence Unit, Federal Revenues and other administrative agencies in criminal investigations might seriously hamper Brazil’s ability to detect and effectively fight corruption. This, combined with other actions by the Supreme Court and the Federal Auditor’s Court that are likely to have an effect on concluded foreign bribery cases, could constitute a serious push back in Brazil’s exemplary fight against corruption.

On 12-13 November 2019, a High-Level Mission of the OECD Working Group on Bribery discussed these issues in Brasilia with Minister of the Office of the Comptroller General Wagner de Campos Rosário, Minister of Justice Sérgio Moro, Attorney General André Mendonça, Deputy Prosecutor General of the Republic Hindemburgo Chateaubriand, President of the Supreme Court José Antonio Dias Toffoli, Senator Marcos do Val, as well as with the Chair of Brazil-OECD Parliamentary Group and Leader of the Government Deputy Vitor Hugo along with members of this Group. However, the High-Level Mission could not meet as scheduled with Prosecutor General of the Republic Augusto Aras, and with the Presidents of the Commission of Constitution and Justice of both the Chamber of Deputies and the Senate.

“Despite disappointing last minute cancellations of key high level representatives, we appreciate the readiness of the Brazilian authorities to meet with us to discuss outstanding issues related to law enforcement capacity and independence in foreign bribery cases,” said Drago Kos, Chair of the Working Group on Bribery. “However, we are quite alarmed that what Brazil had managed to achieve in recent years in the fight against corruption may now be seriously jeopardised. Brazil must strive toward reinforcing its framework and legal tools to fight foreign bribery, not weaken them.”

“The OECD high-level mission is a relevant initiative, as it brings a comprehensive analysis of the landscape of the fight against corruption in the country” said Minister of the Office of the Comptroller General Wagner de Campos Rosário. “Brazil has evolved considerably in recent years in the fight against corruption. The enactment of the corporate liability law (Law 12.846/2013), the establishment of leniency agreements, and the adoption of integrity plans in federal agencies and entities are important progresses. Nonetheless, this is a continuous process of improvement and we will always be seeking to improve our controls and mechanisms to combat the evil of corruption, thereby ensuring the delivery of better quality public services to citizens.”

Continue Reading

Reports

Austria: Reforms will be necessary to uphold high well-being levels

Newsroom

Published

on

Austria stands out for its high levels of economic and social well-being. Preserving these will require reforms to improve competition in the service sector, increase access to risk capital for firms of all sizes, encourage more women and migrants into the workforce and lengthen work lives to reflect the ageing population, according to a new OECD report.

The latest OECD Economic Survey of Austria, presented in Vienna by the OECD’s Director of Country Studies Alvaro Pereira, projects GDP growth of 1.4% for 2019 and 1.3% for 2020. The 2020 projection is down from 1.6% forecast by the OECD in May, though the 2019 projection is unchanged, as recruitment bottlenecks, weakening external demand – especially from key markets Germany and Italy – and global trade tensions dampen Austria’s outlook.

The report’s key recommendations include linking the retirement age to life expectancy, which has risen steadily while Austrians are still retiring much earlier than the OECD average. The effective retirement age in Austria is notably lower than in neighbouring Germany and Switzerland. Austria’s labour participation rate is also low, especially among older women.

To increase the incentives to stay in work, the report recommends Austria do more to reduce its high levels of tax and social security on labour income, particularly for low earners, relative to most other OECD countries. This could be balanced by shifting to alternative sources of taxation such as environmental, consumption, inheritance and wealth taxes.

Reducing barriers to entry in key sectors ranging from service professions and specialist manufacturing to rail and freight transport and pharmaceutical distribution could bolster competition and economic dynamism. The small and medium-sized businesses that dominate Austria’s economy would benefit from greater access to venture capital and a better developed equity market. A reform planned by the outgoing government to address the debt-bias in the corporate tax system would help level the playing field between debt and equity financing.

The report recommends making access to quality childcare, early childhood education and all-day schooling for older children a legal entitlement throughout the country, to make it easier for new mothers to return to work and improve their career prospects. While this is a challenge given Austria’s geography, it would also contribute to more equal opportunities in the education system.

Austria has one of the highest shares of migrants in its workforce of OECD countries. This means migrants play an important role in meeting robust demand for labour yet the country also has a major challenge in trying to integrate low-skilled immigrants. Increasing the availability of language courses and adult skills training would help to address this.

The report also calls for Austria to increase its focus on environmental issues, for example by increasing carbon prices, which are low by international standards, and improving town planning to address the rising environmental impact of urban sprawl.

Continue Reading

Reports

Greece Can Improve Its Business Climate by Replicating Local Successes

MD Staff

Published

on

Greece has taken significant action to improve the business environment but entrepreneurs face different regulatory hurdles depending on where they establish their businesses, highlighting opportunities for cities to do better by learning from each other, the World Bank said in a new report, Doing Business in the European Union 2020: Greece, Ireland and Italy.

The report’s findings on Greece, released today, show that Greek cities are already European Union best performers in the area of starting a business, requiring only three procedures. But significant disparities in regulatory performance remain in the other four areas benchmarked: Dealing with construction permits, getting electricity, registering property, and enforcing contracts.

For example, trial time for a commercial dispute at the local first instance court varies from a year and eight months in Thessaloniki to just under four years in Athens. Developers in Larissa can obtain all necessary approvals to build a warehouse and connect it to utilities in less than 5 months, while their counterparts in Heraklion need to wait almost twice as much, the report finds.

“The Greek government is making progress on reforms to get business regulations right. The uneven performance among cities shows that there is still great potential for yielding gains in competitiveness” said Arup Banerji, World Bank Group Regional Director for the European Union. “We hope that this report will help policy makers and policy implementers coordinate their efforts at the national and municipal levels to create an environment for businesses to grow and function effectively.”

Of the six cities benchmarked in Greece–the capital Athens, along with Alexandroupoli, Heraklion, Larissa, Patra, Thessaloniki—none excels in all five areas measured. It is easier for entrepreneurs to start a business in Alexandroupoli and deal with construction permits in Larissa. Patra leads in the areas of getting electricity and registering property, but it lags behind in construction permitting and enforcing contracts. Thessaloniki stands out for its performance in enforcing contracts and is the runner-up in dealing with construction permits, but it ranks last in getting electricity.

“The six cities that we measured in the report have different strengths, which means Greece has an opportunity to make improvements overall if cities learn from each other and implement successful measures,” said Rita Ramalho, Senior Manager of the World Bank’s Global Indicators Group, which produces the report.

While rankings are relative, according to the global Doing Business 2020 report, Greece would have ranked 61st out of 190 economies – 18 positions higher than its actual rank – if Athens had replicated the good practices of the best performing Greek city in each area measured.

Lessons can be learned from cities that face the most challenges. Registering the transfer of a property title at the local mortgage/cadaster office takes 12 days in Alexandroupoli and Patra and four months in Thessaloniki. Despite this delay, Thessaloniki stands out on the quality of land administration. Thessaloniki is the only city in which not only are the cadaster survey and property registration complete, but the entire territory of the municipality has been digitally mapped. The city has a state-of-the-art website providing both spatial data infrastructure and a geographic information system (GIS) portal. These apparently contradictory results—between the lag time to register and the high quality of the registration process—are perhaps expected. Thessaloniki has made the most progress in implementing the cadaster reform and in tackling the challenges it faces managing the transition.  

Doing Business in the European Union is a series of subnational reports being produced by theWorld Bank Group at the request of and funded by the European Commission. This edition also benchmarks five cities in Ireland and 13 cities in Italy, besides the six cities in Greece. The report will be published in full in December 2019. A first edition, covering 22 cities in Bulgaria, Hungary and Romania, was released in 2017. A second edition, covering 25 cities in Croatia, the Czech Republic, Portugal and Slovakia, was released in 2018.

The work on Greece, carried out with the support of the Ministry of Development and Investment (formerly the Ministry of Economy and Development), is based on the same methodology as the global Doing Business report published annually by the World Bank Group.

Continue Reading

Latest

Reports41 mins ago

Brazil must immediately end threats to independence and capacity of law enforcement to fight corruption

The OECD Working Group on Bribery urges Brazil, one of the founding Parties to the Anti-Bribery Convention since 1997, to...

Europe3 hours ago

The future of Brexit: Where will Boris Johnson’s “fatal strategy” lead Britain to?

British Prime Minister Boris Johnson will attempt to negotiate a new deal with the EU on Brexit in the course...

Travel & Leisure4 hours ago

Hilton’s Hidden Gems Series: Bentonville, Arkansas

The first Hidden Gem of the series is Bentonville, Arkansas (yes, the home of Walmart, though that wasn’t a factor...

Europe6 hours ago

Bulgarian far-right to shut down largest human rights NGO in Bulgaria

“Why don’t they defend those who get robbed? Why are they only defending those that have trouble with the police?...

Eastern Europe8 hours ago

Strategic Black Sea falls by the wayside in impeachment controversy

Presidents Donald J. Trump and Recep Tayyip Erdogan had a plateful of thorny issues on their agenda when they met...

Americas11 hours ago

The coup in Bolivia shines yet more dark light on America

Just when one might have thought things geopolitical might be about to turn for the better, which means the worldwide...

Energy13 hours ago

World Energy Outlook 2019 highlights deep disparities in the global energy system

Deep disparities define today’s energy world. The dissonance between well-supplied oil markets and growing geopolitical tensions and uncertainties. The gap...

Trending

Copyright © 2019 Modern Diplomacy