In casing of doing business
Bhutan ranked 75th in ease of doing business compared to 190 economies and selected cities at the sub-national and regional level, according to the World Bank’s ease of doing business report 2018.
While, the doing business project was launched in 2002, it looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation.
The World Bank’s ease of doing business report 2018 stated that to start a business, for entrepreneurs in economies in South Asia (SA), Bhutan ranked 88 among the 190 countries.
Dealing with construction permits, Bhutan ranked 82 and to materialize the permits, Bhutan consume about 150 days.
The report stated that this would required time and cost to build a warehouse-including obtaining necessary licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections.
In addition, dealing with construction permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements.
To obtain a permanent electricity connection for a newly constructed warehouse, Bhutan ranked 56. For this 61 days are consumed and four procedures are used that includes submitting all relevant documents and obtaining all necessary clearances and permits, completing all required notifications and receiving all necessary inspections, obtaining external installation works and possibly purchasing material for these works, concluding any necessary supply contract and obtaining final supply.
Due to some reforms, Bhutan made getting electricity easier by speeding up the process for obtaining a new connection
In terms of economies in South Asia (SA) rank on the ease of registering property, Bhutan ranked 56. To get this, the country uses three procedures and consumed 77 days.
However, ease of protecting minority investors, Bhutan ranked 124; a higher ranking does indicate that an economy’s regulations over stronger investor protections against self-dealing in the areas measured.
Whereas, ease of enforcing contracts, Bhutan ranked 25 and had taken 225 days to enforce a contract in the country. The report stated that Bhutan made enforcing contracts easier by creating a dedicated bench to resolve commercial cases.
That’s is not enough and with a small economy and abundance in natural resources we should aim higher in achieving the higher index in ease of doing business.