Do­ing busi­ness in Ja is still a chal­lenge

Jamaica Gleaner - - SPORTS -

A screen grab of the 'Do­ing Busi­ness 2017' re­port, re­leased last week Tues­day.

THE GLOBAL busi­ness en­vi­ron­ment is al­ways evolv­ing, some coun­tries for the bet­ter and oth­ers for the worse. Nev­er­the­less, it is es­sen­tial to track and un­der­stand how coun­tries im­prove their do­ing­busi­ness cli­mate to make life eas­ier for in­vestors and en­trepreneurs. Last week, we looked at Ja­maica’s per­for­mance on the World Eco­nomic Fo­rum’s Global Com­pet­i­tive­ness Re­port. This week, we will look at Ja­maica’s per­for­mance in the World Bank’s World Do­ing Busi­ness Re­port 2017. Ja­maica’s rank­ing has fallen two places from 65th in 2016 to 67th in 2017. Al­though the coun­try’s in­dex value has in­creased from 66.73 in 2016 to 67.54 in 2017, it is in­di­cat­ing that other coun­tries are im­prov­ing their do­ing­busi­ness cli­mate at a faster pace than Ja­maica.

HOW EASY IT IS TO START A BUSI­NESS?

Nor­mally, Ja­maica would rank in the top 10 for start­ing a busi­ness. For 2017, it has fallen six places to 12th. The coun­try is ranked ahead of the aver­age for the Caribbean and Latin Amer­i­can coun­tries. In Ja­maica, it re­quires two pro­ce­dures and 10 days to start a busi­ness, while it re­quires 8.3 pro­ce­dures and more than 30 days to start a busi­ness on aver­age in the Caribbean and Latin Amer­ica. As it re­lates to deal­ing with con­struc­tion per­mits, Ja­maica moved down four places from 71st to 75th. It re­quires 17 pro­ce­dures in Ja­maica to deal with con­struc­tion per­mits, while only 14 pro­ce­dures are re­quired across the rest of the Caribbean and Latin Amer­ica. The time taken is, how­ever, bet­ter in Ja­maica than the rest of the Caribbean and Latin Amer­ica as it re­quires 130 days to do so in Ja­maica, com­pared to 181 days for the rest of the Caribbean and Latin Amer­ica. As it re­lates to get­ting elec­tric­ity, Ja­maica has fallen 20 places from 81 to 101. It re­quires seven pro­ce­dures and 95 days in Ja­maica rel­a­tive to just 5.5 pro­ce­dures and 66 days on aver­age in the other Caribbean and Latin Amer­i­can coun­tries.

HOW EASY IS IT TO REG­IS­TER PROP­ERTY AND GET CREDIT?

Ja­maica has fallen as well in terms of reg­is­ter­ing prop­erty from 120th place to 223rd in the world for 2017, but re­quires less time than the other Caribbean and Latin Amer­i­can coun­tries. It takes eight pro­ce­dures and 18 days to reg­is­ter prop­erty in Ja­maica, rel­a­tive to seven pro­ce­dures and 69 days in the rest of the Caribbean and Latin Amer­ica. Ja­maica has fallen two places from 14th to 16th in terms of get­ting credit al­though it is out­per­form­ing the Caribbean and Latin Amer­ica in the depth of the credit in­for­ma­tion in­dex; seven com­pared to 4.8 on aver­age in the rest of the Caribbean and Latin Amer­ica, while the Credit Bureau cov­ers 23.3 per cent of adults in Ja­maica com­pared to 41.2 per cent of adults in the Caribbean and Latin Amer­ica. In terms of pro­tect­ing mi­nor­ity in­vestors, Ja­maica has fallen from 62nd to 63rd in the world, but is ranked bet­ter than the aver­age for the Caribbean and Latin Amer­ica here.

WHERE DID JA­MAICA IM­PROVE?

Ja­maica has im­proved in terms of pay­ing taxes and trad­ing across bor­ders. The coun­try has im­proved sig­nif­i­cantly by 39 places from 155 to 116 places as it re­lates to pay­ing taxes. It re­quires 11 pay­ment pro­ce­dures that can be done in 268 hours with a to­tal tax rate on prof­its of 35 per cent rel­a­tive to 29 pay­ments, tak­ing 342 hours and to­tal tax rate 46.3 per cent on prof­its in the Caribbean and Latin Amer­ica. Ja­maica also im­proved two places as it re­lates to trad­ing across bor­ders. It re­quires 58 bor­der-con­trol hours and costs US$876 to ex­port goods from Ja­maica, com­pared to 63 bor­der-con­trol hours and US$527 from the rest of the Caribbean and Latin Amer­ica. It re­quires 80 bor­der-con­trol hours and costs US$906 to im­port goods to Ja­maica com­pared to 65 bor­der-con­trol hours and US$685 to im­port goods to the other Caribbean and Latin Amer­i­can coun­tries.

WHAT ABOUT CON­TRACTS?

As it re­lates to en­forc­ing con­tracts, Ja­maica fell three places from 114 to 117. It re­quires 550 days and costs ap­prox­i­mately 46 per cent of the to­tal claim com­pared to 749 days and a cost of 31.3 per cent of the claim in the other Caribbean and Latin Amer­i­can coun­tries. To re­solve in­sol­vency, Ja­maica has fallen two places from 36 to 38. The re­cov­ery rate is 64 per cent, costs 18 per cent of the es­tate, and can be com­pleted in 1.1 year in Ja­maica, com­pared to a re­cov­ery rate of 31 per cent, cost 14.5 per cent of the value of the es­tate and can be com­pleted in 2.4 years in the rest of the Caribbean and

Latin Amer­ica.

WHICH CARIBBEAN OR LATIN AMER­I­CAN COUN­TRY IS THE BEST TO DO BUSI­NESS?

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