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PENELOPE BROOKActing Vice President
Financial and Private Sector DevelopmentThe World Bank Group
NairobiSeptember 30, 2009
http://subnational.doingbusiness.org
Doing Business – Overview
Doing Business measures the regulations applying to domestic small and medium-size companies through their life cycle
10 indicators in 183 countries
The objective: well-designed, streamlined regulations, accessible to all
Doing Business 2010 is the 7th report
More economies reform business regulations
More than 1,200 business regulation reforms tracked by Doing Business since 2004254 economies implemented start-up reforms171 of 183 economies reformed in at least one of 10 areas covered in Doing BusinessOver 270 reforms in 86 economies informed by Doing Business
89185 213 200 239 287
58 99 112 98 113 131
0100200300400
DB05 DB06 DB07 DB08 DB09 DB10
Reforms per Publication YearNumber of reformsEconomies
Subnational Doing Business
Expands the DB indicators beyond the most populous city Captures local differences in regulations or enforcement Includes rules and regulations at all levels of government Gives specific locations an opportunity to tell their storyProvides a tool for locations to compete globallyProvides information on good practices within the same country that can be easily replicatedCombines media appeal of DB with active participation of subnational governments in the reform process
5
Countries: 41
Cities: 299
Subnational Doing Business has projects all around the world
Doing Business in Kenya 2010
Four topics measured in Kenya:
Starting a business
Dealing with construction permits
Registering property
Enforcing contracts
Data were collected with the help of more than 115 private sector contributors and public
sector officials
Doing Business in Kenya 2010 covers 11 localities
Garissa
Kilifi
Mombasa
Thika
Nairobi
Isiolo
Nyeri
Narok
Kisumu
Malaba
Eldoret
Doing Business in Kenya 2010: Aggregate Rankings
1 Narok (easiest) 2 Malaba 3 Thika 4 Kisumu 5 Mombasa 6 Nyeri 7 Garissa 8 Eldoret 9 Kilifi10 Nairobi11 Isiolo (most difficult)
Time and cost to start a business in Kenya and selected economies and regions
Dealing with construction permits—potential for improvement
KENYA HIGHEST – 14 procedures (Garissa, Mombasa)
KENYA HIGHEST – 127 days (Isiolo)
KENYA HIGHEST – 284% (Kilifi)
Time to register property in Mombasa and Garissa
Enforcing contracts: lengthy delays during trial and judgment phase
“Kenyana” would jump from rank 95 to 78, if best practices were adopted
Indicator
Kenya’s global performance in Doing Business
2010 (represented by
Nairobi)
Best performing locality within
Kenya Best local practice
Global rank (183 economies)
How Kenyan localities would compare
globally
Number of procedures to build a warehouse 11 procedures Kisumu 10 procedures 9
Days to build a warehouse 120 days Narok 69 days 15Days to enforce a contract 465 days Malaba 330 days 23
Days to register property 64 days Mombasa 23 days 51
Cost to register property 4.2% of the property value Thika 4.1% of the property
value 78
Cost to build a warehouse
161.7% of income per capita Nyeri 132.4% of income
per capita 88
Days to start a business 34 days Nairobi 34 days 124
Cost to start a business 36.5% of income per capita Nairobi 36.5% of income per
capita 130
Number of procedures to register property 8 procedures All localities 8 procedures 136
Cost to enforce a contract
47.2% of the claim value Isiolo 38.4% of the claim
value 140
Number of procedures to start a business 12 procedures All localities 12 procedures 154
75%
9 reformers
90%
28 reformers
Number of states
2006 - 2007 2007 - 2008
► Great Impact • Political support for reform
efforts has continued even after two rounds of local elections and one presidential election since first benchmark
• 58 reforms recorded in 3 years
reformers Non reformers
Doing Business in Mexico 2005, 2007 & 2009
Competition and peer learning drive reforms
Improving business start up is associated with an increase in economic growth and investment rate.
Lowering barriers to entry correlate to less perceived corruption and a smaller informal sector.
Removing barriers to entry also gives opportunities of inclusion to youth and women.
Efficient property registration can make it easier to transfer property and can help boost the number of new title registrations.
Why does it matter?
Business regulation reform matters
Evidence from business start-up reform in MexicoEvaluation of impact on formal firm creation of a municipal reform which decreased the time to obtain an operation license from average 30 to 2 days in 93 municipalities.
Increase in new start-ups by about 4% (Kaplan, 2006)Increase in employment in eligible industries by 2.8% (Bruhn, 2008)
Indicative of how policy reform can lead to substantial real impact
For more information visit: www.doingbusiness.orgTHANK YOU
http://www.doingbusiness.org/Kenya http://subnational.doingbusiness.org
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