In Washington, D.C.:
Nadine Ghannam
Phone: +1 (202) 473-3011
E-mail: nsghannam@ifc.org
In Phnom Penh
Bou Saroeun
Phone: + 855-23 213 538/217 304
E-mail: Sbou@worldbank.org
In Hong Kong
Hannfried von Hindenburg
Phone: +852 2509 8115
E-mail: hvonhindenburg@ifc.org
Phnom Penh, Cambodia, September 9, 2009—Cambodia’s ranking remained low on the global ease of doing business in 2008/2009 while most economies in East Asia and the Pacific strengthened business regulations to help increase opportunities for local firms. Three economies from the region—in order, Singapore, New Zealand, and Hong Kong (China)—led the world in ease of doing business.
Between June 2008 and May 2009 a record 131 of 183 economies around the globe reformed business regulation, according to Doing Business 2010: Reforming through Difficult Times, the seventh in a series of annual reports published by IFC and the World Bank. In East Asia and the Pacific 17 of 24 economies made reforms against the backdrop of the global economic crisis.
Cambodia was ranked number 145 out of 183 countries on the ease of doing business as the global economic crisis prompted many countries to accelerate reforms, improving their ranking relative to Cambodia. The World Bank and IFC, the member of the World Bank Group focused on private sector development, are working with the government on improving the business climate.
“The Second Investment Climate Assessment, published in 2009 by the World Bank and IFC, identifies priorities to significantly improve the business environment by helping to retain existing investors and attracting new ones,” said Qimiao Fan, Country Manager for the World Bank in Cambodia. “This would position Cambodia well to benefit from a recovery in the global economy, and also help its small firms to develop and create jobs.”
IFC’s Resident Representative in Cambodia, Julia Brickell, noted that Cambodia is making efforts to improve some aspects of the business environment. “IFC, with support from the European Commission and other donors, is assisting the government to improve commercial dispute resolution mechanisms through the establishment of the National Arbitration Center, which will be a quicker and cheaper alternative to the courts. We are assisting with the selection of arbitrators and preparing a program for training them to arbitrate commercial disputes. Effective commercial arbitration is crucial in helping businesses enforce contracts in ways that are less costly and time consuming than is currently the case,” said Brickell.
As a result of its reforms, Indonesia—the region’s most active reformer this year—moved up to 122 from 129 on the global ease of doing business rankings. Indonesia cut the time required to start a business by 16 days and the time to transfer a property by 17 days. The country also strengthened disclosure requirements for related-party transactions to protect investors.
Singapore, a consistent reformer, is the top-ranked economy on the ease of doing business for the fourth year in a row, with New Zealand as runner-up. Singapore introduced online and computer-based services to ease business start-up, construction permits, and property transfers.
Other reforms occurred throughout the region. Thailand eased business start-up and ranks twelfth globally on the ease of doing business. China made it easier for domestic firms to trade by relaxing rules on trade credit. The Philippines introduced new insolvency rules to make it easier to reorganize firms. The Pacific island economies also continued to pick up the pace of reform. Fiji, Papua New Guinea, Samoa, Tonga, and Vanuatu reformed in areas including starting a business, getting credit, paying taxes, and enforcing contracts.
Doing Business ranks 183 economies based on 10 indicators of business regulations that track the time and cost needed by domestic companies to meet business regulations such as starting and operating a business, trading across borders, paying taxes, or closing a business. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems.
About the World Bank Group
The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
For more information about the Doing Business report series, please visit: www.doingbusiness.org
For more information on Doing Business 2010, please contact:
Nadine Ghannam +1 (202) 473-3011
E-mail: nsghannam@ifc.org
Rebecca Ong +1 (202) 458-0434
E-mail: rong@worldbank.org
Contacts for region-specific queries on Doing Business 2010:
East Asia and the Pacific
Hannfried von Hindenburg +852 2509 8115
E-mail: hvonhindenburg@ifc.org
Mohamad Al Arief +1 (202) 458-5964
E-mail: malarief@worldbank.org
