The International Finance Corporation (IFC) and the World Bank jointly organized a Roundtable Discussion with the topic “Doing Business in Timor-Leste – Opportunities for Reform” on November 7, 2006. The objective of the Roundtable was to promote and facilitate a discussion with decision makers on appropriate and possible avenues of reform with respect to the business environment in Timor-Leste based of the findings of this year’s Doing Business Report.
Attending the event were the Prime Minister, Mr. Jose Ramos Horta, the Minister for Development, Mr. Arcanjo da Silva, the Permanent Secretary to the Ministry of Justice, Mr. Crisogno Neto, the Tax Commissioner, Mr. Angelo de Almeida, and other representatives of the Government and public administration.
In his opening remarks, the Prime Minister said: “It is important to attract foreign investment but Timor-Leste has little to offer: salaries are high, productivity is the lowest in the region, political uncertainty, and regulations are nightmare - why should investors come here?” He concluded with the hope that the workshop would provide ideas which would help the Government with its reform agenda.
In Summing-up, the IFC Country Coordinator for Timor-Leste, Mr. Rainer Venghaus said: “The process of reform and implementation is about people agreeing, compromising and acting together. This Roundtable with its lively, constructive and open discussion on the business environment in Timor-Leste has shown the great reform potential of this country."
Published annually, “Doing Business” reports investigate global regulations that enhance business activity and those that constrain it, ranking countries on their “ease of doing business.” Co-sponsored by the IFC - the private sector arm of the World Bank Group – and the World Bank, “Doing Business” reports give policymakers the ability to measure regulatory performance in comparison to other countries, learn from global best practice and prioritize reforms.
The focus of this year’s report, “Doing Business 2007” is on reform. The report presents quantitative indicators on business regulations and their enforcement across 175 economies—from Afghanistan to Zimbabwe—and over time. Top reformers are identified and best practices in how to reform are highlighted. Timor-Leste was ranked 174 in this year’s report.
The key findings for Timor-Leste in reference to international best practice were presented and discussed at the workshop.
Although the Doing Business Indicators do not tell the whole story of a country, a high ranking on the ease of doing business does mean that the government has created a regulatory environment conducive to operating a business. The indicators are used by agencies worldwide, such as the United States’ Millennium Challenge Account which, in 2004, introduced conditions for grant eligibility based on performance in the time and cost of business start-up.
