World Bank’s report shows richer countries have less red-tape
The World Bank has released an excellent report on Doing Business in 2005, comparing costs of doing business in various countries. The upshot of this study is that countries are unable to extricate themselves from poverty because red-tape keeps getting in the way.
Relief from poverty does not come from a few crumbs tossed from rich tables; it arises from domestic economic growth. It is difficult to force people to be entrepreneurial, but they can be encouraged to be so if it is both easy and rewarding. The burdens and the fees should be lower, not higher, in the poorer countries because they need the growth more.[Adam Smith Institute’s weblog]
While India did better than the previous year, and does well in protecting investors, it still has a long way to go – for example when businesses are closed, claimants recover just over 12 cents to every dollar, after a long wait of 10 years. Their counterparts in OECD countries can recover as many as 77 cents in less than two years; and 35 cents in two-and-a-half years in China.