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Business Environment Reform

Where entrepreneurship and markets are stifled by inappropriate regulation, excessive taxation, lack of fair competition, lack of voice or an unstable policy environment, growth and poverty reduction are likely to suffer. The private sector itself can play an important role in advocating for a better business environment. Many development agencies thus work to strengthen the capacity of businesses and business associations to engage in public-private dialogue with governments.
The Doing Business Report measures regulations that encourage or constrain business activity across 9 core areas or “indicators” (Starting a business, Dealing with construction permits, Registering property, Getting credit, Protecting investors, Paying taxes, Trading across borders, Enforcing contracts and Closing a business) in 183 economies. A higher ranking on the Report’s overall ease of doing business index corresponds to a more business-friendly regulatory environment.
The Doing Business methodology has its limitations. Other areas important to a business such as a country’s proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders), the security of property from theft and looting, the transparency of government procurement, macroeconomics conditions or the underlying strength of institutions—are not measured directly by Doing Business.              

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