Some of us already knew all about it! cm
India's license raj is alive and well CHIDANAND RAJGHATTA [ 14 Feb, 2007 0404hrs ISTTIMES NEWS NETWORK ] WASHINGTON: So you think India's infamous license-permit Raj has ended? Not according to the World Bank. A new report released on Tuesday by the Bank and its private sector arm IFC ranks India near the bottom of the world in several business metrics. Although the report puts some gloss on marginal improvements arising from reforms and offers comfort saying India and Pakistan are South Asia's top reformers, the harsh truth is India fares dismally in the world business practices, notwithstanding all the international attention it is getting. Overall, India ranks 134th in ease of doing business, 88th in starting a business, 112th in (ease of) employing workers, 110th in registering property, 65th in getting credit, 33rd in protecting investors, 139th in trading across borders, 133rd in closing businesses. India's most miserable numbers are in dealing with licenses (155th), paying taxes (158th), and most crucially, enforcing contracts (173rd). Even in South Asia, India ranks near the bottom in ease of doing business (6th) and starting a business (8th), dealing with licenses (7th), paying taxes (8th), enforcing contracts (6th). Yet a World Bank release on the subject kicked off by saying ''doing business became easier in India and Pakistan in 2005-2006'' thanks to reforms which reduced the time, cost, and hassle for businesses to comply with legal and administrative requirements. Worldwide, the South Asia region ranked last in the pace of global reforms. The South Asian rankings: the Maldives (53) and Pakistan (74), followed by Bangladesh (88), Sri Lanka (89), Nepal (100), India (134), Bhutan (138), and Afghanistan (162). Singapore, New Zealand, United States, Canada and Hong Kong occupied the top five positions. Within India, the report finds that Hyderabad has the most business-friendly regulations. Mumbai (11th) and Kolkata (12th) are at the bottom. But some good practices exist, the study reveals. If the country could adopt, for example, Jaipur's regulations on starting a business, Bhubaneswar's rules on contract enforcement and taxes, and Chennai's trade practices; it could move its current global ranking from 134th to 79th. The report finds that entrepreneurs in South Asia face large regulatory obstacles to doing business. For example, it takes 18 months of salary, on average in the region, to dismiss a redundant worker. Taxes are still high: a standard company in India pays 81% of commercial profits in taxes. Resolving commercial disputes through the courts is more time-consuming in South Asia than in any other region. On average it takes almost three years (969 days). Despite some improvements in 2005-2006, the report says the pace of reform was slower in South Asia than in any other region, with only India and Pakistan starting to improve their business environment. "Countries are competing for investment, enterprises, and the jobs that come with them. Some improvements are underway in the region, but the pace of reform must increase if South Asia wants to keep up with the rest of the world," said Simon Bell, World Bank Manager for Financial and Private Sector Development in South Asia. _______________________________________________ assam mailing list [email protected] http://assamnet.org/mailman/listinfo/assam_assamnet.org
