Georgia is ranked 7th among 190 countries in the 2020 World Bank Doing Business report. The project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. The first study published in 2003, covered 5 indicator sets and 133 economies. This year’s study measures regulations across 190 economies in 12 business regulatory areas to assess the business environment in each economy.
The study looks at rules affecting a business from inception through operation to wind-down: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.
Economies in Europe and Central Asia accelerated an already strong momentum to improve their business climates, enacting 56 reforms and leading globally in reforms on paying taxes and enforcing contracts, the study says.
For starting a business, for example, Georgia leads alongside with New Zealand in having the lowest number of procedures required (1). The same applies for the number of procedures necessary for registering property, wherein Georgia shares the 1st place with Norway and Portugal, while also being number 1, alongside Qatar, for the least time required for said procedure.
“The Doing Business 2020 report commends Georgia for dealing with construction permits, an effort which improved building quality control by increasing public access to information. Georgia is also highlighted in categories of starting business and registering property,” said Sebastian Molineus, World Bank Regional Director for the South Caucasus.
Furthermore, the report points to Georgia as the economy establishing best regulatory performance on a number of the indicators it measures, including number of procedures to start a business, number of procedures and time required to register property and others. The very strong ranking reflects the country’s continued efforts, including being one of only five countries globally to have been featured on the list of top 10 improvers over three consecutive cycles.
(The top 10 best places in the world to do business according to the study)
The region implemented the most reforms world-wide in the areas of paying taxes, as 22 economies in the region now allow electronic filing of taxes and enforcing contracts. The region stands out with the most efficient commercial judicial system, as well as the ease of registering property: it costs 2.7% of property value on average to transfer a property, less than the 4.2% average among OECD high-income economies.
“The economies of Europe and Central Asia continue to make significant progress in enabling entrepreneurship and promoting economic growth,” said Santiago Croci Downes, Program Manager of the Doing Business Unit. “As the reform momentum builds, economies that lag behind can learn from the good practices adopted by their neighbors.”
Europe and Central Asia has also performed well over long run, as numerous countries have lowered paid-in minimum capital requirements and improved credit reporting systems over the 17 years of Doing Business study.
Since its inception in 2003, more than 3,500 business reforms have been carried out in 186 of the 190 economies Doing Business monitors.
Overall, the Doing Business 2020 study found governments of 115 economies around the world launched 294 reforms over the past year to make doing business easier for their domestic private sector.