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Russia first fell in the top 30 of the prestigious business ranking

Россия впервые попала в топ-30 престижного бизнес-рейтинга

Russia has risen on three lines in a new ranking of the world Bank group (WB) Doing Business, from 31st to 28th place. The dynamics of individual indicators that form the final rating, was mixed.

So, great progress is recorded in the section “obtaining construction permits” and the criterion “access to electricity infrastructure”, Russia joined the top ten, while sank the level of protection of rights of minority shareholders.

The hard way up

Eight years ago Russia was 120th in the ranking, in 2016, rose to the 40th in 2018 — 35-e in 2018 — 31-e a place. Every year climbing in Doing Business given Russia all the more difficult since the most obvious flaws in the regulation, the removal of which enabled rapid progress in the bottom of the rankings, is long gone, but their closest rivals Russia in the “standings” now is not the “third world” countries, and Austria and Japan.

Countries in Doing Business in recent years not only range from 1 to 190-th place — WB calculates the absolute and the result close to optimal performance. A higher score indicates a more efficient business environment and a more sustainable legal institutions. The best result, representing 86.8, worst is 20.

2017 Doing Business is published without place in the ranking of the previous year reveals only distance to frontier, “distance to best practice”. In Russia this indicator grew over the year, however, not so much, from 77,37 to 78.2 (the maximum is 100). For example, China, won the “Russian” last year’s 31st place, added a much stronger — with 73,64 points to 77.9 per. The rise of Russia in the ranking of the provide and competitors: for example, Rwanda (from 29-th place, dropped to 38th) distance to frontier has deteriorated to 76,5 77,9 with.

“Russia has risen to 28th place. Over the last three years progress in 12 positions — the forward movement continue.

Russia is best the BRICS countries, ahead of about half of Europe in this ranking, for example, France and the Netherlands are behind us, we are between Austria and Japan.

But, of course, competition is serious and growing — the same China has moved from 46th place on the 31st and we are already closely pressed, therefore, in order even to maintain their positions, it is necessary to actively move forward,” — told reporters the head of the Ministry Maxim Oreshkin.

Starting in 2012, progress in Doing Business has become a KPI (key performance indicator, KPI) for the officials: “may decrees” prescribes in six years to rise into the top 20. This task is not completed, is still preserved today only in the form of orders of the President (to enter the top twenty now to 2024). In a new ranking at the 20th spot is Finland, its distance to frontier — 80,2, that is, Russia from coveted lines are separated by two points. Between Russia and Finland located Austria, Iceland, Kazakhstan, Ireland, Canada, Germany and Thailand.

A dense group of leaders

The Doing Business report published for the 17th time. The authors of the study ranked 190 countries on 10 criteria of business regulation: cost of time and money on creating a new business, obtaining construction permits, access to electricity infrastructure, registering property, getting credit, protecting minority investors, paying taxes, the conduct of international trade, enforcement of contracts, bankruptcy proceedings (there are two of the studied criterion is the labour market and government contracts, but they are not counted in the total ranking).

A few years ago, IFC (international Finance Corporation, is part of the WB) expanded geographic coverage within 11 countries connecting to the study to States with a population of over 100 million people the second largest city (in Russia, Moscow has added St. Petersburg, his “weight” in total Russian ranking — 30 vs 70 from the capital).

Singapore, which for ten years has maintained the first position in Doing Business, but three years ago lost to New Zealand, added one score, reducing the gap from the leader to 0.6 points. Third place went to Hong Kong, rolled away on 4-th position Denmark. In addition to these countries in the top 10 were South Korea, United States, Georgia (holds the first place among the countries of the former Soviet Union), UK, Norway, Sweden.

The ten countries that have achieved the greatest progress, were Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Kuwait, China, India and Nigeria.

The list of outsiders traditionally stable. In last place once again Somalia, nearby Eritrea, Venezuela, Yemen, Libya, South Sudan, Central African Republic, DR Congo.

Easier to build and connect

Among carried out in Russia reforms of the world Bank highlights the acceleration of the procedure of connecting to power grids in Moscow and St. Petersburg, as well as reducing the time for consideration of applications for VAT refund by tax authorities.

If last year none of the components of a rating of Russia’s score deteriorated (a common position sometimes reduced the progress of the competitors), but this time there are such criteria. So, 61,67 to 60 points dropped based on the criterion of “protection of minority shareholder rights” (72-e a place against the 57th year ago).

The highest point and the maximum score for Russia — in terms of “connecting to the electric power infrastructure” (respectively 7-e after 12th a year ago and 97.5 after 94).

In the ranking for registering property Russia remained high, 12th place. The access to credit Russia dropped to 25th from 22nd place on taxation — from 53rd to 58th place on the procedures of bankruptcy and financial improvement from 55 th to 57-e, for the registration of companies — from 32nd to 40th, to ensure contracts from the 18th to the 21st, the international trade — remained on 99-E.

For the second consecutive year Russia makes a breakthrough on the part of building permits (last year, from 115 th to 48 th place, now on the 26th).

 

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