Russia has been Improving Its Positions in the World Bank Doing Business Index for five years
According to a new research of the World Bank Group the Russian Federation occupied the 51st place in Doing Business index having improved her positions by 73 points since 2010.
According to the research published by the World Bank, among 189 countries Russia occupies the first place in BRICS significantly ahead of China (84), South Africa (73), Brazil (116), and India (130). Minor changes occurred in top 20 countries, this year Georgia and Switzerland has not been included in the group.
Improving the World Bank Index positions was due to the business environment reforms, appearing of the effects of previous reforms and adding new indicators in index methodology that characterize legal regulation quality.
The Russian Federation is in top 5 countries for the number of reforms that were marked in the World Bank report; it is important to mention that there are only 12 countries in the world that realized four and more reforms.
In 2015 Russia is in the top decile of leading countries for two index parameters: contracts performance security – the 5th place; property rights registration – the 8th place.
Also Russia is in the top 50 in the world for the following index parameters: network connection – the 29th place; business registration – the 41st place; credit activities – the 42nd place; taxing – the 47th place.
Other countries in the index constantly optimize regulation and implement the best practices. It is rather illustrative that despite the fact that Russia improved calculated rates of index regarding the parameter of Business registration (shortening of legal entity registration time and reduction of its price) the position of Russia in index lowered from the 34th to the 41st place as a result of faster data improvement of other countries.
Like last year Russia’s doing business parameters were formed in the research based on the data of two cities: Moscow (70%) and Saint Petersburg (30%).
This year five parameters of index methodology have been modified, among them the parameters in four spheres have been completed by the legal regulation quality index: in construction, property rights registration, contracts performance security; in the sphere of network connection a new index reflects energy security and tariffs setting transparency; in the sphere of international trade calculation procedure has been changed completely.
According to new indices Russia shows hefty rates:
– index “registration system quality” (reliability, transparency, geographical coverage, dispute resolution): Russia got 26 out of 30 points (for reference: Singapore – 26.5 points, Canada – 21.5 points, the USA – 17.6 points, Kazakhstan – 15.5 points);
– index “regulation and control quality in the construction sphere”: Russia got 14 out of 15 points (Singapore – 14 points, the USA – 10.6 points, China – 9 points);
– index “judicial administration”: Russia got 12.5 out of 18 points (Canada – 10.5; China –14.1; the USA – 13.8; Singapore – 15.5; Kazakhstan – 13.5 points);
– index “network connection reliability”: Russia got maximal rate – 8 points out of 8 (the USA – 7 points, China – 6; Canada – 6; Kazakhstan – 6).
Russian reforms in 5 scopes of regulation of Doing Business research were mentioned in the report.
In the sphere of legal entity registration: the term of bank account opening for legal entities was shortened in Russia.
In the sphere of network connection: Russia simplified and cheapened the electrical power network connection process through abolishment of electrical counter inspection by power supply company and connection tariffs reduction.
In the sphere of property rights registration: the term of registration in Russia was shortened to 10 working days.
In the sphere of credit activities: there is a register of notices of movable property pledge in Russia; certain legislative acts were amended in order to allow a common description of miscellaneous category of assets for pledge.
In the sphere of taxing: Russia reduced joint tax rate by excluding movable property from tax base for corporate property tax.
In general there are 29 parameters used in the report that are similar to last year parameters, Russia shows rates improvement in 14 parameters in given research.