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Caribbean improves business climate

Posted by CaribShout on September 11, 2009 at 9:30pm

Two reports this week cast a light on the climate for doing business in the Caribbean and the evidence suggests an improving picture. Both the World Bank and the World Economic Forum both issued their assessments of how countries around the world are doing when it comes to business competitiveness. The Bank published its "Doing Business 2010: Reforming through Difficult Times" through its private business arm, the International Finance Corporation (IFC). It found that in a record year for regulatory reform worldwide, economies in the Caribbean intensified their reform efforts to create more opportunities for local businesses. The Forum, which organizes the Davos summit, said some countries in the region were realising important advances in spite of the economic crisis. The seventh in a series of annual reports published by IFC and the World Bank found that 131 of 183 economies around the globe reformed business regulation between June 2008 and May 2009, according to a release. Electronic data It said, among Caribbean nations, the Dominican Republic strengthened investor protections with a new company law-making it the runner-up global reformer in protecting investors and improving its global ranking on overall ease of doing business from 102 to 86 among 183 economies. The report found that economies tended to be inspired by the reform activity of neighbours. computers

Some countries introduced electronic data interchange systems The release said three Caribbean countries - Grenada, St Kitts and Nevis, and St Lucia - reformed for the first time. Grenada eased contract enforcement and improved customs administration. St Kitts and Nevis implemented an electronic data interchange system that expedited cross-border trade. St Lucia eased business start-up by introducing an electronic company registration system. "Caribbean economies have intensified efforts to improve the business environment this year," said Sylvia Solf, lead author of the report. "Around the world, more small-island states are paying attention to the quality of business regulation to make their economies more competitive. Making it easy to start and run a business is always important, but especially during these difficult times." Trading across borders St. Vincent and the Grenadines made it easier to start a business, while Jamaica cut the property transfer tax from 6.5% of property value to 5%. Haiti expanded access to credit by broadening the types of assets that can be used as collateral and sped up trade by implementing an online document handling system and 24-hour port operations. Barbados Map

Barbados was number two in the Caribbean in the World Economic Forum index Guyana shortened trade times by introducing electronic declaration systems. The report analyzes regulations that apply to an economy's businesses during their life cycles, including start-up and operations, trading across borders, paying taxes, and closing a business. The World Economic Forum's Global Competitiveness Index 2009-10 cited Trinidad and Tobago, which moved up six places in the index among the "fairly encouraging" movers from the previous year. When it comes to the full international rankings, only Puerto Rico (42) and Barbados (44) were in the top 50. Puerto Rico's place at the top of the Caribbean rankings was bolstered, the report, said by its "sound innovation and sophistication factors". First-class It has also a well-developed financial sector and efficient goods markets. It said Barbados had continued an upward trend, rising three places, though that betrayed a mixed performance. Weaknesses include the island's very poor macroeconomic fundamentals, a small market size and a relatively inefficient goods market. The report said these were counterbalanced by first-class institutions and infrastructure as well as excellent primary and higher education, among other factors. The Global Competitiveness Index is based on 12 pillars of competitiveness - including infrastructure, macroeconomic stability, health and education, labour market efficiency, financial market sophistication and technological readiness

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