Columns

What's being done about 'Doing Business'?

Tuesday, December 04, 2018

Print this page Email A Friend!


By October 2019 the World Bank and International Financial Corporation will publish their 17th report on the Ease of Doing Business Index. Our Government has until May 2019 to attempt to influence the outcome of that report because only data available at that time will be considered for the report.

Referring to the report 'Doing Business 2016: Measuring Regulatory Quality and Efficiency', Navita Anganu-Ramroop lamented, in 'Jamaica Takes the Leap in Doing Business Indicators: 5 Lessons for the Wider Caribbean', that:

“Not all countries are bothered by rankings, and therefore not all countries make a concerted effort to change and attempt to improve same, failing to realise that the competitiveness of nations are equally important and necessary for the competitiveness of firms operating within the country.”

Doing Business 2016 also stated that Latin America and the Caribbean (LAC) is one of the regions “with the smallest share of economies implementing regulatory reforms”. In fact, Jamaica and The Bahamas were the only Caribbean nations that actually improved their global ranking in that report.

Fast-forward to Doing Business 2019: Training for Reform, “South Asia and LAC are the (only) two regions absent from the top 50 ranking.” Again, LAC has the “lowest share of reformers with 56 per cent of economies”. Consequently, LAC had the “lowest average increase” in score, +0.22 points.

For Doing Business 2016, Jamaica had made four reforms and moved from 71st to 64th out of 189 global economies. Since then, Jamaica has consistently fallen in rank to its current 75, having implemented only one reform over the year ending May 2018 — a reduction from the two reforms that were implemented in the previous year.

In Doing Business 2019, Brazil is the only LAC economy to improve its ranking. Like Jamaica, it implemented four reforms by which it was able to improve its rank from 125 to 109. In the previous year, El Salvador, Dominican Republic and The Bahamas improved their rankings after implementing at least three reforms.

Again, El Salvador had implemented four reforms and was the top performer, improving its rank from 95 to 73. But, El Salvador, Dominican Republic and The Bahamas have subsequently fallen in rank after implementing less than three reforms, just like Jamaica.

Jamaica's National Competitiveness Council is optimistic the island can be ranked in the top 10 economies for the Doing Business 2021 report. This seems overly optimistic considering no LAC economy is currently within the top 50, Jamaica has consistently fallen in rank over the past three years, and only two years remain to the deadline.

More realistically, it is proposed that Jamaica aim to become a top 50-ranked economy by 2020, and our Government strive to implement at least four reforms annually. It is also important to realise that 11 of the 15 highest-ranked LAC nations are within the Caribbean Basin. So, Jamaica cannot afford to be slack in its effort to become competitive.

Paul Hay, MBA, BA (Arch), is founder and managing partner at PHC Projects, Strategic Facility Change-Management. Send comments to the Observer or projects@phcjam.com.

ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT