Economic Indicators: The Importance of the Ease of Doing Business Report to Frontier Economies (in particular, African countries)
- Helps build trust between Potential Investors and a country: Whenever a potential investor scans the internet for information on a particular country, if they come across this report from a globally recognized brand such as the WorldBank, it instantly engenders trust. As opposed to them reading of your an indicator from a local newspaper such as JoyFM or The Graphic. You can consider the ease of doing business report as our countries unofficial business ambassador (Good or Bad) to foreign investors.
- Reform benchmarks: Another salient dimension to this report is the fact that, it also highlights benchmark reforms, thus you can compare reform in your countries economy with the global benchmark and know the distance to the Frontier.
- Streamlines vague business lingo into actionable indicators: One of the most important attributes to this report is the fact that, it organizes all the key components that make up the “business environment” (a loaded expression at best), into identifiable, actionable, set of indicators that politicians can act upon promptly.
- Targeted and a more accurate attribution of the reforms to political entities, actors and the political cycle in general: Politicians can always claim to have done what they might have not necessarily done or done or implemented well. It is not until policies can be identified, tracked and reported upon objectively, without bias, that true confidence and insight can be gained. And the EDB report does just that.
- Practical burden on businesses: Introduction of Delivery of Regulation index could provide a more comprehensive view of practical burden on businesses that certain government policies will impact.
- Not intended to be a comprehensive review: Doing Business is not intended to be a comprehensive review of each country’s economy. Rather, it seeks to provide policymakers with benchmarks that can serve as a starting point for discussion of beneficial reforms.
- Simplicity is the key to its effectiveness: In fact, the report’s simplicity is the key to its effectiveness. Doing Business has been a leader in synthesizing subjective and quantitative data to create understandable metrics. By limiting the total number of indicators studied and producing clear benchmarks, it helps policymakers to define their objectives and to improve the efficiency of regulation in crucial areas.
- Helpful in establishing open and free markets in developing countries: The data that Doing Business provides can help to generate the political will and public support needed to overcome opposition to competition-boosting measures from entrenched actors that have an interest in maintaining high entry barriers or procedural bottlenecks.
- Valuable tool for policymakers in developing economies: The project has been a rare World Bank success, recording almost 2,000 reforms over the past decade, and has proved to be a valuable tool for policymakers in developing economies to spur reform and enhance investment. Rwanda, for example, has skyrocketed in the rankings, from 143rd in 2009 to 52nd in 2013.
- Provides a credible framework for policy debate: it does provide a rigorous, credible framework for policy debate – and thus an opportunity that no economy can afford to lose.