By World Bank
Doing company in 2005 is the second one in a sequence of annual studies investigating the scope and demeanour of laws that increase company task and people who constrain it. New quantitative symptoms on enterprise laws and their enforcement might be in comparison throughout one hundred forty five countries-from Albania to Zimbabwe-and through the years. Doing company in 2004:understanding law provided signs in five themes: beginning a company, hiring and firing staff, implementing contracts, getting credits and shutting a enterprise. Doing enterprise in 2005 updates those measures and provides one other units: registering estate and conserving traders. the symptoms are used to investigate fiscal and social results, comparable to productiveness, funding, informality, corruption, unemployment, and poverty, and determine what reforms have labored, the place and why.
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Extra resources for Doing business in 2005
Businesses can meet these fluctuations in demand by expanding and contracting the number of work hours—if the law permits. In El Salvador, Japan, New Zealand, Sweden and Uganda the working day can extend to more than 12 hours a day in peak periods. But in the Philippines and Ukraine the maximum is 8 hours. In both countries there are restrictions on night and weekend work, so the employer cannot use 2 shifts. These rigidities allegedly increase worker welfare. 13 Difficulty of firing A barrier to firing is a barrier to hiring.
Durand-Lasserve and Royston (2002). 9. Fields (2002). 10. Based on analysis of the Doing Business indicators with firm level data on the perceived security of property rights, as reported in Batra and others (2003). 11. World Bank (2002). 12. Land Equity International (2003). 13. In Moldova and Ukraine the expedited procedure does not cut total time because they are performed simultaneously with procedures that take a longer time. 14. Anderson-Saito and Dhar (2004). 15. Ellis (2004). 16. Fafchamps and Quisumbing (2002), Katz and Chamorro (2002).
Differences across countries are enormous. Saudi Arabia, with the 10th most flexible employment regulations, has no restrictive regulations on hiring and firing but regulates weekend work. Angola, with the 10th most rigid regulations, regulates heavily every aspect of work hours and firing, but allows term contracts with 5-year duration. Source: Doing Business database. 4 Difficult to fire workers in some countries Who pays what to fire? Severance cost in weeks of salary equivalence Difficulty of firing index 50 Sub-Saharan Africa 48 South Asia Highest 100 Tunisia Uzbekistan 65 49 42 43 Europe & Central Asia MORE RIGIDITY 29 5 most expensive countries: Sierra Leone 188 Lao PDR 185 Guatemala 170 Brazil 165 Egypt, Arab Rep.
Doing business in 2005 by World Bank