In its annual report on the ease of doing business in 2019, the World Bank Group provides a ranking for 190 countries. This ranking reflects quantitative measures on several important business indicators. For example, regulations, protection of property rights, and access to capital are important for businesses to be able to grow and expand markets.
Business Regulation
The 11 specific areas impacting ease of doing business in 2019 that the report covers are:
- Labor market regulations
- Business startup requirements
- Credit availability
- Ease of construction including permits
- Taxes, rates, and payments
- Protections for minority investors
- Contract enforcement
- Access to utilities such as electricity
- Property registration
- Cross-border trade
- Resolving bankruptcy and insolvency
What does Ease of Doing Business in 2019 Mean?
Across the 11 specific areas impacting ease of doing business in 2019, the World Bank Group notes a number of differences. Some indicators give a higher score for more regulation when it provides for institutions that function better for business activities. For example, a country will receive a higher score in one indicator if it has stricter requirements for related-party transactions that in turn protect minority investors.
What does Ease of Doing Business in 2019 not Include?
The World Bank Group states that the ranking does not account for several important areas. Some of these factors may have a significant impact on business activity. Some factors that the report does not include:
- Labor force quality measures
- Infrastructure inadequacies (lack of access to rail, air, ocean, or road transport options)
- Communication limitations (lack of access to internet, phone, cable, communication options)
- Financial system development
- Security issues
- Costs of tariffs
- Size of market
- Pervasiveness of bribery and corruption
- Costs of international transportation
- Macroeconomic stability
Top 10 Countries that Rank High for Ease of Doing Business in 2019
The top 10 countries that rank high for ease of business in 2019, and their rank, are:
- New Zealand
- Singapore
- Denmark
- Hong Kong SAR (Special Administrative Region), China
- Korea, Republic of (South Korea)
- Georgia
- Norway
- United States
- United Kingdom
- Macedonia, FYR (Former Yugoslav Republic, recently renamed in 2018 to Republic of Northern Macedonia)
New Zealand’s Ease of Doing Business in 2019
The New Zealand economy is stable and robust, with many thriving sectors and a stable system of government, finance, and markets. However, it ranks as only the 53rd largest in the world. The service sector contributes 63% of the country’s Gross Domestic Product (GDP). The largest industries in New Zealand are:
- Agriculture, including beef cattle, dairy farming, sheep farming
- Fishing, including trout, oysters, salmon, mussels (often raised at aquaculture farms)
- Forestry, including timber for the paper-making industries
- Horticulture, including fruits, wheat, vegetables
- Mining, including iron ore, silver, gold, coal, limestone
What Does This Mean for Ease of Doing Business in 2019?
Employers in countries that rank high for ease of doing business in 2019 benefit from policies and structures that promote business activity and growth. Growing businesses tend to generate a number of job opportunities. Local communities grow in population and support services and businesses benefit as main industry sectors continue to expand. Demand for employees may be strong, with several solutions such as immigration and favorable provisions for foreign job seekers. Several countries that rank high for ease of doing business in 2019 also rank high as one of the world’s best countries on a number of measures.
What should Employers do?
Employers in countries that rank high for ease of doing business in 2019 should review their company’s growth plans and requirements for jobs across all levels of skill sets. They should also determine how their company’s growth plans will impact the jobs required to meet business plans and goals.
Employers should review their talent acquisition and management programs to ensure they remain competitive to attract and retain new hires and transferees. Relocation Management Companies (RMCs) can provide expert assistance to employers to benchmark their relocation policies and add enhancements that attract talent. Also, RMCs can provide guidance on using the services of International PEO to help companies quickly expand into countries that rank high for ease of doing business in 2019.
Conclusion
GMS’ team of global relocation experts has helped thousands of our clients develop relocation programs that attract and retain qualified employees to help your company increase its ease of doing business in 2019. As a result, our team can help your company determine how to attract and retain new hires for talent acquisition and management programs.
GMS was the first relocation company to register as a .com, created the first online interactive tools and calculators, and revolutionized the entire relocation industry. GMS continues to set the industry pace as the pioneer in innovation and technology solutions with its proprietary MyRelocation™ technology platform.
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Learn best practices from Global Mobility Solutions, the relocation industry and technology experts who are dedicated to keeping you informed and connected. Contact our experts online to discuss your company’s relocation program needs, or call us at 800.617.1904 or 480.922.0700 today.
