Absorptive Capacity and Interpretation

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Nearly 1,000 reforms have had an impact on these indicators. Doing Business 2011, covering June 2009 to June 2010, reports that 117 economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing Business have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and export regulations and improving credit information systems. Closing a Business Enforcing Contracts Trading Across Borders Paying Taxes Protecting Investors Getting Credit Registering Property Dealing with Construction Permits Economy Starting a Business The top 10 most-improved in Doing Business 2011 Kazakhstan Rwanda Peru Vietnam Cape Verde Tajikistan Zambia Hungary Grenada Brunei Darussalam Note: * For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doing business ranking.

The economy with the highest recovery rate is included as a benchmark. 0 Average Time to Close a Business (years) 39 The 5 year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies from Doing Business 2006 to Doing Business 2011. Instead of highlighting which countries currently have the most business friendly environment, this new approach shows the extent to which an economy’s regulatory environment for business has changed compared with 5 years ago.

Nicaragua increased taxes on firms by raising social security contribution rates and introducing a 10% withholding tax on the gross interest accrued from deposits. It also improved electronic payment of taxes through bank transfer. Nicaragua expedited trade by migrating to a new electronic data interchange system for customs, setting up a physical one-stop shop for exports and investing in new equipment at the port of Corinto. Panama eased business start-up by increasing efficiency at the registrar.

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