EL UNIVERSAL

Latin America was the region making the least progress to ease business in 2006-2007, while Venezuela was ranked at the top of the list in the region and in the 172nd position among 178 countries, as the country worsened the business unfriendly climate, according to a report published by the World Bank.

"If you wonder what is the country slipping backwards, then with no doubt Venezuela is the world leader. I think that at the current pace, Venezuela is soon dropping to the bottom of the list, below the Democratic Republic of Congo," forecast Simeon Djankov, World Bank Chief Economist, as quoted by Efe.

Worsening business climate in business is linked to the fact that exporters now need a separate license for each transaction. In order to get the license, exporters must submit proof of identity and solvency -documents that must be frequently renewed.

In Venezuela, the time to export stretched to 45 days, which is "barely faster than in landlocked Burundi," the report said.

"But slow clerks need not worry about losing their job: Venezuela also expanded its ban on firing workers to cover anyone who earns less than 3 times the minimum wage," the document added.

No Latin American country was listed among the first 20 countries in the world easing businesses. Chile, which ranked first in the region, occupied the 33rd position, with Mexico in the 44th position.

Colombia, and Mexico to a lesser extent, was among the top reformers in 2006-2007. Colombia was ranked 10 among the top reformers. Egypt was at the top of the list, which included Croatia, Ghana, and Macedonia, among others.

"Colombia is an interesting country. President Álvaro Uribe's government has been implementing a number of successful reforms and has managed to adopt important measures such as a tax reform," said Djankov.

Regarding taxes, Venezuela -together with Bangladesh, the Dominican Republic, Hungary, and Zimbabwe- increased the tax burden on businesses. "Venezuela introduced three new taxes," the report stated.

The survey measures the regulations affecting 10 stages of a business's life, namely starting a business, dealing with licenses, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. Data in Doing Business 2008 are current as of June 1, 2007. The indicators are used to analyze economic outcomes and identify what reforms have worked, where, and why.

Translated by Maryflor Suárez R.
msuarez@eluniversal.com

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