Ease of Doing Business Index

Let me first begin with a ranking published yearly by the World Bank. This year’s edition of Doing Business 2015 report measures “the regulations that enhance business activity and those that constrain it” [Wbdb14]. Through measuring them in 189 economies, the ranking follows 10 areas of a life of a business. These sub-components are “starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency” [Wbdb14]. All of those indicators “are used to analyse economic outcomes and identify what reforms of business regulation have worked, where and why” [Wbdb14]. The World Bank describes its methodology very extensively on their website, in addition to providing country specific details [Wbdb14].

Such a business ranking is important for my index, because it shows in which countries starting and doing the business is the easiest. Since 2006, Singapore has been sitting at the top. Whereas countries such as New Zealand (second), South Korea (fifth) or Switzerland (twentieth) seen difficulties keeping their ranks, Singapore has remained for the whole time the most easiest and business friendly nation. Not coincidently, it is also considered (mistakenly) by many for Asia’s prime money laundering and tax evasion centre.