Nepal has climbed 16 places in the Doing Business 2020 report prepared by the World Bank.
Nepal, that was ranked 110th in terms of ease in doing business last year, has climbed to 94th in the latest report. The World Bank has stated that there have been reforms in granting permission to do business in Nepal in the past year including that in credit mobilization, international trade, and contract agreements.
It, however, points that there are still difficulties in starting a business in Nepal and calls the mandatory registration process for social security hassling. It also adds that registration and transfer of property rights are still difficult in Nepal.
Doing Business report measures the regulations that enhance business activity and those that constrain it every year. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 190 economies.
Doing Business covers 12 areas of business regulation, according to the World Bank. Ten of these areas—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—are included in the ease of doing business score and ease of doing business ranking. Doing Business also measures regulation on employing workers and contracting with the government, which are not included in the ease of doing business score and ranking.
By documenting changes in regulation in 12 areas of business activity in 190 economies, Doing Business analyzes regulation that encourages efficiency and supports freedom to do business. The data collected by Doing Business address three questions about government. First, when do governments change regulation with a view to developing their private sector? Second, what are the characteristics of reformist governments? Third, what are the effects of regulatory change on different aspects of economic or investment activity? Answering these questions adds to our knowledge of development.
