China rises through the ranks of countries that are easy to conduct business in. With this improvement, they have jumped over France.
The news was broken by a report from Washington. The ranking is based on the World Bank’s annual ranking.
Paving the Road
Last year, the second strongest economy in the world, saw themselves at the number 46th spot. In just a year’s time, they have improved a big 15 spots.
China’s improvement stemmed from the report that the World Bank prepared previously. The focus of this report was the improvement of developing countries. It outlined efforts that developing countries could take to reach their more developed brethren.
The leader of the World Bank acknowledged and applauded China for following the directives in the report. They have applied most of these changes, reforming how their country operates.
These actions centered around easing requirements for obtaining permits for construction and electricity. They have also focused on solving insolvency in their country. This way, people’s debts can be more easily handled.
Government workers from China stated that they created certain groups to focus on each of these points. These groups researched and actioned these efforts.
China is not the only country to improve in this list. Several countries in the Middle East have also strengthened their position. These include Jordan and Saudi Arabia.
It is also worth noting India, Pakistan, and Nigeria’s efforts and improvements as well. These three countries have some of the biggest populations in the world.
However, the top 10 list of countries also has a ton of insights when analyzed.
For starters, Hong Kong has improved its position to number three. They leapfrogged over Denmark.
This particular piece of information is interesting. Throughout the past few months, protests have ravaged Hong Kong. These protests were centered around the extradition bill and police brutality currently happening.
Due to these protests, Hong Kong’s retail revenue has dropped considerably. The tourism sector has similarly suffered. Hotel rates in Hong Kong are now lower than rented housing.
The protests have taken their toll on Hong Kong’s business sector.
This is probably the reason why the ease of business has improved. Throughout this turmoil, the Hong Kong government wants to bolster their economy by making their country one that is easy to do business in.
Ease of Business
What is the point of ensuring it is easy to do business in a country?
Ease of business is correlated with quality entrepreneurs. With quality entrepreneurs operating in the country, this ensures employment opportunities. Employment opportunities in turn generate government taxes and income gains for individuals.
Essentially, if a country is easy to do business in, it can be a driving force for rapid economic growth.
Apart from these things, the World Bank is quick to point out that good business regulations and transparency are also cornerstones for world growth.