Doing Business in Small Island Developing States 2009
A new report from Doing Business finds that a third of small island developing states (SIDS) introduced regulatory reform to make doing business easier last year. At the same time, island nations currently boast some of the world’s most efficient practices -- particularly regarding the employment of workers, dealing with construction permits and paying taxes.Doing Business in Small Island Developing States 2009 is the second in a series to examine the performance of 33 small island states -- from Antigua and Barbuda to Vanuatu -- using Doing Business indicators. The report draws on data from the global Doing Business project and database, as well as the findings of Doing Business 2009. Despite their differences, SIDS share features that can make them economically vulnerable -- such as isolation, lack of economies of scale, high transportation and communication costs, vulnerability to natural disasters and challenging infrastructure development. This study homes in on best regulatory practices and reforms that can lead to increased business activity and employment in island economies.
According to Doing Business gauges, the performances of small island developing states vary greatly: The island of Singapore is the easiest place to do business in the world, while Guinea-Bissau is the third hardest. The remaining 31 fall somewhere in between. Notably, Mauritius -- now number 2 among SIDS and number 24 globally -- moved closer to its goal of entering the global top-10 with reforms in 3 indicators last year. At the same time, the Dominican Republic -- number 23 among SIDS and 97 globally -- emerged as the top SIDS reformer as well as a top-10 global reformer with a new online facility for company registration, reduced costs for company registrations, lowered corporate tax burdens and easier trade procedures.
For the first time this year, a hypothetical country combining best practices from all small island developing states would be the easiest place in the world to do business -- up from second place last year. This means adopting Mauritius's company start-up regulations and investor protections, St. Vincent and the Grenadines' licensing requirements, Marshall Islands’ flexible labor regulations, Palau’s efficient property transfer, Singapore’s credit regulations, trade practices and court procedures, Maldives’ tax regulations and Jamaica’s bankruptcy practices. Given the similar challenges faced by many small island economies, their best practices are highly relevant to one another.
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The following economies are included in the report: Antigua and Barbuda, The Bahamas, Bahrain, Belize, Cape Verde, Comoros, Dominica, Dominican Republic, Fiji, Grenada, Guinea-Bissau, Guyana, Haiti, Jamaica, Kiribati, Maldives, Marshall Islands, Mauritius, Micronesia, Palau, Papua New Guinea, Samoa, São Tomé and Principe, Seychelles, Singapore, Solomon Islands, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Timor-Leste, Tonga, Trinidad and Tobago, and Vanuatu.
Press release: Doing Business report on Small Island States identifies opportunities to strengthen competitiveness (