Page 30 - STRATEGY Magazine (G)

2016 RANKINGS ON THE EASE OF DOING BUSINESS (LAC)
38 Mexico
50 Peru
54 Colombia
57 Puerto Rico (U.S.) 58 Costa Rica
64 Jamaica
69 Panama
77 St. Lucia
81 Guatemala
86 El Salvador
88 Trinidad and Tobago
Source: World Bank, Doing Business 2016
ONGOING CONCERNS
Although the ease of starting a business is important, equally critical is the ease of operating a business on an ongoing basis. Several factors, such as enforcing contracts, resolving insolven- cy, protecting minority investors, and paying taxes are import- ant to consider in determining the ease of doing business on a day-to-day basis.
Many countries, including the Dominican Republic, Mexico, and Trinidad and Tobago, have recently intro- duced measures to improve access to credit and pro- tect creditors. Mexico established clear grounds for relief from stay of enforcement actions during reorga- nization, among its other notable reforms in this area.
For firms interested in establishing a presence in the LAC region, though, one of the most pressing such variables is the ease of trading across borders. Trading across borders refers
only to how complex and time-consuming the process is and ignores any tariffs or customs duties that might be involved. Economies’ scores in this area are based on things like bureau- cracy in paperwork and inspections, transport, and handling in ports and terminals.
Again, the region’s DTF score in this area, 66.02, trails the other regions. Within the region, El Salvador surprisingly outranks Panama, which has dropped to number two. Other high-ranking economics are the Dominican Republic, Mexico, and Dominica.
BUSINESS-FRIENDLY?
As important as the raw data and rankings can be, it’s
also instructive to review the actions taken by some of the nations in the LAC to enhance the ease of doing business within their borders. Guatemala, for instance, has eliminated some registration fees and reduced public notice times, enhanc- ing the ease of starting a business. By enhancing its electronic
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