Colombia, First in Ease of Doing Business Ranking
Written by: Portafolio
The country climbed 19 places in the World Bank’s Doing Business, occupying place 34 among 189 economies.
Improving access to credit and making it easier to register property, were the topics that led Colombia to be ranked as the Latin American country with the greatest ease of doing business.
This was stated by the World Bank's Doing Business 2015 report, in which the country ranked 34th among 189 economies.
In the previous survey, Colombia held the 53 spot, so the jump of 19 positions put it past Peru, Mexico, Chile and Panama, countries that traditionally were ranked higher.
Additionally, it established itself as one of the reformers in the past few years in order to improve the country’s business climate.
Looking at the categories of the study, the biggest advance in Colombia occurred in Obtaining Credit, rising from number 55 to 2.
The financial regulatory framework in the country, the protection of users and providers of credit, and real estate law guarantees were some of the highlights from the World Bank to improve the classification of elements Colombia.
Even on issues such as the scope of credit information, the country is already at the level of nations that belong to the Organization for Economic Cooperation and Development, the club which Colombia wants to enter.
Finance Minister Mauricio Cardenas said: "We hope that these achievements are deepened with the enactment of the Law on Financial Inclusion, which will create payment history to allow access to credit for millions of Colombians who do not have it today."
On the category of Registering Property, where the country jumped from 54 to 42, the World Bank highlighted the ease for transfer of property, such as low costs and the short time it takes to do the procedure, to the point that it is better that many of the nations considered good practice.
Another category where Colombia rose compared with the previous report, although it is still poorly ranked, was cross-border trade, climbing2 places and placed in spot 93.
Although the country is competitive in many documents for export and import, the cost of mining goods remains critical.
THE SOUR NOTE
Although the overall result was good, we must not forget that there were more categories with stagnation or setbacks in the report.
In fact, the World Bank emphasizes the deterioration of Colombia in the payment of taxes, and specifically to the creation of CREE tax (Income Tax for Equality) as a factor that makes it more complicated to make tax payments by businesses.
Colombia ranks 146 among 189 countries, representing a fall of 7 places.
There is concern about the overall rate of tax, which is 75 percent of the profits according to the report (in the region it is 48 percent and the OECD is 41 percent), and the time taken to comply with the formalities.
In Opening a Business, the country lost 5 seats, at place 84, as a result of the time and costs involved in the process.
Similarly, there was a decline in the category of Getting Electricity, in which the country moved from place 88 to 92 as a result of the delay and costs to access a power connection.
The category where the country ranks worst is Enforcing Contracts, settling at the position 168. It also fell in Insolvency and Protection of Minority Shareholders.
LEADER COUNTRIES IN THE RANKS
According to the World Bank Doing Business, the top 5 ease of doing business countries are, in order, Singapore, New Zealand, Hong Kong, Denmark and South Korea. The United States is in seventh place and Canada 16. From Latin America, Peru is ranked 35, Mexico at 39, 41 for Chile and Panama at 52.
The worst ranking is Venezuela, which is at 182.
The complete ranking of the World Bank can be found here here.