Greece Earns A Laurel From The World Bank

By Sudeep Reddy

The Wall Street Journal

Greece has won plenty of unpleasant distinctions while struggling to right itself over the course of its three-year debt crisis. Now it has a modest achievement: It’s among the world’s most improved economies in easing the path for businesses in the country, according to a new World Bank report.

The annual Doing Business report by the World Bank and International Finance Corp. measures 185 nations by their regulatory burdens in 10 areas — such as starting a business, getting electricity and enforcing contracts — affecting small- and medium-sized businesses. Despite frequent complaints in the U.S. about regulation, the world’s largest economy remains near the top of the list this year — at No. 4, just behind Singapore, Hong Kong and New Zealand. (The world’s second-largest economy, China, remains No. 91 — also right where it was last year.)

Greece ranks No. 78 on the overall list (up from No. 100 last year), earning it the distinction of being among the 10 “most improved globally” in the rankings. The World Bank cited Greece’s improvement as a sign of progress by fiscally distressed European economies working to improve their business climates.  Greece showed progress in three key areas: reducing the time required to get construction permits, requiring more transparency and other protections for investors, and improving its process for resolving insolvent firms.

“Part of the solution to high debt is the recovery of economic growth, and there is broad recognition that creating a friendlier environment for entrepreneurs is central to this goal,” the report said.  The World Bank also credited other struggling euro-zone economies – Italy, Portugal and Spain – for their steps to ease the path for businesses.

Eastern Europe and Central Asia had the largest share of economies implementing regulatory overhauls. That put the region ahead of East Asia and the Pacific as the world’s second-most business-friendly group. (High-income economies are generally the most business-friendly.)  Poland improved the most of all nations by making it easier to register property, pay taxes, enforce contracts and resolve insolvencies, the bank found.