Brasília - A World Bank report suggests that firms in poorer countries face twice as much bureaucracy as in their wealthier counterparts. The process of opening, running, or shutting a firm in a poor country is twice as difficult as in a rich country. Brazil is the 141st most bureaucratic country in which to open a business, among the 145 countries surveyed. On the average, 152 days are required to open a firm here. Only Haiti, Laos, Mozambique, and the Democratic Republic of the Congo are slower.

The study, entitled "Doing Business in 2005: Removing Obstacles to Growth" and based on research financed by the World Bank and the International Finance Corporation, also shows that reforms, such as the ones carried out last year by Turkey and France to reduce the time and cost of opening new businesses, produce big gains. Following the reforms, these countries witnessed an 18% growth in the number of new firms registered.

In terms of ease of doing business, the principal economies are: New Zealand, the United States, Singapore, Hong Kong/China, Australia, Norway, the United Kingdom, Canada, Sweden, Japan, Switzerland, Denmark, and the Netherlands.

The study took into account five business incentive indicators: opening a new firm, hiring and firing employees, fulfilling contracts, obtaining loans, and shutting a firm.

Agência Brasil
Reporter: Bruno Bocchini
Translator: David Silberstein
09/09/2004