Since more than 10 years, Georgia has made significant steps towards effective and better regulations. Economies are ranked on their ease of doing business. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm.Georgia has dramatically improved its position from 79.92 in the Doing Business 2017 report to 82.04 in 2018 and came in 9th place, improving its position by 7 places out of 190 countries.
In 2018 Georgia outranked successful countries like Sweden, Macedonia, Estonia, Finland, Australia, Taiwan (China) and Latvia. Coordinated and effective works of Georgian government predetermined the success of the country’s World Bank rankings. The Government of Georgia has implemented and continues to implement reforms that further advance Georgia’s position in the World Bank’s ratings for next year. The World Bank doing business high rankings can be very useful for the country to attract foreign direct investments as it creates a general image of the country.For bigger companies, it’s easier to set up a company and deal with the bureaucracy as they have enough financial background to hire professional staff, but on the other hand the startup and smaller companies rely on the easily accessible systems to settle in. While Doing Business Report is helping poorest countries to increase their economic efficiency, at the same time it influences advanced countries to update or enhance their policymaking and business practices.For example, registering property in Greece is more difficult than in Djibouti; enforcing a contract in Italy takes roughly three times as long as it does in Vietnam; and starting a business in Spain takes roughly 3.5 times longer than in Azerbaijan.
Since couple of years Georgia’s positions has improved in 6 vital indicators:
- Starting business – 4th Place
- Protecting Minority Investors – 2nd Place
- Paying Taxes – 22nd Place
- Enforcing contracts – 7th Place
- Getting Electricity – 30th Place
As Mercy Tembon, World Bank Regional Director for the South Caucasus said - With tangible reforms implemented in three key areas this year – making electricity more affordable, strengthening minority investor protections, and making resolving insolvency easier – Georgia continues to be a top reformer in the Europe and Central Asia region, and is poised to accelerate inclusive and sustainable growth.