Countries Improving Conditions to Conduct Business

According to a measure produced by the International Finance Corporation, Georgia, followed by Rwanda and Belarus, showed the greatest improvement in the ability to conduct business. The IFC measures the ease of handling business by taking into account various factors, such as how long it takes a company to pay taxes and become incorporated. Egypt, Mali, Colombia, and China also topped the list. 

The Economist notes that corruption, or lack thereof, plays a major role in a countries ability to easily conduct business. As figure 2 illustrates, greater corruption perceptions correlate to a lower “ease of doing business” ranking. Additionally, it appears that the position of countries to handle business has improved in most areas since 2005 partly because many states are following Singapore’s model of business. Singapore holds the top spot in the Global Dynamism Index, an index that measures which countries have the best business environments. 

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  1. Any big company that makes things in poor countries faces scrutiny of its supply chain. Campaigners against harsh working conditions (and unions back home that hate competition from low-wage countries) will pounce on any hint of scandal. Horrified headlines can tarnish a brand. Companies need to pay heed. click

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