7 Sep 2005

World Bank tells Solomons of cost of red tape

3:38 pm on 7 September 2005

A World Bank publication, being released in the Solomon Islands capital, Honiara, tomorrow, will focus on the benefits of reducing the regulations imposed on business operators.

The Bank's "Doing Business in 2005, Removing Obstacles to Growth" will be launched by Zhu Xian, the country director of the World Bank and the Solomon's Finance Minister, Peter Boyers.

It will compare the cost of doing business in 145 countries, including in Solomon Islands.

The report says many countries that have quick and simple business regulations are also some of the world's richest, and countries that have lengthy and complex regulations are often poor.

It also says heavy regulations and weak property rights exclude the poor from doing business.

The Bank says if a country moved from the bottom 75 percent of countries for ease of doing business to the top 25 percent, this would bring a benefit of up to 2.2 per cent extra economic growth each year.