Ease of doing business: India, Bahrain, Saudi, Kuwait, Pakistan among top 10 performers

Agencies
October 24, 2019

India has jumped 14 places to take the 63rd position on the World Bank's ease of doing business ranking released on Thursday, figuring among the top 10 performers on the list for the third time in a row mainly due to the successful implementation of the Insolvency and Bankruptcy Code.

The country was 77th among 190 countries in the previous ranking.

India figured among the top 10 performers on the list for the third time in a row. New Zealand continues to top the global ranking, with Singapore, Hong Kong right behind. Korea is in fifth place and the US on sixth. The ranking comes at a time when the Reserve Bank of India (RBI), the World Bank, the IMF and various rating agencies have slashed the country's growth forecasts amid a slowdown in the global economy.

In its 'Doing Business' 2020 report, the World Bank commended the reform efforts undertaken by the country "given the size of India's economy".

"This is the third year in a row that India makes to top 10 in 'Doing Business', which is a success which very few countries have done over the 20 years of the project. Without exception, the other countries that have done this are very small, population-wise, and homogeneous," Simeon Djankov, Director of Development Economics at the World Bank told PTI in an interview.

"India is the first country of its type to achieve that. It has jumped this year by 14 position," he said.

Apart from India, the other countries among the top 10 performers are China (31), Bahrain (43) Saudi Arabia (62), Jordan (75), Kuwait (83), Togo (97), Tajikistan (106), Pakistan (108) and Nigeria (131).

Prime Minister Modi's 'Make in India' campaign focused on attracting foreign investment, boosting the private sector, manufacturing in particular, and enhancing the country's overall competitiveness, the World Bank said in its report.

The government turned to the 'Doing Business' indicators to show investors India's commitment to reform and to demonstrate tangible progress. In 2015, the government's goal was to join the 50 top economies on the ease of doing business ranking by 2020.

While the competition to move up the ladder would increase and become much tougher, India is on the track to be within top 50 of the Ease of Doing business in the next year or two, Djankov told PTI in response to a question.

And to come under 25 or below 50, the government needs to announce and start implementing next set of ambitious reforms now, as these reforms takes a few years to be realised on the ground, he said.

"The administration's reform efforts targeted all of the areas measured by Doing Business, with a focus on paying taxes, trading across borders, and resolving insolvency. The country has made a substantial leap upward, raising its ease of doing business ranking from 130 in Doing Business 2016 to 63 in Doing Business 2020,” the report said.

One of the main reasons for improvement in India's ranking this year goes to the successful implementation of the Insolvency and Bankruptcy Code, the World Bank official said.

"Before the implementation of the reform, it was very burdensome for secured creditors to seize companies in default of their loans," the report said.

"Since its implementation, more than 2,000 companies have used the new law. Of these, about 470 have commenced liquidation and more than 120 have approved reorganization plans, with the remaining cases still pending," it said.

In the past, foreclosure was the most common procedure reported by legal practitioners in both Delhi and Mumbai under the case study assumptions measured by the resolving insolvency indicator set, with an approximate duration of 4.3 years, it said.

"Reorganisation has become the most likely procedure for viable companies as measured by Doing Business, increasing the overall recovery rate from 27 to 72 cents on the dollar," the bank said.

In addition to resolving insolvency, significant improvements were registered in starting business, dealing with construction permits and trading across borders, the report said.

"India made starting a business easier by abolishing filing fees for the SPICe (Simplified Proforma for Incorporating a Company Electronically) company incorporation form, electronic memorandum of association, and articles of association," it said.

Delhi streamlined the process, reduced the time and cost of obtaining construction permits, and improved building quality control by strengthening professional certification requirements. Mumbai streamlined the process of obtaining a building permit and made it faster and less expensive to get a construction permit.

India made trading across borders easier by enabling post clearance audits, integrating trade stakeholders in a single electronic platform, upgrading port infrastructures, and enhancing the electronic submission of documents, the report said.

India was ranked 142nd among 190 nations when Prime Minister Narendra Modi took office in 2014. Four years of reform pushed up India's rank to 100th in 'Doing Business' 2018 report.

This latest edition of the study documents reforms implemented in 10 areas of business activity in 190 economies over a 12-month period ending May 1, 2019.

The 10 areas measured in the report are: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.

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News Network
July 1,2020

Jul 1: Hong Kong police moved swiftly on Wednesday against protesters gearing up for the first rally since the introduction of sweeping security legislation, making their first arrest under it and warning of punishment for pro-independence material.

Beijing on Tuesday unveiled the details of the much-anticipated law after weeks of uncertainty, pushing China's freest city and one of the world's most glittering financial hubs onto a more authoritarian path.

As hundreds of protesters gathered downtown for an annual rally marking the 23rd anniversary of the former British colony's handover to China, riot police used pepper spray to arrest at least two people, while one metro station closed.

Police, who earlier banned the rally, cited the law for the first time in confronting protesters and they also made their first arrest under it - a man holding a flag advocating independence.

"You are displaying flags or banners/chanting slogans/or conducting yourselves with an intent such as secession or subversion, which may constitute offences under the ... national security law," police said in a message displayed on a purple banner.

The law will punish crimes of secession, subversion, terrorism and collusion with foreign forces with up to life in prison, heralding a more authoritarian era for the Asian financial hub.

China's parliament adopted it in response to months of pro-democracy protests last year triggered by fears that Beijing was stifling the city's freedoms, guaranteed by a "one country, two systems" formula agreed when it returned to Chinese rule.

Authorities in Beijing and Hong Kong have repeatedly said the legislation is aimed at a few "troublemakers" and will not affect rights and freedoms, nor investor interests.

But critics fear it will crush the freedoms that are seen as key to Hong Kong's success as a financial centre.

"With the release of the full detail of the law, it should be clear to those in any doubt that this is not the Hong Kong they grew up in," said Hasnain Malik, head of equity research, Tellimer in Dubai.

"The difference is that U.S. and China relations are far worse and this could be used as a pretext to impede the role of Hong Kong as a finance hub."

In Beijing, Zhang Xiaoming, executive deputy director of Beijing's Hong Kong and Macau Affairs Office, told reporters suspects arrested by Beijing's new security office in Hong Kong could be tried on the mainland.

He said the mainland's national security office abided by Chinese law and that Hong Kong's legal system could not be expected to implement the laws of the mainland. Article 55 of the law states that Beijing's national security office in Hong Kong could exercise jurisdiction over "complex" or "serious" cases.

Mainland security agencies will also be based in Hong Kong officially for the first time, with powers that go beyond city laws.

"The law is a birthday gift to (Hong Kong) and will show its precious value in the future," Zhang said, adding the law would not be applied retroactively.

On July 1 last year, hundreds of protesters stormed and vandalised the city's legislature to protest against a now-scrapped bill that would have allowed extraditions to mainland China.

Those protests evolved into calls for greater democracy, paralysing parts of the city and paving the way for Beijing's imposition of the law this week.

'INEVITABLE'

Speaking at a flag-raising ceremony to mark the handover anniversary, the city's Beijing-backed leader, Carrie Lam, said the law was the most important development since the city's return to Chinese rule.

"It is also an inevitable and prompt decision to restore stability," Lam said at the same harbour-front venue where 23 years ago the last colonial governor, Chris Patten, a staunch critic of the security law, tearfully handed back Hong Kong to Chinese rule.

Some pro-Beijing officials and political commentators say the law is aimed at sealing Hong Kong's "second return" to the motherland after the first failed to bring residents to heel.

Luo Huining, the head of Beijing's top representative office in Hong Kong, said at the ceremony the law was a "common aspiration" of Hong Kong citizens.

Critics denounced the lack of transparency surrounding the details of the legislation until it was unveiled. It came into force at 11 p.m. (1500 GMT) on Tuesday.

Some pro-democracy activists gave up membership of their groups just before the law came into force, though calling for the campaign for democracy to go on offshore.

"I saw this morning there are celebrations for Hong Kong's handover, but to me it is a funeral, a funeral for 'one country two systems'," said democracy lawmaker Kwok Ka-ki.

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News Network
May 9,2020

Beijing, May 9: Mounting a strong defence of the ruling Communist Party of China, President Xi Jinping has said the COVID-19 fight has once again shown that the CPC leadership and the country's socialist political system can overcome any challenge.

Xi's comments came as China faced global criticism for its initial inaction to act against the novel coronavirus, which according to Chinese officials emerged in the central Chinese city of Wuhan in December last year.

Pressure is also mounting on Beijing to agree for an international probe on the origins of the vicious virus, including from the Wuhan Institute of Virology (WIV), as claimed by the US leadership.

China curbed the spread of the coronavirus in over a month and brought COVID-19 under control at its first epicentre in Wuhan in about three months, Xi, also the General Secretary of the CPC, said at a symposium held on Friday to get suggestions from non-ruling Communist Party of China (CPC) parties on COVID-19 prevention and control.

He termed the curbing of the COVID-19 pandemic as "hard-won achievements" for the world's most populous country and the second-biggest economy.

The COVID-19 fight has once again shown that the CPC leadership, China's socialist system and its governance system can overcome any challenge and make big contributions to the progress of human civilisation, he said.

Xi said China had basically curbed the spread of the virus in over one month, managed to bring the daily number of new domestically-transmitted cases down to single digits in about two months, and secured decisive achievements in protecting epicentres Wuhan and Hubei province in about three months.

"For a huge country with 1.4 billion people, these are hard-won achievements," he said

Besides the top CPC officials, the symposium was attended by members of the central committees of non-CPC parties in China, the All-China Federation of Industry and Commerce, and persons without party affiliation.

The speakers at the symposium praised the Chinese leadership in handling the crisis, saying it fully demonstrated the political advantage of China's socialist system and showed that China was a major responsible country.

Xi, who is also the head of the People's Liberation Army, praised China's one-party political system governed by the CPC.

His comments on the country's political system came as Beijing is also defending the role of the CPC as US President Donald Trump and Secretary of State Mike Pompeo have blamed the ruling party for not being transparent in the fight against the pandemic.

Both Trump and Pompeo have been pressing Beijing to allow American experts for a probe on whether the virus emerged from the WIV, China's premier research lab where viruses of different types are reportedly researched.

At the symposium attended by the top CPC officials, Xi's leadership came for praise for successfully handling the situation, the state-run Xinhua news agency reported.

"Attendees noted the major strategic achievements in the COVID-19 fight under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core," the report said.

The meeting was held amid reports of murmurs of internal criticism within the CPC about Xi's handling of the coronavirus crisis.

While China's move of handling the coronavirus from January 23 by locking down Hubei province and its capital Wuhan to prevent the spread of the virus and curbing it by deploying 42000 medical personnel has been praised, Beijing is criticised for its slow reaction after it emerged in December last year.

China used less than a week to identify the full genome sequence of the novel coronavirus and isolate the virus strain, produced various testing kits and swiftly selected a number of effective drugs and treatments. Different types of vaccines have also entered clinical trials.

President Xi said during the COVID-19 fight, China upheld the centralised and unified leadership of the CPC and concentrated the nation's best doctors, the most advanced equipment and the most needed resources to treat patients, with all treatment expenses covered by the state.

It managed to maximise the testing and cure rates while minimising the infection and fatality rates.

As of Friday, the COVID-19 death toll in China remained at 4,633 with no new fatalities reported for several days while the total number of cases stood at 82,887. In contrast, Chinese officials point out the death toll in the US which has crossed 75,000 with over 1.2 million cases, besides the mounting global toll.

Almost all countries in the world have been under lockdown for weeks to control the spread of the virus.

Xi called for mobilising the whole society, leveraging the institutional strength of concentrating resources to get things done and tapping the composite national strength as well as closely relying on science and technology.

On international cooperation, Xi said China had helped countries and international organisations to the best of its ability, demonstrating the nation's sense of responsibility as a major and responsible country.

Xi also stressed fixing the shortcomings in the country's major epidemic prevention and control mechanism and for the national public health system to raise the ability to deal with major public health emergencies.

He emphasised on targeted and effective measures to guard against the importation of cases and prevent a resurgence of the epidemic.

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News Network
January 27,2020

Shanghai, Jan 27: The death toll from a coronavirus outbreak in China rose to 81 on Monday, as the government extended the Lunar New Year holiday and more big businesses shut down or told staff to work from home in an effort to curb the spread.

Chinese Premier Li Keqiang visited the central city of Wuhan, the epicenter of the outbreak, as the government sought to signal it was responding seriously to the crisis.

The total number of confirmed cases in China rose about 30% to 2,744, about half of them in Hubei province, whose capital is Wuhan.

As worries grew around the world, Chinese-ruled Hong Kong, which has had eight confirmed cases, banned entry to people who had visited Hubei in the past 14 days. The ban did not cover Hong Kong residents.

The number of deaths from the flu-like virus in Hubei climbed to 76 from 56, health officials said, with five deaths elsewhere in China, including the southern island province of Hainan, which reported its first fatality on Monday.

While a small number of cases have been confirmed in more than 10 countries, linked to people who traveled from Wuhan, no deaths have been reported elsewhere.

Li is the most senior leader to visit Wuhan since the outbreak began. Clad in a blue protective suit and mask, he inspected efforts to contain the epidemic and spoke to patients and medical staff, the government said.

The government is extending the week-long Lunar New Year holiday by three days to February 2, in a bid to slow the spread of the virus. The Lunar New Year is usually a time for millions of people to travel, but many have had to cancel their plans because of travel curbs over the virus.

Incubation

Wuhan is already in virtual lockdown and severe limits on movement are in place in several other Chinese cities.

The city of 11 million clamped down further on Monday, announcing the suspension of visa and passport services until January 30.

Despite the curbs, the mayor of Wuhan said on Sunday that five million people had left the city for holidays and other reasons.

Images from Wuhan showing hospital corridors packed with people seeking treatment have circulated on social media, along with complaints of soaring prices for essentials such as vegetables.

Chinese leaders have urged transparency in the crisis, after public trust was eroded by the cover-up of the spread of Severe Acute Respiratory Syndrome (SARS), a coronavirus that originated in China and killed nearly 800 people globally in 2002 and 2003.

Much is not known about the newly identified coronavirus, including how easily it spreads and just how dangerous it is. It can cause pneumonia, which has been deadly in some cases.

National Health Commission minister Ma Xiaowei said on Sunday the incubation period could range from one to 14 days, and the virus was infectious during incubation, unlike SARS.

That compares with a World Health Organization (WHO) estimate of two to 10 days for the incubation period.

“Understanding the time when infected patients may transmit the virus to others is critical for control efforts,” the WHO said.

The virus is believed to have originated late last year in a Wuhan market illegally selling wildlife. It has spread to other cities, including Beijing and Shanghai, as well as more than 10 countries including France, Japan and the United States.

‘Overwhelmed’

Australia confirmed its fifth case on Monday involving a woman on the last flight out of Wuhan to Sydney before China’s travel ban.

Health minister Greg Hunt told the Australian Broadcasting Corporation (ABC) authorities aimed to get about 100 Australian children and young people out of Wuhan.

One father of two, Nathan Wang, told the ABC his wife was stuck in Wuhan with the children. “We absolutely want the children to come back, because hospitals in Wuhan are overwhelmed,” he said.

Airports around the world have stepped up screening of passengers from China, although some health experts have questioned its effectiveness.

Last week the WHO stopped short of calling the outbreak a global health emergency, but some health experts question whether China can contain the epidemic.

WHO Director-General Tedros Adhanom Ghebreyesus is due to travel to Beijing to meet officials and health experts.

Australia, France, Italy, Japan and the United States have all said they are working to evacuate citizens from Wuhan.

Some of China’s biggest companies have been affected, with hotpot restaurant chain Haidilao International Holding shutting branches nationwide from Sunday until Friday.

Gaming giant Tencent Holdings Ltd advised staff to work from home until February 7, and e-commerce firm Alibaba removed vendors’ offers of overpriced face masks from its online Taobao marketplace as prices surged.

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