Regulatory measures in the economic and business sector determine the future of economies around the world. The establishment of a law has the capacity to favor economic growth in a country, as well as to depress it. The importance of having a legal basis in accordance with the clear intentions of promoting growth is thus evident, otherwise any effort in this sense will be fruitless.
In the seventeenth edition of the Doing Business 2020 report by the World Bank Group, the law firm Alan Aldana & Abogados was invited to collaborate with in the generation of accurate information to measure the impact of legislation on the world of companies and businesses. In compiling all the necessary information, the World Bank relies on institutions or organizations that, by their nature and functions, have access to reliable and quality data to support the indicators used in the study.
To evaluate the impact of legal decisions on the destiny of the economyThe project, specifically on the growth of the business sector, has been responsible for conducting an annual measurement of the laws that govern business activity in 190 economies around the world. This work has been carried out since 2002 and its purpose is to study the ways in which the operation of small and medium-sized local companies is regulated. The data provided by this research also offers the possibility of making comparisons between the functioning and efficiency of legal principles in business development.
At Alan Aldana & Abogados we are pleased to actively participate in this type of initiatives that shed light on the economic world. This study represents the possibility of accurately and efficiently evaluating the impact that a legal decision can have when applied to business activity, making it a great reference for the legal and economic sector of any company or country.
What emerges from the analysis in the Doing Business 2020 report
The results obtained in the analysis lead to the ranking of the 190 participating economies. In that sense, the report shows from 1 to 190 a classification or ranking to evaluate the legal regulations that allow a continuous development of the business sector. The highest rating (close to 1) means that the legal apparatus in place facilitates the growth of local businesses. In 2020, the first place in the ranking was occupied by New Zealand. It was followed by Singapore, Hong Kong, Denmark, the Republic of Korea, the United States, Georgia, the United Kingdom, Norway and Sweden. Based on the identification of 294 regulatory reforms implemented between May 2018 and May 2019, the economies with the most notable progress were Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India and Nigeria.
On the African continent and in Latin America and the Caribbean regionreforms continue to lag behind. It is worth noting that no Latin American country is in the top 50 of the list and Venezuela ranks last in the region. The report's findings estimate that improvement in neighboring economies is an important driver of change in driving regulatory change.
