Russia stops short of top 20 Doing Business goal

Russia stops short of top 20 Doing Business goal
Russia is ranked 28th in the latest 2019 edition of the World Bank’s Doing Business report just short of the top 20 goal set by President Vladimir Putin in 2012 / wiki
By bne IntelliNews October 24, 2019

Russia is ranked 28th in the latest 2019 edition of the World Bank’s Doing Business report, falling just short of the goal set by the President Vladimir Putin to enter the top 20 of the business environment rating.

As reported by bne IntelliNews, previously in 2012 the goal was set to make it to the top-20 by 2018, but the target date was pushed back by another six years to 2024 in April 2019. Nevertheless, since 2011 Russia has jumped an impressive 89 places in the Doing Business ranking, being the only economy showing such a fast-paced improvement.

In the latest World Bank report Russia inched up three more positions to the 28th place out of 190 economies ranked. Russia made progress in dealing with construction permits, and increased quality control for construction through quality-based inspections, which are two of the subcategories, and aspects of the ranking that Russia is particularly bad at.

Getting electricity also became both cheaper and easier, paying taxes less costly due to higher depreciation rates for fixed assets, while online customs clearances improved trading across borders. All of the mentioned reforms apply both to Moscow and St Petersburg.

In terms of minority shareholder’s interests Russia remained weak at 72nd spot dropping 15 ranks over the year. Despite the customs reforms, international trade also remained poorly ranked at 99th place.

This month Russian Finance Minister Anton Siluanov argued that low investment in Russia was due to the domestic business community not trusting the government.

 

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