Investors’ confidence in doing business with Guyana dips – World Bank

Guyana’s position on the World Bank’s 2018 Report signals a dip in investors’ confidence. This year, the country placed 126th in the global rankings. Last year, Guyana ranked 124th, while in 2015 the nation ranked 140th.
Ease of Doing Business Index is one of most comprehensive studies done by World Bank.
In determining ease of doing business, the World Bank looks at key indicators such as registering, compliance, taxation, obtaining loans and similar factors such as administrative procedures. It also looks at legal measures, such a protection and settlements.
Guyana saw an increase in the cost of starting a business dropping seven places, from 92 to 99. A drop of 13 places, from 123 to 136, was also recorded in the area

of paying taxes.
However, the country rose in the ranks in areas such as dealing with construction permits, getting credit and protecting minority investors.
It was commended for decreasing the time to transfer property by allocating higher resources and personnel and the adoption of a new code of civil procedure which the report notes make enforcing contracts easier by regulating time standards for key court events.
Several Caribbean countries, including The Bahamas and Jamaica, have recorded improvements in absolute terms on the ease of doing business, indicating that they are getting closer to global best practices and business regulations, according to a new report.
Jamaica remains the highest ranked Caribbean country on the index at 70, followed by St Lucia at 91, Dominica at 98, The Dominican Republic at 99, Trinidad and Tobago at 102, Antigua and Barbuda at 107, and The Bahamas at 119. New Zealand topped the entire ranking.
But the World Bank said the biggest challenges for the Region are in the areas of paying taxes, registering property and protecting minority investors.
In 2016, a World Bank IFC team visited Guyana at the invitation of the Business Ministry and met with stakeholders of both the private and Public Sectors to help improve Guyana’s ranking.
Those engagements led to an Information Communication Technology assessment report, a review of laws and regulations that pertain to doing business in Guyana as well as recommendations for short-term reforms.
But the Opposition People’s Progressive Party (PPP) has long criticised Government for its low ranking in the Ease of Doing Business Report and not being able to attract any foreign investments to the country as obtained in the past under their leadership.
Opposition Member of Parliament and PPP Shadow Finance Minister threw punches at the Government during one of his presentations earlier this year when he referred to the reduced ranking for ‘ease of doing business’ index, reflecting significant declines in several areas.
Ali said the low ranking saw a deterioration in several categories. “This is the reality that our country is faced with decline, slippage,” he said, noting that Guyana did far better under the PPP and made huge progress when it comes to investment coming here.
The Private Sector Commission (PSC) has also declared a loss of confidence in the Government, based on the economy’s performance and the poor policies. The body had called for the Government to create an enabling environment to push economic activities.