April 14, 2021

Spain falls two places in the ranking of countries where it is easier to do business | Economy

Spain falls two places in the ranking of countries where it is easier to do business | Economy


The country where it is easiest to do business among the 190 territories analyzed is New Zealand, just like last year. Gets 86.59 points out of 100, exactly the same. They are followed by Singapore, Denmark, Hong Kong and Korea. To get to Spain you have to go down to position 30, two below the previous analysis. Take out 77.68 points, which are 0.07 points more than a year ago.

The World Bank prepares this report Doing Business every year. Measures different variables, such as the ease of undertaking, how complicated it is to obtain permits to build, energy, obtain financing, tax burden or insolvency systems. In total, there are 11 variables, each with its own internal ranking, which combine to make a general classification. And each of these variables has a multitude of subvariables.

Spain's 30th position, although below last year's, is positive compared to many of its neighbors. Within Europe, countries such as Denmark, Estonia, Finland, Georgia, Macedonia, Ireland or Germany are ahead of him. But it looks better in the photo than France (32nd place), Portugal (34th), Holland (36th), Switzerland (38th) or Italy (51th).

The big mistake: undertaking is complicated

In what does Spain stand out for good or bad? Among the virtues, there is the facility to export, thanks to its membership in the European Union. It also remains in the dignified position 19 on the processes to resolve insolvencies; in the legal security of contracts (position 23) and in the protection of small investors (position 30).

Spain falls two places in the ranking of countries where it is easier to do business

However, the key element that weighs down on you is your position 86 when you start. The average number of days needed to start up a company is 12.5, against 9.3 from the OECD or only half a day from the leader, New Zealand. The cost is 4% of the capital (free in Slovenia). And the necessary administrative procedures are 7, compared to 4.9 on average in the OECD or only one that requires New Zealand.

A ranking in the middle of the controversy

The classification of Doing Bussines, born in 2003, arouses interest but also polemics over the years. Because it is a thermometer that measures the ease of doing business, but sometimes comes to assess issues such as labor or energy legislation with significant subjective burden. In any case, the controversy came especially this year. The chief economist of the World Bank, Paul Romer threw the bomb on January 12 by claiming, in an interview with The Wall Street Journal, that a series of methodological changes had penalized Chile's score, specifically, during the mandates of socialist Michelle Bachelet, and that these bad scores could have been contaminated by political motivations.

Romer apologized to Chile, an internal racket was organized at the World Bank and the chief economist ended up resigning days later. Romer, by the way, this year was awarded the Nobel Prize in Economics.

Since 2006, Chile's position has fluctuated greatly, from 25th to 57th place (in a list of 190) but with different cycles: it fell during the two Bachelet mandates (the second one is in its final stretch) and improved with the conservative Sebastián Piñera (2010-2014). In this year's analysis it remains 55th.

Logroño, the Spanish city with the best facilities to do business

The Doing Business report, prepared by the World Bank, analyzed in 2015 the obstacles to doing business in the main capitals of the 17 autonomous communities. Logroño and Madrid lead the classification, but the 19 cities analyzed are all below the EU average in facilities to open a company, obtain building permits, electrical connection, property registration and cross-border trade. These are the five main variables that the report compares.

The conclusion is that La Rioja and the Community of Madrid, taking Logroño and Madrid as a reference, are the regions where it is easier to do business. Aragón and Galicia, are the territories where it is more difficult, again choosing the main cities of each community, which are Vigo and Zaragoza. "There is no relationship between the general classification and the size of the population," says the report.

La Rioja, is where it is easier to obtain the construction permit. Catalonia, with Barcelona as the city under review, where it is more convenient to connect to the electricity grid and in Ceuta and Melilla where there are fewer problems to register properties because the tax on property transfers is lower, partly because of its special tax regime.

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