Doing Business in 2004: Understanding Regulation

Djankov S. (ed.), Klein M. (ed.), McLiesh C. (ed.)

The development of a vibrant private sector is central to promoting growth and expanding opportunities for poor people. It is well recognized that encouraging firms to invest, improve productivity and create jobs requires the right legal and regulatory environment – including protection ofproperty rights, access to credit, and efficient judicial, taxation and customs systems. But less is known about detailed legal and regulatory reforms and specific institutions needed to create a favorable environment for doing business. Drawing on new applied research and existing expertcommentary, as well as lessons from extensive World Bank Group (WBG) work, the Doing Business report will help identify specific regulations that constrain business investment, productivity, and growth. The Report will contribute to broader initiatives to monitor development effectiveness byproviding new, quantitative indicators on business regulations and their enforcement, which can be compared across 133 countries and over time. It will also provide a mechanism to integrate the many perspectives on the business climate, from both within and outside of the WBG.