A Comparative Study on Ease of Doing Business in BRICS Nations

Abstract

Doing Business measures aspects of business regulation for domestic firms through an objective lens. Doing Business focuses on regulation that affects small and medium-size enterprises, operating in the largest business city of an economy, across 11 areas. Ten of these areas include starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. This paper study the ease of doing business in BRICS nations on various parameters mentioned above. It also explores the impact of reforms made by BRICS nations on their performance as measured by DTF score over the study period. The study is based on secondary data collected from the website of World Bank for doing business project and ‘doing business reports’ published by world bank. Among the BRICS nations the most favored destination for doing business in year 2017 is Russian Federation with overall doing business rank of 40 followed by south Africa with overall doing business rank of 74, China with doing business rank of 78, Brazil with doing business rank of 123 and India with doing business rank of 130. Starting business is most convenient in Russia followed by China, South Africa, India and Brazil. Dealing with construction permit is most expedient in South Africa followed by Russia, Brazil, China and India. In terms of getting electricity the best performance is of Russia followed by Russia, Brazil China and South Africa. Getting credit is most easy in India and Russia followed by China and South Africa and Brazil. Minority rights of investors are highly protected in India, South Africa and Brazil. Tax system is most efficient in Russia followed by South Africa and complicated in China, India and Brazil. The procedural requirements for trading across boarder are most efficient in China followed by South Africa, Russia, India and Brazil. Enforcement of contracts is most proficient in China followed by Russia, Brazil, South Africa and India. Mechanism for resolving insolvency is preeminent in South Africa followed by Russia, China, Brazil and India. Reforms made by the BRICS nations have helped them in improving their DTF scores on respective parameter of doing business.