Poor Countries Overregulate Business
One of the main reasons that poor countries are poor and remain poor is because of excessive regulation of business (see graph above - high income countries have significantly less regulation than poor countries).
From the study "Doing Business in 2004: Understanding Regulation" by the World Bank's International Finance Corporation:
Number of days to start a new business:
Australia: 2 days
Venezuela: 141 days
Haiti: 203 days
Suriname: 694 days
Time to enforce a simple commercial contract:
Netherlands: 39 days
Number of days to start a new business:
Australia: 2 days
Venezuela: 141 days
Haiti: 203 days
Suriname: 694 days
Time to enforce a simple commercial contract:
Netherlands: 39 days
New Zealand: 109 days
Singapore: 120 days
India: 1420 days
Guatemala: 1459 days
Cost of enforcement for a simple commercial contract:
Austria, Canada and UK: Less than 1% of the disputed amount
Singapore: 120 days
India: 1420 days
Guatemala: 1459 days
Cost of enforcement for a simple commercial contract:
Austria, Canada and UK: Less than 1% of the disputed amount
Sweden: 5.9% of the disputed amount
U.S.: 7.7% of the disputed amount
Indonesia: 126.5% of the disputed amount
Congo: 157% of the disputed amount
Time to close a business and go through bankruptcy:
Ireland: 4 months
Japan: 5 months
Brazil: 4 years
India: 10 years
U.S.: 7.7% of the disputed amount
Indonesia: 126.5% of the disputed amount
Congo: 157% of the disputed amount
Time to close a business and go through bankruptcy:
Ireland: 4 months
Japan: 5 months
Brazil: 4 years
India: 10 years
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