What are the most complex countries to do business in Latin America?

Venezuela, Haiti and Suriname are the three most complex countries when doing business in Latin AmericaA, according to the report Doing Business 2020, prepared by the World Bank.

The study covering regulations applicable in 190 economies in 12 regulatory areas of business activity, It assesses the business environment in each economy.

In its most recent edition, the ranking – which uses 10 of these indicators to rank economies by ease of doing business – revealed that Venezuela is ranked 188th in the world. with a score of 30.2 out of 100, In the list of 190 countriesAnd the It is he who offers the least facilities in the region when doing business, According to that same report.

follow him high (in 179th place, 40.7 points) and Suriname (at 162, 47.5).

Globally, only Sumala (190) and Eritrea (189) rank below Venezuela

In the study Regulations affecting companies from their inception and during their activities to the closure of their operations are analyzed, such as in starting a business, managing building permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.

According to those same indications, Chile leads Latin America, which ranks 59th in the world in terms of ease of doing business, an average of 72.6. closely followed MexicoIt ranked second regionally and 60th globally (72.3); and later Puerto Rico (US 65), Colombia (67) and Jamaica (71).

While, Uruguay The number in the position 101 And, down, fall Brazil and the Argentina At positions 124 and 126, respectively, by degree 59.1 and 59.0 In this order.

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According to the World Bank, countries implemented a total of 35 reforms during this period, allowing many of them to take important steps to improve their business environment.

Several Latin American countries stand out thanks to their good performance in some business climate indicators. The region in general has, Good time and cost performance to start a business: The average time has halved since 2003, from 74 days to 34 days; Costs have been reduced from 66% of per capita income in 2003 to 36%. Anyway, despite these improvements, in terms of starting a business, He warns that “the region still requires the most time and average actions in the world.”

Globally, New Zealand is the country that offers the easiest way to do business, with a score of 86.8 out of 100. Next is Singapore (86,2), Hong Kong (85,3), Denmark (85.3) and South Korea (84).

The top ten was also completed by United State (84), Georgia (83.7), UK (83.5), Norway (82.6) and Sweden (82).

“The systems They exist to protect workers, public safety, businesses, and investments. However, cWhen they are ineffective or inadequate, they can hinder business activity and business growthنموexplains the study.

Onerous rules can push companies away from the oversight of regulators and tax collectors, to start operating in the shadows of the informal sector or out of the country. In search of a more favorable business environment. Foreign investors tend to avoid economies where regulations prevent economic activity from flourishing,” he explains, and cumbersome bureaucratic procedures, in addition to being obstacles for companies or investors, also limit the economy’s ability to grow sustainably.

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“The economic freedom of doing business is linked to economic development and a thriving private sector, which in turn supports poverty reduction and boosts shared prosperity,” he says.

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