According to the World Bank’s Regional Director, this year the methodology for determining the ranking has changed significantly that was the cause of the deterioration of the position of Georgia, which in itself, is rather positive in the doing business ranking in which the country occupies 24th place out of 189 possible.
In 2014, Georgia was ranked the 15th. The report says that over the past 12 years, Georgia has achieved unprecedented success in improving the business climate.
“Georgia is a world leader in terms of reforms. Innovations such as the introduction of an electronic system of making claims on commercial cases, the introduction of paid maternity leave, shortening of building permits from 10 to 5 days, and many more were of great importance,” the World Bank’s report says.
However, despite this, Georgia has worsened its position by 15 points.
The ranking takes into account criteria such as ease of doing business, company registration, obtaining building permits, connection to the power supply system, registering property, getting credit, protecting minority investors, taxes, international trade, enforcement of contract, laws on insolvency.
The report says that the country still has room for improvement, as Georgia doesn’t implement enough new criteria for the protection of small investors. According to O’Halloran, despite all this, Georgia maintains a leading position in Europe and Central Asia.
“Georgia occupies the 4th place in the four leading countries of Europe and Central Asia, after Macedonia, Lithuania and Latvia. In general, over the past 12 years, Georgia has improved its performance in the ranking more than other countries. During this period, GDP grew by 66%, the number of registered companies increased 3-fold. Many factors, such as the simplification of business regulations for local entrepreneurs, contributed to growth in economic indicators. Overall, despite some deterioration, Georgia is still one of the world leaders in the ease of doing business, “- the representative of the World Bank notes.