Mexico improved five places on the ranking of the World Bank’s Ease of Doing Business in 2013

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For the fourth consecutive year, Mexico has improved its place in the ranking of the World Bank’s Ease of Doing Business.

In the 2013 edition of this ranking, released today, Mexico improved five places from the previous year. It was placed from the ranking 53 to 48 of a total of 185 countries that were evaluated.It is worth mentioning that this is the fourth consecutive year that Mexico has a progress in the general position of this ranking.The 48 ranking places Mexico significantly above the BRIC countries: China (91), Russia (112), Brazil (130) and India (132).

The ranking for Ease of doing business is done by the World Bank since 2003 on an annual basis.This ranking measures ten indicators that have a direct impact on the realm of business in a country: Business Opening, Building Permits, Electricity Acquisition, Property Registry, Credit Acquisition, Investor Protection, Tax Payment, Cross Border Trading, Contract Compliance and Insolvency Resolution.For each of these indicators three variables are measured: number of procedures, costs and time required.Therefore, it is considered that this ranking uses real information about the efficiency of the laws and regulations that allow a better functioning of the business environment in a country.

In the case of Mexico, the indicator of a Business Opening showed the biggest progress going from place 75 to 36.This improvement is largely due to the elimination of the minimum share capital required to establish a business, which was $ 50,000 pesos in the past for a Limited Company and $ 3,000 pesos for a Private Limited Company. 

The report also mentions important improvements in some processes for the acquisition of electricity, such as the use of geo-referenced networks for the location of lines, and an optimization in the management of inventories.This optimization of processes has decreased the average number of days required for the electrical installation by 19.

The Tax Payment indicator also showed an improvement going from 109 to 107 position going two places from last year.The study mentions that in the last five years, Mexico has reduced by 78% the average number of times in which taxes are paid in a year, going from 27 times in 2007 to only 6 in 2012.The study emphasizes that in the same period, the annual time spent on paying taxes was from 549 hours to 337 hours, which means an annual average savings of 39% for time and resources of the companies.

Just last month, the World Economic Forum, another important international institution, published the Global Competitiveness Index..In this Forum, Mexico also advanced five places in the last year, and 13 positions in the last two years, so it was positioned in place 53 among 144 evaluated economies.

The proper performance of Mexico regarding these indices, made by prestigious international organizations, is the result of the impact that public policies have had on the business and competitiveness areas of the country.

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