Easy business

by frog

08 Wire, Dancer at the Standard and Grant Robertson each saw the World Bank’s Ease of Doing Business survey released yesterday and responded reflexively, either congratulating the Labour Party or putting the boot into the National Party.  While that’s a fair, if somewhat typically tribal, response to New Zealand being ranked the second easiest country in the world in which to do business, it does raise the question of what exactly it is we are ranking. Remember this is a survey by the World Bank so it is not necessarily devoid of political and economic bias.

So among the sub-categories of the ten topics that New Zealand was ranked on were the ease and cheapness with which you can get rid of workers, how much you have to pay if you go bankrupt, the regulations that constrain businesses (which I assume include important environmental protections like the Resource Management Act), the smallness of the amount of tax that businesses need to pay and the extent of director liability if something goes wrong.

And the result is New Zealand shares the top four placing with social democracies like Singapore, Hong Kong (China) and the United States.  Meanwhile a bit further down the ladder sit most Scandinavians Norway (10) Iceland (11), Finland (14) and Sweden at (17).  Which, if you admire those countries’ social well-being, just goes to show that ease of doing business does not a complete society make. 

I’m not saying that ease of doing business is a bad thing, but let’s remember that sometimes regulations, environmental protections and workers rights are there for a reason, and before we celebrate their absence we should check why other democratic countries chose to retain them.

frog says

Published in Economy, Work, & Welfare by frog on Thu, September 11th, 2008   

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