Going beyond efficiency and cheap politics, this is how Doing Business 2015 is all about!

On October 28, 2014, coca-grower leader, whose second interest is to function as Bolivia’s president, published a four-page ad in the New York Times, portraying himself as a success… well, nine years after his “lead”, the following excerpts from the World Bank Group, displays the true effect of his government…

Bolivia is the 157th country out of 189 in terms of how easy is to do business in Bolivia under the populist/socialist regime:

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CONTENTS

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[So, it is a really an in-depth study and can be read in its entirety at the link down below, thank you.]

INTRODUCTION

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency and labor market regulation.

In a series of annual reports Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies, from Afghanistan to Zimbabwe, over time. The data set covers 47 economies in Sub- Saharan Africa, 32 in Latin America and the Caribbean, 25 in East Asia and the Pacific, 26 in Eastern Europe and Central Asia, 20 in the Middle East and North Africa and 8 in South Asia, as well as 31 OECD high-income economies. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.

This economy profile presents the Doing Business indicators for Bolivia. To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator. The data in this report are current as of June 1, 2014 (except for the paying taxes indicators, which cover the period January–December 2013).

The Doing Business methodology has limitations. Other areas important to business—such as an economy’s proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders and getting electricity), the security of property from theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of institutions—are not directly studied by Doing Business. The indicators refer to a specific type of business, generally a local limited liability company operating in the largest business city. Because standard assumptions are used in the data collection, comparisons and benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business; they also help identify the source of those obstacles, supporting policy makers in designing regulatory reform.

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Note: The rankings are benchmarked to June 2014 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database.

THE BUSINESS ENVIRONMENT

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Note: The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator since 2010, except for getting credit, paying taxes, protecting minority investors and resolving insolvency which had methodology changes in 2014 and thus are only comparable to 2013. The measure is normalized to range between 0 and 100, with 100 representing the best performance (the frontier). See the data notes starting on page 114 of the Doing Business 2015 report for more details on the distance to frontier score. Source: Doing Business database.

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STARTING A BUSINESS

Globally, Bolivia stands at 171 in the ranking of 189 economies on the ease of starting a business (figure 2.2). The rankings for comparator economies and the regional average ranking provide other useful information for assessing how easy it is for an entrepreneur in Bolivia to start a business.

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REGISTERING PROPERTY

Where does the economy stand today?

What does it take to complete a property transfer in Bolivia? According to data collected by Doing Business, registering property there requires 7.0 procedures, takes 91.0 days and costs 4.7% of the property value (figure 5.1).

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GETTING CREDIT

Where does the economy stand today?

How well do the credit information system and collateral and bankruptcy laws in Bolivia facilitate access to credit? The economy has a score of 7 on the depth of credit information index and a score of 0 on the strength of legal rights index (see the summary of scoring at the end of this chapter for details). Higher scores indicate more credit information and stronger legal rights for borrowers and lenders.

Globally, Bolivia stands at 116 in the ranking of 189 economies on the ease of getting credit (figure 6.1). The rankings for comparator economies and the regional average ranking provide other useful information for assessing how well regulations and institutions in Bolivia support lending and borrowing.

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PROTECTING MINORITY INVESTORS

Where does the economy stand today?

How strong are minority investor protections against self-dealing in Bolivia? The economy has a score of 4.1 on the strength of minority investor protection index, with a higher score indicating stronger protections.

Globally, Bolivia stands at 160 in the ranking of 189 economies on the strength of minority investor protection index (figure 7.1). While the indicator does not measure all aspects related to the protection of minority investors, a higher ranking does indicate that an economy’s regulations offer stronger minority investor protections against self-dealing in the areas measured.

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PAYING TAXES

Where does the economy stand today?

What is the administrative burden of complying with taxes in Bolivia—and how much do firms pay in taxes? On average, firms make 42.0 tax payments a year, spend 1025.0 hours a year filing, preparing and paying taxes and pay total taxes amounting to 83.7% of profit (see the summary at the end of this chapter for details). Most indicator sets refer to a case scenario in the largest business city of an economy, except for 11 economies for which the data are a population-weighted average of the 2 largest business cities. See the chapter on distance to frontier and ease of doing business ranking at the end of this profile for more details.

Globally, Bolivia stands at 189 in the ranking of 189 economies on the ease of paying taxes (figure 8.1). The rankings for comparator economies and the regional average ranking provide other useful information for assessing the tax compliance burden for businesses in Bolivia.

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ENFORCING CONTRACTS

Where does the economy stand today?

How efficient is the process of resolving a commercial dispute through the courts in Bolivia? According to data collected by Doing Business, contract enforcement takes 591.0 days, costs 33.2% of the value of the claim and requires 40.0 procedures (see the summary at the end of this chapter for details). Most indicator sets refer to a case scenario in the largest business city of an economy, except for 11 economies for which the data are a population-weighted average of the 2 largest business cities. See the chapter on distance to frontier and ease of doing business ranking at the end of this profile for more details.

Globally, Bolivia stands at 111 in the ranking of 189 economies on the ease of enforcing contracts (figure 10.1). The rankings for comparator economies and the regional average ranking provide other useful benchmarks for assessing the efficiency of contract enforcement in Bolivia.

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[FOR THE FULL REPORT ON BOLIVIA, PLS USE THIS LINK]

So, we are not looking good, the coca-grower political party has done very little, under the best economic boom ever of my beloved Bolivia! Corruption, narcotrafficking and “community justice” has spread anarchy, intolerance across Bolivia and that is the sad reality we have to endure.

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