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					        2011 Annual Review
FIAS: The Facility for Investment Climate Advisory Services




     (Pre-print version as of November 7, 2011)
                               FIAS 2011 Annual Review
Table of Contents
I.       FIAS Results at a Glance ........................................................................................................................ 2
II.      Message from the Director ................................................................................................................... 8
III.         FY11 Results and Reforms............................................................................................................... 10
IV.          Delivering Results, Reforms and Impact: FY08–11 Strategy Cycle Highlights................................ 22
V.       Operational Highlights ........................................................................................................................ 26
VI.          Knowledge Management, Learning and Communications ............................................................. 40
VII.         Financial Results and Resource Use ................................................................................................ 46
VIII.        ANNEXES ......................................................................................................................................... 51
      Annex 1: Reforms and Results Supported by FIAS in FY11 (see attachment) ........................................ 51
      Annex 2: Other Results Supported by FIAS in FY 11 (see attachment) ................................................... 51
      Annex 3: Active and Closed Projects (see attachment) .......................................................................... 51
      Annex 4: Abbreviations ........................................................................................................................... 52




                                                                                1
    I.      FIAS Results at a Glance

FIAS Results by Region




A majority of results (39 percent) occurred in Sub-Saharan Africa (50), followed by Europe and Central
Asia (38), Latin America and the Caribbean (28), Middle East and North Africa (11), and East Asia and
Pacific (1).




                                                   2
FIAS Reforms by Region




This year FIAS contributed to 41 reforms, of which 32 are reported in Doing Business 2012 and 4 in
Doing Business 2011. In addition, FIAS support led to 5 reforms in areas not covered by the Doing
Business report. (See Annex 1 for a detailed breakdown of reforms by country.)




                                                   3
FY11 Project Implementation Expenditures




Sub-Saharan Africa accounted for the largest share of project expenditures (38 percent) and 52 percent
of client-facing project expenditures.




                    Focus on Priority Client Groups:
                        IDA 63%
                        Sub-Saharan Africa 52%
                        Fragile and Conflict-Affected States 28%




                                                   4
FIAS Results by Region and Country in FY11 (*IDA Country, ** IDA and Fragile and Conflict-
Affected Countries)




                                                                              Business licensing and regulatory governance




                                                                                                                                                                      Dealing with construction permits



                                                                                                                                                                                                                                Investment policy and promotion




                                                                                                                                                                                                                                                                                                                                          Special economic zones
                                                                                                                                                                                                                                                                                         Public private dialogue

                                                                                                                                                                                                                                                                                                                   Registering property




                                                                                                                                                                                                                                                                                                                                                                                                           Protecting investors
                                                                                                                                                                                                                                                                  Protecting Investors
                                                                                                                                                                                                          Enforcing contracts




                                                                                                                                                                                                                                                                                                                                                                   Starting a business
                                                                                                                                                 Closing a business
                                                                                                                             Business taxation
                                                          Access to finance




                                                                                                                                                                                                                                                                                                                                                                                         Trade logistics



                                                                                                                                                                                                                                                                                                                                                                                                                                  Total Results
Region                       Country
East Asia and Pacific        China                                                                                                                                                                                                                   1                                                                                                                                                                      1
Latin America and the Caribbean Total                                                                                                                                                                                                                1                                                                                                                                                                      1
Europe and Central Asia      Hungary                                                                                                                                                        4                                                                                                                                                                                                      1                        5
                             Kazakhstan                                                                                                                                                                                                                                        1                                                                                               3                                            4
                             Macedonia, FYR                                                                                                                  3                              3                                                                                                                                                                                                                               6
                             Moldova*                                                                                                                                                       1                         1                                                        1                                                                                               1                                            4
                             Montenegro                                                                     1                                                3                              3                                                                                                                                   1                                              3                                           11
                             Romania                                                                                                                         1                                                                                                                                                                                                                                                              1
                             Serbia                                                                         4                                                                                                                                                                                                                                                                                                               4
                             Tajikistan**                                                                                                                                                                                                                                                                                                                               3                                                   3
Latin America and the Caribbean Total                                                                       5                                                7               11                                       1                                                        2                                                1                                      10                          1                       38
                             Brazil
Latin America and the Caribbean                                                                                                                                                                                                       12                                                                                                                                                                                   12
                             Colombia                                                                                                                                                                                 1                                                                                                                                                        1                   5                        7
                             Colombia                                                                                                                                                                                                                                                                                           1                                                                                           1
                             Mexico                                  1                                                                                                                      2                                                                                                                                                                                                                               3
                             Paraguay                                                                                                                                                       2                                                                                                                                                                                                                               2
                             Peru                                                                                                       1                                                                                                                                      1                                                                                               1                                            3
Latin America and the Caribbean Total                                1                                                                  1                                                   4                         1               12                                       1                                                1                                              2                   5                       28
Middle East and North Africa Jordan                                                                                                                                                                                                                                                                                                                                            1                                            1
                             Morocco                                                                                                                                                        3                                                                                                                                                                                  2                                            5
                             Syria, Arab Republic                                                                                                                                                                                                                                                                                                                              1                                            1
                             United Arab Emirates                                                                                                                                                                                                                                                                                                                              3                                            3
                             Yemen, Republic of*                                                                                                                                                                                                                                                                                                         1                                                                  1
Latin America and the Caribbean Total                                                                                                                                                       3                                                                                                                                                            1                     7                                           11
Sub-Saharan Africa           Africa Region (OHADA)*                  1                                                                                                                                                                                                                                                                                                         1                                            2
                             Benin*                                                                                                                                                                                   1                                                                                                                                                        3                                            4
                             Burkina Faso*                                                                                                                                                                                                                                                                                                                                                         3                        3
                             Burundi**                                                                                                                                                      1                                                                                                                                                                                  1                                        1   3
                             Central African Republic**                                                                                                                                                                                                                                                                         1                                              3                                            4
                             Cote d'Ivoire**                                                                                                                                                                                                                                                                                                                                   1                                            1
                             Liberia**                                                                                                                                                                                1                              1                                                  8                                                                                          2                       12
                             Madagascar*                                                                                                2                                                                                                                                                                                                                                                                                   2
                             Mali*                                                                                                                                                          2                                                                                                                                                                                  4                   3                        9
                             Rwanda*                                                                                                                         1                                                                                                                                                                                           1                                                                  2
                             Senegal*                                                                                                                                         1                                                                                                                                                                                                                                             1
                             Sierra Leone**                                                                                             2                    1                1                                       1                                                                                                         2                                                                                           7
Latin America and the Caribbean Total                                1                                                                  4                    2                5                                       3                1                                                                8                       3                        1             13                    8                          1 50
Total Results                                                        2                                      5                           5                    9               23                                       5               14                                       3                        8                       5                        2             32                   14                          1 128




                                                                                                                             5
FIAS Reforms by Region and Country in FY11 (*IDA Country, ** IDA and Fragile and Conflict-
Affected Countries)
                                                                                                      DOING BUSINESS TOPICS                                                                                                                                                                                     NON-DOING BUSINESS TOPICS




                                                                                                                                                                                                                                                                                                                                        Business operations (incl. general licenses)




                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Total reforms non-Doing Business topics
                                                                                                                                                                                                                                                                 Total reforms Doing Business topics
                                                                                                                                                                                                                                                                                                       Alternative dispute resolution




                                                                                                                                                                                                                                                                                                                                                                                                                                                Special Economic zones
                                                                                                                                                                                                                                                                                                                                                                                                                      Public private dialogue
                                                                                                                              Construction permits



                                                                                                                                                                                                  Registering property
                                                                                                       Resolving insolvency



                                                                                                                                                                           Protecting investors
                                                                                                                                                     Enforcing contracts



                                                                                                                                                                                                                         Starting a business




                                                                                                                                                                                                                                                                                                                                                                                                  Investment policy
                                                                                  Business taxation
                                                              Access to finance




                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Total IC Reforms
                                                                                                                                                                                                                                               Trade logistics




                                                                                                                                                                                                                                                                                                                                                                                       Industry
Region                        Country
Europe a nd Centra l As i a   Hunga ry                                                                                         à                                                                                                                                   1                                                                                                                                                                                                             0                                     1
                            Ka za khs ta n                                                                                                                                       √                                                                                  1                                                                                                                                                                                                             0                                  1
                            Ma cedoni a , FYR                                                                √                      √                                                                                                                               2                                                                                                                                                                                                             0                                  2
                            Mol dova *                                                                                                                     √                                                                   √                                    2                                                                                                                                                                                                             0                                  2
                            Montenegro                                                                       √                                                                                                                 √                                    2                                                                                                                                                                                                             0                                  2
                            Roma ni a                                                                        √                                                                                                                                                      1                                                                                                                                                                                                             0                                  1
                            Serbi a                                                                                                                                                                                                                                 0                                                                                 √                                                                                                                           1                                  1
                            Ta ji ki s ta n**                                                                                                                                                                                  √                                    1                                                                                                                                                                                                             0                                  1
EUROPE AND CENTRAL EUROPE TOTAL                                                                                                                                                                                                                                    10                                                                                                                                                                                                             1                                 11
La ti n Ameri ca a nd the
                            Col ombi a                                                                                                                                                                                         √                                                                                                                                                                                                                                                  0                                     1
Ca ri bbea n                                                                                                                                                                                                                                                                1
                            Mexi co                                √                                                                √                                                                                                                                       2                                                                                                                                                                                                     0                                     2
                            Pa ra gua y                                                                                             √                                                                                                                                       1                                                                                                                                                                                                     0                                     1
                            Peru                                                       √                                                                                         √                                             √                                            3                                                                                                                                                                                                     0                                     3
LATIN AMERICA AND THE CARIBBEAN TOTAL                                                                                                                                                                                                                                       7                                                                                                                                                                                                     0                                     7
Mi ddl e Ea s t a nd North
                            Jorda n                                                                                                                                                                                            √                                                                                                                                                                                                                                                  0                                     1
Afri ca                                                                                                                                                                                    1
                            Morocco                                                                                                 √                                                      1                                                                                                                                                                                                                                                                                      0                                  1
                            Syri a , Ara b Republ i c                                                                                                                                 √    1                                                                                                                                                                                                                                                                                      0                                  1
                            Uni ted Ara b Emi ra tes                                                                                                                                  √    1                                                                                                                                                                                                                                                                                      0                                  1
                            Yemen, Republ i c of**                                                                                                                                         0                                                                                                                                                                                                                                                           √                          1                                  1
MIDDLE EAST AND NORTH AFRICA TOTAL                                                                                                                                                         4                                                                                                                                                                                                                                                                                      1                                  5
Sub-Sa ha ra n Afri ca      Africa region*                         √                                                                                                                  √    2                                                                                                                                                                                                                                                                                      0                                  2
                            Beni n*                                                                                                                                                   √    1                                                                                                                                                                                                                                                                                      0                                  1
                            Burundi **                                                                                              √                                            √         2                                                                                                                                                                                                                                                                                      0                                  2
                            Centra l Afri ca n Republ i c**                                                                                                                         √ √    2                                                                                                                                                                                                                                                                                      0                                  2
                            Cote d'Ivoi re**                                                                                                                                          √    1                                                                                                                                                                                                                                                                                      0                                  1
                            Li beri a **                                                                                                                                                √ 1                                                                                                                                                                                                            √                     √                                                    2                                  3
                            Ma da ga s ca r*                                       à                                                                                                      1                                                                                                                                                                                                                                                                                      0                                  1
                            Ma l i *                                                                                                                                                  √    1                                                                                                                                                                                                                                                                                      0                                  1
                            Rwa nda *                                                                                                                                                      0                                                                                                                                                                                                                                                           √                          1                                  1
                            Si erra Leone**                                                                  à à à                                                               à      4                                                                                                                                                                                                                                                                                      0                                  4
SUB-SAHARAN AFRICA TOTAL                                                                                                                                                                  15                                                                                                                                                                                                                                                                                      3                                 18
Grand Total (Doing Business +non Doing Business)                   2                   2                     4                      7                      2                     3 2 13 1 36                                                                                                                                                                                                                                                                                      5                                 41

Reforms captured by the Doing Business 2012 report                 2                   1                     4                      5                      2                     3                      1 13 1 32                                                                                                                                                                                                     N/A                                                                                               0

                                                              Legend:
                                                               †

                                                                                  Thi s reform i s recogni zed retroa cti vel y: i t wa s va l i da ted by Doi ng
                                                                                  Bus i nes s 2011, but wa s not reported a s a res ul t i n FY10.




                                                                       6
FY11 Funding and Expenditures

FY11 CONTRIBUTIONS                                       In US$ thousands
World Bank Group Contributions (Core Funding)                           8,300
World Bank Group Contributions (Project-Specific/Other                  4,482
Contributions)
Donor Contributions (Core)                                              4,552
Donor Contributions (Programmatic)                                      7,413
Donor Contributions (Project-Specific)                                  8,267
Client Contributions                                                      283
TOTAL CONTRIBUTIONS                                                    33,296
   Less Trust Fund Administrative Fees                                  1,212
TOTAL (NET) CONTRIBUTIONS                                              32,084
FY11 EXPENDITURES                                        In US$ thousands
Staff Costs (incl. consultants)                                        21,229
Operational Travel Costs                                                5,678
Indirect Costs (incl. office and operating)                             3,366
TOTAL EXPENDITURES                                                     30,273




                                                 7
    II.       Message from the Director

I am pleased to present the FIAS 2011 Annual Review, which reports FIAS-supported results for fiscal
year 2011 and highlights cumulative results for the 2008–11 FIAS strategy cycle.

I am grateful for the steadfast commitment of our donors and partners that has enabled a focused
response to the sustained demand for investment climate work, particularly in view of the difficult
global context. Your financial and operational support made possible the successful implementation of
the 2008–11 FIAS strategy, as illustrated by more than 600 legal, regulatory, policy, and other
improvements enacted with FIAS support by client governments, and by the positive independent
evaluation released in February 2011.

In fiscal year 2011, FIAS-funded activities supported 128 investment climate results achieved by our
clients in 32 countries, with 45 percent achieved in IDA countries and 39 percent in Sub-Saharan Africa.
These results contributed to 41 broader reforms. Over the entire 2008–11 strategy cycle, FIAS
supported a total of 641 investment climate results in 82 countries, far exceeding the target of 400 set
for the four-year strategy cycle.

Individually, these results and reforms translate into business environments that support more efficient,
productive operations for businesses and investors.

In this past year we have developed an initial impact measurement framework that will allow us to
capture how investment climate reforms contribute to the creation of new firms, investment, private
sector savings, and jobs, among other economic variables. It is also helping us better allocate resources
and manage projects to maximize their impact. The framework will be further refined and rolled out
more broadly in the coming years. Recent examples help illustrate the wider impact of our work:

         A FIAS-funded tax simplification project in Sierra Leone resulted in a 40 percent increase in the
          number of business tax returns filed and a 44 percent increase in tax collection.
         As a result of reforms in several South East European countries, some supported by FIAS since
          2008, 740 national laws and business regulations have been cut and simplified, yielding annual
          cost savings to the private sector of more than $260 million.
         In Ghana, FIAS funding supported reform of the country’s movable collateral framework,
          resulting in more than 20,000 loans for $800 million backed by movable assets registered by
          banks and other institutions in the new collateral registry created in March 2010.
         FIAS-supported activities to generate investment in Haiti are expected to bring an estimated
          1,150 jobs through two new investments totaling $6 million and a $4 million expansion project
          from an existing garment manufacturer.

We continue to provide strong operational support to client governments, as detailed throughout this
Annual Review. Four investment climate projects—in Bangladesh, South Sudan, Southeast Europe, and
in Africa with the Organisation pour l’Harmonisation en Afrique du Droit des Affaires (OHADA)—
received the coveted IFC 2011 Corporate Award. Selected from 136 submissions, the winning projects
were recognized as strong examples of our focus on delivering development impact, work in IDA


                                                      8
countries, responsiveness, client relationship management, partnership building, efficiency, innovation,
commitment to knowledge sharing, and teamwork. FIAS-funded projects that received IFC or World
Bank awards are highlighted on p. [17].

During the past year we worked with our partners and other stakeholders on the preparation of the FIAS
FY12–16 Strategy, titled “Managing for Impact,” which was adopted by IFC’s Board of Directors on May
3, 2011, and we began laying the groundwork for its implementation. We organized our advisory
offering around three targeted objectives: fostering enterprise creation and growth, facilitating
international trade and investment, and unlocking sustainable investments in key industries. Working
closely with colleagues in the World Bank’s Financial and Private Sector Development department, we
helped design and establish the new Investment Climate Global Practice to connect more effectively
with our Bank regional colleagues.

A new Web site www.wbginvestmentclimate.org was launched to share information and showcase FIAS-
supported investment climate work to a broad audience of donors, clients, partners, and other
stakeholders. The Web portal also showcases the broad range of our knowledge management products
as well as multimedia clips, videos, and slideshows of our project work.

As we embark on the FIAS FY12–16 strategy cycle, we stand ready to support countries seeking help in
creating a more open and dynamic environment for the private sector. Much remains to be
accomplished in many parts of the world. Unexpected, urgent priorities will arise: who could have
imagined the calls for sweeping reform across the Middle East and North Africa that have highlighted
the need for strong institutions and better legal frameworks for businesses? With the help of our
partners, FIAS is well-equipped to respond to these challenges.

I look forward to continued collaboration and, as always, welcome your feedback and insights.




                                                    9
   III.    FY11 Results and Reforms

Through the multidonor FIAS program, the World Bank Group and its partners continued to assist
developing countries and transition economies in improving their business environments, with an
emphasis on regulatory simplification and investment generation. FIAS also continued to play an
essential role in the provision of investment climate advisory assistance to clients around the globe
through the Investment Climate Business Line (part of IFC advisory services) and the World Bank’s
Financial and Private Sector Vice Presidency (FPD). The Investment Climate Department (CIC)
implements the FIAS program under the joint oversight of the International Finance Corporation (IFC),
the Multilateral Guarantee Agency (MIGA), and the World Bank (IBRD).




                                                  10
                               FIAS in the World Bank Group Institutional Structure




Continued Focus on Results
During FY11, the final year of the FY08–11 strategy cycle, FIAS-funded activities supported the
achievement of 128 investment climate results1 in 32 countries, and via its role in product incubation
1
  A result is a change implemented by a client with support from a FIAS-supported project that significantly improves the
investment climate in a given country, region, or sector. These changes are tangible achievements brought about with FIAS
assistance and for which there is wide technical and expert consensus regarding their relevance in inducing private sector-led
development.

                                                              11
and development supported programs in another 13 countries. This year’s results compare with 173 in
FY10, 2272 in FY09, and 108 in FY08. These results indicate that countries continue to recognize the
need for investment climate reform, implementing policy-level reforms to help them in the face of a
global recession. (Summaries of each of the results achieved in FY11, grouped by country, are presented
in Annex 1.)

There were fewer results recorded in FY11 than in FY10, mainly due to:
    Tightening of management control on results tracking and counting, in particular limiting the
       count of closely related measures.
    Deepening of reform efforts, with more emphasis on longer term interventions that may
       improve impact but yield fewer shorter term results.
    The shift of part of FIAS’ project portfolio to IFC regional investment climate teams, including
       the whole FIAS portfolio (eight projects) in East Asia and Pacific.
    An increased focus at the global level on strengthening product development and knowledge
       sharing. In FY11, 27 projects, or 42 percent of the FIAS portfolio, were “global” projects (up
       from 31 percent in FY10). For example, the Global Investment Promotion Benchmarking (GIPB)
       and Investing Across Borders (IAB) projects do not contribute directly to the result and reform
       counts.
    Closure of several large country programs in FY11, which had contributed significantly to the
       result and reform counts in previous years. Investment climate programs in Liberia, Sudan,
       South Sudan, and Sierra Leone were completed in FY11.

Among the total recorded results, (39 percent) occurred in Sub-Saharan Africa, followed by Europe and
Central Asia (30 percent), Latin America and the Caribbean (22 percent), Middle East and North Africa (8
percent), and East Asia and the Pacific (1 percent).

FY11 results were concentrated in the following areas: starting a business (32), dealing with construction
permits (23), investment policy and promotion (14), trade logistics (14), public-private dialogue (8),
closing a business (9), business operations, business taxation, and registering property (5). Of the 128
results reported for FIAS-supported projects this year, 12 were specifically achieved working with
subnational governments.

In FY11, the 128 results achieved by FIAS-supported projects contributed to 41 reforms. Of these 41
reforms, 36 were captured by the Doing Business 2012 report. Five reforms are in topic areas not
covered by Doing Business, and they have been captured by the aggregation methodology (see Annex 1
for detailed information and country breakdown). FIAS supported 7 of the 12 countries recognized in
Doing Business 2012 for the most improved ease of doing business across three or more areas of
regulation.

While FIAS core funding is increasingly focused on product development and knowledge generation and
sharing, the global product teams in the Investment Climate Department (which hosts FIAS) continue to



2
 The FY09 result total is higher than reported in the 2009 Annual Report (224). Three results associated with alternative dispute
resolution were added to the total.

                                                               12
provide strong technical assistance to programs implemented by IFC and World Bank departments that
do not receive FIAS funding. Thus, the outcomes of these programs are not captured in FIAS’ results. For
example, Investment Climate technical assistance has supported programs in South Asia [such as the
Bangladesh Investment Climate Facility (BICF)] in East Asia and Pacific, and in Europe and Central Asia.
FIAS, through BICF, provided indirect support to the government of Bangladesh in major legislative
reforms related to economic zones, including improvements to women’s working conditions in these
zones (see box, p. [35]).

Moldova Creates More Business-Friendly Economy
Ranked 2nd in Doing Business 2012 of 12 with most-improved business regulation

The government of Moldova is showing rapid progress in improving the country’s investment climate,
ranking 81st of 183 economies measured in Doing Business 2012 on ease of doing business—an
improvement of 18 places to its ranking in the 2011 report. Since 2010, a FIAS-supported program has
helped Moldova remove or reduce regulatory barriers to business operation and growth.

Strengthening the business environment is especially important to Moldova as one of the poorest and
most vulnerable countries in the Eastern Europe and Central Asia region. Moldova’s income per capita in
2011 was $1,590.

"The reforms signal the government's drive for developing a healthy business environment and desire to
ease the regulatory burden for small and medium-sized enterprises," says Nicolae Cuconescu, member
of the Timpul Businessmen Association of Moldova.

In addition to improving the business environment of Moldova, these reforms offer an effective
mechanism to mitigate the ongoing global financial and economic crisis that poses a negative impact on
investment and growth in the country.

Results
Moldova’s impressive reform path is largely a result of new legislation, designed and introduced with
support from the FIAS-funded project. The new legislation makes it easier for entrepreneurs to start a
business and obtain construction permits. Several laws were passed to increase the efficiency of the
court system, which resulted in decreasing the time to enforce a contract from 365 to 352 days.

Amendments to the Company Law were approved in FY11, eliminating the minimal capital requirement
to register a business. Today it takes 88 days to open a business in Moldova—8 days less than in 2011.
The new law also creates the basis for a one-stop shop, planned to become operational in FY12.

In July 2010, a new law streamlining the construction permitting process was approved. The law
establishes clear procedures for the construction or demolition of buildings and provides a complete list
of documents that authorize the execution of construction works.

To protect investors, amendments to the Law on Joint-Stock Companies were adopted in April 2011,
improving disclosure obligations for transactions involving conflicts of interest.

Delivering Impact in Africa
Sub-Saharan Africa continues to be a primary focus of FIAS activities (examples of FIAS-supported
country-specific and regional activities can be found throughout this report). In FY11, FIAS-funded

                                                   13
projects were operational in 16 countries in the region [plus the member countries of the Organization
for the Harmonization of Business Law in Africa and of the East African Community]. In FY11, FIAS
support contributed to firm and job creation in Africa, as reported in the external evaluations of the
Burkina Faso, Liberia, Rwanda, and Sierra Leone country programs (see box, p. [23]), and FIAS- funded
activities supported legal reforms critical to businesses in 16 African countries through the OHADA
program (see box, p. [14]).

Breakthrough Reforms to Business and Lending Regulations in 16 African States

Recent changes to business laws in West Africa pave the way for a more entrepreneurial future. The
latest sweeping reforms were enacted by the Organization for the Harmonization of Business Law in
Africa, a unique organization in Africa that enacts common business laws for all 16 member countries (a
17th member, the Democratic Republic of Congo, is expected to join OHADA soon).

As a result of FIAS-funded advisory support, the countries unanimously approved legal changes in
December 2010 that will likely make an estimated $250 million in credit available to small businesses.
The legislation is expected to encourage thousands of entrepreneurs to join the formal economy rather
than operate off the books.

“Small and medium-sized enterprises are the heart of the African economy,” said M. Biossey Kokou
Tozoun, Togo’s Minister of Justice. “It is therefore essential that small entrepreneurs can turn to banks
for loans and that everything be done to encourage them to formalize.”

Under the new rules, banks may now accept a much wider range of assets as collateral, rather than only
real estate (most people do not have formal title to real estate). Businesses may more easily pledge all
kinds of present and future movable goods, including accounts receivable, cash flow, or equipment.
Banks will also be able to better manage and limit risk, and lend in a more secure environment.

One of the major breakthroughs of the legal reform is the creation of a new business category—
entreprenant —that will simplify procedures for micro- and small business owners who cannot afford to
hire lawyers to register their businesses. It is expected that women entrepreneurs will be most
interested in this new status, because it will ease their access to formal credit.

OHADA oversees nine business laws (general commercial, secure transactions, company law, arbitration,
debt recovery, bankruptcy, accounting, transportation of goods by road, and cooperatives). Any change
in these laws requires unanimous agreement among all countries and applies throughout the entire
bloc.

The World Bank Group began supporting legal reform effort four years ago, with support from FIAS,
France, and the Investment Climate Facility for Africa.


Prioritizing Fragile and Conflict-Affected States
In addition to the investment climate programs in Sierra Leone, Liberia, and Rwanda yielding strong
results and impact (see box, p. [23]), FIAS support continued to be focused on activities in fragile and
conflict-affected states. In FY11 FIAS supported results in 30 conflict-affected countries.



                                                    14
FIAS-supported Investment Climate Department teams, in collaboration with IFC and World Bank
regional teams, started work in a number of countries which have recently come out of conflict, such as
Guinea and the Central African Republic. A key feature of this work, as exemplified in Guinea, is FIAS’
contribution to the overall Bank Group investment climate work in close collaboration with the World
Bank team. FIAS-funded support to the newly created independent state of South Sudan helped the
nascent government enact institutional reforms, including setting up a legal framework for business
entry, operations, and exit, developing an Investment Promotion Act, removing administrative barriers
to trade, and reestablishing an operational business registry (see box, p. [30]).

In the Republic of Yemen, another fragile and conflict-affected country, FIAS-funded activities
supported the passage of a new income tax law, reducing the general tax rate from 35 to 20 percent and
creating a simplified filing process for micro, small, and medium-size taxpayers. These measures are
expected to foster participation in the formal economy and increase tax revenues by encouraging
compliance. The project effectively streamlined six procedures, which is expected to reduce corruption
and result in an estimated $3.1 million in direct cost savings over the next three years.

Support for business entry reforms in Timor-Leste helped reduce the time a new business needs to
register from 65 to 19 days.3 The government was able to tap into the reform experiences of other
countries through regional peer-to-peer learning events and study tours. FIAS support also helped in
building the capacity of the Better Business Initiative, a forum for public-private dialogue, by establishing
a chamber of commerce and industry that unifies operational policy and procedures for 17 business
associations in one body. The forum has provided input into the national procurement law to allow for
outsourcing of projects over $1 million and streamlined customs clearance procedures approved by the
Council of Ministers that will reduce gridlock at the port and provide clear guidelines for importers. In
addition, the project has improved regulations for microfinance institutions, which will strengthen their
ability to develop, while protecting consumers from bad practices such as pyramid schemes and other
abuses.

FIAS-funded activities in fragile and conflict-affected states are implemented in close coordination with
broader Bank Group initiatives to support communities coming out of conflict. One key partner is IFC’s
Conflict Affected States in Africa (CASA) initiative, which has supported work in a number of African
countries. CASA programs seek to understand the causes of the conflict and tailor programs that
contribute to peace and stability. Investment climate work usually comprises much of the early
engagement in these states.

One of the risks of work in fragile and conflict-affected countries is that it is more difficult to achieve
results as quickly and effectively as in other settings. Of the three projects this fiscal year that did not
receive high development effectiveness rating scores (see p. [16]), all were in countries where significant
political upheaval halted project activities and progress.

Building an Entrepreneurial Future in Post-Conflict Central African Republic

With FIAS support, the government of the Central African Republic is taking steps to improve the
country's overall conditions for private sector growth, including measures that make it easier and less
expensive for entrepreneurs to set up, register, and operate their businesses.


3
    Data from project report.

                                                     15
The program, which began in 2007, focused initially on improving the dialogue between public officials
and the business community. The Public-Private Dialogue Forum [Cadre Permanent de Concertation Etat
/ Secteur Privé (CPC)], a consultative forum created by the government in late 2006, was the main driver
of this approach. The forum gives entrepreneurs a voice in policymaking and helps reduce any tensions
that might exist between the two interest groups.

Another important milestone in the country's path to reform was the establishment of the Joint
Committee for the Improvement of the Business Environment (Comité mixte chargé de l'amélioration de
l'environnement des affaires en République Centrafricaine) by a decree signed in April 2010.

The Joint Committee is a decision-making body of public and private sector representatives that
complements the CPC and is chaired by the prime minister. It has a clear mandate to improve the
business environment and full authority to approve CPC-developed reform proposals. With FIAS
support, in FY11 the Committee has offered policy recommendations and proposed key legislation to
further the reform agenda.

The Central African Republic, which ranks 182nd of 183 economies on ease of doing business in the
Doing Business 2012 report, is starting to show momentum in areas tracked by the Doing Business
indicators for starting a business and registering property. In December 2010, the government amended
provisions on the business registration tax in the national budget law and also adopted a new financial
law. These measures cut in half the business registration and property transfer taxes and eliminated
several obsolete, ineffective, and costly requirements.


Development Effectiveness, Client Satisfaction, and Internal Recognition Remain High
IFC measures development effectiveness of projects by looking at five areas: strategic relevance,
outputs, outcomes and impacts, and efficiency, giving greater weight to outcomes and impact.

Development effectiveness ratings for client-facing projects implemented by the Investment Climate
Department and funded by CIC/ FIAS were at 73 percent for FY11. This significantly exceeds the rating
for the overall Investment Climate Business Line (63 percent) and is in line with IFC Advisory Services
score of 69 percent.




                                                   16
Of the 10 projects included in the analysis, 7 were rated positively by IFC’s Development Impact
Department; the 3 projects that received lower ratings were in countries (Madagascar, Pakistan, Nepal)
where project progress was halted due to external, political factors (see Annex 3 for development
effectiveness ratings of projects closed in FY11).

Client satisfaction for investment climate projects was also rated high with 89 percent of clients
reporting their satisfaction with services being delivered.4




The work FIAS supports to implement improvements and reforms in the most difficult of environments
has been recognized at the corporate level within the Bank Group. The investment climate programs in
South Sudan (see box, p. [30]), Southeast Europe (see box, p. [18]), with OHADA (see box, p. [14]), as
well as the business registration program in Bangladesh each received the 2011 IFC Corporate Award.
The Rwanda investment climate program also received a team award from the World Bank Africa Vice
Presidency for its efforts in promoting agribusiness.

4
    This figure relates to the overall IFC Investment Climate Business Line rather than FIAS-funded projects alone.

                                                                 17
Unleashing Business Opportunities in Southeast Europe

Supported by FIAS and donor partners Austria, Switzerland, and the United States, the Investment
Climate Program in South Eastern Europe is helping accelerate regional governments’ progress toward
accession to the European Union. The program was recognized with the 2011 IFC Corporate Award for
its excellence in improving the region’s regulatory and judicial environment.

Since the program’s start in 2008, about 740 national laws and regulations have been cut and simplified,
with over 2,280 recommendations adopted at the local level. To date, these reforms have yielded an
estimated annual private sector cost savings of $264.7 million. Alternative dispute resolution (ADR)
projects have resulted in releasing $120 million in tied-up funds through mediation, and this impact
continues to build through self-sustaining mediation centers and partners.

In addition to Moldova (see box, p. [13]), the former Yugoslav Republic of Macedonia was recognized
among the 12 economies with the most-improved business regulation in the Doing Business 2012
report. Macedonia recorded reforms supported by FIAS-funded activities in the areas of dealing with
construction permits and closing a business. The government amended two laws related to construction
permitting, eliminating the preliminary design requirement, reducing municipal fees by 95 percent, and
setting shorter deadlines for issuing permits. These improvements cut two procedures and 22 days from
the process. In the area of closing a business, the Company Law was amended to set a 15-day limit for
liquidators to announce liquidation. The Bankruptcy Law was amended to require that bankruptcy
trustees use the e-bankruptcy system. The Central Registry further decreased the fee for voluntary
liquidation.


The Entrepreneurship Snapshots project, which included several members of the FIAS-funded
team, won the 2011 Team Award from the World Bank’s Development Economics Vice
Presidency. The Entrepreneurship Snapshots aims to understand the dynamics of private
enterprises around the world through the collection of data on business creation at the
international level that can be comparable across heterogeneous legal, economic, and political
systems. The data provides a picture of the impact of regulatory, political, and macroeconomic
institutional changes on entrepreneurship and an understanding of what drives entrepreneurs
from the informal to the formal sector.




                                                  18
Progress on Approaches to Measure Impact

FIAS, in collaboration with other partners, continues to support reforms that are likely to have a positive
effect on the creation of new firms, investment, and job creation. In 2011, reviews of existing literature
continued to identify tangible measures of impact associated with investment climate reform (see box,
p. 19).

           The Impact of Investment Climate Reform: Evidence from the Literature Reviews

Three literature reviews were completed in the areas of business entry, alternative dispute resolution,
and insolvency reform in order to gather evidence about the impact of FIAS-supported work.
The main findings of the literature reviews include:

Business Entry
           i. More firms enter the market when registration procedures and costs are cut. The
                average entry rate is 5 percent for selected country studies and 10.5 percent for cross-
                country studies.
           ii. A large percentage of these new firms survive and grow. Studies show that the survival
                rate two years after entry ranges from 61–87 percent and 27–66 percent seven years
                after entry.
           iii. New firms increase competition, forcing incumbents to become more efficient or to exit
                the market, boosting overall productivity and investment. Cross-country studies show
                that a 10-day reduction in the time to start a business is associated with a 0.3
                percentage point increase in the investment rate and a 0.36 percent increase in the
                gross domestic product growth rate.


                                                    19
ADR
             i.  ADR reforms reduce the cost of dispute resolution relative to litigation. Estimates of the
                 total costs incurred by firms that use an ADR process range from 3 to 50 percent of the
                 costs incurred by firms that go through a court litigation process.
             ii. ADR can also do better than traditional litigation in reducing the time to resolve a
                 dispute. Time savings range from one month to about a year.

Insolvency
             i.     Reforms that improve insolvency regimes increase the probability of timely repayments,
                    reduce the cost of debt and interest rates, and increase the aggregate level of credit.
             ii.    Insolvency reforms also help reduce the rate of failure among small and medium-size
                    enterprises, particularly the liquidation of stronger firms.
             iii.   Evidence from high-income countries suggests that reforms to individual bankruptcy
                    laws can increase household credit, which might also benefit entrepreneurs and non-
                    limited-liability firms.
             iii.   Total costs incurred by firms that use an ADR process range from 3 to 50 percent of the
                    costs incurred by firms that go through a court litigation process.
             iv.    ADR can also do better than traditional litigation in reducing the time to resolve a
                    dispute. Time savings range from one month to about a year.


Models that estimate the impact of reforms on business entry, trade logistics, business taxation,
insolvency, ADR, construction permits, and industry are currently being developed. These models will be
used to forecast the impacts of new FIAS-funded projects and provide information to optimize the
allocation of resources.

Impact projections for the new FIAS FY12–FY18 strategy include:
    Private sector savings of over $600 million, which includes $350 million in compliance cost
       savings and $250 million in savings from streamlined trade logistics services.
    Three billion dollars in investment generation— $1 billion from foreign direct investment (FDI)
       facilitation in priority sectors and $2 billion from new firms created as a result of business entry
       reforms.
    Increase in trade flows by $2.5 billion following trade logistics reforms.
    Increased returns to stakeholders by $1.5 billion resulting from 11,000 firms continuing as going
       concerns after debt resolution reforms.
    A 10 percent increase in the number of enterprises complying with tax requirements within
       three years of FIAS-supported tax reforms.

Two impact evaluations funded by FIAS were begun in collaboration with other Bank Group
departments to assess, in Georgia, work done to simplify the tax regime for small and medium
enterprises (SMEs), and in Romania, the impact of the introduction of out-of-court resolution of
disputes. These evaluations are intended to analyze the impact of specific investment climate advisory
programs.

The compliance cost savings methodology has gained traction in monitoring impact, especially in the
area of business taxation. In developing and transitional countries, businesses—especially small ones—
often face heavy costs in the process of preparing, filing, and paying taxes in addition to the burden of


                                                      20
tax payments. Measuring compliance costs through rigid data collection can provide useful information
for the design of reforms and to reduce costs and risks for small businesses. Workshops introducing the
methodology to measure compliance costs were organized in six different regions in November and
December 2010. Forty-one projects from 31 countries in all regions are now effectively measuring the
direct compliance cost savings indicator for investment climate projects. In FY11, 33 projects reported
targets of $285 million in annual direct cost savings, and 14 projects reported actual cost savings of $70
million. These projects had total expenses of $26 million, resulting in a "bang for the buck" of 2.7 dollars
of impact for each dollar spent.




                                                     21
     IV.       Delivering Results, Reforms and Impact: FY08–11 Strategy
               Cycle Highlights

In a time of global economic and financial crisis as witnessed during the FY08–11 strategy cycle, FIAS has
achieved the objectives set out in the FY08–11 strategy. This was essentially the conclusion of the Phase
I report of the independent external CIC/FIAS evaluation, conducted with the oversight of IFC’s
Development Impact Department.5

“Investment climate results”—significant improvements to a country’s investment climate, as defined in
the FIAS monitoring and evaluation framework—were used as the primary performance indicator during
the FY08–11 cycle. During the four years of the strategy cycle, FIAS-funded projects supported the
implementation of more than 600 investment climate results, versus a cycle target of 400. A majority
(60 percent) of these results were achieved in countries classified as IDA6 or post-conflict, and in frontier
regions of middle-income countries.

Globally, FIAS contributed to 183 Doing Business reforms (as documented by the Doing Business reports)
over the FY08–11 cycle. Forty-four of the Doing Business reforms were in IDA or post-conflict countries,
with Sub-Saharan Africa accounting for 40 percent of the total.

An extensive review of the literature on the impact of reforms suggests that investment climate reforms
of the type supported by FIAS can have substantial impacts on private sector investment, trade, business
formation, and growth. This was confirmed by an independent evaluation that reviewed the impact of
FIAS-funded investment climate reform projects in Burkina Faso, Liberia, Rwanda, and Sierra Leone. The
country studies suggest that these projects resulted in clear benefits to the private sector, including
significant private sector cost savings, creation of new businesses, investments and jobs. Other
benefits—an expanded tax base, increased tax revenue, and higher trade flows— were not quantified
but are believed to be positive (see box, p. [23]).7




5
  Nexus Associates. 2011. Independent Evaluation of CIC/FIAS 2008–2011 Strategy and Program, Phase I: Final Report. Phase 1
of the evaluation covers FY08–10, the initial three years of the funding cycle. A supplemental report, to be prepared in Fall
2011, will expand the evaluation’s coverage to the fourth year of the cycle.
6
  Members of the International Development Association (IDA). Eligibility for IDA is restricted to countries with a gross national
income per capita of less than $1,095.
7
 Economisti Associati srl (Italy). 2011. Investment Climate in Africa Program, Four-Country Impact Assessment Comparative
Report. https://www.wbginvestmentclimate.org/uploads/Comparative_Report_20110327.pdf

                                                                  22
Supporting Development Impact in Four Fragile and Post-Conflict African Countries

A recent independent evaluation of FIAS-funded investment climate programs in Burkina Faso, Liberia,
Rwanda, and Sierra Leone reported tangible progress on measures of private sector impact within three
years after the programs began.

The four programs were undertaken in partnership with the African Development Bank, Austria,
Denmark, France, Ireland, Italy, Japan, the Netherlands, Norway, and Sweden.

The assessment, conducted by Economisti Associati, was commissioned by IFC to capture interim results
of substantial programs in African countries facing considerable challenges to reform. The evaluators
reported these aggregated results for the programs: $13.2 million in cost savings for businesses; 23,000
new businesses registered; $75–90 million invested; and 51,500 new jobs created. More than 70
reforms were implemented, making it easier and less costly for entrepreneurs to start up and operate as
formal, registered businesses.

"It is important to register your business because you are legally recognized, so you can bid on
government tenders and get invited to business forums," says Rwema Mimable, co-owner of a small
information technology business in Rwanda.

Three of the programs are in countries recovering from civil war (Liberia, Rwanda, and Sierra Leone),
and their infrastructure and some government institutions are in disrepair. Burkina Faso and Rwanda are
landlocked and face inordinate costs for transporting goods. All four countries rely on small-scale
farming as their main industry and are very poor by global standards, with gross national income per
capita ranging from $550 per year in Burkina Faso to just $190 in Liberia.

Each country program was designed to tackle areas most likely to have an early and positive impact on
the regulatory environment governing business growth, investment, and employment opportunities,
providing a foundation to address poverty and income security.



                                                  23
The programs introduced reforms in business registration, construction permits, real estate
transactions, and trade logistics. They sought to reduce business owners' direct costs by eliminating or
reducing fees, save staff time and labor costs by streamlining procedures, and improve cash flow
through adjustments in the payment schedules of certain fees and taxes. For example, registering a
business in Rwanda currently costs $25 (less than 5 percent of income per capita) or no charge if
conducted online, and it requires just one day.


Key Objectives of the FY08-11 Strategy Realized
According to the FIAS evaluation, other key elements of the FY08–11 strategy were implemented as
follows:

• FIAS-funded projects moved beyond diagnostic assessments to deepen the Bank Group’s core areas of
investment climate expertise, met client needs through customized interventions, and focused on
knowledge management and outreach. The FY08–11 strategy transformed FIAS’ approach from
standalone diagnostic assessments and ad-hoc interventions to reform implementation around core
products. In line with this strategy, FIAS funding was used to strengthen technical expertise in 14
product areas, responding to evolving client demand. Projects supported by FIAS were larger and often
incorporated multiple products (see box on Sierra Leone program, p. [24]). Moreover, FIAS resource use
concentrated on 26 major country programs, complemented by shorter-term interventions (often along
the Doing Business agenda) in more than 50 countries. Considerable funding was devoted to knowledge
management efforts, resulting in a wide range of technical papers, practitioner guides, and toolkits,
Investment Climate In Practice notes, and SmartLessons, as well as numerous deep-dive learning and
peer-to-peer, knowledge-sharing events.

• FIAS funding allowed the Bank Group to respond to increased demand from IDA countries and Sub-
Saharan Africa. With successful fundraising, $89.5 million was spent on FIAS-related activities in FY08–
10, roughly 6 percent more than the amount originally contemplated in the strategy.

• FIAS-funded projects met high levels of client satisfaction (between 88 and 92 percent annually); and
planning and control systems related to FIAS activities were strengthened. CIC, the department
managing FIAS, increased staffing levels in the field and transferred project management responsibility
for most client-facing projects from headquarters to the field. IFC also strengthened planning and
control and developed and implemented a robust system to track results and reforms.

The overall recommendation of the FIAS evaluation in Phase I reads as follows: “FIAS has demonstrated
its ability to develop new products, disseminate best practices, and help countries reform their
investment climates. Most elements of the FY08–11 strategy have been implemented as planned,
yielding over 400 results and more than 150 reforms over the initial three years of the strategy period.
While the impact of reforms is difficult to quantify, the general literature and preliminary findings from
studies of FIAS projects suggest that benefits may be substantial. Provided that it continues to
strengthen its strategy and operations, the World Bank Group and donors should be prepared to
support FIAS in the next strategy cycle.”

Sierra Leone Acts on Bold Agenda to Create Firms and Jobs
Places among Most-Improved Countries for Business Regulation in Doing Business 2012

Supported by FIAS and the United Kingdom’s Department for International Development (DfID) during

                                                    24
the current strategy cycle, the Removing Administrative Barriers to Investment (RABI) program in Sierra
Leone helped the government develop conditions for private sector growth. Sierra Leone has
implemented bold reforms and is recognized in the Doing Business 2012 report as one of twelve
economies with the most improved ease of doing business across several indicators. The country
improved its ranking from 150th in Doing Business 2011 to 141st in the 2012 report.

The impacts of the RABI program, which began in 2004, have been significant, encouraging job creation
and laying a foundation for the country’s economic growth. An external evaluation of RABI completed
in FY11 estimated that the program had resulted in creating nearly 6,000 new businesses and 15,000
jobs. The evaluation also cited an increase in the tax base, with 330–550 new taxpayer registrations
leading to incremental revenues from corporate and self-employment taxes of $1.4–2.1 million (3.5
percent increase in income tax revenues). This finding is supported by the Sierra Leone Ministry of
Finance’s reported increase in the tax to gross domestic product ratio of 13 percent (from 10 percent in
2008).

"Under the RABI program, we have seen great progress on the ease of doing business in this country,"
says Minister of Trade and Industry David Carew.

Results
FIAS-supported improvements are reflected in the areas of dealing with construction permits and
registering property, among others. The government moved the construction permitting process from
the Ministry of Lands to the Ministry of Works, which led to a 31-day reduction in the time required to
issue location clearances and building permits. The total time businesses need to obtain permits and
utility connections was cut from 269 to 238 days.

The government lifted the moratorium on land transfer, significantly improving the time it takes to
transfer property. The time needed to register property was cut from 235 to 86 days. The Land Survey
Act was amended, allowing for the digitization of land surveys and enabling a modern cadastre system
in the medium term.

Several improvements were implemented that make it easier for taxpayers to make payments. The tax
and business registration offices are now linked together, allowing tax and business registration to be
conducted at the same location. Taxpayers can also make their payments at any of eight major banks.
FIAS funding also supported initial work on developing a Taxpayer Management Module for Tax
Administration to improve compliance with tax filing.

A fast-track commercial court became operational in May 2011, and it will be fully automated and have
real-time transcription of the proceedings.




                                                   25
    V.       FY11 Operational Highlights

In the last year of the FY08–11 strategy cycle, FIAS-funded projects continued to demonstrate results
using established reform approaches on business regulation, tax, trade logistics, and investment
generation. Progress was made in adapting these offerings to address key sectors, such as agribusiness,
and high-priority issues, including tackling reform in conflict-affected countries and unlocking
investments in sub-Saharan Africa. FIAS activities also continued to use technology and innovation as a
means for sustainable growth and to help clients put in place regulatory frameworks encouraging
models for green growth.

FIAS-funded teams continued to work closely with other teams across the World Bank, MIGA, and IFC.
New partnerships have been built and existing ones strengthened with external good practice
institutions, and collaboration with donor partners has gone beyond funding to include learning and
staff exchanges. A wealth of knowledge products and tools have been produced, including
establishment of a new external investment climate Web site that has further consolidated the facility’s
presence as a leader in the investment climate arena, in terms of both research and practical, results-
based implementation.

Helping Clients Build Better Regulatory Frameworks
FIAS funding continued to support the first-response technical assistance related to Doing Business
which contributed to 23 reforms in 17 countries in conjunction with regional World Bank and IFC
investment climate teams. Approximately a third of these reforms were in fragile and post-conflict
countries, with 60 percent in IDA countries. Countries supported include Armenia, Burundi, the Central
African Republic (see box, p. [16]), Moldova (box, p. [13]), Montenegro, and Sierra Leone (box, p. [24].

In FY11, FIAS funding supported the implementation of business regulation reforms in more than 20
countries. The merger of the business entry and business operation practices into one business
regulation product allowed more efficient use of expertise to support a broad spectrum of reforms.
Global experts were teamed with the Bank and IFC regional project teams on the ground to deliver
targeted advisory services. In Serbia, 625 business procedures (of 5,900) were simplified or eliminated,
resulting in annual aggregated cost savings of around $26 million to small businesses. FIAS support in
South Sudan also led to solid results (see box, p. [30]).

FIAS-supported activities helped Morocco improve its performance as measured by the Doing Business
indicators, and the country was recognized in Doing Business 2012 as the most-improved economy in
ease of doing business across several areas of regulation. Working very closely with the national reform
coordination unit placed under the Ministry of General Economic Affairs and with Morocco's first public-
private dialogue mechanism (the National Council for the Investment Climate), the team focused on four
Doing Business topics: enforcing contracts, resolving insolvency, starting a business, and dealing with
construction permits. As a result, a decree published in May 2011 considerably simplified business start-
up procedures.8 The minimal capital requirement for starting a business was eliminated, cutting start-up
costs by 42 percent. Half of the 6 procedures for starting a business were eliminated, and the company
name search can now be handled online at the one-stop shop. In the area of construction permitting,
the one-stop shop established in Casablanca at the end of 2005 became fully operational and widely
used by entrepreneurs, who can obtain a permit in 15 days.
8
 Due to the recent timing of the legislation, the improvements reflected in the decree were not acknowledged in the
Doing Business 2012 report.

                                                         26
Investment climate projects aimed at improving business taxation systems in developing countries now
span countries in every World Bank Group region. In FY11, FIAS supported tax interventions in Armenia,
Bangladesh, Bosnia-Herzegovina, Burundi, Georgia, India (Bihar) the Kyrgyz Republic, the Lao People’s
Democratic Republic, Liberia, Mali, Rwanda, Sierra Leone (see box p. [24]), Tanzania, Uganda, Vietnam,
the Republic of Yemen, and the East African Community (EAC). The tax team also provided advice to
governments in Bulgaria, Dominica, Guinea-Bissau, Kenya, Mexico, Poland, and Tajikistan, through tax
reform projects led by World Bank Group regional departments.

A key FIAS-supported activity has been the development and launch of a new initiative to improve tax
transparency. It has the objectives of promoting international cooperation in the global fight against tax
evasion and improving developing countries’ ability to administer and enforce their tax laws. This
initiative addresses growing demand from developing countries and supports the G20 mandate that the
World Bank Group, and other organizations, promote the link between tax and development and foster
tax transparency in developing countries. In particular, the technical assistance focuses on helping
countries to develop transfer pricing legislation, administrative procedures, audit capacity, and
appropriate accounting rules and to ensure their legal and administrative frameworks meet
international tax transparency standards. Regional assistance was provided in Latin America and the
Caribbean, East Asia and Pacific, and Africa, and country-level assistance was provided following
requests from Georgia, Ghana, Kenya, Thailand, Vietnam, and several economies in the Western
Balkans. Strong partnerships have also been formed on this agenda with external and internal groups
(see p. [38]).

Tools for improving the frameworks for alternative dispute resolution (ADR), restructuring and
insolvency, and secured transactions and collateral registries in client countries were further
strengthened in FY11. At a time when many countries continue to face recession, these tools support
reforms that reduce the time and cost of exit proceedings for firms and enhance the likelihood of viable
businesses being rescued. A closer alignment of these products in FY12 is expected to leverage and scale
up the expertise, experiences, and lessons learned from all three.

In Montenegro, a FIAS-supported ADR and insolvency project created the legal framework and
sustainable mediation centers to provide alternatives to slow court settlements and also amended the
insolvency law to include a special provision stipulating the opportunity for mediation. This legislation
has contributed to the release of funds through mediation, with the project’s impact increasing every
day through self-sustaining mediation centers and partners. Mediation proceedings can now be started
(even before the ruling on initiating bankruptcy proceedings is passed), thus offering the possibility of
preventive action during bankruptcy and envisioning mediation as an option during the bankruptcy
litigation process. These reforms are expected to improve the country’s business-rescue culture (roughly
96 percent of insolvency cases in Montenegro result in liquidation), improve the current low recovery
rates, and reduce the overall cost to recover disputed claims.

In FY11 new laws related to secured transactions were enacted in Lao PDR, Liberia, Moldova, and the
Republic of Yemen. Laws were drafted in Ghana, Jordan, and Malawi. In Ghana, FIAS supported the
reform of the country’s movable collateral framework to encourage SME financing against valuable
movable assets. Through a new law, the Borrowers and Lenders Act of 2008, Ghana set up a collateral
registry at the Bank of Ghana—a temporary solution that is being upgraded into a Web-based electronic
registry—and reported these early results:


                                                    27
           Increased volume of financing for SMEs: More than 20,000 loans have been registered by
            banks and non-banking financial institutions in the collateral registry since its creation in
            March 2010. These loans account for more than $800 million in financing secured with
            movable property.
           Wider use of movable assets as collateral by businesses: Businesses and SMEs are now using
            a wider variety of collateral beyond real estate. Types of collateral include: inventory and
            accounts receivable (used in 32 percent of the loans); investment instruments such as
            shares, cash, bonds, and deposit accounts (19 percent); household assets (13 percent);
            motor vehicles (10 percent); real estate property (10 percent); and machinery, equipment,
            all enterprise assets, other (16 percent).
           Increased financing by banks and non-bank financial institutions taking movable property as
            collateral: Of 52 financial institutions, 33 institutions (17 banks, 13 non-bank financial
            institutions, 4 foreign-based banks, and 2 rural banks) have registered with the collateral
            registry and granted loans secured with movable property. However, a considerable number
            of the rural and community banks have not yet benefitted from the new infrastructure in
            place.

Electronic collateral registries were also created in India, Sri Lanka, and Vietnam, and a Web-based
collaborative secured transactions platform was launched to link secured transactions experts from
around the world.

The use of innovative information communications technology (ICT) solutions has been a key feature of
the secured transactions and other business regulation work supported by FIAS. New technologies can
improve the quality and accessibility of regulatory information; increase the reach, cost-effectiveness
and transparency of government service delivery through online transactions; as well as enable
businesses to participate in the digital economy via trade single windows and secured transaction
registries. ICT can enhance, and even transform, the services and operations of government, as
evidenced by the number of significant technology-related reforms worldwide documented by the
Doing Business report. In the past year, FIAS has supported 14 client countries in implementing ICT-
based applications to improve government-to-business service delivery, increase transparency, reduce
the regulatory cost burden and opportunities for corruption, and improve management and regulatory
oversight through information-sharing across government and process automation (see box, p. 29).

Given the strong client demand for more sophisticated assistance with ICT applications, FIAS-supported
projects are working to implement technically and financially sustainable technology solutions across
different program areas, exploiting emerging technologies such as cloud computing, mobile phone
platforms, and social media to enhance public service delivery and improve economic governance.




                                                   28
Helping Clients Leverage Technology to Realize and Sustain Investment Climate Reform

Innovative uses of technology provide powerful tools to transform the way public services are
delivered to citizens, and they can enhance transparency in government. FIAS-supported technical
assistance to implement ICT is helping businesses in client countries to register and obtain licenses and
permits online, which reduces costs and the time firm owners must spend to comply with registration
requirements. Through an e-registry in Kenya, for example, entrepreneurs can now locate specific
licensing requirements, costs, contact information, and application forms. This initiative is expected to
help encourage businesses to formalize and promote greater regional economic integration by
simplifying regulatory compliance and reducing opportunities for corruption.

In Liberia, FIAS support enabled the launch of the Liberia Business Registry in April 2011. The registry
brings together agencies involved in the registration process under a single roof, reducing the time to
register a business from 99 days (as reported in Doing Business 2008) to 36 hours (as tracked by the
registry Web site).* By fully automating the process of enterprise formalization, permitting online
business registration and access to information services (including search and reservation of corporate
names), the registry has seen an annual 75 percent increase in new business registrations.

*These recent improvements are not yet reported in Doing Business.



Improving Investment Policy and Enabling Cross-Border Trade

FIAS-funded activities continued to enable efficient and effective trade logistics systems and services
that allow for streamlined import and export of goods, as well as the creation of strong institutional
capacity to serve private firms engaged in cross-border trade and investment. In FY11, this work was
conducted in more than 18 countries, including 10 IDA and 4 conflict-affected countries. These projects
focus on reducing non-tariff barriers and rationalizing trade logistics systems and services by
streamlining border clearance processes, introducing risk management systems, and supporting
automation in trade-related clearance services such as electronic payment. Improved automation in
trade services supports better coordination among key technical agencies including customs, standards,
veterinary, health, and transport agencies.

In Colombia, FIAS-supported activities further improved the electronic system for filing documents as
well as measures to manage risks associated with trade. Importers now electronically file the declaration
of value, a key document for cargo entering the country. In FY11, the government passed legislation
formalizing the automatic online connections between the single-window system and the agencies for
health and agriculture and the Bureau of Standards. Customs established qualifications for customs
brokers, freight forwarders, and warehouses, and they are required to assess their clients’ risks by
obtaining corporate, financial, and tax information through mandatory visits and inspections. Traders
can electronically file import documents in advance of ship arrival, allowing Customs officials time to
identify the companies, goods, and risks each shipment represents prior to its arrival.

In other areas tracked by Doing Business, FIAS-supported projects helped Colombia implement reforms
that cut business start-up costs and shortened the time to register property. The government also
enacted a bill to reduce backlog in its courts, creating 30 municipal courts. Colombia was recognized in
Doing Business 2012 as one of twelve economies with the most-improved business regulation, as


                                                       29
measured by the report, which ranks the country 42nd (of 183 economies) in overall ease of doing
business.

FIAS funding has continued to enable advisory support to client governments on developing investment
policy, attracting new investment, and diversifying the portfolios of existing investors through
reinvestment opportunities. These initiatives include the development of programs to attract and
facilitate investment in competitive sectors, create greater numbers of new investment leads, and
become more effective at translating needs into actual investment decisions. FY11 yielded results in
seven countries including Brazil, China, Haiti, Liberia, Rwanda, South Sudan, and Ukraine. In FY11, 57
percent of clients of FIAS-supported investment generation work were IDA countries and 43 percent
were fragile and conflict-affected states.

In Brazil, investment was attracted to two frontier states, Para and Pernambuco, through a fully client-
funded project that has linked the country’s national and state investment promotion agencies to
provide a more coherent framework of support for investors. Interventions to help improve investment
generation practices (partnerships, systems, Web sites, outreach, facilitation, aftercare, and policy
advocacy) have led investors to announce plans for 15 projects in Pernambuco and Para following FIAS-
supported assistance. The team has also helped Apex-Brasil, the national agency, in developing investor-
friendly strategies and a best-practice approach, resulting in eight announced investments since support
began in May 2009. To date, $25.7 million in new investment has been secured and 765 jobs created as
a result of this project (confirmed by direct interviews with investors).

In Yinchuan, a poor western province in China, FIAS funding has supported the enactment of numerous
investment climate reforms in recent years, including in FY11 the removal of some 96 mandatory
investment approvals, a reduction in investment approval times from 202 to 96 days, and a reduction in
the time to register a new business from 55 to 14 days. In addition, the government opened a new
investor one-stop shop, "Government Hall," and launched its investor-focused Web site. As a result of
these and other reforms, Yinchuan has attracted significant new investment into the province—
investment inflows in 2010 alone rose by a staggering $32 billion relative to estimated baselines, with
the client government in Yinchuan attributing much of the increase to further liberalization of the
provincial economy and enhanced investment promotion efforts. An important catalyst was the
province’s first regional investment summit in September 2010 organized by the Yinchuan Investment
Promotion Bureau, which resulted in the signing of 134 new investment agreements worth $2.76 billion.

A good example of FIAS-supported work this fiscal year through increasingly comprehensive,
programmatic approaches is in South Sudan, where complementary interventions around core products
and areas of expertise were combined to deliver maximum results for clients (see box p. [30]).


An Independent South Sudan Creates an Enabling Environment for Business

The new country of South Sudan declared independence in July 2011 and began setting conditions for
private sector growth, especially for local smaller businesses that are critical in creating jobs and
increasing living standards.

An IFC and World Bank team supported by FIAS has worked closely with the government during the past
three years in building a nascent private sector. The recently launched Doing Business in Juba 2011 finds
that the government is making strides in improving the business environment for small and medium

                                                   30
enterprises. The report cites that at 15 days, the start-up time for a business in Juba is comparable to
the average 13.8 days in developed economies of the Organisation for Economic Co-operation and
Development (OECD). While the report ranks Juba 159th (of 183 economies) on overall ease of doing
business, a new legal framework for investors is now in place that will help improve conditions for
investment.

Results:

       Legal framework. Eight laws have been enacted enabling business entry, operations, and exit.
        Another nine that allow basic registration, contract, agency, property rights, and insolvency are
        ready to be enacted.
       Business entry. The business registry was improved, allowing businesses to be incorporated
        within a day. About 12,000 businesses—most domestic and small or medium-size—have
        registered since July 2006. A business-registration campaign resulted in an additional 1,100
        businesses within the first six months of 2010.
       Investment policy and promotion. The Southern Sudan Investment Authority, established by the
        Investment Promotion Act 2009, is pursuing potential investors and re-investors in targeted
        sectors including agribusiness, power generation, manufacturing, and services. A target has
        been set of 15 closed investments by the project’s end in 2013.

Drawing on their experiences in helping set the conditions for SME-friendly business growth in
challenging frontier markets, IFC and World Bank teams have helped the country create the South Sudan
Business Forum, a mechanism for public-private dialogue, to give local entrepreneurs a voice in
policymaking.

"This process would not have been easy if we had not gotten this unlimited support from the World
Bank Group," says John Luk Jok, South Sudan’s Minister for Legal and Constitutional Affairs.



Client Engagement through Established Benchmarking Tools
FIAS funding continues to support the development of strong indicator-based tools and knowledge
resources as an entry point for broader investment climate reforms.

The Investing Across Borders flagship report released in July 2010 examines and quantifies the laws,
regulations, and practices affecting how foreign companies invest across sectors, start businesses,
access industrial land, and arbitrate commercial disputes. The data generated by IAB provides a starting
point for governments looking to boost their global competitiveness in attracting FDI. In FY11, the IAB
team provided specific reform recommendations based on IAB indicators to more than 10 client
governments worldwide. IAB is serving as a catalyst for other Bank Group projects that look for
improvement of the business environment in client countries. For example, the arbitration indicators
have helped drive advisory work in Bangladesh, the Comoros, and Malawi. The land indicators have
informed reforms in land information systems in Bosnia and Herzegovina. The “starting a foreign
business” indicators are being used to facilitate business entry in the East African Community. The IAB
2012 report, planned for release in the summer of 2012, will identify the full set of reforms that have
been informed or motivated by the IAB indicators.




                                                    31
The third Global Investment Promotion Benchmarking survey was launched in FY11, in close
collaboration with MIGA, to assess the capabilities of 189 nationally-mandated investment promotion
intermediaries in providing information to investors, focusing on agribusiness and tourism in this round.
GIPB is a powerful tool for governments to assess the competitiveness of their promotional efforts to
attract investment. It enables investment promotion intermediaries in improving their information
provision and monitors their performance over time and against competitors. The full results of the GIPB
survey will be released in FY12.

Subnational and regional Doing Business reports capture differences in business regulations and their
enforcement across locations in a single country or region. This FIAS-supported comparative domestic
and international benchmarking tool fosters competition to reform. In collaboration with World Bank
Group country offices, four subnational Doing Business reports were published in FY11 for Juba (South
Sudan), Zanzibar, the Philippines (covering 25 cities), and South East Europe (22 cities). The reports show
how government regulations and their implementation ease or constrain business activity in selected
locations.

FY11 results show that subnational Doing Business studies continue to be a powerful tool to inspire
reforms at the local and regional level. Second round studies measure reform progress over time. This
year the reports for South East Europe—covering Albania, Bosnia and Herzegovina, Kosovo, FYR
Macedonia, Moldova, Montenegro, Serbia—and the Philippines influenced 48 business reforms.

Leveraging FIAS’ Experience to Target Reforms in Strategic Sectors
In FY11 FIAS-funded activities have strategically supported enhanced engagement in two key sectors
that have broad relevance to development in many low-income countries: agribusiness and tourism.
Both sectors can have significant impact on growth and poverty reduction; also, these two sectors are
major sources of employment.

Better investment and business conditions in the agribusiness sector will contribute directly to
improving food security in developing countries, through an increase in investment, higher outputs, and
efficiency improvements in the distribution channels for agricultural products. Removal of barriers that
restrict market entry or suppress competition in the agribusiness sector will open up input markets,
logistics chains, and marketing mechanisms that are highly concentrated at present in many countries.
More competition also increases efficiency along the supply chain. These improvements increase the
competitiveness of locally produced agricultural goods and boost internal food security. An example is
the introduction of a warehouse receipts system as a financial tool that expands the range of goods that
can be used as loan collateral by farmers. This helps to improve storage of harvested crops, lowers post-
harvest losses, minimizes the impact of brokers, and stabilizes prices.

In FY11, the FIAS-supported agribusiness global product team engaged closely with other Bank Group
partners to create multidisciplinary teams in support of agribusiness development. For example, in
Eastern Europe and Central Asia FIAS support enabled the IFC regional investment climate team to
promptly respond to burgeoning client demand for agribusiness-specific investment climate reforms,
resulting in fivefold growth of the regional industry portfolio within the fiscal year.

Building on the success of the Ukraine investment climate project in abolishing duplicative Soviet-era
regulations on food safety in 2010 (see box, p. [33]), the product team worked with a range of regional
teams in Europe and Central Asia (IFC investment climate advisory, World Bank, IFC Investment, IFC
Sustainable Business Advisory, and Access to Finance) to launch programmatic interventions on

                                                    32
agribusiness reform and investment generation. This work is ongoing in Armenia, Bosnia and
Herzegovina, Moldova, Tajikistan, and Ukraine. The teams are also collaborating in Central Asia, where a
product development project is underway encompassing tax transparency and industry-specific
regulatory reform. In Rwanda, FIAS funding is supporting investment promotion in the tea and
horticulture sectors. The agribusiness agenda focuses on addressing critical constraints at the industry
level while leveraging the improved investment climate to generate investment impact. This approach
to investment promotion in agribusiness is being replicated in various other countries in Africa, Latin
America, and beyond.

Overall, FY11 saw significant growth of the investment climate agribusiness portfolio globally, from 5
projects in FY10 to 14 pipeline and operational projects at the end of the fiscal year, with the Africa
region witnessing the strongest demand by clients.

The ramp-up in FY11 sets the stage for the FY12–16 FIAS strategy cycle, during which agribusiness is
expected to remain a major growth area in the portfolio. This increased focus comes at an opportune
time and is part of a wider World Bank Group initiative. On one hand, it informed the IFC Agribusiness
Action Plan for FY12–FY14, which was endorsed by IFC Senior Management in March 2011. On the
other, it is leveraging links with the World Bank’s Agriculture and Rural Development Department to
incorporate investment climate reform in long-term agricultural and agribusiness transformations.


Planting the Seeds for Agribusiness in Ukraine

Ukraine has a large untapped potential to export foodstuffs and the ability to play a global role in food
security.

Through the global product team for agribusiness (housed in the Investment Climate Department), FIAS
funding provided technical support to the IFC regional team in designing and implementing key
investment climate reforms in Ukraine’s agribusiness sector (although FIAS did not directly fund this
project). In 2010 the Cabinet of Ministers abolished the requirement of mandatory certification of most
food products by the State Committee for Technical Regulations and Consumer Policy, which was
identified as a burdensome requirement for food processors. Its abolition reduced compliance costs for
the private sector by $20 million and opened up new agricultural export opportunities.

Food producers have so far reaped the most benefit from regulatory improvements, including:

       Cancellation of mandatory certification of food products (excluding baby food, tobacco, and
        alcoholic products)
       Cancellation of costly duplicative licenses for certain agribusiness activities, including wholesale
        seed trading, rearing of domestic animals, and manufacturing of agrochemicals
       Licenses for trading of agrochemical and selling of biogas and biofuel, previously subject to five-
        year renewals, made permanent
       President Viktor Yanukovych’s commitment to establish a single food-safety controlling agency
        instead of several agencies undertaking duplicative responsibilities.

"Abolishing mandatory certification has helped tremendously," said Serhiy Samonenko, a director at
Vimel Company, which produces potatoes and starch. "There is now one less regulatory body
duplicating the same type of controls on food products. I no longer need to pay 1,600 UAH (around


                                                     33
$200) for a certificate for each delivery of raw materials. In approximate terms, the cost savings to my
business per year is up to 30,000 UAH (around $3,750) and the 500 man hours it took to obtain the
certificates," he explained.

Building on the results related to food product certification, in FY11 the FIAS-supported and IFC Ukraine
investment climate teams helped draft and advocate for the Law on Market Surveillance. Adopted in
December 2010, the law establishes a risk-based market surveillance system, eliminating burdensome
and duplicative controls and inspections by different regulatory agencies.

"In the rest of Europe, technical standards are voluntary-based. These are considered and adopted by
business associations, scientists, and other industry stakeholders and the responsibility of quality control
lies with businesses,” said Svetlana Mikhaylovska, a member of the European Business Association. “In
Ukraine, we faced double mandatory regulation—both in terms of safety and quality provided
by technical regulations and standards, respectively. By working with the World Bank Group, we were
successful in removing this outdated system."

Preparations are currently underway for the project’s next phase, which will focus on agribusiness
investment climate reform in the areas of input markets regulation, post-harvest infrastructure and
logistics, and food safety for the grain, fresh fruit, and vegetable sectors.


FIAS funding in FY11 has contributed to the establishment of a strong foundation for investment climate
projects focused on the tourism sector, an important, and in some cases the most significant, service
sector for many IDA countries. Eighty percent of Bank Group client countries have identified tourism as a
key economic sector in their economic diversification and poverty reduction strategies,9 and the sector
is second to agriculture only in terms of employment generation per unit of investment.

During FY11, a standardized mode of engagement for FIAS-supported tourism work was articulated,
with diagnostic, regulatory, and investment facilitation dimensions, resulting in an active portfolio
covering nine countries including Mozambique (see box, p. [34]). A further pipeline of projects in 14
countries has been generated. There has been strong regional demand for tourism work, and FIAS
resources have been significantly leveraged by regional teams in South Asia, the Middle East and North
Africa, and Africa, in particular. The relevance of the tourism sector and the issues around sector
governance, competition policy, and debt resolution have been especially prominent in the wake of the
Arab Spring and discussions with the emerging administrations.

Mozambique Tourism Anchor Investment Program: From Potential to Reality [received 20% FIAS
funding]

In March 2011, a landmark agreement launched the development of a $3 million eco-lodge in
Mozambique's Maputo Special Reserve, a 70,000-hectare prime protected area. Bordering the Indian
Ocean, the reserve offers tourists a varied experience of beaches, bays, coral reefs, forests, lakes, rivers,
and a host of wildlife including an estimated 350 elephants.

Co-financed by Switzerland and other donors through the FIAS platform, the Mozambique Anchor
Tourism Investment Program assisted the government in developing and implementing a private-sector

9
    Hawkins, Donald E. 2007. “The World Bank’s Role in Tourism Development.” Annals of Tourism Research, Vol. 34,
     No.2: 348–363.

                                                         34
investment strategy and procurement approach to attract qualified eco-tourism investors for the
Maputo Special Reserve.

The 25-year partnership agreement creates a joint venture between a local community association, A Hi
Zameni Chemucane, and a private investor, the Bell Foundation, to build and operate a 36-bed lodge at
Ponta Chemucane in the reserve. It is Mozambique's first agreement granting a community long-term
concession rights for a tourist area within one of the country's leading national parks.

The lodge is expected to create 60 full-time jobs and help spur local growth in an area that has few
opportunities for formal employment. In addition, annual concession fees to be paid to the government
will be used for park and longer-term conservation management.

Following investment in the Maputo reserve, a standardized set of procedures was compiled and a
toolkit developed for future use by Mozambican authorities. The Maputo model has been replicated to
attract a $30 million investment for a 200-bed eco-lodge in Mozambique’s Zambézia Province.

The program is also assisting in sustainable tourism development. Through new investment zone
regulations, for example, the government can reserve land with unique natural, cultural, or historic
attributes for tourism development. The Inhassoro and Crusse-Jamali sites along Mozambique’s coasts
have been declared the country’s first tourism investment zones, securing over 4,500 hectares.


The gender gap in economic participation remains vast. Women own fewer businesses—only one-third
of firms surveyed by the World Bank in 118 economies have female participation in ownership.10
Businesses owned by women also tend to have fewer employees, lower sales, and lower invested
capital.11 There are fewer women than men in the global labor market, and women in every economy
are paid less for their work than men—with the wage gap averaging 17 percent in 2008. The 2012
World Development Report, which focused on Gender Equality and Development and other recent
World Bank Group publications like Women, Business and the Law 2012 are bringing attention to such
issues.

FIAS is responding, including incorporating gender-specific reform targets in its projects particularly on
the industry side (see box, p. [35] about FIAS-supported technical assistance to an IFC-led economic
zones project in Bangladesh). It is also providing follow-up technical assistance support for on-the-
ground applications of the practitioner’s guide, Gender Dimensions of Investment Climate Reform,
released in FY10.

Creating Gender-Inclusive Economic Opportunities in Bangladesh

FIAS-funded global product teams continue to provide technical expertise in project design and
implementation to IFC regional programs, including the Bangladesh Investment Climate Fund (BICF). In
one such case, a global investment generation team working on a BICF-funded project helped the
government of Bangladesh in formulating and implementing a social compliance management system in
Bangladesh’s export processing zones (EPZs). These zones house more than 300 factories and employ

10
  Data from World Bank Enterprise Surveys on 118 countries (see http://www.enterprisesurveys.org).
11
  Bruhn, Miriam. 2009. “Female-Owned Firms in Latin America: Characteristics, Performance, and Obstacles to
Growth.” Policy Research Working Paper 5122 (November). World Bank.

                                                      35
nearly 300,000 workers, mostly women, who manufacture garments and other products.

One key component of the project is to increase female participation in the workers' welfare
associations in the zones. As a result of BICF's recommendation, 30 percent of seats on the association
were allocated for women. Also, the role of female labor counselors who advocate on-site for women
employees’ rights was strengthened.

Shamela Begun, a worker at one of the factories in an EPZ shared her experience. “Workers in factories
outside the EPZs don’t have the facilities that we have in the zones and complain about not getting
holidays or about getting paid late,” she said. “Here it is safe and comfortable. We have a feeling of
community. I feel a part of things.”

Thanks to her hard work, Shamela now takes home about $100 each month. She also receives benefits
at her garment factory, including free medical coverage, lunch, and flexible sick leave allowance. Both
her sons have university degrees and supplement their mother’s income.
BICF, managed by IFC in partnership with DfID and the European Union, has facilitated $203 million of
FDI and 17,000 new jobs to the economic zones of the country through an aggressive investment
promotion capacity-building program for the government of Bangladesh.

The project actively supported enactment of the Economic Zones Act, opening up the zones program to
private developers and paving the way for a potential 1.5 million new jobs in 25–30 private zones by
2021. Also, the project facilitated a new central effluent treatment plant in the Dhaka EPZ which, by
August 2011, had increased the amount of properly-treated industrial water from 0 to 15,000 cubic
meters.12



Fostering Innovation and Competition
FIAS-supported programs increasingly consider innovative approaches to harness “green” or low carbon
patterns of growth to meet the twin challenges of poverty reduction and climate change. The quality of
the investment climate will play a key role in a transition to a green economy by setting standards and
attracting much-needed private investment into low carbon, more resource-efficient economic
activities. In FY11, FIAS made progress in incubating and piloting new investment climate tools that can
be used to promote green growth, including projects in Indonesia (see box, p. [37]) and Colombia
helping local governments in the capital cities design and implement green building codes. These
approaches will continue to be developed during the FY12–16 cycle, in support of broader World Bank
Group climate change-related efforts.

With FIAS support, Rwanda’s first special economic zone near Kigali is developing as a "green zone."
The government has received technical advice on developing low-carbon regulations for the zone,
including through stakeholder consultations with the City of Kigali, the Ministry of Infrastructure, the
Rwanda Energy, Water, and Sanitation Authority, the Rwanda Environmental Management Authority,
the United Nations Industrial Development Organization, and the United Nations Environmental
Program. The five key policy areas to be addressed, as prioritized by a task force of stakeholders, are
energy, building codes and construction, water and sanitation, urban planning, and waste management.

12
  Results from BICF projects are reported in the BICF Annual Report, and are not covered in the FIAS results
reported in Annex I and II of this report.

                                                        36
Curbing Greenhouse Gases in Jakarta

As one of the world’s largest greenhouse gas emitters, Indonesia’s building sector accounted for more
than a quarter of total energy use in 2004—a share that is expected to increase to nearly 40 percent in
the next two decades.

In response, IFC advisory services in the region is helping the government of the capital province,
Jakarta, develop a green buildings code. FIAS activities have supported the code’s incubation and
development. The code sets energy and water efficiency requirements for buildings, and will require
climate change adaption practices to be included in building designs. Implementation of the code is
expected to reduce energy consumption in large commercial and high-rise residential buildings,
potentially cutting around 2.7 million tons of carbon dioxide per year by 2020. This is equivalent to
carbon sequestered annually by 60 million grown trees or equivalent to the current annual emission of
Macau SAR (2.4 million tons of carbon dioxide).

The goal is to create a code that is simple to implement, effective, and easy to monitor. The project’s
analysis modeled a range of possible changes for each commercial building type in Jakarta which met
clear criteria for market preparedness and ease of implementation, while maximizing the benefits of
energy (CO2) and water reductions in a cost-effective manner. The details of the code have been
developed in close consultation with government as well as private sector stakeholders, including
developers, landlords, and professional associations.

“To help achieve *the national target of cutting carbon emissions by 26 percent by 2020+, Jakarta has
been working on a number of sustainable city initiatives since 2008,” said Jakarta Governor Fauzi Bowo
at the launch of the project. “With effective implementation of the green buildings code in Jakarta, the
city can serve as a model for implementation in other cities in Indonesia.”

The project is evaluating the feasibility of various measures under the draft green building code and
hosting a series of consultation workshops with key private sector players. It is providing support for the
local government through a series of training and capacity-building initiatives, and to the private sector
through a review of financing needs and incentives for firms to retrofit existing buildings.

Competition plays a central role in fostering growth, investment, and job creation. Demand for
competition policy reforms increased during the past fiscal year. FIAS-supported work on competition
focuses on removing constraints that stifle growth of competitive market structures in key strategic
sectors. It also supports the development of effective competition policies to prevent discriminatory
treatment and discourage anti-competitive actions.

In FY11, the framework for competition policy reforms was developed and applied to the preparation,
design, and implementation of eight investment climate projects in four different regions including the
Middle East and North Africa, Sub-Saharan Africa, Latin America and the Caribbean, and East Asia and
Pacific. The framework includes rapid-assessment tools to address economy-wide issues and sector-
specific constraints to competition. The global competition team also provided inputs and technical
feedback to client countries as part of cross-support to five World Bank projects including in Russia and
Turkey. Advisory services on competition allowed repealing price controls proposals, minimizing
distortive state aid schemes, and reducing discriminatory actions by government officials.

                                                    37
Improvements to the competition framework have been proposed and implemented in two countries—
Armenia and Romania—and more than five interventions are in the pipeline in at least three IDA
countries.

Supporting Productive Partnerships
FIAS continued its rich legacy of setting up new partnerships and strengthening existing collaboration
with donors, clients, teams across the World Bank Group, and external good practice institutions in the
investment climate arena.

An array of tools and services to support investment climate improvements is available within the Bank
Group, but for any given project these key products may be offered through different parts of the
organization. FIAS-funded teams in the Investment Climate Department, working closely with MIGA, IFC,
and the World Bank, often provide a critical link to unlocking synergies and bringing technical expertise
from different parts of the institution together to provide comprehensive reform solutions for clients.

In Rwanda, for example, a FIAS-supported advisory project is partnering with IFC and the World Bank to
attract possible investments in the agribusiness sector. Removing critical constraints to increased
investment and exports in the horticulture and tea sectors, in particular, is considered key to achieving
this goal. MIGA guarantee staff also attended the Rwanda Investor Conference, which highlighted
recent improvements to the country’s investment climate and showcased new investment opportunities
in agribusiness.

Collaboration with MIGA on specific activities of mutual interest was expanded in FY11. In order to
gauge marked demand for the planned MIGA Facility for Conflict-affected and Fragile Economies, FIAS-
funded activities included organizing a number of focus group discussions with private sector
participants in Bosnia and Herzegovina, Georgia, Liberia, and Sierra Leone. Moreover, a MIGA staff
member was posted to the Vienna office under an assignment jointly funded by FIAS and MIGA. As part
of the assignment, the linkages between investment climate reforms and political risks are being
researched, with the goal of developing a new political risk assessment tool that can be used by
countries interested in lowering non-commercial risks for cross-border investors.

FIAS-supported global product teams continued in FY11 to collaborate closely with practitioners in their
respective reform arenas within and outside the Bank Group. On the tax work, for example, the FIAS-
funded product team partnered closely with different units within the World Bank Group including
Poverty Reduction and Economic Management and IFC's Legal Department. In Tunisia, the team is
supporting the World Bank's assistance to the transition government, working with the Ministry of
Finance in designing and implementing a reform of tax and customs formalities affecting businesses with
the objective of streamlining procedures, cutting costs, and improving transparency.

Externally, the global tax work is closely coordinated with the International Tax Dialogue, which
comprises all major players providing tax technical assistance including the International Monetary
Fund, the OECD, regional tax groupings, and major donors. Tax transparency-related collaboration
includes the G20, the OECD, the Global Forum for Tax Transparency and Exchange of Information, the
International Bureau of Fiscal Documentation, and the European Commission on supporting the global
mandate to improve tax transparency in countries through technical assistance. The team also works
with regional tax administrators’ forums such as the Africa Tax Administrators Forum.



                                                   38
During FY11 other innovative partnerships with leading institutions in the investment climate arena
were organized, including a tripartite cooperation with the Norwegian Agency for Development
Cooperation and the Bronnoysund Registration Centre (BRC) in Norway. The first agreement of its kind,
it allows FIAS-supported teams to draw on the business regulation experience of state agencies from
developed economies to benefit projects in developing countries. Experts from BRC shared their
firsthand experiences with clients in Nepal, Sierra Leone, Tanzania, and Togo. In addition, a
comprehensive case study of business registration reforms in Norway was developed and made
available to reform practitioners. This pilot approach to partnerships with relevant state agencies from
developed countries is a model to be replicated in similar partnerships going forward.

Partnerships on competition policy issues with the OECD, the International Competition Network, and
the International Development Research Centre have been nurtured through collaboration on analytical
work, participation in knowledge events, and coordination to take advantage of synergies among
partners.

On trade, the FIAS-supported team engaged with international organizations such as the World Trade
Organization, the Caribbean Community and Common Market, and the United Nations Conference on
Trade and Development.

Benchmarking tools such as the subnational Doing Business reports (see p. [32] for more detail) also rely
on strong partnerships. Increasing demand from client countries to conduct repeated benchmarking
studies in 16 economies have paved the way to gradually transfer the methodology, share best
practices, and develop expertise in client countries by partnering with local institutions and
governments. Currently, the team is working in partnership with think tanks and academic institutions in
Mexico, Indonesia, the Russian Federation, and the Philippines. After benchmarking 38 economies and
more than 300 cities, a new franchising model is being developed in Mexico, the pioneer country for
such subnational studies. There, the local strategic partner is responsible for implementing the project
in collaboration with the government, while the role of the Bank Group focuses on providing quality
control and the Doing Business brand.

Strong engagement with donor partners, not only on funding but also through staff learning and
knowledge activities, continues to provide the cornerstone for the success of FIAS activities. This
engagement occurs through platforms such as the Donor Committee for Enterprise Development, donor
participation on advisory panels for different global products, as well as learning events sponsored by
global product teams and at the project level. For more details on funding and staff exchanges, see
Financial Results and Resource Use section, p. [46].




                                                   39
    VI.     Knowledge Management, Learning and Communications

The knowledge management and learning program is designed to establish the thought leadership of
FIAS-supported activities in the area of investment climate reform within and outside the Bank Group.
In FY11, the program was further strengthened, engaging with practitioners, government and private
sector clients, and donor partners and other stakeholders.

As part of this approach, over 45 events attracting more than 1,500 staff and external participants—
including seminars, “deep dive” learning events, and client peer-to-peer workshops—were supported by
FIAS in FY11 (see box, p. [40]). One such activity was the global networking and learning event for the
investment policy product held in Vienna, Austria. Attended by more than 120 participants from 43
countries, it helped deepen the technical skills of operation officers and established strong networks
with government officials and investment policy practitioners.

Collaborating Across the World Bank Group to Encourage Client Peer-to-Peer Learning

A peer-to-peer workshop organized jointly with IFC Advisory Services in the Middle East and North Africa
brought together over 70 e-Government experts in Amman, Jordan in May 2011 to explore how
technology and ICT solutions could improve business and regulatory environments in the region. The
event assessed how governments in the region are using technology to ease the regulatory burden on
businesses, making it easier for new entrepreneurs to register their businesses and access government
services.

Speakers highlighted innovations such as cloud computing, social media, and mobile applications as new
opportunities for governments to improve cost-effectiveness, increase transparency, facilitate the
government-to-business dialogue, and extend access to information and services to entrepreneurs in
underserved segments of the business economy. The event enabled participants to learn more about
institutional and change-management considerations they must address in reengineering government
service delivery. All participants expressed their satisfaction with the learning and knowledge sharing,
and asked the Bank Group team to offer more specialized training for larger target groups.

Also in FY11, the FIAS-funded secured transaction and collateral registries product jointly with the IFC
Access to Finance Business Line organized the Financial Infrastructure-Secured Transactions
International Conference in Rio de Janeiro, Brazil in March 2011. The purpose of the conference was
twofold: to educate and train public- and private-sector stakeholders on recent developments and best
practices in secured transactions and collateral registries; and to develop a greater awareness of clients’
innovative approaches to carrying out secured transactions reform and the adoption of collateral
registries.

More than 70 participants attended the secured transactions sessions at the event. Attendees included
government officials, representatives from national central banks, stakeholders from private financial
institutions, individuals from the business and legal communities, bilateral donors (the United States
Agency for International Development and Switzerland’s State Secretariat for Economic Affairs), and



                                                    40
multilateral organizations.


To help increase staff capacity on investment climate issues and themes, intensive learning events such
as the trade logistics, business registration, agribusiness and tourism product workshops were organized
during the Bank Group’s 2011 Financial and Private Sector Development Forum in Washington, D.C.
Under the theme of “Building Competitiveness,” the forum brought together more than 600 Bank Group
colleagues, private sector development executives, academics, and donor representatives to discuss the
latest issues in financial sector and private sector development.

Furthermore, contributions to the World Bank Group Entrepreneurship Snapshots—one of the most
comprehensive datasets on cross-country firm entry data—have been created in cooperation with the
World Bank Development Research Group, IFC, and the Kauffman Foundation, yielding wide recognition
across the World Bank Group (see p. [18]).

In FY11 several flagship reports were published, including: Investing Across Borders, Healthy
Partnerships – How Governments Can Engage the Private Sector to Improve Health in Africa, Rebuilding
Business and Investment in Post-conflict Sierra Leone, and Managing for Impact – FIAS Strategy for
FY12–16 were published. These are also available electronically on the investment climate Web site.

A wide range of other publications were produced including handbooks, guidebooks, technical papers,
the Investment Climate In Practice note series, a viewpoint note, and a number of SmartLessons. A listing
of key FY11 publications, including short summaries of each, begins on p. [43].

Communications
Communications activities in FY11 were geared to showcase how FIAS-supported investment climate
work across the globe has contributed to results and had a substantive impact on clients’ development
objectives, including a more vibrant private sector, new businesses, jobs, and growth. This “results
communications” agenda has relied on solid monitoring, evaluation, and impact data as the basis for
feature stories, multimedia, and other communications products. Through client, private sector, and
other stakeholder testimonials, on-the-ground stories provided a human face to the data, presenting
results in a compelling and balanced way.

In FY11, the investment climate thematic Web site (www.wbginvestmentclimate.org) was successfully
launched. The Web site is among the top-10 search results for the term “investment climate” on Google.
It is receiving strong interest, with page views rising from 3,000 when it was launched in October 2010
to 136,000 views by June 2011, becoming the main platform for disseminating investment climate-
related knowledge products and information.

Electronic versions of most popular investment climate handbooks including the Investment Generation
Toolkit, How to Reform Business Licenses, and the Health Policy Toolkit are now available, making these
knowledge products easily accessible and highly interactive for practitioners.

Several slideshows and short films documenting success stories through compelling client and
entrepreneur testimonials were produced in FY11. Four investment climate videos were well received
by viewers, garnering a total of 8,000 views on YouTube.



                                                   41
Cultivating a community of social media contributors and leveraging World Bank Group social media
platforms created opportunities for direct conversations and discussions about investment climate
reforms. Stories featuring investment climate project activities and results were posted across the
World Bank Group’s social media channels, such as the IFC and World Bank corporate, country- and
region-specific Facebook and Twitter accounts. Investment climate staff actively contributed to thematic
blog sites, including the World Bank’s Private Sector Development Blog.




                                                  42
Key Knowledge Products Published in FY11

Flagship Reports
    The Investing Across Borders 2010 report, launched in July 2010, compares
      regulation of FDI in 87 economies and offers recommendations for governments
      looking to improve their competitiveness in attracting investment.

      The Rebuilding Business and Investment in Post-Conflict Sierra Leone (RABI) report
       features the perspectives of entrepreneurs, key government reformers, and FIAS
       practitioners in tracing Sierra Leone's path to revive and grow the private sector
       following its long civil war.

      The publication, Managing for Impact: FIAS Strategy for Fiscal Year 2012–16,
       outlines FIAS’ mission and reform activities for the FY12–16 strategy period.

Investment Climate IN PRACTICE note series
The flagship note series for clients and practitioners featured “hands-on” topics in
investment promotion, investment regulation, business taxation, and strategic
communications.

      “Using Strategic Communications to Engage Stakeholders in Tax Reform” (no. 15,
       March 2011) outlines a strategic communications approach tested in tax reform
       projects in the Republic of Yemen, Sierra Leone, and Lao PDR.

       “Investment Regulation and Promotion: Can They Coexist in One Body?” (no. 16,
       March 2011) outlines how investment promotion is correlated with investment
       regulation. The note argues that the two functions should be kept separate and
       offers policy advice for countries that have them combined.

       “Leveraging Technology to Support Business Registration Reform: Insights from
       recent country experience” (no. 17, June 2011) discusses key findings of a recent
       Bank Group survey examining the experience of 34 company registrars in
       implementing new or upgraded technology solutions. It identifies several factors
       influencing the registrars’ approaches, and summarizes key lessons in choosing and
       implementing ICT solutions.

Viewpoint note series (published by the World Bank Group Financial and Private Sector
Development Vice Presidency)—“Attracting FDI: How Much Does Investment Climate
Matter?” analyzes how improving the investment climate offers an excellent opportunity
for countries seeking to attract FDI.



                                             43
Handbooks, Technical Papers, and Reports
   How to Reform Business Inspections: Design, Implementation, Challenges is a
     practitioners’ handbook that provides would-be reformers, inside and outside of the
     Bank Group, with a comprehensive range of tools that enable them to tackle all
     essential aspects of regulatory simplification and smarter regulation.

      Surveying Businesses on Tax Compliance Costs analyzes surveys of business
       taxpayers regarding their experiences with tax compliance costs and their attitudes
       toward tax compliance.

      Tax Perception and Compliance Cost Surveys: A Tool for Tax Reform analyzes surveys
       of business taxpayers and shows how understanding perceptions and experience is
       important to gauging changes in tax morale and general trends in tax compliance.

      Alternative Dispute Resolution Guidelines provides a framework for setting up a
       system for alternative dispute resolution. It highlights and draws upon experiences
       of many countries within the investment climate reform agenda.

      Alternative Dispute Resolution Center Manual: A Guide for Practitioners on
       Establishing and Managing ADR Centers summarizes best practice guidelines in the
       establishment of an ADR center, provides a rich body of case studies incorporating
       ADR centers globally, and provides a comprehensive appendix of pro forma
       documents for use by ADR centers.

      Special Economic Zones in Africa: Comparing Performance and Learning from Global
       Experiences provides the first systematic and comprehensive analysis of zone
       programs in sub-Saharan Africa. It is the result of detailed surveys and case studies
       conducted during 2009 in ten developing countries, including six in sub-Saharan
       Africa.

      Four Country Impact Evaluations are external assessments of FIAS programs in
       Burkina Faso, Liberia, Rwanda, and Sierra Leone. The reports analyze the efficacy of
       the programs in achieving their initial objectives and the quantitative impacts
       generated from program achievements.

      Inspections Reform: Do Models Exist? is an analytical review of Inspections reforms
       in 25 countries worldwide, with analysis of models and features of reforms
       undertaken.




                                             44
SmartLessons
In FY11 staff authored and co-authored 17 Smartlessons, highlighting experiences from
FIAS-supported activities with Bank Group staff through this IFC-sponsored learning note
series, one that is also increasingly sharing Bank Group lessons with external audiences.
Three of these notes—“Pilot Land Reforms in Nigeria: Think Big, Start Small, Move Fast But
Where Do We Start?,” “Show Me the Money! Using Peer-To-Peer Learning for Accelerated
Investment Climate Reforms“, and “VAT Media Campaign in Lao PDR Results in a Big Bang
for the Buck”—were first-prize winners in Bank-wide SmartLessons competitions.




                                            45
     VII. Financial Results and Resource Use

FIAS activities covered in the Annual Review are co-financed via a set of FIAS trust funds managed by the
World Bank Group’s Investment Climate Department. In addition to FIAS trust funds, the Investment
Climate Department manages additional funds received from the World Bank and IFC for operational
and administrative tasks related to the department’s “anchor” or backbone function in the investment
climate space (for example, as backbone for IFC’s Investment Climate Business Line and for the World
Bank Group’s Financial and Private Sector Development Vice Presidency), as well as donor funds for
activities managed outside the scope of FIAS (such as the policy and advisory component of IFC’s Health
in Africa program or work on private infrastructure). The financial results reported in this section cover
only those funds managed by the Investment Climate Department under the FIAS trust fund structure.
The Investment Climate Department follows IFC’s standard accounting policies and procedures, as noted
below.13 FIAS financial reports uses cash-based reporting in alignment with the quarterly financial
reports on IFC’s donor funded operations.

FUNDING
Contributions received in FY11 from the following donors and clients are gratefully acknowledged:
    Direct contributions to FIAS trust funds:*
           o Austria
           o European Commission
           o France
           o Ireland
           o Kauffman Foundation
           o Korea
           o Luxembourg
           o the Netherlands
           o Norway
           o Sweden
           o Switzerland
           o United Kingdom
           o United States

                *Core donors are in bold.

In addition to the above, the FIAS program received financial contributions in FY08-10 from other donor
countries including Australia, Iceland, Italy and New Zealand to support the implementation of the FIAS
investment climate program outlined in the FIAS FY08-11 strategy.
     Contributions for FIAS projects received via IFC’s Technical Assistance Trust Funds (TATF)
         program:
             o Japan

13
  Annual contributions from IFC, MIGA, and the World Bank are treated in the same manner as core
donor funds and are co-mingled with other donor funds in the FIAS Master Trust Fund account, as terms
and conditions allow. Contributions from the IFC Investment Climate Business Line are treated as an
additional source of project-specific funding.


                                                   46
            o   Spain

       Client contributions:
            o APEC
            o Denmark
            o Mexico
            o Poland


CORE AND PROGRAMMATIC FUNDING
In FY11, FIAS donors, clients and the World Bank Group contributed a total of $32.1 million (net of trust
fund administration fees of $1.2 m) to the various FIAS trust funds, supporting the implementation of a
broad-based investment climate reform program under the FIAS umbrella (see details in Tables 1 and 2).
This amount is equal to the total contributions received for FIAS in FY10 ($32.7 million) and reflects the
strong and continued commitment by donors to support investment climate reform at the global level,
despite severe budget constraints experienced by many donor partners due to the global financial crisis.

World Bank Group core contributions totaled $8.3 million in FY11, including $4.0 million from IFC, $2.7
million from the Multilateral Investment Guarantee Agency (MIGA), and $1.6 million from the World
Bank. Core contributions received from donors amounted to $4.6 million in FY11 (significantly down
from $6.7 million in FY10). These contributions include an allocation of $1.5 million from the
Netherlands earmarked for activities in IDA countries. Overall, the amount of core funding for FIAS
dropped from $18.3 million in FY08 to $12.8 million in FY11, a significant decrease which seriously
limited the flexibility of the FIAS program over the FY08-FY11 strategy cycle.

Programmatic contributions from donors, made available through thematic and regional FIAS Trust
Funds, totaled $7.4 million in FY11, slightly down from donor contributions of $8.6, $8.8 and $7.5 million
in FY08, FY09 and FY10, respectively.

PROJECT-SPECIFIC FUNDING
Reduced levels of core and programmatic contributions were offset in FY11 by increased project-specific
contributions received from clients, donors and the World Bank Group including the World Bank
Group’s Trade Facilitation Facility and Gender Action Plan. Project-specific contributions from IFC, donor
partners and clients amounted to $11.3 million in FY11, including $8.2 million from donors, $0.3 million
from clients, and $2.8 million from IFC’s Investment Climate Business Line (including $0.9 million from
IFC’s Advisory Service contingency fund).

Client contributions received from four clients ($0.3 m) were significantly down from contributions
received from clients in FY09 and FY10 ($1.1 million and $1.8 million, respectively). The potential to
generate significant cash contributions from clients remains modest given the high concentration of FIAS
activities in IDA as well as fragile and conflict-affected countries.

Project-specific contributions from donors remains consistent $8.3 million in FY11 and $8.8 million in
FY10, reflecting strong donor interest in client-facing investment climate reform interventions and an
ongoing trend among some donors to decentralize their aid budgets to the field.




                                                   47
Project specific contributions from IFC, received in the form of project-specific FMTAAS allocations14,
amounted to $1.9 million in FY11. These allocations primarily supported a range of global knowledge
management and product design and development initiatives implemented under the FIAS umbrella. In
addition, the Investment Climate Department received IFC Advisory Service contingency funds in the
amount of $ .9 million to finance FIAS-related advisory and technical assistance activities (see Table 2).
Other contributions from IFC, amounting to $1.7 million in FY11, supported non-project activities
including portfolio management, monitoring and evaluation, and knowledge sharing associated with the
global portfolio implemented under the FIAS umbrella.

CONTRIBUTIONS OUTSIDE FIAS’ REGULAR FINANCIAL STRUCTURE
A range of indirect contributions for FIAS-related advisory activities were made available to the
Investment Climate Department via non-FIAS specific funding mechanisms and are listed in Table 3.
These contributions include project-specific financial support from Japan and Spain, made available via
the IFC’s Technical Assistance Trust Funds (TATF) program (a total of $1.0 million).

Moreover, a range of World Bank and IFC regional advisory services units helped leverage FIAS-funded
activities through “cross support,” a mechanism under which Bank or IFC units cover the costs of
Investment Climate Department staff working on investment climate projects managed by these units.
The level of cross-support received throughout FY11 from World Bank and IFC units and related to FIAS-
funded activities amounted to approximately $3.0 million. Funding from TATF, World Bank supplemental
budget allocations and cross-support are managed outside the regular FIAS trust fund structure and thus
are not included in Table 1.

SHIFT AWAY FROM CORE TO PROJECT-SPECIFIC CONTRIBUTIONS
The composition of funding for FIAS has changed significantly over the past two to three years and is
negatively affecting the degree of flexibility the program has to respond quickly to new demands for
investment climate reform support. FIAS core funding has been steadily shrinking from $18.3 million in
FY08 to $12.8 million in FY11. On the other hand, project-specific funding has increased from $9.4
million in FY08 to $11.3 million in FY11. The shift towards project-specific funding is even more dramatic
if funding components managed outside the Investment Climate Department are taken into account (in
particular TATF funding and cross-support from Bank and IFC units).

As a result, the FIAS program is increasingly driven by specific project activities for which donors are
willing to provide funding, and less by overall client needs and a global strategic investment climate
reform agenda. Also, core funding is typically used to fund the knowledge management and learning
agenda under FIAS, as well as new, innovative approaches and products that are under development.
Given the ongoing scarcity of core funds, there is a risk that such activities will have to be scaled back
significantly over the coming years.

IN-KIND SUPPORT VIA STAFF EXCHANGES AND SECONDMENTS
The FIAS program has continued to benefit from in-kind resources that several donors have made
available in the form of secondees and staff exchanges. Throughout the year, senior staff members from
Agence Francaise de Developpement (AfD), the United Kingdom Department for International
Development (DfID), the Italian Ministry of Foreign Affairs, the Korean Ministry of Knowledge Economy,
and the Norwegian Ministry of Foreign Affairs, and the Spanish Institute of Economy and Finance have
been seconded to the Investment Climate Department where they have been working on FIAS-funded

14
     FMTAAS is IFC’s Funding Mechanism for Technical Assistance and Advisory Services.

                                                     48
activities. In return, one Investment Climate Department staff member was on a long-term assignment
with AfD. Such staff exchanges and secondments offer an attractive way for FIAS partners to be directly
involved in the program and establish direct connections between their respective private sector
development programs and FIAS.

USE OF FUNDS
FIAS trust fund expenditures for investment climate reform activities reached $30.3 million in FY11, an
increase of 10 percent over FY10 expenditures of $27.6 million (Table 1, Uses of Funds). The increase in
FY11 expenditures is due in large part to expenditures associated with the additional contingency
funding received from IFC ($0.9 m) and a conscious effort to use earmarked donor funds to the fullest
extent possible to close the FIAS FY08-FY11 funding cycle. As a result, staff and consultant costs as well
as travel costs increased, whereas indirect costs (infrastructure, office space, rent) remained relatively
flat.

Administration fees are collected by IFC to cover trust fund administration costs and are deducted from
donor contributions at the time of receipt. In FY11 IFC collected trust fund administration fees of $1.2
million from FIAS donor contributions.15

At the end of FY11, fund balances in the various FIAS trust funds totaling US$ 18.4 million16 were carried
over into FY12. This amount is relatively large as it includes $8.0 million of core funds and about $10.4
million of program- and project-specific funds received under multi-year donor agreements. In line with
prudent financial management principles, FIAS resources are strategically managed to avoid
liquidity/cash-flow issues as experienced at the beginning of the FY08-FY11operational cycle. In this
context, the transition into the new FIAS FY12-FY16 strategy cycle present specific challenges which
required the carry-over of core funds to ensure FIAS operations into FY12.

Project-related expenditures (both direct and indirect) accounted for 88 percent of total FIAS
expenditures and general and administration expenditures (rent, communications, equipment and other
non-overhead costs such as administrative and back-office support staff) accounted for 12 percent of
total expenditures (see Table 4). In July 2010 IFC implemented a new cost allocation methodology for
Advisory Services which resulted in a re-distribution between direct and indirect project costs. Due to
this change, some figures in Table 4 are not consistent with figures reported in FIAS Annual

Reports/Reviews, FY08-10. General and administration expenditures, however, are not affected by this
change in methodology and are the same as reported in the FIAS FY08-10 Annual Reports/Reviews.

Table 1: Sources and Uses of Funds
Table 2: Project-Specific Donor and Client Contributions
Table 3: Other Project-Specific Funding – Indirect Support to FIAS Program
Table 4: Expenditures by Activity Category




15
   FIAS trust funds established after July 1, 2009 are subject to the standard IFC trust fund administration
fee of 5 percent. Since most of FIAS trust funds were established prior to July 2009, a 3.5 percent trust
fund administration fee applies. Trust fund administration fees collected by IFC are included in Table 1,
Sources of Funds for FY08-FY11.
16
   FIAS trust fund cash balances less commitments and balances refunded to donors.

                                                    49
TABLE 1: SOURCES AND USES OF FUNDS 1
          In US$ Thousands

                                                             FY08     FY09     FY10     FY11

Sources of Funds

World Bank Group Core Contributions
     2
  IFC                                                        8,000    2,000    2,000    4,000
  IBRD                                                       2,000    1,600    1,600    1,600
  MIGA                                                       4,000    3,500    3,000    2,700
   Subtotal World Bank Group Core Contributions             14,000    7,100    6,600    8,300
World Bank Group Project-Specific and Other Contributions
  IFC IC Business Line - Project-Specific                    3,800    2,672    1,862    1,915
  IFC IC Business Line - Administration                        -        -        -      1,687
  IFC AS Contingency                                           -        -        -        880
  IFC Global Fund                                              -        150      400      -
Subtotal World Bank Group Contributions                     17,800    9,922    8,862   12,782

Core Donor Contributions
  Australia                                                    800      676    1,502      -
  Austria                                                      368      373      355      331
  France                                                       -      1,281    1,403      -
  Iceland                                                       45      -        -        -
  Ireland                                                      735      -        -        -
  Italy                                                        -      1,414      -        -
  Luxembourg                                                   273      539      -        829
                                3
  Netherlands (Global Program)                                 559    2,350    1,950    1,550
  New Zealand                                                  399      276      384      -
  Norway                                                       475      475      475    1,138
  Sweden                                                       406      285      345      396
  Switzerland                                                  250      240      -        -
  United Kingdom                                               -        494      332      309
  Subtotal Core Donor Contributions                          4,310    8,401    6,746    4,552
Programmatic Donor Contributions
  Austria (Investment Generation)                            2,571    2,608    2,489    2,287
  Austria (Crisis Response)                                             280      307      -
  Luxembourg (Crisis Response)                                 -        750      -        263
  Netherlands (Trade Logistics)                                503      400      400      -
  Netherlands (Secured Lending)                                -        450      -        600
  Norway (Business Entry)                                      -        -        154      428
  Norway (Trade Logistics)                                     300      340      150      500
  Ireland (Africa)                                             735      -        724      531
  Italy (Africa)                                               508      -        -        -
  Sweden (Africa)                                              628      630    1,122      -
  Switzerland (Secured Lending)                                -        500      400      400
  Switzerland (Tax)                                            -        500      300      200
  Switzerland (Western Balkans)                                820      600      600      500
  United Kingdom (Western Balkans)                             497      440      -        -
  United Kingdom (Tax)                                       1,426      183       96      -
  United States (Doing Business)                               632    1,150      724    1,704
  Subtotal Programmatic Donor Contributions                  8,620    8,830    7,466    7,413

Donor Contributions (Project Specific) 4                     5,525    4,436    8,868    8,267

 Total Donor Contributions                                  18,455   21,667   23,080   20,231
Total WBG and Donor Contributions                           36,255   31,589   31,941   33,013


Client Contributions                                          129     1,093    1,830     283

Total Receipts                                              36,384   32,682   33,771   33,296
                                  5
 Trust Fund Administrative Fees                              1,099      973    1,140    1,212
Total (Net) Receipts                                        35,285   31,709   32,631   32,084
                                                                                                                                      FY08     FY09     FY10     FY11


Uses of Funds

Staff Costs
  Staff                                                                                                                              9,961   11,636   11,181   13,273
  Consultants and Temporaries                                                                                                        9,322   10,268    7,634    8,101
Total Staff Costs                                                                                                                   19,283   21,905   18,815   21,374

Travel                                                                                                                               6,217    6,488    5,229    5,678

Indirect Costs
  Office Occupancy                                                                                                                     683    1,071    1,018    1,073
  Office Equipment                                                                                                                     116       53       57       47
  Other Operating Costs                                                                                                                214      863      242      528
  Other Costs                                                                                                                          108    1,693    2,256    1,718
Total Indirect Costs                                                                                                                 1,122    3,681    3,573    3,366
Total Uses Of Funds                                                                                                                 26,622   32,073   27,616   30,418




1/ FIAS Annual Review is prepared as a reporting tool for FIAS Donors and Management, utilizing management accounting principles.



2/ IFC contribution of $4.0 milllion p.a., front-loaded as follows: FY08: $4.0 million; FY09: $2.0 million.
3/ Netherlands core contributions earmarked for activities in IDA countries.

4/ For details of FY11 project specific contributions, see Table 2.

5/ Administration fees collected by IFC to cover cost of trust fund administration.
TABLE 2: PROJECT-SPECIFIC DONOR AND CLIENT CONTRIBUTIONS
          In US$ Thousands

PROJECT                                                                                                                    DONOR        AMOUNT
WORLD BANK GROUP CONTRIBUTIONS (IFC IC Business Line and IFC AS Contingency)
  Crisis Response (Insolvency)                                                                                           IFC IC BL          392
  Impact Measurement                                                                                                     IFC IC BL          224
  Agribusiness                                                                                                           IFC IC BL          200
  Trade Logistics                                                                                                        IFC IC BL          199
  Doing Business Reform Advisory in Conflict Affected Countries                                                          IFC IC BL          191
  Green IC                                                                                                               IFC IC BL          140
  Public-Private Dialogue                                                                                                IFC IC BL          116
  Tax Haven, Transfer Pricing                                                                                            IFC IC BL          106
  Subnational Doing Business                                                                                             IFC IC BL          101
  Tourism                                                                                                                IFC IC BL           97
  Donor Committee for Enterprise Development (DCED)                                                                      IFC IC BL           70
  Tax Transparency                                                                                                       IFC IC BL           49
  Business Regulation Deep Dive                                                                                          IFC IC BL           30
  AS Tax Transparency                                                                                           IFC AS Contingency          500
  Investing Across Borders                                                                                      IFC AS Contingency          280
  IS/AS IC Agribusiness Tax in Central Asia                                                                     IFC AS Contingency          100
Subtotal World Bank Group Contributions                                                                                                   2,795
DONOR CONTRIBUTIONS
  Kenya: Investment Climate Program (formerly, Regulatory Performance/Capacity Building)                    European Commission           2,353
  Global Investment Promotion Benchmarking (GIPB)                                                           European Commission           1,461
  Subnational Doing Business in Russia                                                                      European Commission             259
  OHADA Business Law Reform Program                                                                                          France       1,324
  Entrepreneurship Project                                                                                   Kauffman Foundation             32
  Low Carbon Green Economic Zones                                                                                             Korea         300
  Kenya: Investment Climate Program (formerly, Regulatory Performance/Capacity Building)                               Netherlands          676
  Regulatory Reform                                                                                                    Netherlands           86
  Agribusiness                                                                                                               USAID          483
  Impact and Knowledge Management                                                                                            USAID          154
  Mali Investment Climate Program                                                                                            USAID          676
  Subnational Doing Business (Sao Tome)                                                                                US Treasury           63
  Alternative Dispute Resolution (ADR)                                                                   WBG/Gender Action Plan              50
  Developing/Building Trade Logistics                                                                 WBG/Trade Facilitation Facility       350
Subtotal Donor Contributions                                                                                                              8,267
CLIENT CONTRIBUTIONS
  Investing Across Borders                                                                 Asia-Pacific Economic Cooperation (APEC)        120
  Regulatory Reform Review                                                                                                 Denmark          32
  Doing Business Reform                                                                                                       Mexico       105
  Doing Business Reform                                                                                                       Poland        26
Subtotal Client Contributions                                                                                                              283

Total FY11 Project - Specific Donor and Client Contributions                                                                             11,345
TABLE 3: OTHER FUNDING - INDIRECT SUPPORT TO FIAS PROGRAM
       In US$ Thousands

OTHER FUNDING - INDIRECT SUPPORT TO FIAS PROGRAM                               DONOR   AMOUNT
 Project-Specific Funding - IFC Technical Assistance Program
  Commercial Mediation Product Development and Knowledge Management            Japan         385
  Global Investment Promotion Benchmarking (GIPB)                              Spain         226
  Global Trade Logistics Advisory Program                                      Spain         206
  Public-Private Dialogue (PPD) Product Development and Knowledge Management   Spain         220
TOTAL FY11 OTHER FUNDING                                                                   1,038
TABLE 4: EXPENDITURES BY ADVISORY SERVICES (AS) ACTIVITY
                                                                       %                          %                           %          FY11            %
                                                       FY08                        FY09                       FY10
    Standard AS Activity Expenditures 4                              FY08                       FY09                        FY10         Actual        FY11
                                                       Actual                      Actual                     Actual
                                                                     Actual                     Actual                      Actual                     Actual

Project Related Expenditures
  of which: Direct Project Expenditures 1             17,620,579        64%      21,993,742         67%     18,988,606         69%      19,202,677        63%
  of which: Indirect Project Expenditures 2            4,117,228        15%       3,734,697         11%      3,322,980         12%       7,679,623        25%
Total Project Related Expenditures                    21,737,807        78%      25,728,439         78%     22,311,586         81%      26,882,300        88%

General & Administration Costs 3                       5,982,706        22%       7,317,667         22%       5,304,256        19%       3,535,986        12%

Total Standard AS Activity Expenditures               27,720,513       100%      33,046,106       100%      27,615,842        100%      30,418,286       100%

Notes:
1/ Direct Project Expenditures include project preparation, implementation and supervision costs.
2/ Indirect Project Expenditures include program management and operational support, including new business development, product development, M&E,
knowledge sharing & staff development, donor relations, and public relations previously reported separately and consolidated under the new IFC cost allocation
3/ General & Administration includes overheads (rent, communications, equipment, etc.) and other non-overhead costs such administrative and back-office support
staff.
4/ Due to a change in IFC's cost allocation methodology, some figures in Table 4 are not consistent with figures reported in FIAS Annual Reports/Reviews, FY08-
10. The new cost allocation methodology re-distributes expenditures between direct and indirect project costs. General & Adminstration expenditures are not
affected by the change in the cost allocation methodology and are consistent with the figures reported in the FY08-10 FIAS Annual Reports/Reviews.
Total FY11 FIAS Expenditures




Total FIAS FY11 Project Implementation Expenditures




                                               50
VIII. ANNEXES

Annex 1: Reforms and Results Supported by FIAS in FY11 (see attachment)

Annex 2: Other Results Supported by FIAS in FY 11 (see attachment)

Annex 3: Active and Closed Projects (see attachment)




                                  51
                                                                       Annex 1: Reforms and Results Supported by FIAS in FY11

The following tables summarize the reforms and results supported by the FIAS program in FY11 across the various investment climate topics. They are summarized by type of reform or result and include a
brief description of the achievements. The results that have contributed to a particular reform are shaded together with the reform in the same background color.


                                                                                                                                                                             Result type
                                                                                                                                                                             (National /
Country         Topic         Reform Description                                           Result indicator            Result Description                                    Subnational)   Reform Result
Africa Region   Access to     On December 13 and 14, 2010, the Organization for the        Enactment of new/revised    OHADA's member states adopted in December             National             1      1
                finance       Harmonization of Business Law in Africa (OHADA) amended secured lending legislation      2010 two amended laws and three new
                              the Uniform Act on Secured Transactions. The amended Act                                 regulations for the modernization of the registries
                              was published in the official gazette on February 15, 2011                               for companies and secured transactions, which will
                              and entered into force on May 15, 2011. The revised Act on                               significantly improve the legal and institutional
                              Secured Transactions allows for the creation of possessory                               framework for private sector activities in the 16
                              and non-possessory security interests on all types of                                    countries. The law includes acceptance of a much
                              movable property, present and future, and guarantees all                                 wider range of assets as collateral, such as future
                              kinds of obligations (future, conditional, monetary, or non-                             movable goods including accounts receivable, cash
                              monetary). In addition, it harmonizes the legal framework                                flow, and equipment.
                              of mechanisms such as the “gage” (Art. 92 to Art.124) and
                              the “nantissement” (Art. 125 to Art. 179). Furthermore,
                              new types of security interests such as the “nantissement
                              de compte de titre financiers” or the “cession de créances à
                              titre de garantie” were introduced in the revised version of
                              the Act. The amended Act also simplifies and establishes a
                              general publicity regime for security interests on movable
                              property (Art. 52 to Art. 66). Finally, the amendments also
                              allow out-of-court enforcement of security interests on
                              some movable property (Art. 104).
                                                                    Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                       Result type
                                                                                                                                                                       (National /
Country        Topic        Reform Description                                           Result indicator         Result Description                                   Subnational)   Reform Result
               Starting a   On December 15, 2010, the OHADA Council of Ministers         Enactment of new/revised OHADA's Council of Ministers adopted the revised National                 1      1
               business     amended the Uniform Act on General Commercial Law. The business entry related         OHADA General Commercial Law in December
                            Uniform Act was published in the OHADA official journal on legislation                2010. The law creates a new business category,
                            February 15, 2011 and took effect on May 16, 2011.                                    "entreprenant," which will simplify procedures for
                            According to Article 45 of the General Commercial Law,                                micro and small business owners who cannot
                            entrepreneurs are required to provide a sworn declaration                             afford to hire lawyers to register their businesses.
                            stating that they have not committed any crime and are not
                            subject to any restriction on carrying out commercial
                            activities (Article 10 of the Uniform Act on General
                            Commercial Law). They are required to obtain copies of
                            their criminal records within 75 days after incorporation of
                            their companies. In addition, the amendments created a
                            new business category, "entreprenant," that will simplify
                            procedures for micro and small business owners by allowing
                            them to register a business without hiring a lawyer.




Africa Region Total                                                                                                                                                                        2       2
Benin           Enforcing                                                              Enactment of new/revised In October 2011 the Parliament adopted the new National                            1
                contracts                                                              civil procedural rules   civil, commercial, administrative, and social
                                                                                                                procedure code, which is expected to reduce the
                                                                                                                time for contract enforcement. The code is
                                                                                                                expected to reduce the length of proceedings (by
                                                                                                                limiting the number of hearing postponements),
                                                                                                                facilitate case filing, and accelerate the settlement
                                                                                                                of disputes. Under the new code, the time to file
                                                                                                                an appeal was reduced from two months to one,
                                                                                                                and the time to take a case to the Supreme Court
                                                                                                                was reduced from five to three months.
                                                                   Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                        Result type
                                                                                                                                                                        (National /
Country       Topic        Reform Description                                           Result indicator            Result Description                                  Subnational)   Reform Result
              Starting a   Following the amendments to the OHADA Uniform Act on         Reduction in the cost to    The Minister of Justice issued a letter to Courts   National             1      1
              business     General Commercial Law, the Minister of Justice issued a     comply with business        staff and sent them a model of sworn declaration
                           letter on December 30, 2010 addressed to courts staff with   regulations related to      to replace the submission of criminal record,
                           a model of sworn declaration to replace the submission of    business entry              cutting $1 from the cost of starting a business.
                           criminal record. As a result, the number of procedures to
                           start a business was reduced from 7 to 6, time needed from
                           31 to 29 days, and cost from 154 to 150 percent of income
                           per capita.


              Starting a                                                                Reduction in the number of The government cut 2 of the overall 31 days         National                     1
              business                                                                  days it takes to comply with entrepreneurs spend in starting a business and $1
                                                                                        business regulation related from the cost.
                                                                                        to Business Entry




              Starting a                                                                Reduction in the number of The government reduced the required procedures National                          1
              business                                                                  procedures to comply with to start a business from 7 to 6.
                                                                                        business regulation related
                                                                                        to business entry




Benin Total                                                                                                                                                                                 1       4
Brazil        Investment                                                                Improved institutional      Apex-Brasil and the Secretary of Economic          Subnational                  2
              policy and                                                                framework related to        Development for the state of Pernambuco signed a
              promotion                                                                 investment generation       cooperation agreement formalizing a collaborative
                                                                                                                    approach towards facilitating FDI for Pernambuco,
                                                                                                                    significantly changing how FDI is attracted and
                                                                                                                    marking an important step in creating a national
                                                                                                                    investment generation network. SEDECT in Para
                                                                                                                    and partners in FDI promotion (the executive-level
                                                                                                                    working group representing key public and private
                                                                                                                    sector actors) signed a collaboration agreement to
                                                                                                                    coordinate investment attraction activities in the
                                                                                                                    state of Para.
                                                      Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                      Result type
                                                                                                                                                      (National /
Country        Topic             Reform Description                 Result indicator              Result Description                                  Subnational)   Reform   Result
               Investment                                           Improvement in the            The three investment promotion intermediaries,      Subnational                   4
               policy and                                           conversion rates of           Apex-Brasil (the national investment promotion
               promotion                                            investment leads from         agency), Invest in Pernambuco, and Invest in Para,
                                                                    relevant sectors              each increased their conversion rates of leads to
                                                                                                  announced investments. Apex-Brasil reported a 12
                                                                                                  percent conversion rate (8 cumulative announced
                                                                                                  investments from 67 leads); Invest in Pernambuco
                                                                                                  reported a 13 percent conversion rate (10
                                                                                                  cumulative announced investments from 77 leads),
                                                                                                  and Invest in Para reported a 20 percent
                                                                                                  conversion rate (5 cumulative announced
                                                                                                  investments from 25 leads)
                                                                    Increase in the number of     In the second half of FY11, each of the three      Subnational                   3
                                                                    leads from relevant sectors   investment promotion intermediaries Apex-Brasil,
                                                                    into investment generation    Invest in Pernambuco, and Invest in Para incrased
                                                                    pipeline                      its investment generation pipeline of active leads
                                                                                                  by more than 10 percent. Apex-Brasil reported 67
                                                                                                  active leads; Invest in Pernambuco reported 77;
                                                                                                  Invest in Para reported 25
                                                                    Increase in the number of     In the first half of FY11, each of the three       Subnational                   3
                                                                    leads from relevant sectors   investment promotion intermediaries Apex-Brasil,
                                                                    into investment generation    Invest in Pernambuco, and Invest in Para incrased
                                                                    pipeline                      its investment generation pipeline of active leads
                                                                                                  by more than 10 percent. Apex-Brasil reported 60
                                                                                                  active leads; Invest in Pernambuco reported 44;
                                                                                                  Invest in Para reported 11.
Brazil Total                                                                                                                                                                      12
Burkina Faso   Trade logistics                                      Implementation or             The Ministry of Agriculture agreed to merge the      National                    1
                                                                    improvement of best           Phytosanitary Bulletin Verification document (a
                                                                    practice procedures related   requirement of the Economic Community of West
                                                                    to the flow of cargo          African States) and the Certificate of Phytosanitary
                                                                                                  Inspection (a national regulation). This
                                                                                                  improvement allows traders to obtain only one
                                                                                                  document when their goods are subject to
                                                                                                  phytosanitary inspection
                                                                             Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                               Result type
                                                                                                                                                                               (National /
Country         Topic           Reform Description                                              Result indicator           Result Description                                  Subnational)   Reform   Result
                Trade logistics                                                                 Implementation or          The Ministry of Commerce and the Ministry of        National                      1
                                                                                                improvement of processes   Finance agreed to allow importers to import goods
                                                                                                at technical control       into Burkina Faso and obtain specific standards
                                                                                                agencies related to trade  approval from the Ministry of Commerce after the
                                                                                                logistics                  goods have been cleared. This is the country's
                                                                                                                           first trade reform agreed between different
                                                                                                                           government agencies. It facilitates a more efficient
                                                                                                                           process for traders importing goods that require
                                                                                                                           standards certification
                Trade logistics                                                                 Improved institutional     The government passed a decree establishing a        National                    1
                                                                                                framework related to trade formal committee within Customs to manage the
                                                                                                logistics                  implemention of risk management for border
                                                                                                                           inspection and clearance. This improvement is
                                                                                                                           significant as it is the first step required by an
                                                                                                                           entity implementing a risk-based inspections
                                                                                                                               i
Burkina Faso Total                                                                                                                                                                                          3
Burundi        Dealing with       The National Laboratory for Building Construction and       Reduction in cost to comply    The government made dealing with construction National                1        1
               construction       Public Works changed the fee structure, reducing the fee    with construction              permits easier by reducing the cost to obtain a
               permits            for a geotechnical study from BIF 6,500,000 to BIF          permitting                     geotechnical study from BIF 6.500.000 to BIF BIF
                                  2,574,460 ($4,899 to $1,940). This cut the total cost to                                   2,574,460 ($4,899 to $1,940), reducing total cost
                                  obtain a building permit and utility connections from 6,296                                from 6,296 to 4,066 percent of income per capita.
                                  to 4,066 percent of income per capita.

                Protecting        The new Company Law enacted on May 30, 2011                     Enactment of legislation   The government enacted the new Company Law National                   1        1
                Investors         strengthened investor protections by introducing new            related to company         on May 30, 2011, strengthening investor
                                  requirements for the approval of transactions between           legislation                protections by introducing new requirements for
                                  interested parties; requiring greater corporate disclosure to                              the approval of transactions between interested
                                  the board of directors and in the annual report; and making                                parties, by requiring greater corporate disclosure
                                  it easier to sue directors in cases of prejudicial transactions                            to the board of directors and in the annual report,
                                  between interested parties.                                                                and by making it easier to sue directors in cases of
                                                                                                                             prejudicial transactions between interested
                                                                                                                             parties.
                Starting a                                                                       Enactment of legislation    The government adopted a New Company Law on National                           1
                business                                                                         related to business entry   May 30, 2011 which simplifies the conditions for
                                                                                                                             incorporating a company and starting a business.
Burundi Total                                                                                                                                                                                      2        3
                                                                          Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                                 Result type
                                                                                                                                                                                 (National /
Country         Topic            Reform Description                                          Result indicator                 Result Description                                 Subnational)   Reform Result
Central African Registering      In December 2010, the new Financial Law was adopted. The Reduction in the fees to            The government reduced by half the property        National             1      1
Republic        property         Article 301 reduced the property transfer tax (“droits      register property                transfer tax (from 15 to 7.5 percent).
                                 d’enregistrement”) by 50 percent, from 15 to 7.5 percent,
                                 and the total cost of registering property was reduced from
                                 18.5 to 11 percent of property value.

                Starting a       The National Budget Law of December 2010 (Article 11)         Reduction in the cost to       Several reforms cut the cost to start a business by National           1       1
                business         amended the relevant tax provisions about the business        comply with business           $186 as follows: the very high business registration
                                 registration tax (Articles 301 and 302 of the "Code de        regulations related to         tax was cut from $312 to $146; the professional
                                 l'Enregistrement"), cutting it by more than a half, from      business entry                 traders' card was eliminated as a requirement for
                                 150,000 to 70,000 XAF (from $312 to $146). As a result, the                                  registering a business; the ministerial license and
                                 total cost to start a business decreased from 228 to 176                                     the mandatory registration fee for the chamber of
                                 percent of income per capita.                                                                commerce were removed; and the cost of
                                                                                                                              publication to the Web site was reduced.

                Starting a                                                                     Reduction in the number of The government implemented several reforms           National                      1
                business                                                                       days it takes to comply with that reduced the time required to start a business
                                                                                               business regulations         from 22 to 13 days.
                                                                                               related to business entry

                Starting a                                                                     Reduction in the number of The government reduced the required steps to           National                    1
                business                                                                       procedures to comply with start a business from 8 to 7 by eliminating the
                                                                                               business regulation related professional traders' card.
                                                                                               to business entry

Central African Republic Total                                                                                                                                                                       2       4
China           Investment                                                                     Improvement in the score       The Yinchuan Investment Promotion Agency          National                     1
                policy and                                                                     of investment promotion        improved the score of its investment promotion
                promotion                                                                      intermediaries in the Global   intermediary in the current GIPB report by 8
                                                                                               Investment Promotion           percentage points compared to previous editions.
                                                                                               Benchmarking (GIPB)            The project worked in particular on the Web site,
                                                                                                                              which scored an increase of 20 percentage points.


China Total                                                                                                                                                                                                  1
Colombia        Enforcing                                                                      Enactment of legislation       An administrative agreement of March 2011          National                    1
                contracts                                                                      related to enforcing           created 18 municipal courts (11 to process and
                                                                                               contracts                      adjudicate enforcement procedures and 7 for
                                                                                                                              ordinary procedures) and 12 municipal courts to
                                                                                                                              process commissions as part of enforcement
                                                                                                                              procedures
                                                                        Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                                  Result type
                                                                                                                                                                                  (National /
Country   Topic             Reform Description                                                Result indicator              Result Description                                    Subnational)   Reform Result
          Starting a        The Law 1429 of 2010 and Decree 545 of 2011 introduced a          Creation or improvement A new law and decree introduced a progressive fee National                       1      1
          business          progressive fee schedule for new companies, which                 at the legal/regulatory level schedule for new companies, exonerating them
                            exonerates them from an upfront payment of fees for the           of institutions dealing with from an upfront payment of fees for the first few
                            first few years in operation. In particular, the fee associated   business entry                years in operation. In particular, the fee associated
                            with the commercial license "matricula comercial" no                                            with the commercial license no longer needs to be
                            longer needs to be paid at the time of start-up. As a result,                                   paid at the time of start-up. As a result of this
                            the cost to start a business was reduced by 45 percent, and                                     improvement, the cost to start a business was
                            the total cost to start a business decreased from 14.7 to 8                                     reduced by 45 percent.
                            percent of the income per capita.




          Trade logistics                                                                     Implementation or            The government implemented connecting Web            National                      1
                                                                                              improvement of a single      services between the single window system
                                                                                              window system related to     (VUCE) and the agencies for health and agriculture,
                                                                                              trade                        creating automatic linkages among the systems
                                                                                                                           and allowing faster release of licenses. The VUCE
                                                                                                                           import module was upgraded allowing traders to
                                                                                                                           electronically submit conformity certificates to the
                                                                                                                           Bureau of Standards. The system will automatically
                                                                                                                           reject the request (without generating a payment)
                                                                                                                           if there is a mistake in the license sent by the
                                                                                                                           trader
          Trade logistics                                                                     Implementation or            Traders now must electronically submit the           National                      1
                                                                                              improvement of electronic Andean Declaration of Value through the MUISCA
                                                                                              submission of documents system. This document is a required supporting
                                                                                              related to trade logistics   document for cargo to enter the country.
                                                                                                                           Previously traders had to file this information
          Trade logistics                                                                     Implementation or              h i ll t C
                                                                                                                           The governmenttissued a resolution which requires National                         1
                                                                                              improvement of risk          customs brokers, freight forwarders, and
                                                                                              targeting strategies related warehouses to assess clients' risks. Customs
                                                                                              to trade logistics           brokers now must make their financial statements
                                                                                                                           public. Also, customs brokers, warehouses, and
                                                                                                                           freight forwarders must visit and inspect the
                                                                                                                           warehouses of their clients to obtain corporate,
                                                                                                                           financial, and taxation information, especially
                                                                                                                           important for importers of sensitive goods. This
                                                                                                                           information is also submitted to Customs, which
                                                                                                                           allows for easier movement of cargo since the
                                                                                                                           companies are fully identified before the cargo
                                                                           Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                                  Result type
                                                                                                                                                                                  (National /
Country        Topic           Reform Description                                              Result indicator             Result Description                                    Subnational)   Reform   Result
               Trade logistics                                                                 Implementation or            The MUISCA system that allows traders to do           National                      1
                                                                                               improvement of system for    advanced filing of information prior to ship arrival
                                                                                               computerization of           was improved. Imports, including the import
                                                                                               documents and information    returns for sensitive goods, and all supporting
                                                                                               related to trade logistics   documents are now filed through the system at
                                                                                                                            least 48 hours in advance. This allows for early
                                                                                                                            identification of companies, goods, and cargo risks
                                                                                                                            prior to cargo arrival
               Trade logistics                                                                 Implementation or            Customs established a series of minimum                National                    1
                                                                                               improvement of trade         qualifications for companies to exist as customs
                                                                                               logistics standards and      brokers, freight forwarders, and warehouses.
                                                                                               quality                      Based on the companies' assets and size, they are
                                                                                                                            qualified on a level of 1 to 4 (with 1 as the safest).
                                                                                                                            This improvement helps in assessing risk and
                                                                                                                            controlling money laundering
               Registering                                                                     Reduction in number of       An administrative resolution issued on March 8,        National                    1
               property                                                                        days to register property    2011 established time limits for notaries'
                                                                                                                            preparation of public deeds. As a result of this and
                                                                                                                            related improvements within the framework of the
                                                                                                                            pilot project, the time to transfer property was
                                                                                                                            reduced by 11 days (55 percent).


Colombia Total                                                                                                                                                                                        1        7
Cote d'Ivoire Starting a         Due to a reorganization of the Courts' Clerk Office where     Reduction in the time to     The Courts' Clerk Office where entrepreneurs file National                1        1
               business          entrepreneurs file their company documents, the time to       comply with business         their company documents was reorganized,
                                 start a business was reduced from 40 to 32 days.              regulation (related to       resulting in an 8-day reduction (20 percent) in the
                                                                                               business entry)              time required to start a business.

Cote d'Ivoire Total                                                                                                                                                                                   1        1
Hungary         Dealing with     The government passed a new building regulation that          Enactment of legislation     A new Permits Law was passed in March 2011            National            1        1
                construction     reduced the statutory time limit to issue a building permit   related to construction      setting statutory limits for issuing construction
                permits          by 15 days.                                                   permits                      permits.

               Dealing with                                                                    Reduction in the cost to     The government adopted statutory limits for       National                         1
               construction                                                                    comply with construction     issuing construction permits. If deadlines are
               permits                                                                         permitting                   breached, authorities are obliged to reimburse
                                                                                                                            clients for fees and pay the client additional
                                                                                                                            compensation in the amount of a one-time official
                                                                                                                            fee.
                                                                          Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                             Result type
                                                                                                                                                                             (National /
Country        Topic             Reform Description                                          Result indicator           Result Description                                   Subnational)   Reform   Result
               Dealing with                                                                  Reduction in the number of As a result of the reduction in required procedures, National                      1
               construction                                                                  days to comply with        the time companies must spend to comply with
               permits                                                                       construction permitting    construction permitting procedures is expected to
                                                                                                                        be cut by 15 percent, from 189 to 160 days.

               Dealing with                                                                  Reduction in the number of Under the new Permits Law, five procedures were National                          1
               construction                                                                  procedures to comply with eliminated.
               permits                                                                       construction permitting


               Trade logistics                                                               Reduction in the number of The government streamlined the functioning of        National                     1
                                                                                             procedures at Customs      the single window for trade, which connects eight
                                                                                             related to trade logistics national authorities involved in the trade logistics
                                                                                                                        process. The government also continued to
                                                                                                                        implement ongoing reforms, including the
                                                                                                                        introduction of post-clearance audits and the
                                                                                                                        application of risk management systems to border
                                                                                                                        controls.
Hungary Total                                                                                                                                                                                    1        5
Jordan        Starting a         The Decree number 17/2011, which entered into force on      Enactment of legislation    A decree entered into force on May 16, 2011     National                1        1
              business           May 16, 2011, reduced the minimum capital requirement       related to business entry   reduces the minimum capital requirement from JD
                                 from JD 1,000 to JD 1 (from $1,333 to $1.3), of which 50                                1,000 to JD 1, of which 50 percent has to be
                                 percent must be deposited prior to company registration.                                deposited prior to company registration.


Jordan Total                                                                                                                                                                                     1        1
Kazakhstan     Protecting        The amendments to the Law on the Issues of Mortgage         Enactment of legislation    A law passed on Feb. 10, 2011 increases disclosure National             1        1
               Investors         Loans and Protection of the Rights of Financial Services    related to disclosure       requirements and ease of shareholder suits.
                                 Consumers and Investors, which were passed on Feb. 10,      (outside company law)
                                 2011, regulated the approval of transactions between
                                 interested parties and made it easier to sue directors in
                                 cases of prejudicial transactions between interested
                                 parties.

               Starting a                                                                    Enactment of new            A government decree eliminated 4 procedures for National                         1
               business                                                                      legislation related to      entrepreneurs in starting a business.
                                                                                             b i          t
                                                                     Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                              Result type
                                                                                                                                                                              (National /
Country        Topic        Reform Description                                            Result indicator               Result Description                                   Subnational)   Reform   Result
               Starting a                                                                 Reduction in the number of     A government decree reduced the time                 National                      1
               business                                                                   days it takes to comply with   entrepreneurs must spend in starting a business by
                                                                                          business regulations           48 percent (from 19 to 10 days). The decree says
                                                                                          related to business entry      that the business registration process should be
                                                                                                                         completed in no more than 5 working days.
               Starting a                                                                 Reduction in the number of The government eliminated 4 procedures in                National                     1
               business                                                                   procedures it takes to     starting a business, cutting required procedures
                                                                                          comply with business       from 6 to 2.
                                                                                          regulations related to
                                                                                          business entry
Kazakhstan Total                                                                                                                                                                                  1        4
Liberia        Enforcing                                                                  Enactment of legislation       A law to establish the country’s first Commercial National                        1
               contracts                                                                  related to enforcing           Court and eight laws to promulgate the first
                                                                                          contracts                      Commercial Code were passed. The Commercial
                                                                                                                         Court is part of the government's reform initiatives
                                                                                                                         undertaken through the Central Bank of Liberia,
                                                                                                                         which had prioritized the need to set up a dispute
                                                                                                                         settlement mechanism within the economy's
                                                                                                                         commercial sector.


               Investment   The government passed a new investment code in May            Improved regulatory            The government passed a new investment code in National                  1        1
               policy and   2010 that provides for transparency in the granting of        framework related to           May 2010 that provides for transparency in the
               promotion    investment incentives and protects investors against          investment policy and          granting of investment incentives and protects
                            expropriation. It also allows for repatriation of profits,    promotion                      investors against expropriation. It also allows for
                            protection of intellectual property rights, and provides                                     repatriation of profits, protection of intellectual
                            investors with access to international dispute resolution                                    property rights, and provides investors with access
                            mechanisms. Under the new law, the number of sectors                                         to international dispute resolution mechanisms.
                            reserved exclusively for the indigenous population has been                                  Under the new law, the number of sectors
                            reduced by 50 percent, which opens the remaining half to                                     reserved exclusively for the indigenous population
                            international investment.                                                                    has been reduced by 50 percent, which opens the
                                                                                                                         remaining half to international investment.
                                                                        Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                                 Result type
                                                                                                                                                                                 (National /
Country         Topic          Reform Description                                             Result indicator             Result Description                                    Subnational)   Reform Result
                Public private Liberia Better Business Forum supported a highly successful    Number of PPD-sponsored      Eight laws establishing Liberia's first commercial    National             1      8
                dialogue       effort to draft, advocate, and support the passage of eight    Investment Climate           code were passed by the legislature on September
                               laws establishing the country's first commercial code, which   reforms enacted which        16, 2010. These laws cover general provisions,
                               were passed by the legislature on September 16, 2010.          were directly supported by   sales, leases, finance Leases, negotiable
                               These laws cover general provisions, sales, leases, finance    the PPD project team         instruments, secured transactions, mortgages, and
                               leases, negotiable instruments, secured transactions,                                       commercial arbitration. The passage of the laws
                               mortgages, and commercial arbitration. The passage of the                                   has contributed to an improved investment
                               laws has contributed to an improved investment climate,                                     climate, greater security for commercial
                               greater security for commercial transactions, improved                                      transactions, improved access to finance, and
                               access to finance, and greater confidence in Liberia as an                                  greater confidence in Liberia as an investment
                               investment destination.                                                                     destination.




                Trade logistics The Bureau of Customs and Excise enhanced and              Reduction in the number of      It is no longer necessary for cargo to be physically National             1       1
                                broadened the efficacy of the risk-based inspection regime procedures at Customs           escorted when in transit or being transshipped
                                at the border and implemented online submission of         related to trade logistics      through Liberia, enhancing the value of the port of
                                customs forms. As a result, the time to export decreased                                   Monrovia as a transit port. This improvement will
                                from 17 to 15 days and the time to import from 15 to 14                                    help reduce costs for the private sector, specifically
                                days.                                                                                      brokers and importers who use Liberia as a transit
                                                                                                                           country for importing goods into Guinea and Sierra
                                                                                                                           Leone. International best practice calls for not
                                                                                                                           physically escorting cargo (by customs officers)
                                                                                                                           when an appropriate bond has been paid to cover
                                                                                                                           customs charges
                Trade logistics                                                               Implementation or            The Liberian Bureau of Customs signed a border         National                   1
                                                                                              improvement of risk          cooperation agreement with the National Customs
                                                                                              targeting strategies related Department of the Republic of Guinea. This
                                                                                              to trade logistics           agreement allows for the exchange of information
                                                                                                                           and intelligence between the two countries
                                                                                                                           regarding border management issues and
                                                                                                                           strategies to help improve the targeting of high risk
                                                                                                                           cargo across land and sea borders
Liberia Total                                                                                                                                                                                        3      12
                                                                      Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                             Result type
                                                                                                                                                                             (National /
Country       Topic          Reform Description                                             Result indicator           Result Description                                    Subnational)   Reform Result
Macedonia     Closing a      In February 2011, the Company Law was amended to set a         Enactment of legislation   The Company Law was amended in February 2011 National                      1      1
              business       limit of 15 days for a liquidator to announce that a company   related to closing a       to set a limit of 15 days for liquidators to announce
                             is undergoing liquidation. In April 2011, the Bankruptcy Law   business                   liquidation. In April 2011 the Bankruptcy Law was
                             was amended to require bankruptcy trustees to use the e-                                  amended, requiring bankruptcy trustees to use the
                             bankruptcy system to record all phases and process actions                                e-bankruptcy system.
                             during bankruptcy proceedings.


              Closing a                                                                     Reduction in the fees to   The Central Registry further decreased the fee for National                       1
              business                                                                      close a business           voluntary liquidation of a company (by 60
                                                                                                                       percent), reducing costs for registration from MKD
                                                                                                                       1300 to MKD 500.

              Closing a                                                                Reduction in the number of Amendments to the Company Law and the                    National                      1
              business                                                                 days to close a business   Bankruptcy Law reduced the number of days
                                                                                                                  needed to close a business.
              Dealing with   The Law on Construction and the Law on Urban and Spatial Enactment of legislation    The Law on Construction and the Law on Urban             National              1       1
              construction   Planning were amended in October 2010 and February        related to construction    and Spatial Planning were amended in October
              permits        2011. The amendments eliminate the preliminary design     permits                    2010 and February 2011. The amendments
                             requirement, reduce municipal fees and set shorter                                   eliminate the preliminary design requirement,
                             deadlines for issuing permits. As a result, the number of                            reduce municipal fees, and set shorter deadlines
                             procedures to obtain a construction permit and utility                               for issuing permits.
                             connections decreased from 20 to 10, the time needed
                             from 139 to 117 days, and the cost from 1,600 to 553
                             percent of income per capita.


              Dealing with                                                                  Reduction in the cost to   As a result of amendments to the Law on            National                       1
              construction                                                                  comply with construction   Construction and the Law on Urban and Spatial
              permits                                                                       permitting                 Planning, the government reduced municipal fees
              Dealing with                                                                  Reduction in the number of b
                                                                                                                       Amendments to the Law on Construction and the National                            1
              construction                                                                  days to comply with        Law on Urban and Spatial Planning eliminated two
              permits                                                                       construction permitting    procedures and set shorter deadlines for issuing
                                                                                                                       permits, reducing the time required to comply with
                                                                                                                       construction permitting by 22 days.
Macedonia Total                                                                                                                                                                                  2       6
                                                                      Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                         Result type
                                                                                                                                                                         (National /
Country       Topic          Reform Description                                           Result indicator             Result Description                                Subnational)   Reform Result
Madagascar    Business       Effective January 1, 2009, corporate income tax and tax on   Implementation or            In 2010 the government began implementing its     National             1      1
              taxation       interest have both been reduced from 25 to 24 percent.       improvement of payment       2009 decision to simplify payment by taxpayers.
                             These rates were further reduced to 23 percent in 2010.      options for taxpayers        This improvement covers means and frequency of
                                                                                                                       payment and allows payment by bank transfer.


              Business                                                                    Rationalization in the tax   The government rationalized the tax system, base, National                    1
              taxation                                                                    rate and the tax base        and rates. The Taxe Professionnelle, two stamp
                                                                                                                       duties, and the transactions tax were eliminated.
                                                                                                                       Three distinct taxes on individuals were merged
                                                                                                                       into a single personal income tax. The tax base was
                                                                                                                       broadened, and the corporate income tax rate was
                                                                                                                       reduced from 25 to 23 percent. Value-added tax
                                                                                                                       recommendations were implemented. A simplified
                                                                                                                       tax (with simpler declaration and a reduced rate of
                                                                                                                       5 percent) was introduced for small taxpayers
                                                                                                                       (both companies and individuals).
Madagascar Total                                                                                                                                                                             1       2
Mali          Dealing with                                                                Enactment of legislation     The government enacted two measures on             National                   1
              construction                                                                related to construction      October 11, 2010 to improve and simplify
              permits                                                                     permits                      construction permits. Arrete No. 10-3336, related
                                                                                                                       to small buildings, reduced the number of required
                                                                                                                       documents by eliminating five procedures. Arrete
                                                                                                                       No. 10-3337 implemented an arbitration
                                                                                                                       committee of urbanism and construction to handle
                                                                                                                       appeals in cases when the application for
                                                                                                                       construction permit is rejected. The arbitration
                                                                                                                       committees in each region and Bamako district can
                                                                                                                       manage cases that previously needed to go to
                                                                                                                       court.
                                                                  Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                        Result type
                                                                                                                                                                        (National /
Country   Topic          Reform Description                                              Result indicator          Result Description                                   Subnational)   Reform   Result
          Dealing with                                                                   Implementation or         Commercial constructions of two stories classified National                        1
          construction                                                                   improvement of inspection as category “C” will not be required to obtain an
          permits                                                                        regime for construction   environmental study. Under the new decree,
                                                                                         permitting                builders would need to submit a notice outlining
                                                                                                                   the project’s potential hazards to the environment.
                                                                                                                   This notice needs to be approved by a DNACPN
                                                                                                                   inspection carried out within 15 days of submission
                                                                                                                   of the notice. If DNACPN discovers that the
                                                                                                                   hazards to the environment are greater than
                                                                                                                   stated in the notice, the agency can ask the project
                                                                                                                   to carry out an full environmental impact study.
          Starting a     The one-stop shop for company registration improved its         Enactment of legislation  Article 75 of Annex 3 of the new Tax Code            National            1        1
          business       operation by adding two additional steps into its workflow: related to business entry     exempted stamp duty for company registration.
                         (i) employee registration with the Social Security; (ii) filing
                         employee contract with the labor authorities. As a result,
                         the number of procedures to start a business decreased
                         from 6 to 4.


          Starting a                                                                  Creation or improvement Two agencies have been merged and now offer             National                       1
          business                                                                    at the legal and regulatory services within a one-stop shop.
                                                                                      level of institutions dealing
                                                                                      with business entry


          Starting a                                                                  Reduction in the number ofThe government introduced a signed affidavit to     National                         1
          business                                                                                              certify no criminal record for entrepreneurs
                                                                                      days it takes to comply with
                                                                                      business regulations      starting a business, reducing start-up time by 7
                                                                                      related to business entry days. In about 10 minutes, the entrepreneur can
                                                                                                                sign the affidavit and then continue the procedures
                                                                                                                while he waits to get the required two copies of
                                                                                                                the criminal record.
          Starting a                                                                 Reduction in the number of Two procedures have been integrated within the National                              1
          business                                                                   procedures it takes to     one-stop shop: filing an employee registration
                                                                                     comply with business       request with the Institut National de Prevoyance
                                                                                     regulations related to     Sociale and filing every employee contract with the
                                                                                     business entry             Direction Nationale du Travail.
                                                                           Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                                        Result type
                                                                                                                                                                                        (National /
Country        Topic           Reform Description                                                Result indicator               Result Description                                      Subnational)   Reform   Result
               Trade logistics                                                                   Implementation or              The process of scanning cargo was implemented,          National                      1
                                                                                                 Improvement of best-           reducing costs for customs brokers and importers
                                                                                                 practice procedures related    who are now able to make the goods declaration
                                                                                                 to the flow of cargo           prior to having their goods scanned.
                                                                                                                                International best practice calls for scanners to be
                                                                                                                                used as a verification tool, allowing scan results to
                                                                                                                                be compared with documents submitted by the
                                                                                                                                broker or importer.
               Trade logistics                                                                   Implementation or              The direct release form for imports was          National                            1
                                                                                                 improvement of systems         computerized. Brokers and importers are now able
                                                                                                 for computerization of         to process within the customs automation system
                                                                                                 documents related to trade     cargo shipments that qualify for direct release
                                                                                                 logistics                      from customs control.
               Trade logistics                                                                   Reduction in days to trade     The time required to import was cut from 37 to 31 National                           1
                                                                                                                                days (16 percent) and for exports from 32 to 26
                                                                                                                                days (18 percent).
Mali Total                                                                                                                                                                                                  1        9
Mexico         Access to         The government strengthened the secured transactions         Enactment of legislation          The government strengthened the secured           National                  1        1
               finance           system by implementing a centralized collateral registry     related to secured lending        transactions system by implementing a centralized
                                 with an electronic database. Now registrations for all types                                   collateral registry with an electronic database
                                 of security interest over movable property can be made                                         accessible online. As a result, Mexico's score on
                                 online at no cost.                                                                             the legal rights index increased by 1 point.


               Dealing with      The government consolidated internal processes and hired        Reduction in the number of     The government consolidated some internal           National                1        1
               construction      more personnel to issue zoning certificates. As a result, the   days it takes to comply with   processes, hired more staff to issue zoning
               permits           time to complete this procedure was reduced from 43 to 20       business regulations           certificates, and better integrated and coordinated
                                 days, and the overall time to obtain a construction permit      related to business            activities between the cadastre and municipality
                                 and utility connections from 104 to 81 days.                    operations                     on urban planning.


               Dealing with                                                                      Implementation or              Improvements in the inspection regime for        National                            1
               construction                                                                      improvement of inspection      construction permitting helped cut the time to
               permits                                                                           regime for construction        complete construction permitting procedures from
                                                                                                 permitting                     43 to 20 days (57 percent).
Mexico Total                                                                                                                                                                                                2        3
                                                                 Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                      Result type
                                                                                                                                                                      (National /
Country   Topic          Reform Description                                         Result indicator           Result Description                                     Subnational)   Reform   Result
Moldova   Dealing with                                                              Enactment of legislation   The Parliament adopted a new law on                    National                      1
          construction                                                              related to construction    authorization of execution of construction works
          permits                                                                   permits                    on July 9, 2010 which is expected to streamline
                                                                                                               processes for construction permits. The law
                                                                                                               establishes the procedure of authorization,
                                                                                                               notification, and control over the design,
                                                                                                               construction, or demolition of any kind of building,
                                                                                                               irrespective of the category, destination or type of
                                                                                                               property, except for those with military or secret
                                                                                                               objectives. The law provides a complete list of
                                                                                                               documents that authorize the execution of
                                                                                                               construction works, as well as their content,
                                                                                                               conditions and terms of issuance.




          Enforcing      Several laws were passed to increase the efficiency of the Enactment of legislation   Amendments to the Enforcement Code were                National            1        1
          contracts      court system. The Law on Court Bailiffs adopted on June 17, related to enforcing      adopted on July 2, 2010 and enacted on
                         2010 and enacted on July 23, 2010 made the first step in          contracts           September 7, 2010. Under the new provisions, the
                         changing public enforcement procedures into private ones.                             bailiff initiates the enforcement proceedings
                         Amendments to the Enforcement Code were adopted on                                    without having to give the debtor a term to comply
                         July 2, 2010 and enacted on September 7, 2010. Under the                              voluntarily with the judgment, but offers the
                         new provisions, the bailiff initiates the enforcement                                 possibility of conciliation to the parties. If the
                         proceedings without having to give the debtor a term to                               parties agree to a settlement, the bailiff will record
                         comply voluntarily with the judgment, but offers the                                  the settlement terms and then terminate
                         possibility of conciliation to the parties. As a result, the time                     enforcement proceedings. The amendments to the
                         to enforce a contract decreased from 365 to 352 days.                                 Enforcement Code also supplement the bailiffs'
                                                                                                               rights in enforcement proceedings. The Law on
                                                                                                               Court Bailiffs adopted on June 17, 2010 and
                                                                                                               enacted on July 23, 2010 made the first step in
                                                                                                               changing public enforcement procedures into
                                                                                                               private ones. Under the law, a court bailiff has
                                                                                                               powers vested by the state to meet the public
                                                                                                               interest activities in enforcement proceedings.
                                                                                                               Bailiffs’ activities are supervised by the Ministry of
                                                                                                               Justice jointly with the National Union of the
          Protecting                                                                Enactment of legislation   Amendments to the Law on Joint Stock Companies National                             1
          Investors                                                                 related to disclosure      were adopted on April 15, 2011, improving
                                                                                    (outside company law)      disclosure obligations for transactions involving
                                                                                                               conflicts of interest.
                                                                         Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                            Result type
                                                                                                                                                                            (National /
Country        Topic          Reform Description                                             Result indicator             Result Description                                Subnational)   Reform Result
               Starting a     New amendments to the Company Law were passed,                 Enactment of legislation     New amendments to the Company Law were            National             1      1
               business       creating the legal basis for the one-stop shop. As a result,   related to business entry    passed, eliminating the minimum capital
                              the number of procedures to start a business decreased                                      requirement from registration and creating the
                              from 8 to 7, and the time needed to start a business from                                   legal basis for the one-stop shop.
                              10 to 9 days.


Moldova Total                                                                                                                                                                                   2       4
Montenegro Business                                                                          Implementation or            The formally established legal and institutional   National                   1
              licensing and                                                                  improvement of               mechanism for permanent consultations (the
              regulatory                                                                     consultation mechanisms in   Council) began acting as an oversight authority
              governance                                                                     the business regulatory      with monthly meetings involving the private
                                                                                             process                      sector. At the regulatory level, working groups
                                                                                                                          became active and seven consultations were held
                                                                                                                          with the private sector to solicit recommendations
                                                                                                                          for improving or abolishing regulations. The seven
                                                                                                                          consultations included: three meetings on
                                                                                                                          construction permits with three companies, the
                                                                                                                          Association of Builders, and the Association of
                                                                                                                          Architects; one meeting with the chamber of
                                                                                                                          commerce on the draft Omnibus law on
                                                                                                                          construction permits; one consultation with the
                                                                                                                          chamber of commerce on the Law on Spatial
                                                                                                                          Planning; one consultation with the chamber of
                                                                                                                          commerce on the Law on Labor; one consultation
                                                                                                                          with trade unions on the Law on Labor.




               Closing a      A new Bankruptcy Law was passed in December 2010 and Enactment of legislation               A new Bankruptcy Law passed in December 2010 National                 1       1
               business       entered into force in January 2011. The law, harmonized     related to closing a            and entered into force in January 2011 sets
                              with the contemporary Bankruptcy Law of Europe,             business                        deadlines for bankruptcy proceedings, introduces
                              introduced reorganization and liquidation proceedings, sets                                 mediation, and outlines the functions of a
                              time limits for these proceedings, and provides the                                         bankruptcy court. The law is harmonized with the
                              possibility of recovery of secured creditors' claims and                                    contemporary Bankruptcy Law of Europe.
                              settlement before completion of the entire bankruptcy
                              procedure.
                                                                 Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                               Result type
                                                                                                                                                               (National /
Country   Topic          Reform Description                                          Result indicator           Result Description                             Subnational)   Reform   Result
          Closing a                                                                  Improved regulatory        A new Bankruptcy Law was adopted by Parliament National                      1
          business                                                                   framework related to       on December 22, 2010, facilitating the use of
                                                                                     restructuring and          mediation in the resolution of insolvencies.
                                                                                     i l
          Closing a                                                                  Reduction in the number of As a result of the new Bankruptcy Law, the time    National                 1
          business                                                                   days to close a business   needed to close a business is expected to decrease
                                                                                                                by around 20 percent (from 24 to 19 months).

          Dealing with                                                               Enactment of legislation   Six laws related to construction were amended    National                   1
          construction                                                               related to construction    and set up a one-stop shop for construction
          permits                                                                    permits                    permitting as follows: Law on Amendments to the
                                                                                                                Law on Spatial Planning and Construction, Law on
                                                                                                                Amendments to the Law on Electronic
                                                                                                                Communication, Law on Amendments to the Law
                                                                                                                on Protection and Rescue, Law on Amendments to
                                                                                                                the Law on Waters, Law on Amendments to the
                                                                                                                Law on Agricultural Land, and Law on
                                                                                                                Amendments to the Law on Geological Researches
          Dealing with                                                               Reduction in the number of As a result of amendments to six construction-   National                   1
          construction                                                               days to comply with        related laws, the time required to comply with
          permits                                                                    construction permitting    construction permtting was reduced by 50 days
                                                                                                                (21 percent)
          Dealing with                                                               Reduction in the number of Amendments to six construction-related laws      National                   1
          construction                                                               procedures to comply with reduced the number of required procedures from
          permits                                                                    construction permitting    14 to 2.
          Registering                                                                Reduction in the number of A new decree was passed promulgating the Law on National                    1
          property                                                                   procedure to register      the Improvement of the Business Environment.
                                                                                     property                   The decree reduces a number of administrative
                                                                                                                fees, including the court fee associated with the
                                                                                                                signing and authentication of signatures in the
                                                                                                                transfer of property title at the Municipal Court.
          Starting a     A one-stop shop for company registration was established    Enactment of new           The Law on Accounting and Auditing, the Law on    National         1        1
          business       within the Central Registry of the Commercial Court. As a   legislation related to     Tax Administration, and the Company Law were
                         result, the number of procedures to start a business        business entry             amended to account for the establishment of a
                         decreased from 7 to 6.                                                                 one-stop shop.


          Starting a                                                                 Reduction in the number of The number of days required to start a business   National                  1
          business                                                                   days it takes to comply with was cut from 10 to 5.
                                                                                     business regulations
                                                                                     related to business entry
                                                                     Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                       Result type
                                                                                                                                                                       (National /
Country       Topic          Reform Description                                         Result indicator           Result Description                                  Subnational)   Reform   Result
              Starting a                                                                Reduction in the number of The number of procedures required to start a        National                      1
              business                                                                  procedures it takes to     business was cut from 7 to 6.
                                                                                        comply with business
                                                                                        regulations related to
                                                                                        business entry
Montenegro Total                                                                                                                                                                           2       11
Morocco       Dealing with   The one-stop shop for construction permitting established Reduction in the number of The construction permit can be obtained in 15         National           1        1
              construction   in Casablanca at the end of 2005 became fully operational days to comply with        days, the land registry plan in 7 days (a decrease of
              permits        and widely used by entrepreneurs by the second half of      construction permitting  2 days), and a certificate of conformity in 30 days.
                             2010. As a result, the number of procedures to obtain a
                             construction permit and utility connections decreased from
                             16 to 15, the time needed from 104 to 97 days, and the cost
                             from 246 to 235 percent of income per capita.The
                             construction permit can be obtained in 15 days (down from
                             20 last year), and the land registry plan in 7 days (down
                             from 9).


              Dealing with                                                              Enactment of legislation    The one-stop shop for construction permitting       National                    1
              construction                                                              related to construction     established by a decision of the Wali of Casablanca
              permits                                                                   permits                     in November 2005 became fully operational and
                                                                                                                    widely used by entrepreneurs.

              Dealing with                                                              Reduction in the number of Entrepreneurs no longer need to request and        National                      1
              construction                                                              procedures to comply with receive a technical inspection for building control
              permits                                                                   construction permitting    from the Ministry of Economic Development. As
                                                                                                                   of June 2010, the company in charge of water and
                                                                                                                   sewerage and electricity connections requires only
                                                                                                                   one application for these two services.

              Starting a                                                                Enactment of legislation    The government eliminated the minimum capital      National                     1
              business                                                                  related to business entry   requirement, cutting the cost of starting a new
                                                                                                                    firm by 42 percent.
                                                                        Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                            Result type
                                                                                                                                                                            (National /
Country        Topic          Reform Description                                           Result indicator           Result Description                                    Subnational)   Reform   Result
               Starting a                                                                  Reduction in the number of The government eliminated 3 of 6 procedures. The National                           1
               business                                                                    procedures to comply with requirement that the company's statutes and
                                                                                           business regulations       leasing contracts be legalized to establish proof of
                                                                                           related to business entry  residence was eliminated. The company's name
                                                                                                                      search can be dealt with online and confirmed as
                                                                                                                      part of an integrated set of registration formalities
                                                                                                                      at the one-stop-shop of Casablanca. The procedure
                                                                                                                      at the prefecture has no legal basis and is no
                                                                                                                      longer required
Morocco Total                                                                                                                                                                                   1        5
Paraguay      Dealing with    The Municipality of Assuncion created a single window for Enactment of legislation       Paraguay made dealing with construction permits National                 1        1
              construction    building permit approvals. This initiative includes the        related to construction   easier by implementing a risk-based approval
              permits         implementation of a new checklist system for accepting         permits                   system, a more comprehensive checking process
                              building permit applications and a risk-based approval                                   for applications, and a single window to obtain
                              system. As a result, the time to obtain a building permit was                            construction permits.
                              shortened by 42 days, (from 63 to 21), and the overall time
                              to obtain all permits and utility connections fell from 179 to
                              137 days.


               Dealing with                                                                Reduction in the number of Improvements in the process of obtaining a           National                      1
               construction                                                                days to comply with        construction permit resulted in a reduction of 42
               permits                                                                     construction permitting    days (from 63 to 21).
Paraguay Total                                                                                                                                                                                  1        2
Peru           Business       The Law 29566 of July 9, 2010 led to improvements in         Reduction in time of days it A law was enacted in July 2010 to improve the      National             1        1
               taxation       electronic filing and payment of three major taxes. As a     takes to file taxes          investment climate and facilitate payment of taxes
                              result, the time to prepare, file, and pay taxes decreased                                in Peru.
                              from 380 to 309 hours.

               Protecting     On July 28, 2010, the government amended the Companies Enactment of legislation          Amendments to the Companies Law strengthened National                    1        1
               Investors      Law by adopting Law no. 29566. The law strengthened       related to company             investor protections by allowing minority
                              investor protections by allowing minority shareholders,   legislation                    shareholders (holding 5 percent of the company's
                              holding 5 percent of a company's paid capital, to request                                paid capital) to request access to non-confidential
                              access to non-confidential corporate documents.                                          corporate documents. Previously an individual
                                                                                                                       shareholder did not have the right to inspect
                                                                                                                       internal documents and minority shareholders
                                                                                                                       (holding 10 percent) could only demand inspection
                                                                                                                       by independent third parties such as auditing
                                                                                                                       firms. As a result, Peru's score on the shareholder
                                                                                                                       suit index increased by 1 point, from 7 to 8 (of 10),
                                                                                                                       and by 0.3 on the Ease of Protecting Investors
                                                                      Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                              Result type
                                                                                                                                                                              (National /
Country       Topic        Reform Description                                           Result indicator                 Result Description                                   Subnational)   Reform Result
              Starting a   The Law No. 29566, published on July 9, 2010                 Enactment of legislation         The government enacted a law on July 9, 2010 to      National             1      1
              business     (implemented by Decree No. 001-2001-PRODUCE, January related to business entry                improve the investment climate and facilitate
                           23, 2011) eliminated the requirement for micro and small                                      payment of taxes. The law makes starting a
                           enterprises to deposit start-up capital in a bank before                                      business easier by eliminating the requirement for
                           registration. As a result, the number of procedures to start                                  micro and small enterprises to deposit start-up
                           a business decreased from 7 to 6, the time from 27 to 26                                      capital in a bank before registration.
                           days, and the cost from 13.6 to 11.9 percent of income per
                           capita.


Peru Total                                                                                                                                                                                        3       3
Romania       Closing a    The government promulgated in September 2010 the                Implementation or             The government promulgated in September 2010 National                    1       1
              business     Corporate Debt Restructuring Guidelines for out-of-court        improvement of best           the Corporate Debt Restructuring Guidelines for
                           workouts, which have been published on the Web sites of         practice voluntary/informal   out-of-court workouts, which have been published
                           the Ministry of Justice, Ministry of Finance, and the Central   business restructuring        on the Web sites of the Ministry of Justice,
                           Bank. The guidelines will contribute to an increase in the      procedures                    Ministry of Finance, and the Central Bank. The
                           resolution of insolvency cases out of court, which can be                                     guidelines will contribute to an increase in the
                           expected to reduce the time and transaction cost of                                           resolution of insolvency cases out of court, which
                           insolvency cases and increase the rate of successful                                          can be expected to reduce the time and
                           business turnaround.                                                                          transaction cost of insolvency cases and increase
                                                                                                                         the rate of successful business turnaround.


Romania Total                                                                                                                                                                                     1       1
Rwanda        Closing a                                                                    Enactment of legislation      The government introduced the Insolvency Law,       National                     1
              business                                                                     related to closing a          the country’s first complete bankruptcy regulation.
                                                                                           business                      The law’s main objectives are the maximization of
                                                                                                                         value of the debtor’s assets, the equitable
                                                                                                                         treatment to creditors of the same category, the
                                                                                                                         preservation of insolvent estates, and the
                                                                                                                         facilitation for honest debtors to be discharged
                                                                                                                         from residual debt. These objectives are aligned
                                                                                                                         with international leading practices.
                                                                         Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                                  Result type
                                                                                                                                                                                  (National /
Country         Topic           Reform Description                                             Result indicator            Result Description                                     Subnational)   Reform Result
                Special         The Special Economic Law #05/2011 was enacted on March         Improved institutional      The government enacted the Special Economic            National             1      1
                economic        21, 2011. The law regulates the establishment,                 framework related to        Law of March 21, 2011, which regulates the
                zones           development, operation and maintenance of special              special ecoonomic zones     establishment, development, operation, and
                                economic zones, including description of permitted             (SEZs)                      maintenance of special economic zones in Rwanda.
                                activities (all activities, unless specifically prohibited),                               A SEZ Regulatory Unit was established at the
                                thereby allowing for broad economic development and                                        Rwanda Development Board to ensure fair and
                                diversification. In addition, a SEZ Regulatory Unit was                                    transparent treatment of businesses within the
                                established at the Rwanda Development Board to ensure                                      zone. Draft SEZ regulations were prepared.
                                fair and transparent treatment of businesses within the
                                zone, while acting as an "honest broker" between
                                businesses and the government, and also to reduce the
                                administrative burden on businesses in the zone.




Rwanda Total                                                                                                                                                                                          1       2
Senegal      Dealing with                                                                      Reduction in the number of A single window for construction permits has            National                    1
             construction                                                                      days to comply with        centralized the processing of applications at the
             permits                                                                           construction permitting    municipal level, reducing the number of
                                                                                                                          procedures and the time required to obtain a
Senegal Total                                                                                                                                                                                         1       1
Serbia          Business        The Decision on the Office for Regulatory Reform and           Change in the costs to      Following improvements in Serbia's business     National                   1       1
                licensing and   Regulatory Impact Assessment was adopted by the                comply with regulations     procedures, annual aggregated private-sector
                regulatory      government on November 18, 2010. As a result of a              related to business         direct costs were reduced by $44,555,541 (63
                governance      regulatory reform: 625 (11 percent) of 5,900 proposed          operation                   percent of the baseline) based on Standard Cost
                                business procedures were simplified or improved; 355 (11                                   Model data after recommendations were adopted
                                percent) of 3,170 inventoried and reviewed business laws                                   and implemented.
                                and regulations were abrogated or improved; and annual
                                aggregated private-sector direct costs were reduced by
                                $44,555,541 (63 percent of the baseline).


                Business                                                                       Enactment of legislation    The Decision on the Office for Regulatory Reform       National                    1
                licensing and                                                                  related to the business     and Regulatory Impact Assessment was adopted
                regulatory                                                                     regulatory system           by the government on November 18, 2010. It
                governance                                                                                                 establishes the agency as part of the civil service,
                                                                                                                           subordinate to the government, with ex officio
                                                                                                                           authority for oversight of the regulatory
                                                                                                                           framework. The Office will apply regulatory
                                                                                                                           governance principles and criteria
                                                                        Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                            Result type
                                                                                                                                                                            (National /
Country        Topic         Reform Description                                            Result indicator                Result Description                               Subnational)   Reform   Result
               Business                                                                    Rationalization in the          Of 5,900 proposed business procedures, 625 (11   National                      1
               licensing and                                                               number of procedures to         percent) were simplified, improved, or eliminated
               regulatory                                                                  comply with business            as a result of regulatory reform. All of these
               governance                                                                  regulations related to          improvements were introduced into the legal
                                                                                           business operations             system through the adoption or abrogation of
                                                                                                                           appropriate legal acts
               Business                                                                    Rationalization in the          Of 3,170 inventoried and reviewed business laws National                      1
               licensing and                                                               number of regulations           and regulations, 355 (11 percent) were abrogated
               regulatory                                                                  related to business             or improved as a result of regulatory reform.
               governance                                                                  operations


Serbia Total                                                                                                                                                                                    1        4
Sierra Leone   Business                                                                    Implementation or               The National Revenue Authority made compliance National                       1
               taxation                                                                    improvement of best             easier for taxpayers by allowing tax payments to
                                                                                           practice tax enforcement        be made an any of eight major banks. Previously
                                                                                           procedure and practices         payments had to be made at tax offices.

               Business                                                                    Implementation or               The National Revenue Authority combined the tax National                      1
               taxation                                                                    Improvement of payment          and business registration offices, allowing
                                                                                           options for taxpayers           registration for new business and registration for
                                                                                                                           tax purposes to be conducted at the same location.
                                                                                                                           Previously, new businesses were required to
                                                                                                                           complete their tax registration at a tax office,
                                                                                                                           which could present opportunities for harassment
                                                                                                                           and demands for pre-payment of taxes.

               Closing a       A fast-track commercial court became operational in May     Creation or improvement         The government established specialized industrial National           1        1
               business        2011. The court will expedite commercial cases, including   at the legal and regulatory     courts to deal with reorganization proceedings,
                               insolvency proceedings                                      level of institutions dealing   which expedited the hearing of commercial cases
                                                                                           with closing a business         involving these proceedings.

               Dealing with    The government made dealing with construction permits        Reduction in the number of     The government made dealing with construction National               1        1
               construction    easier by moving the process from the Ministry of Lands to days to comply with              permits easier by moving the process from the
               permits         the Ministry of Works. This led to a reduction of 31 days in construction permitting        Ministry of Lands to the Ministry of Works. This led
                               the time to issue location clearances and building permits,                                 to a reduction of 31 days in the time to issue
                               reducing the total time businesses need to obtain permits                                   location clearances and building permits.
                               and utility connections from 269 to 238 days.
                                                                         Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                              Result type
                                                                                                                                                                              (National /
Country         Topic         Reform Description                                         Result indicator              Result Description                                     Subnational)   Reform Result
                Enforcing     A fast-track commercial court became operational in May Creation or improvement A fast commercial court was set up and started to National                           1      1
                contracts     2011. The court will be fully automated and have real-time at the legal and regulatory hear cases in May 2011. The court will be fully
                              transcription of the proceedings.                          level of institutions dealing automated and have real-time transcription of the
                                                                                         with enforcing contracts      proceedings. Prior to the court's opening, the team
                                                                                                                       recommended the establishment of the reform
                                                                                                                       coordination mechanism that ensured the
                                                                                                                       commercial courts would start their operations.
                                                                                                                       This coordination included raising awareness
                                                                                                                       among the legal community and a broad
                                                                                                                       communications campaign to help ensure that
                                                                                                                       cases are brought to the commercial court.
                Registering   The government lifted the moratorium of land transfer,     Reduction in the number of The government lifted the moratorium of land              National            1       1
                property      significantly improving the time it takes to transfer      days to register property     transfer, significantly improving the time it takes to
                              property. The time needed to register property was                                       transfer property. The time needed to register
                              reduced from 235 to 86 days.                                                             property was reduced from 235 to 86 days.

                Registering                                                                  Enactment of legislation    The Land Survey Act was amended in January 2011 National                         1
                property                                                                     related to construction     to allow the digitization of land surveys. Work to
                                                                                             permits                     improve the survey map will enable a modern
                                                                                                                         cadastre system in the medium term.

Sierra Leone Total                                                                                                                                                                                4       7
Syrian Arab     Starting a    The Legislative Decree 29 of 2011 reduced the minimum          Enactment of legislation    A legislative decree reduced the minimum capital   National              1       1
Republic        business      capital requirement from SYP 1,000,000 to SYP 400,000          related to business entry   requirement from SYP 1,000,000 to SYP 400,000
                              (from $21,070 to $8,428).                                                                  (from $21,070 to $8,428).

Syrian Arab Republic Total                                                                                                                                                                        1       1
Tajikistan     Starting a     Amendments to the Law of the Republic of Tajikistan "On Enactment of new                   Amendments to the Law on Limited Liability          National             1       1
               business       Limited Liability Companies" adopted on December 29,           legislation related to      Companies were adopted on December 29, 2010,
                              2010 removed the requirement to pay 50 percent of the          business entry              eliminating the minimum capital required to start a
                              minimum capital before registration. Instead, this amount                                  business.
                              may be paid in up to one year after registration. As a result,
                              the number of procedures to start a business decreased
                              from 8 to 5, the time needed from 27 to 24 days, and the
                              cost from 37 to 33 percent of income per capita.
                                                                        Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                                Result type
                                                                                                                                                                                (National /
Country          Topic        Reform Description                                              Result indicator             Result Description                                   Subnational)   Reform   Result
                 Starting a                                                                   Reduction in the number of The government reduced the time entrepreneurs          National                      1
                 business                                                                     days it takes to comply with need to start a business from 27 to 24 days.
                                                                                              business regulations
                                                                                              related to business entry


                 Starting a                                                                   Reduction in the number of     The government eliminated three procedures:        National                     1
                 business                                                                     procedures it takes to         registering the company with the State
                                                                                              comply with business           Registration of Legal Entities and Individual
                                                                                              regulations related to         Entrepreneurs and obtaining the state registration
                                                                                              business entry                 certificate; obtaining a statistics code at the
                                                                                                                             Statistics Committee; and registering with the
                                                                                                                             Agency for Social Protection and Pension and
                                                                                                                             obtaining a social insurance number.


Tajikistan Total                                                                                                                                                                                    1        3
United Arab      Starting a   The newly established online business registration system       Creation or improvement The newly established online business registration National                   1        1
Emirates         business     was launched in October 2010. The online portal allows the      at the legal and regulatory system was launched in October 2010.
                              entrepreneur to file a single form for business registration,   level of institutions dealing
                              licensing, and membership with the Dubai Chamber of             with business entry
                              Commerce. As a result, the number of procedures to start a
                              business was reduced from 9 to 8, the time needed from 15
                              to 13 days, and the cost from 6.4 to 5.6 percent of income
                              per capita.


                 Starting a                                                                   Reduction in the number of     The introduction of a single form for business     National                     1
                 business                                                                     days it takes to comply with   registration, licensing, and membership with the
                                                                                              business regulations           Dubai Chamber of Commerce reduced the time
                                                                                              related to business entry      needed to start a business from 15 to 13 days.


                 Starting a                                                                   Reduction in the number of     In early 2011 the online portal process was         National                    1
                 business                                                                     procedures it takes to         improved to allow the entrepreneur to file a single
                                                                                              comply with business           form for business registration, licensing, and
                                                                                              regulations related to         membership with the Dubai Chamber of
                                                                                              business entry                 Commerce.

United Arab Emirates Total                                                                                                                                                                          1        3
                                                                      Annex 1: Reforms and Results Supported by FIAS in FY11

                                                                                                                                                                             Result type
                                                                                                                                                                             (National /
Country        Topic       Reform Description                                                Result indicator        Result Description                                      Subnational)   Reform Result
Yemen,         Special     The government passed the law that created the board for          Improved regulatory     The government passed legislation creating the          National             1      1
Republic of    economic    the new special economic zone authority, providing it with        framework related to    board for the new special economic zone
               zones       powers that helped streamline zone approval and                   investment generation   authority, providing it with powers that helped
                           development. The decree decentralizes regulations of zones                                streamline zone approval and development. The
                           and their enterprises to the regional authority. It also allows                           decree decentralizes regulations of zones and their
                           for private sector representation on the board.                                           enterprises to the regional authority. It also allows
                                                                                                                     for private sector representation on the board.




Yemen, Republic of Total                                                                                                                                                                         1       1
Grand Total                                                                                                                                                                                     41     128
                                                                      Annex 2: Other Reforms and Results Supported by FIAS FY11



The following table summarizes the 81 results of projects not mapped directly to the FIAS program but that received at least 10 percent of their budgets from FIAS in FY11. They are summarized by type of result
and include a brief description of the achievements. Of these results, 43 were achieved at the subnational level. These results contributed to 14 Doing Business reforms (in addition to the 41 Doing Business
reforms to which the results in Annex 1 contributed). The results that have contributed to a particular reform are shaded together with the reform in the same background color.
                                                                                                                                                                              Result type
                                                                                                                                                                              (National /
Country        Topic             IC Reform Description                                          Result indicator           Edited text                                        Subnational / Reform Results
Armenia        Business          The Decision #1493, Oct. 18, 2010, instituted an inspection Enactment of legislation      The government instituted an inspection            National                 1        1
               licensing and     moratorium, which prohibits the inspection agencies from related to the business          moratorium on October 18, 2010 which prohibits
               regulatory        inspecting smaller businesses until the agencies adopt a risk- regulatory system          the inspection agencies from inspecting smaller
               governance        based inspection system. The moratorium does not apply to                                 businesses until the agencies adopt a risk-based
                                 tax inspections.                                                                          inspection system. The moratorium does not
                                                                                                                           apply to tax inspections. A presidential decree
                                                                                                                           issued on December 11, 2010 merged the food
                                                                                                                           safety and veterinary inspection and the
                                                                                                                           phytosanitary inspection of the Ministry of
                                                                                                                           Agriculture and created a new food safety agency.


               Business                                                                     Enactment of legislation     On June 23, 2011 the government adopted the        National                           1
               licensing and                                                                related to the business      Law on Urban Development.
               regulatory                                                                   regulatory system
               governance

               Business        Amendments to tax laws made tax compliance for firms         Enactment of legislation     The government reduced the number of property National                     1          1
               taxation        easier by reducing the number of payments for corporate      related to business taxation tax and land tax payments from 12 to 6; the
                               income and labor taxes. As a result, the number of tax                                    number of reports, statements, and returns from
                               payments made by a medium-size company in Armenia                                         71 to 42; and the time spent on tax accounting and
                               decreased from 50 to 34 and the time to prepare, file, and                                filing of reports from 581 (Doing Business 2011 ) to
                               pay taxes decreased from 581 to 500 hours.                                                500 hours (Doing Business 2012 ). The requirement
                                                                                                                         that taxpayers file certain applications and other
                                                                                                                         documents (around 30) was eliminated.
                                                                  Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                                           Result type
                                                                                                                                                                           (National /
Country   Topic             IC Reform Description                                          Result indicator           Edited text                                          Subnational /   Reform       Results
          Dealing with      The Decision #1617-N on Amendments to the earlier              Enactment of legislation   The government adopted amendments to its two         National                 1             1
          construction      Decision on Mandatory Environmental Expertise, adopted         related to construction    decisions: Mandatory Environmental Expertise and
          permits           Dec. 9, 2010, introduced a risk-based approach to the          permits                    Construction Process. Also, two decisions of the
                            construction permitting process, eliminating the                                          Public Services Regulation Council established new
                            requirement to obtain an environmental impact assessment                                  deadlines for approval (and submission to the
                            for small projects. As a result, the number of procedures to                              Municipality) of plans for electricity and gas
                            obtain a building permit decreased from 19 to 18, the time                                connections. A risk-based approach to the
                            needed from 136 to 79 days, and the cost from 122 to 57                                   permitting process for different categories was
                            percent of the income per capita.                                                         defined, and the time allowed for the permitting
                                                                                                                      process was reduced and differentiated for each
                                                                                                                      risk category.



          Starting a        In December 2010 the Parliament adopted a package of         Enactment of legislation     On Dec. 21, 2010 the Parliament adopted a            National                 1             1
          business          amendments to Laws "On State Registration of Legal           related to business entry    package of amendments, eliminating three
                            Entities" and "On Tax Registration and Deregistration of                                  procedures: the state registry will provide a Tax
                            Organizations and Individuals," which led to the creation of                              Identification Number, which eliminates the need
                            a one-stop shop for business registration. Companies and                                  for visits to the tax office; commercial
                            individual entrepreneurs can now obtain the name                                          organizations are no longer required to provide a
                            reservation, business registration, and tax identification                                bylaw for registration; and individual
                            number at a single location at the same time. As a result,                                entrepreneurs are not required to pass the state
                            the number of procedures to start a business decreased                                    registration process (a simple application form will
                            from 5 to 3, and the time needed to complete the process                                  be enough to start a business).
                            from 14 to 8 days.



          Trade logistics                                                                  Implementation or          The government allocated funding to establish an National                                   1
                                                                                           improvement of payment     effective link between the customs clearance
                                                                                           systems for trade          system and the banking/payment system. Traders
                                                                                                                      can now pay customs fees and duties and receive
                                                                                                                      confirmation of payment via the electronic system.
                                                                                                                      The government also introduced provisions which
                                                                                                                      allow customs officers to electronically approve
                                                                                                                      the customs declaration and release goods. Both
                                                                                                                      improvements reduce transaction costs by
                                                                                                                      eliminating the need for traders to visit the
                                                                                                                      Customs office.
                                                    Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                 Result type
                                                                                                                                                 (National /
Country   Topic             IC Reform Description                   Result indicator         Edited text                                         Subnational /   Reform   Results
          Trade logistics                                           Implementation or        The government adopted 10 legal acts to improve National                               1
                                                                    improvement of processes and simplify trade procedures for mandatory
                                                                    at technical control     certification during importation; certification and
                                                                    agencies                 permissions during import of measuring devices;
                                                                                             certification of product origin during export and
                                                                                             import; permission for export of dual use goods;
                                                                                             veterinary controls during the import and export of
                                                                                             animal products; and phytosanitary controls during
                                                                                             import/export of plants. These changes are
                                                                                             expected to reduce the cost and time of trade
                                                                                             procedures. They also target improvements in risk-
                                                                                             based control and clarification of the
                                                                                             documentation and functions of agencies involved
                                                                                             in the import and export process.




          Trade logistics                                           Implementation or           The government introduced provisions which allow National                           1
                                                                    improvement of processes    customs officers to approve the customs
                                                                    at technical control        declaration and release goods via the electronic
                                                                    agencies related to trade   system. Previously traders visited the customs
                                                                    logistics                   office to obtain a seal on the paper copy of the
                                                                                                declaration. The government also allocated
                                                                                                funding to establish an effective link between the
                                                                                                customs clearance system and the
                                                                                                banking/payment system.


          Trade logistics                                           Implementation or           The government amended the Customs Code and National                                1
                                                                    improvement of risk         adopted measures to ensure the effective use of a
                                                                    management related to       risk management system for customs clearance
                                                                    trade logistics             and control. The measures aim to reduce the rate
                                                                                                of physical inspections of cargo crossing Armenia's
                                                                                                borders, thus saving time and money.
                                                          Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                           Result type
                                                                                                                                                           (National /
Country         Topic             IC Reform Description                   Result indicator           Edited text                                           Subnational /   Reform       Results
                Trade logistics                                           Implementation or          Amendments to the Customs Code aimed at               National                                1
                                                                          improvement of trade       simplifying customs valuation procedures were
                                                                          logistics standards and    drafted, submitted to the Parliament for adoption,
                                                                          quality                    and two legal acts were adopted. The legal acts
                                                                                                     set limits on the customs authority’s response time
                                                                                                     for importers’ applications during the customs
                                                                                                     clearance process. The deadline of 2 days
                                                                                                     (previously 5 days) was set for acceptance or
                                                                                                     rejection of the customs value of imported goods
                                                                                                     based on the transaction value method. If the
                                                                                                     decision is not made within 2 days, the customs
                                                                                                     value presented by the applicant is deemed
                                                                                                     accepted.



                Trade logistics                                           Reduction in the number of The government reduced the time exporters and         National                                1
                                                                          days to trade              importers must spend in conducting their trade
                                                                                                     procedures. The number of days for export was
                                                                                                     reduced by 4 ( a more than 10 percent reduction
                                                                                                     from the baseline), and the number of days to
                                                                                                     import was reduced by 2 (as reported in Doing
                                                                                                     Business 2011).

                Trade logistics                                           Reduction in the number of The number of trade documents was reduced by 3 National                                       1
                                                                          documents related to trade including two export and one import documents,
                                                                                                     as reported in Doing Business 2010. Close
                                                                                                     cooperation with customs authorities and joint
                                                                                                     efforts contributed significantly to this
                                                                                                     improvement, which reflects a 10 percent
                                                                                                     reduction from the baseline.

Armenia Total                                                                                                                                                                       4             12
                                                     Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                            Result type
                                                                                                                                                            (National /
Country      Topic           IC Reform Description                   Result indicator                Edited text                                            Subnational /   Reform   Results
Belarus      Closing a                                               Improved regulatory             A presidential decree improved procedures for          National                           1
             business                                                framework related to            economic insolvency, providing for: creditors to
                                                                     restructuring and               acquire the debtor's immovable assets without
                                                                     insolvency                      documents certifying their state registration
                                                                                                     (although there is no efficient mechanism for
                                                                                                     application); a debtor to transfer illiquid assets
                                                                                                     against the debt; more options to dispose of
                                                                                                     receivables; and tax exemption on sale turnover
                                                                                                     and profit from sale of the debtor's entity property
                                                                                                     complex.


Belarus Total                                                                                                                                                                                  1
Bosnia and    Business                                               Creation or improvement         As a result of the enactment of legislation at the   Subnational                          1
Herzegovina licensing and                                            at the legal and regulatory     local level, a regulatory body dealing with
              regulatory                                             level of institutions dealing   regulatory management and reform was created in
              governance                                             with business regulatory        the municipality of Siroki Brijeg. This sort of
                                                                     management and reform           institution did not previously exist and the concept
                                                                                                     is new for the municipality.




             Business                                                Creation or improvement         Regulatory bodies dealing with regulatory              Subnational                        6
             licensing and                                           at the legal and regulatory     management and reform were created in six
             regulatory                                              level of institutions dealing   localities. Responsibilities and tasks of these bodies
             governance                                              with business regulatory        are defined in the legal acts adopted at the local
                                                                     management and reform           level. Changes are implemented after regulatory
                                                                                                     review by these bodies and approval of the
                                                                                                     proposal by the local authorities.


             Business                                                Implementation of an e-         E-registries were completed, tested, and became        Subnational                        4
             licensing and                                           registry of administrative      fully operational in Modrica, Zvornik, Novi Grad,
             regulatory                                              procedures                      and Gorazde. The e-registries contain all
             governance                                                                              information on local administrative procedures
                                                                                                     and documents and forms can be downloaded.
                                                  Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                       Result type
                                                                                                                                                       (National /
Country   Topic           IC Reform Description                   Result indicator            Edited text                                              Subnational /   Reform   Results
          Business                                                Implementation of an e-     Six e-registries of administrative procedures were       Subnational                        6
          licensing and                                           registry of adminitrative   established in the municipalities of Bijeljina, Bihac,
          regulatory                                              procedures                  Tesanj, Doboj, Visegrad, and Siroki Brijeg. The e-
          governance                                                                          registries help inform businesses of licensing and
                                                                                              other requirements to operate, including all
                                                                                              relevant information related to each single
                                                                                              formality (department, documentation and
                                                                                              information needed, taxes, fees, waiting time,
                                                                                              deadlines, contacts, and forms to file).



          Business                                                Implementation or          A systematic review of business regulations          Subnational                             1
          licensing and                                           improvement of a           proposed the simplification and elimination of
          regulatory                                              Regulatory Impact Analysis regulations at the municipal level and related to
          governance                                                                         specific sectors (such as tourism, SMEs, crafts,
                                                                                             financial). Municipal regulations were structurally
                                                                                             changed to eliminate/improve procedures as
                                                                                             follows: in Bijeljina (3 regulations changed); in
                                                                                             Tesanj, Doboj, and Bihac (3); in Visegrad and Siroki
                                                                                             Brijeg (2). Thirteen regulations that apply across
                                                                                             the federation were changed related to sectors
                                                                                             such as forestry, tourism, geology, and mining.




          Business                                                Rationalization in the      Of 96 business procedures inventoried in Siroki      Subnational                            1
          licensing and                                           number of procedures to     Brijeg municipality, 65 were improved (67 percent
          regulatory                                              comply with business        of all inventoried business procedures). Legislation
          governance                                              regulations related to      was enacted enabling implementation of the
                                                                  business operations         recommended improvements, which reduce time
                                                                                              spent on the procedures, eliminate
                                                                                              documentation, and simplify forms and
                                                                                              information obligations.
                                                  Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                  Result type
                                                                                                                                                  (National /
Country   Topic           IC Reform Description                   Result indicator           Edited text                                          Subnational /   Reform   Results
          Business                                                Rationalization in the     In the Republika Srpska, a Regulatory Impact         Subnational                        6
          licensing and                                           number of regulations      Analysis on sections of the labor law, including a
          regulatory                                              related to business        cost-benefit analysis, was completed and the
          governance                                              operations                 government began implementing its
                                                                                             recommendations. The Ministry of Labor was
                                                                                             asked to engage with social partners and find ways
                                                                                             to formulate changes to the labor law. The
                                                                                             Republika Srpska empowered its Ministry of
                                                                                             Economic Relations to establish a unit with
                                                                                             authority to oversee comments and report on the
                                                                                             quality of regulatory proposals.



          Business                                                Reduction in the cost to   Improved procedures at the municipal level             Subnational                      6
          licensing and                                           comply with business       resulted in cost savings in Bijeljina (20 percent less
          regulatory                                              regulation related to      than baseline), Doboj (31 percent), Bihac (25
          governance                                              business operation         percent), Visegrad (25 percent), Siroki Brijeg (27
                                                                                             percent), and Tesanj (31 percent).

          Investment                                              Enactment of legislation   The government adopted an amendment to the          Subnational                         1
          policy and                                              related to investment      Law on FDI, issued instructions for implementing
          promotion                                               policy and promotion       the new FDI registration policy, and assisted local
                                                                                             governments in implementing it. The policy
                                                                                             abolished the registration of businesses with the
                                                                                             Ministry of Foreign Trade and Economic Relations.
                                                                                             Foreign investors and domestic companies need
                                                                                             only register at the municipal/basic court. The
                                                                                             instructions also regulate how the courts submit,
                                                                                             record, and disclose data on registered FDI
                                                                                             business entities.
                                                                   Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                                           Result type
                                                                                                                                                                           (National /
Country       Topic           IC Reform Description                                     Result indicator              Edited text                                          Subnational /   Reform       Results
              Investment                                                                Implementation or             An electronic tracking and analyzing system was      Subnational                             2
              policy and                                                                improvement of                established at the Ministry of Foreign Trade and
              promotion                                                                 procedures related to         Economic Relations, which acts as the principal
                                                                                        investment policy and         government source on FDI inflows. In addition,
                                                                                        promotion                     new unified procedures for issuing work permits to
                                                                                                                      foreigners were drafted and put into force in June
                                                                                                                      2011. The by-law provides for a single and
                                                                                                                      streamlined process.


Bosnia and Herzegovina Total                                                                                                                                                                                      34
Burkina Faso Business        In January 2010, the Parliament adopted a new law creating Enactment of legislation      The Parliament adopted in January 2010 and           National                 1              1
              taxation       a corporate tax by merging three different taxes. The new related to business taxation   promulgated in March 2010 a new law creating a
                             corporate tax has been lowered to 27.5 percent. Effective                                corporate tax by merging three different taxes.
                             January 2010, apprentice tax has been reduced from 4 to 3                                The new corporate tax has been lowered from 30
                             percent. Also, a new tax procedure book has been adopted                                 to 27.5 percent . A new tax procedure book was
                             to provide uniform tax procedures across different offices.                              created.


              Dealing with    Dealing with construction permits became less costly and Reduction in cost to comply    The cost of the soil survey was reduced from XOF     National                 1             1
              construction    easier as a result of a reduction in the cost of the soil      with construction        600,000 to XOF 300,000 (from $1,232 to $616),
              permits         survey by a half [from XOF 600,000 to XOF 300,000 ($1,232 permitting                    and the time to process a building permit
                              to $616)] and a reduction in the time to process a building                             application was cut by a third.
                              permit application by a third (from 30 to 20 days). As a
                              result, the total cost to obtain a building permit and utility
                              connections decreased from 668 to 524 percent of income
                              per capita, and the time decreased from 108 to 98 days.



              Enforcing       The commercial court provided for under Law n°022-2009 Enactment of legislation         The government adopted in June 2010 two joint       National                  1             1
              contracts       of May 2009 became operational in October 2009. It is      related to enforcing         ministerial decrees appointing 64 new consular
                              competent for all commercial matters with a claim value in contracts                    judges at the commercial court and also initiated a
                              excess of XOF 1,000,000 ($2,053).                                                       strong training program for the commercial court
                                                                                                                      judges and clerks. Prior to this, the program
                                                                                                                      funded the design and set-up of the case
                                                                                                                      management at the lower court and supported the
                                                                                                                      lower court in implementing the automated case
                                                                                                                      management system.
                                                                 Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                                              Result type
                                                                                                                                                                              (National /
Country       Topic        IC Reform Description                                          Result indicator              Edited text                                           Subnational /   Reform       Results
              Enforcing                                                                   New/reorganized               Following adoption in May 2009 of the law             National                               1
              contracts                                                                   institution becomes           creating the commercial courts, the government
                                                                                          operational                   set up specialized commercial courts in the capital
                                                                                                                        city, Ouagadougou, and in the economic capital,
                                                                                                                        Bobo Dioulasso.

              Starting a   Following the amendments to the OHADA Uniform Act on Enactment of legislation                Following the adoption of the revised OHADA law National                       1             1
              business     General Commercial Law, the Ministry of Justice adopted in related to starting a             on general commercial law, the Ministry of Justice
                           May 2011 a sworn declaration that replaces the              business                         adopted in May 2011 a sworn declaration and a
                           requirement to submit a copy of criminal record at the time                                  circular letter was sent to all courts related to the
Burkina Faso Total                                                                                                                                                                                     4             5
Georgia       Business     The new tax code enacted from January 2011 simplified the      Implementation or             The system for filing VAT returns was improved.    National                    1             1
              taxation     system of filing value-added tax (VAT). According to the tax   improvement of                Effective with enactment of the new Tax Code,
                           code, companies can choose quarterly, instead of monthly,      mechanism for filing tax      companies can file quarterly, rather than monthly,
                           VAT payments.                                                  returns                       VAT payments.
              Business                                                                    Implementation or        The tax system for micro and smaller businesses  National                                         1
              taxation                                                                    improvement of a SME tax was reformed following the adoption of the new
                                                                                          regime                   Tax Code enacted in January 2011 and two pieces
                                                                                                                   of secondary legislation. Easy-to-read materials
                                                                                                                   were developed to help micro and small
                                                                                                                   businesses understand the new system and reduce
                                                                                                                   their compliance costs.


Georgia Total                                                                                                                                                                                          1             2
Haiti         Investment   Three companies have materialized investment and job           Increase in the number of     In FY11 investment leads increased from 5 to 11,      National                 1             1
              policy and   creation in this period: Timberland with $3 million and 400    leads from relevant sectors   which resulted in investments and job creation
              promotion    employees, Propper with $3 million and 400 employees;          into investment generation    from three companies in this period: Timberland
                           and Willbes, an existing garment company, with $4 million      pipeline                      with $3 million and an estimated 400 employees;
                           and 350 employees.                                                                           Propper with $3 million and an estimated 400
                                                                                                                        employees; and Willbes, an existing garment
                                                                                                                        company, with $4 million and hiring 350.


Haiti Total                                                                                                                                                                                            1             1
                                                                    Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                                               Result type
                                                                                                                                                                               (National /
Country        Topic         IC Reform Description                                           Result indicator             Edited text                                          Subnational /   Reform       Results
Papua New      Alternative   The time to resolve a commercial dispute through                Reduction in the cost and    The cost savings for businesses that resolved        National                 1             1
Guinea         dispute       mediation was reduced from 60 to 48 days for the entire         time for business to a       disputes through mediation is estimated at
               resolution    process, including a reduction from 4 days to 1 for the time    dispute                      $350,000, primarily as a result of reduced legal
                             spent in court. The private sector cost savings are estimated                                fees. Time saved in court days alone is estimated
                             at $350,000 as a result of savings in reduced legal fees.                                    at 3 days per case (from 4 days to 1). Total time
                                                                                                                          saved, based on court-provided data, is estimated
                                                                                                                          at 12 days per case (from 60 to 48 days) including
                                                                                                                          waiting time from the date the judge referred the
                                                                                                                          case to the start of the mediation.


               Alternative                                                                   Implementation or            Thirty-six new mediators were trained and            National                               1
               dispute                                                                       improvement of a more        accredited in November 2011, including seven
               resolution                                                                    gender inclusive             women. This was the first group of mediators
                                                                                             investment climate related   trained and accredited in the country under the
                                                                                             to ADR                       new mediation program.

Papua New Guinea                                                                                                                                                                                        1             2
Philippines Starting a                                                                       Enactment of legislation     The Business Permit and Licensing System             Subnational                            1
            business                                                                         related to business entry    standards were enacted in January 2011.



Philippines Total                                                                                                                                                                                                     1
                                                  Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                         Result type
                                                                                                                                                         (National /
Country   Topic           IC Reform Description                   Result indicator                Edited text                                            Subnational /   Reform   Results
Serbia    Business                                                Creation or improvement         Regulatory bodies were established in the              Subnational                        2
          licensing and                                           at the legal and regulatory     municipalities of Niska Banja and Crveni Krst. The
          regulatory                                              level of institutions dealing   inter-municipal Central Working Body for
          governance                                              with business regulatory        Regulatory Reform, comprised of representatives
                                                                  management and reform           of five municipalities, is responsible for quality
                                                                                                  control and regulatory management and reform,
                                                                                                  ensuring the harmonization of administrative
                                                                                                  procedures for the municipalities. In addition, a
                                                                                                  small operation team for each municipality was
                                                                                                  formed to initiate the process of regulatory impact
                                                                                                  assessment and to support the Inter-municipal
                                                                                                  Central Working Body for Regulatory Reform. Final
                                                                                                  decisions on the registration, amendment, and
                                                                                                  repeal of administrative procedures will be made
                                                                                                  by existing Municipal Councils in each municipality,
                                                                                                  taking into account the opinion of the Inter-
                                                                                                  municipal Central Working Body for Regulatory
                                                                                                  Reform.




          Business                                                Enactment of new/revised Legal acts were adopted in the municipalities of              Subnational                        2
          licensing and                                           legislation improving the Crveni Krst and Niska Banja, with the goal of
          regulatory                                              regulatory system         improving the business regulatory system,
          governance                                                                        ensuring the legal security of the e-registry, and
                                                                                            establishing the responsible bodies for its
                                                                                            operation.
                                                                      Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                                               Result type
                                                                                                                                                                               (National /
Country        Topic            IC Reform Description                                       Result indicator             Edited text                                           Subnational /   Reform       Results
               Business                                                                     Rationalization in the       Of a total 19 business formalities inventoried in the Subnational                            1
               licensing and                                                                number of procedures to      municipality of Niska Banja, 18 formalities (or 95
               regulatory                                                                   comply with regulations      percent) were simplified, improved, or eliminated
               governance                                                                   related to business          as a result of regulatory reform. Improvements
                                                                                            operations                   were achieved in terms of reducing the number of
                                                                                                                         necessary procedures; in cutting taxes and costs;
                                                                                                                         and in eliminating documentation and simplifying
                                                                                                                         forms and information requirements. All
                                                                                                                         improvements were introduced into the legal
                                                                                                                         system of Niska Banja through the adoption of
                                                                                                                         appropriate legal acts.



               Business                                                                     Reduction in the cost to     Three municipalities reported private sector cost    Subnational                             3
               licensing and                                                                comply with business         savings as a result of improvements in business
               regulatory                                                                   regulations related to       regulations. All figures include both direct and
               governance                                                                   business operations          indirect costs. Post-reform figures are based on
Serbia Total
Sudan          Public private                                                               Number of PPD-sponsored      Two laws drafted with IFC support were enacted National                                      2
               dialogue                                                                     Investment Climate           by Parliament in May 2011. The Sale of Goods Act
                                                                                            reforms enacted which        (2011) provides the legislative framework for
                                                                                            were directly supported by   wholesale and retail trading in South Sudan. The
                                                                                            the PPD project team         Cooperatives Provisional Order provides a legal
                                                                                                                         framework to encourage formation of
                                                                                                                         cooperatives as legal business entities, a key
                                                                                                                         strategy for opening up commercial agriculture in
                                                                                                                         South Sudan.


               Starting a                                                                   Increase in number of       A total of 2,869 new business entities were           National                                1
               business                                                                     newly registered businesses registered in FY11, and a total of 12,373 new
                                                                                                                        business entities have been registered since
                                                                                                                        project inception.

Sudan Total                                                                                                                                                                                                           3
Timor-Leste    Starting a       The company registry was reorganized in order to            Enactment of legislation     The decree-law establishing the Fast Incorporation National                    1             1
               business         streamline the business registration process and reduce the related to business entry    procedure (FIP) became effective on January 1,
                                time necessary to receive, analyze, and process new                                      2011, and follow-up workshops were held with
                                applications. As a result, the time to start a business                                  staff.
                                decreased from 147 to 103 days.
                                                                    Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                                            Result type
                                                                                                                                                                            (National /
Country       Topic            IC Reform Description                                       Result indicator             Edited text                                         Subnational /   Reform       Results
Timor-Leste Total                                                                                                                                                                                    1             1
Tonga         Public private                                                               Implementation or            The Tonga Women in Business organization,           National                               1
              dialogue                                                                     improvement of a more        Women in Sustainable Enterprises (WISE), was
                                                                                           gender inclusive             registered in July 2010. WISE was created as the
                                                                                           investment climate related   result of the Women in Business conference
Tonga Total                                                                                                                                                                                                        1
Vietnam       Business         The government reviewed six licenses related to             Rationalization in the       The government reviewed six licenses related to      National                1             2
              licensing and    transportation and eliminated two. Also, in the area of     number of regulations        transportation and eliminated two. It is no longer
              regulatory       advertisement licenses, of 11 different types, 8 licenses   related to business          necessary for businesses to register to change the
              governance       were reviewed and replaced with post-supervision checks.    operations (licenses,        label of charter buses. The government also
                                                                                           construction permits,        approved the proposal to stop exploiting fixed, city
                                                                                           inspections)                 inner, nearby interprovincial, and 1000 km or less
                                                                                                                        interprovincial transportation routes. Related to
                                                                                                                        the area of Clean Development Mechanism, the
                                                                                                                        government eliminated five requirements that
                                                                                                                        businesses must: prepare dossiers to get approval
                                                                                                                        or comments from the provincial authority and
                                                                                                                        relevant agencies; submit an approval letter of the
                                                                                                                        provincial authority; submit the Assessment
                                                                                                                        Report on Environmental Impact; submit the
                                                                                                                        license on the exploitation of surface water and
                                                                                                                        groundwater; and submit the contract/agreement
                                                                                                                        with the electricity company. The government
                                                                                                                        also reduced the requirement that businesses
                                                                                                                        submit 18 dossiers in Vietnamese and 3 dossiers in
                                                                                                                        English to just 1 dossier in Vietnamese, and it also
                                                                                                                        reduced the number of ministries represented on
                                                                                                                        the steering board from 14 to 3.
                                                                  Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                                               Result type
                                                                                                                                                                               (National /
Country       Topic           IC Reform Description                                      Result indicator                Edited text                                           Subnational /   Reform       Results
              Business                                                                   Creation or improvement         An advisory council was established in the new        National                               1
              licensing and                                                              at the legal and regulatory     control agency to support the review of draft new
              regulatory                                                                 level of institutions dealing   and amended legal documents related to re-
              governance                                                                 with business regulatory        registration and conversion of foreign-invested
                                                                                         management and reform           companies; registration for private placement of
                                                                                                                         shares; and licensing of micro-finance institutions
                                                                                                                         and insurance companies and brokers.


              Business                                                                   Rationalization in the          The government amended the advertisement           National                                  1
              licensing and                                                              number of regulations           licensing procedure by eliminating eight of eleven
              regulatory                                                                 related to business             types of licenses and the resolution was approved
              governance                                                                 operations (licenses,           by the Prime Minister.
Vietnam                                                                                                                                                                                                 1             4
Total



Yemen,        Business        The government enacted a new tax law in August 2010 that   Implementation or               The new income tax law based on self assessment National                       1             1
Republic of   taxation        reduced the general corporate tax rate from 35 to 20       improvement of practices        and the six streamlined procedures reduce
                              percent and harmonized tax incentives with investment      to reduce corruption            corruption related to taxes. Taxpayers now
                              law.                                                       related to taxes                determine the tax base and assess the payable tax
                                                                                                                         in accordance with the provisions of this law. The
                                                                                                                         taxpayer is liable for payment of the tax, on the
                                                                                                                         basis of the filed return, at the same date it is filed
                                                                                                                         without the need for a claim from the tax
                                                                                                                         authority. Prior to this law, the tax authority
                                                                                                                         determined tax payable, which could result in a
                                                                                                                         negotiation between the official and the taxpayer
                                                                                                                         and open opportunities for corruption.
                                             Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                           Result type
                                                                                                                                           (National /
Country   Topic      IC Reform Description                   Result indicator         Edited text                                          Subnational /   Reform   Results
          Business                                           Implementation or        The government introduced a new income tax law National                                 1
          taxation                                           improvement of a SME tax and executive regulations to create a tax regime
                                                             regime                   for smaller businesses. The tax base (net profit) of
                                                                                      the taxable small enterprises for the commercial
                                                                                      and industrial profit tax and the tax on the net
                                                                                      profit of non-commercial and non-industrial
                                                                                      professions is determined as a percentage of
                                                                                      turnover based on the type of activity.



          Business                                           Implementation or           The government reformed its approach to            National                          1
          taxation                                           improvement of a tax        incentives to ensure they do not harm the tax base
                                                             incentive regime            while encouraging private sector growth. The new
                                                                                         income tax law harmonizes incentives with
                                                                                         investment law and uses incentives based on
                                                                                         accelerated depreciation and job creation.


          Business                                           Implementation or           The government implemented a new streamlined National                                1
          taxation                                           improvement of              system for filing tax payments. Under the new
                                                             mechanisms for filing tax   streamlined process, a taxpayer files two tax
                                                             returns                     declaration forms (one form for CIT and one
                                                                                         integrated form for general sales tax and PAYE, if
                                                                                         possible) and no attachments are required.
                                                                                         Businesses of all sizes and tax types can use one
                                                                                         unified process at one location, or taxpayers can
                                                                                         file through registered mail and pay directly to the
                                                                                         bank. The refund application is merged with the
                                                                                         tax declaration form, allowing the taxpayer to
                                                                                         claim a tax refund when submitting the tax
                                                                                         declaration.
                                                   Annex 2: Other Reforms and Results Supported by FIAS FY11

                                                                                                                                                        Result type
                                                                                                                                                        (National /
Country       Topic        IC Reform Description                   Result indicator             Edited text                                             Subnational /   Reform    Results
              Business                                             Implementation or            The tax payment process was redesigned to               National                             1
              taxation                                             improvement of payment       incorporate the necessary steps for a self-
                                                                   options for taxpayers        assessment tax system. The new streamlined
                                                                                                process allows for voluntary tax payment and the
                                                                                                automatic issuance of a tax certificate every time
                                                                                                the taxpayer’s account is settled. The taxpayer can
                                                                                                and should only pay tax liabilities directly to banks
                                                                                                and the post office.


              Business                                             Rationalization of the tax   A new income tax law reduced the tax rate from          National                             1
              taxation                                             rate and the tax base        35 to 20 percent (and 15 percent, in some cases).
                                                                                                The introduction of the tax regime for smaller
                                                                                                businesses is expected to increase the tax base.


Yemen, Republic of Total                                                                                                                                                      1              6
Grand Total                                                                                                                                                                  14             81
                                                       Annex 3: Active and Close Projects


The following table summarizes FIAS' active and closed portfolio of projects as of June 30, 2011. Due to the implementation on a new project
monitoring system, Project Supervision Report Overall Results are not available.


TABLE 1: FIAS PROJECTS (ACTIVE/CLOSED)


                                                                                                                   PROJECTS      DEVELOPMENT
REGION                    COUNTRY                 PROJECT NAME                                   APPROVED BUDGET    STATUS       EFFECTIVENESS
Europe and Central Asia   Central Asia Region     Tax Transparency and Industry-Specific             $300,000        Active
                                                  Regulatory Reform Product Development in
Europe and Central Asia   Eastern Europe Region   DB Reform East Europe and Central Asia            $1,354,780       Active

Europe and Central Asia   Montenegro              Montenegro National BEE Reform                     $569,050        Active



Latin America &           Brazil                  Brazil Frontier States Investment Generation      $2,300,000       Active
Caribbean                                         (National-Subnational)
Latin America &           Colombia                Trade Logistics Advisory Program in               $1,099,053       Active
Caribbean                                         Colombia
Latin America &           Latin America Region    Doing Business Reform Latin America and           $1,411,082       Active
Caribbean                                         the Caribbean

Middle East and North     MENA Region             DB Reform MENA                                    $1,341,636       Active
Africa

Middle East and North     Yemen, Republic of      Yemen Investment Generation Program               $1,338,630       Active
Africa
Middle East and North     Yemen, Republic of      Yemen Special Economic Zones - IG                  $504,271        Active
Africa
Sub-Saharan Africa        Africa Region           OHADA: Building the Capacity to Improve           $1,882,479       Active
                                                  the Quality of the Legislation
Sub-Saharan Africa        Africa Region           DB Reform Sub-Saharan Africa                       $867,380        Active

Sub-Saharan Africa        Burkina Faso            Trade Logistics Burkina Faso                       $823,591        Active

Sub-Saharan Africa        Burundi                 Burundi Investment Climate Reform                 $1,500,000       Active
                                                  Program
Sub-Saharan Africa        Eastern Africa Region   EAC Investment Climate Reform Program             $1,457,020       Active

Sub-Saharan Africa        Ghana                   Ghana Collateral Reform                           $1,449,508       Active

Sub-Saharan Africa        Kenya                   Kenya: Improving Regulatory Performance           $4,925,000       Active
                                                  and Capacities
Sub-Saharan Africa        Kenya                   Trade Logistics Kenya                             $1,082,939       Active

Sub-Saharan Africa        Liberia                 LIBERIA Trade Logistics Project                    $850,000        Active

Sub-Saharan Africa        Mali                    Investment Climate Reform Program in Mali,        $1,896,000       Active
                                                  Phase 2
Sub-Saharan Africa        Nigeria                 NGIA Subnational Investment Climate               $3,863,000       Active
                                                  program
Sub-Saharan Africa        Rwanda                  Rwanda Investment Climate Reform                  $4,500,000       Active
                                                  Program
Sub-Saharan Africa        Sierra Leone            Sierra Leone Tax Simplification Rollout           $2,050,000       Active

Sub-Saharan Africa        Sierra Leone            Promoting Investment and Export for Sierra        $1,632,050       Active
                                                  Leone
Sub-Saharan Africa        Sierra Leone            Sierra Leone Tourism                              $1,999,500       Active

Sub-Saharan Africa        Uganda                  Uganda Investment Climate Program                 $1,442,399       Active
                                                       Annex 3: Active and Close Projects




                                                                                                                  PROJECTS   DEVELOPMENT
REGION                    COUNTRY                 PROJECT NAME                                  APPROVED BUDGET    STATUS    EFFECTIVENESS
WORLD                     Netherlands             KM: Ad-hoc Support to Regulatory                  $175,000        Active
                                                  Governance in the Netherlands
WORLD                     World Region            Donor Committee for Enterprise                   $2,524,000      Active
                                                  Development
WORLD                     World Region            Global Secured Transactions and Collateral       $1,829,045      Active
                                                  Registries Program
WORLD                     World Region            Global Investment Law and Policy Research         $224,544       Active
                                                  and Advisory Project (GILPRA)
WORLD                     World Region            Sub-national Doing Business - product            $1,613,178      Active
                                                  development and global roll out support
WORLD                     World Region            Investment Policy and Promotion Core              $540,000       Active
                                                  Product
WORLD                     World Region            Investing Across Borders Indicators              $3,399,209      Active

WORLD                     World Region            Tax Product Program Design                       $2,722,249      Active

WORLD                     World Region            Commercial Mediation Product                     $1,500,000      Active
                                                  Development and KM
WORLD                     World Region            Doing Business Reform Advisory -- Global         $2,908,833      Active

WORLD                     World Region            Tourism Investment & Development                  $397,144       Active
                                                  Advisory Services Global
WORLD                     World Region            Land Market for Investment -- Global KM           $500,700       Active
                                                  and Product Development
WORLD                     World Region            Role of Incentives in Promoting Investments       $526,564       Active

WORLD                     World Region            Restructuring and Insolvency Advisory            $1,998,785      Active
                                                  Services Program
WORLD                     World Region            PPD Product Development and KM                    $607,500       Active

WORLD                     World Region            Global Investment Promotion Benchmarking         $1,752,125      Active
                                                  2011
WORLD                     World Region            Special Economic Zones Product                    $200,000       Active
                                                  Development KM Phase 2
WORLD                     World Region            Global Trade Logistics Advisory Program          $1,200,000      Active

WORLD                     World Region            KM: Best Practice in Investment Climate           $378,000       Active
                                                  reforms and incentives to promote low-
WORLD                     World Region            Business Regulation Product Management            $717,131       Active
                                                  and KM
WORLD                     World Region            IC-BL Impact Estimations & Evaluations           $1,249,438      Active

East Asia and Pacific     China                   MOFCOM - China. IP-Support for lesser-            $570,060       Closed       Positive
                                                  developed regions.
East Asia and Pacific     East Asia and Pacific   Pacific Gender Mainstreaming Program              $412,500       Closed       Positive
                          Region
Europe and Central Asia   Russian Federation      Russia--removing admin. barriers for              $731,890       Closed        TETJ
                                                  investment, business development in republi
Europe and Central Asia   Serbia                  Regulatory Impact Analysis - Improvements         $809,938       Closed       Positive
                                                  in efficiency and transparency of the
Latin America &           Colombia                Colombia - Subnational Doing Business             $681,907       Closed       Positive
Caribbean
Middle East and North     Pakistan                Subnational Doing Business in Pakistan            $297,428       Closed      Negative
Africa
South Asia                India                   Subnational Doing Business in India               $430,000       Closed       Positive
                                                           Annex 3: Active and Close Projects




                                                                                                                        PROJECTS   DEVELOPMENT
REGION                    COUNTRY                     PROJECT NAME                                    APPROVED BUDGET    STATUS    EFFECTIVENESS
South Asia                Nepal                       Nepal Investment Climate Reform Program             $800,000        Closed      Negative

Sub-Saharan Africa        Liberia                     Liberia PSD in Post-Conflict Program: Phase 2      $4,600,925      Closed       Positive

Sub-Saharan Africa        Madagascar                  Investment Climate Reform to reduce the            $2,000,000      Closed      Negative
                                                      cost of private-sector transactions
Sub-Saharan Africa        Rwanda                      Rwanda Investment Climate Reform Project           $2,833,000      Closed       Positive



Sub-Saharan Africa        Sierra Leone                SL Removing of Administrative Barriers to          $1,860,858      Closed       Positive
                                                      Investment (RABI) Ext Phase 2
Sub-Saharan Africa        Zambia                      Zambia Investment Climate Program                   $643,681       Closed       Positive

WORLD                     World Region                Entrepreneurship and Economic                       $484,572       Closed        MEC
                                                      Development
WORLD                     World Region                Business Environment Snapshots                      $353,136       Closed        MEC

WORLD                     World Region                KM: The Better Regulation for Growth                $698,000       Closed        MEC
                                                      Programme - developing and adapting
                                                      regulatory management tools
WORLD                     World Region                Business Entry Product Development and              $791,023       Closed        MEC
                                                      KM
WORLD                     World Region                Business Operations Product Development             $825,000       Closed        MEC
                                                      and Knowledge Management

WORLD                     World Region                KM Trade Logistic Advisory Services Progam         $1,445,476      Closed        MEC

Total                                                                                                    $90,672,207
MEC Meets exclusion criteria (knowledge management, diagnostics, etc.)
TETJ Too early to judge (development effectiveness will be judged later as new data becomes available)
+ Project is rated positively (Mostly successful, successful, highly successful)
- Project is rated negatively (Partly unsuccessful, unsuccessful, highly unsuccessful)
The following table shows active and closed projects not mapped directly to the FIAS program but that have received at least 10 percent of their
budgets from FIAS.

TABLE 2: OTHER PROJECTS WITH FIAS FINANCIAL CONTRIBUTIONS (ACTIVE/CLOSED)

                                                                                                                                DEVELOPMENT
                                                                                         APPROVED BUDGET   PROJECTS STATUS
                                                                                                                                EFFECTIVENESS
REGION                COUNTRY          PROJECT NAME
East Asia and Pacific Mongolia         Mongolia Business Inspection Reform                  $1,184,452          Active

East Asia and Pacific Papua New        Papua New Guinea Regulatory                          $1,049,546          Active
                      Guinea           Simplification and Investment Policy and
                                       Promotion P
East Asia and Pacific Philippines      Doing Business Plus (Phil)                           $2,343,000          Active

East Asia and Pacific Timor-Leste      Timor-Leste Business Registration and                 $631,049           Active
                                       Licensing Reform Project
East Asia and Pacific Tonga            Tonga Regulatory Simplification and                  $1,291,264          Active
                                       Investment Policy and Promotion Program
East Asia and Pacific Vietnam          BEE-Vietnam Land Stage 2                              $421,679           Active

East Asia and Pacific Vietnam          BEE-VN Licensing                                      $770,129           Active

Europe and Central Albania             Albania Sub-national Regulatory                       $699,760           Active
Asia                                   Simplification and Investment Generation
Europe and Central Armenia             Armenia Regulatory Simplification - Doing            $1,539,307          Active
Asia                                   Business Reform
Europe and Central Belarus             Belarus: Regulatory Simplification and               $3,030,841          Active
Asia                                   Investment Generation 2010 - 2013
Europe and Central Bosnia              Bosnia Sub-national Competitiveness                  $2,982,452          Active
Asia
Europe and Central Georgia             Georgia Tax Simplification Project                   $1,034,900          Active
Asia
Europe and Central Kyrgyzstan          Kyrgyzstan Business Enabling Environment -           $3,697,790          Active
Asia                                   inspections, permits, tax administrat
Europe and Central Serbia              Serbia Sub-national Competitiveness                   $978,546           Active
Asia
Europe and Central South East          South East Europe Sub-national Doing                  $857,402           Active
Asia               Europe              Business Report
Latin America and Haiti                Haiti Investment Generation Strategy                 $2,291,692          Active
Caribbean

Middle East and                        Yemen Tax Simplification Rollout 1                   $3,765,700          Active
North Africa
Sub-Saharan Africa Burkina Faso        Doing Business Better in Burkina Faso                $2,444,328          Active

Sub-Saharan Africa Mozambique          Mozambique Tourism Anchor Investment                 $1,855,149          Active
                                       Program
Sub-Saharan Africa Southern Sudan Southern Sudan Investment Climate Reform                  $3,000,000          Active
                                  Program Phse 2
East Asia and Pacific Indonesia   Indonesia Agribusiness IC                                  $465,572          Closed              Negative

East Asia and Pacific Papua New      PNG Country SEZ Strategy                                $348,106          Closed              Negative
                      Guinea
East Asia and Pacific Solomon Island Solomon Islands Regulatory Simplification               $891,739          Closed              Negative
                                     and Investment Policy and Promotion Pr

Sub-Saharan Africa Sudan               Sudan Administrative Barriers Reform                 $1,615,000         Closed               Positive
                                       Program
Total                                                                                       $39,189,403
+ Project is rated positively (Mostly successful, successful, highly successful)
- Project is rated negatively (Partly unsuccessful, unsuccessful, highly unsuccessful)
    Annex 4: Abbreviations

ADR         alternative dispute resolution
AfD         Agence Française de Développement (France)
BICF        Bangladesh Investment Climate Fund
BRC         Bronnoysund Registration Centre (Norway)
CASA        Conflict Affected States in Africa (IFC)
CIC         Investment Climate Department (IFC/World Bank)
CPC         Cadre Permanent de Concertation Etat / Secteur Privé (Central African Republic)
DfID        Department for International Development (United Kingdom)
EPZs        export processing zones
FDI         foreign direct investment
FIAS        Facility for Investment Climate Advisory Services (formerly Foreign Investment
            Advisory Service)
FPD         Financial and Private Sector Development (Vice Presidency/Network)
FY          fiscal year
GIPB        Global Investment Promotion Benchmarking report
IAB         Investing Across Borders (project and report)
IBRD        International Bank for Reconstruction and Development
ICT         information and communication technologies
IDA         International Development Association
IFC         International Finance Corporation
MIGA        Multilateral Investment Guarantee Agency
OECD        Organisation for Economic Co-operation and Development
OHADA       Organisation pour l’Harmonisation en Afrique du Droit des Affaires
RABI        Removing Administrative Barriers to Investment (Sierra Leone project)
SMEs        small and medium enterprises
_______________
All dollar amounts are in current U.S. dollars unless otherwise noted.




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