Doing Business 2017: Equal Opportunity for All - Micronesia, Fed. Sts. Summary
Core Content Overview
The Doing Business 2017 report by the World Bank Group evaluates the ease of doing business across 190 economies, focusing on regulatory reforms that impact business operations. The report highlights how regulations affect small to medium-sized businesses in key areas such as starting a business, getting credit, paying taxes, and enforcing contracts. It also introduces a gender dimension in several indicators, aiming to assess how women face different challenges in these processes.
Key Indicators and Rankings
Ease of Doing Business Rankings
- Micronesia, Fed. Sts. DB2017 Rank: 151
- DB2016 Rank: 148
- Change in Rank: -3 (improved slightly)
Distance to Frontier (DTF) Scores
- Micronesia, Fed. Sts. DTF Score: 49.48
- Change in DTF: 0 (no change from 2016)
Key Indicators by Topic
| Indicator |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Starting a Business |
Rank: 167 |
Best: 1 (New Zealand) |
| DTF Score: 69.73 |
DTF: 99.96 (New Zealand) |
|
| Procedure - Men: 7.0 |
Procedure - Women: 7.0 |
|
| Time - Men (days): 16.0 |
Time - Women (days): 16.0 |
|
| Cost - Men (% of income): 140.4 |
Cost - Women (% of income): 140.4 |
|
| Paid-in min. capital: 0.0 |
Paid-in min. capital: 0.0 |
|
| Dealing with Construction Permits |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Rank: 143 |
Best: 1 (New Zealand) |
|
| DTF Score: 60.92 |
DTF: 87.40 (New Zealand) |
|
| Procedures: 14.0 |
Procedures: 7.0 (4 Economies) |
|
| Time (days): 86.0 |
Time: 28.0 (Korea, Rep.) |
|
| Cost (% of warehouse value): 0.6 |
Cost: 0.1 (Trinidad and Tobago) |
|
| Getting Electricity |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Rank: 107 |
Best: 1 (Korea, Rep.) |
|
| DTF Score: 64.32 |
DTF: 99.88 (Korea, Rep.) |
|
| Procedures: 3.0 |
Procedures: 3.0 (15 Economies) |
|
| Time (days): 105.0 |
Time: 18.0 (Korea, Rep.) |
|
| Cost (% of income): 397.1 |
Cost: 0.0 (Japan) |
|
| Registering Property |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Rank: 187 |
Best: 1 (New Zealand) |
|
| DTF Score: 0.00 |
DTF: 94.46 (New Zealand) |
|
| Procedures: no practice |
Procedures: 1.0 (4 Economies) |
|
| Time (days): no practice |
Time: 1.0 (3 Economies) |
|
| Cost (% of property value): no practice |
Cost: 0.0 (Saudi Arabia) |
|
| Getting Credit |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Rank: 75 |
Best: 1 (New Zealand) |
|
| DTF Score: 55.00 |
DTF: 100.00 (New Zealand) |
|
| Strength of legal rights index: 11.0 |
Best: 12.0 (3 Economies) |
|
| Depth of credit information index: 0.0 |
Best: 8.0 (30 Economies) |
|
| Credit registry coverage: 0.0 |
Best: 100.0 (3 Economies) |
|
| Protecting Minority Investors |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Rank: 185 |
Best: 1 (New Zealand) |
|
| DTF Score: 25.00 |
DTF: 83.33 (New Zealand) |
|
| Strength of minority investor protection index: 2.5 |
Best: 8.3 (New Zealand) |
|
| Conflict of interest regulation index: 2.7 |
Best: 9.3 (New Zealand) |
|
| Shareholder governance index: 2.3 |
Best: 8.3 (Norway) |
|
| Paying Taxes |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Rank: 108 |
Best: 1 (United Arab Emirates) |
|
| DTF Score: 68.78 |
DTF: 99.44 (United Arab Emirates) |
|
| Payments (number per year): 21.0 |
Best: 3.0 (Hong Kong SAR, China) |
|
| Time (hours per year): 128.0 |
Best: 55.0 (Luxembourg) |
|
| Total tax rate (% of profit): 60.5 |
Best: 26.1 (32 Economies) |
|
| Trading Across Borders |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Rank: 57 |
Best: 1 (10 Economies) |
|
| DTF Score: 84.00 |
DTF: 100.00 (10 Economies) |
|
| Time to export: Border compliance (hours): 36 |
Best: 0 (18 Economies) |
|
| Cost to export: Border compliance (USD): 168 |
Best: 0 (18 Economies) |
|
| Time to export: Documentary compliance (hours): 26 |
Best: 1 (25 Economies) |
|
| Cost to export: Documentary compliance (USD): 60 |
Best: 0 (19 Economies) |
|
| Time to import: Border compliance (hours): 56 |
Best: 0 (25 Economies) |
|
| Cost to import: Border compliance (USD): 180 |
Best: 0 (28 Economies) |
|
| Time to import: Documentary compliance (hours): 35 |
Best: 1 (29 Economies) |
|
| Cost to import: Documentary compliance (USD): 80 |
Best: 0 (30 Economies) |
|
| Enforcing Contracts |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Rank: 183 |
Best: 1 (Korea, Rep.) |
|
| DTF Score: 29.39 |
DTF: 84.15 (Korea, Rep.) |
|
| Time (days): 885.0 |
Time: 164.0 (Singapore) |
|
| Cost (% of claim): 66.0 |
Cost: 9.0 (Iceland) |
|
| Quality of judicial processes index: 4.5 |
Best: 15.5 (Australia) |
|
| Resolving Insolvency |
Micronesia, Fed. Sts. (DB2017) |
Comparator Economies (DB2017) |
| Rank: 119 |
Best: 1 (Finland) |
|
| DTF Score: 37.65 |
DTF: 93.89 (Finland) |
|
| Recovery rate (cents on the dollar): 3.2 |
Best: 92.9 (Norway) |
|
| Time (years): 5.3 |
Time: 0.4 (22 Economies) |
|
Key Changes in 2017
- The paying taxes indicator now includes postfiling processes such as tax refunds, audits, and appeals.
- A gender component was introduced in four indicators: starting a business, registering property, enforcing contracts, and labor market regulation.
- A new pilot indicator on selling to the government was developed.
- Somalia was added to the list of economies, bringing the total to 190.
- The distance to frontier metric was refined to better reflect regulatory best practices.
Methodology Notes
- The report does not include labor market regulation in the overall ease of doing business ranking.
- The DTF score measures the absolute distance to the best performance in each indicator.
- Comparisons are made against comparator economies and regional averages.
- The report is based on data as of June 1, 2016, except for paying taxes, which covers January–December 2015.
Policy Implications
- The report assists policy makers in understanding the regulatory environment and identifying bottlenecks in business processes.
- It helps in designing reforms that can improve the ease of doing business and support entrepreneurship.
- The inclusion of gender-specific data allows for a more comprehensive understanding of how women entrepreneurs are affected by regulations.
Conclusion
The Doing Business 2017 report provides a detailed assessment of the business environment in Micronesia, Fed. Sts., highlighting areas where regulatory reforms are needed. While the country shows improvement in some indicators, it still lags behind many comparator economies in terms of ease of doing business and regulatory efficiency. The introduction of gender components and new indicators enhances the report's ability to assess the equal opportunity for all entrepreneurs, making it a more inclusive and comprehensive tool for policy analysis.