“The report finds that equity returns are highest in countries that are reforming the most,” said Michael Klein, World Bank/IFC Vice President for Financial and Private Sector Development. “Investors are looking for upside potential, and they find it in economies that are reforming-regardless of their starting point,” he added.
Large emerging markets are reforming fast: China, India, Malaysia, Vietnam, and Egypt all improved in the ease of doing business. The report also finds that thanks to regulatory reform, more businesses are starting up.
India is now setting the standard for reform in South Asia, with an explicit policy objective to become a leading business-friendly economy. Besides making it easier to trade across borders, India increased access to credit by expanding credit bureau coverage to individuals as well as businesses. It also introduced an electronic registry for security rights granted by companies.
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