Wednesday, 9 September 2009

Cambodia has room to improve business climate: WB

PHNOM PENH, Sep. 9, 2009 (Xinhua News Agency) -- Cambodia's ranking has remained low on the global ease of doing business in 2008/2009 while most economies in East Asia and the Pacific strengthened business regulations to help increase opportunities for local firms, the press release from the World Bank (WB) office here said on Wednesday.

"Cambodia was ranked No. 145 out of 183 countries on the ease of doing business as the global economic crisis prompted many countries to accelerate reforms, improving their ranking relative to Cambodia," the World Bank said.

"The World Bank and IFC, the member of the World Bank Group focused on private sector development, are working with the government on improving the business climate."

Between June 2008 and May 2009 a record 131 of 183 economies around the globe reformed business regulations, according to Doing Business 2010: Reforming through Difficult Times, the seventh in a series of annual reports published by IFC and the World Bank.

"The second Investment Climate Assessment, published in 2009 by the World Bank and IFC, identifies priorities to significantly improve the business environment by helping retain existing investors and attracting new ones," said Qimiao Fan, Country Manager for the World Bank in Cambodia.

"This would position Cambodia well to benefit from a recovery in the global economy, and also help its small firms to develop and create jobs."

IFC's Resident Representative in Cambodia, Julia Brickell, noted that Cambodia is making efforts to improve some aspects of the business environment."

According to Julia Brickell, IFC, with support from the European Commission and other donors, is assisting the government to improve commercial dispute resolution mechanisms through the establishment of the National Arbitration Center, which will be a quicker and cheaper alternative to the courts.

"Effective commercial arbitration is crucial in helping businesses enforce contracts in ways that are less costly and time consuming than is currently the case," Brickell said.

(Source: iStockAnalyst )

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