Doing Business 2014: global rankings

World Bank‘s Doing Business Report 2014: Understanding Regulations for Small and Medium-Size Enterprises assesses regulations affecting domestic firms in 189 economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency and trading across borders.

This year’s report data cover regulations measured from June 2012 through May 2013. The report is the 11th edition of the Doing Business series.

Case studies highlighting good practices in 6 of the areas measured by Doing Business indicator sets are featured in the report: the role of minimum capital requirements in starting a business; risk-based inspections in dealing with construction permits; the cost structure in getting electricity; single window systems in trading across borders; e-filing and e-payment in paying taxes; and e-courts in enforcing contracts.

This year’s report presents a separate chapter about research on the effects of business regulations. There is a rapidly growing body of empirical research examining the impact of improvements in many of the regulatory areas tracked by the Doing Business indicators, and this chapter provides a useful—and encouraging—synthesis.

Sub-Saharan Africa is home to 9 of the 20 economies narrowing the gap with the regulatory frontier the most since 2009. Low-income economies narrowed this gap twice as much as high-income economies did. On the ease of doing business South Africa ranks 41st.

Singapore topped the global ranking on the ease of business joining it on the list of the top 10 economies with the most business-friendly regulatory environments are Hong Kong SAR, China; New Zealand; the United States; Denmark; Malaysia; the Republic of Korea; Georgia; Norway; and the United Kingdom.

Worldwide, 114 economies implemented 238 regulatory reforms in 2012/13 making it easier to do business as measured by Doing Business – 18% more reforms than in the previous year. For the first time data has been collected this year in four economies: Libya, Myanmar, San Marino, and South Sudan.

[World Bank Doing Business Report 2014_mini book]

Hearing while on sick leave

You can discipline an employee who is on sick leave but if the employee’s illness is genuine, failing to postpone the hearing will probably be regarded as procedurally unfair.

Illness can be regarded as genuine if the employee presents a certificate from a registered medical practitioner stating that according to the assessment, the employee was too ill or injured to work for the period of absence. The certificate must be signed and indicate the visit’s date and time. In these circumstances, it is advisable to postpone the hearing until after the return date indicated on the certificate, but state in the notice that further delays won’t be allowed and that the hearing might continue in the employee’s absence if s/he fails to appear.

In summary, employers should err on the side of caution and postpone at least once if the employee claims to be too ill to attend. If you have evidence supporting your belief that sick leave is being abused, however, you may be able to continue in the employee’s absence.

The Employer should inform the employee in writing about the reasons why you continued in absence and allow an opportunity to convince you that the absence was not deliberate.

[Read full article]

Small agencies targeted as “weak-link”

Small agencies must understand that when they gain access to the intellectual property (IP) of a large company, they can be targeted by cyber-criminals as a perceived “weak-link” in the security. Clearly, cyber-criminals see the value in targeting external agencies that have access to valuable client data.

Large companies are more likely to go to great lengths to secure the data within the confines of their organisation, but the same stringent standards are not often held by the third-party vendors they hire. By winning the bid, small agencies are given virtual “keys” to some of their new client’s most important business information – product road-maps, competitive positioning, sales strategies, and in-depth plans for their client’s forthcoming big product.

What to do?

• Ensure that all mobile devices, including any employee-owned devices that could be used to access company data, are equipped with security software that not only protects from malware, but helps find missing devices and erases data from stolen devices.
• To help employees avoid malicious websites or content that appears to be legitimate, use security software that monitors the reputation of hyperlinks and websites, and will alert users to any potential scams. Find a security solution that provides protection without complex installation and maintenance.
• A good protection against the theft of sensitive information is data encryption. It is manageable for small agencies, too.

[Read full article]

Infrastructure Development provides business opportunities

The Infrastructure Development Bill is aimed to tackle with the operational handling of the allocated R4-trillion of funding for infrastructure projects over 15 years. It formally institutionalises the Presidential Infrastructure Co-ordinating Commission (PICC), chaired by the president and mandated to facilitate and co—ordinate the Strategic Integrated Projects (currently 18 SIPs). SIP are strategic public infrastructure development projects in various sectors, including the promotion of regional clusters and corridors. The Minister on Economic Development briefed MPs on the bill on 12 November.

Ebrahim Patel, Minister of Economic Development (Photo credit: World Economic Forum)

Content

The Bill introduces steering committees comprising all stakeholders in the implementation of each SIP, chaired by the relevant minister. Additionally, the bill provides, amongst other, the following:

• The PICC is given the power to expropriate land necessary for a SIP. The property is protected according to constitution and legislation. The compensation will take into account the market value and additional criteria, like public purpose and public interest.
• The Minister is equipped with regulatory powers.
• The allocation of budget for the operations of the steering committee is to be ensured by the chairing minister.
• The bill is to tackle with corruption related to infrastructure projects.

Public submissions and hearings by parliament

The parliamentary portfolio committee on economic development intends holding public hearings on the Bill on dates still to be confirmed.

The written submission should indicate an interest in making a verbal presentation to the Committee. Comments can be emailed to Ms Noluthando Skaka at [email protected] by no later than 16:00 on Friday, 22 November 2013.

For Public hearings’ dates and other enquiries, please contact Ms Noluthando Skaka on tel: (021) 403 3751 or cell 083 709 8520.

[Infrastructure Development Bill]