Which of these helps improve Ease of Doing Business (EoDB)?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer
Simple rules
Explanation
Simple rules directly help improve the Ease of Doing Business (EoDB). When a country simplifies its regulatory framework, eliminates unnecessary bureaucratic red tape, and makes legal compliance straightforward, it allows entrepreneurs to start, operate, and expand their businesses efficiently. Clear and easy-to-follow rules reduce the time, cost, and effort required to manage a business, which attracts both domestic and foreign investments.
The other options act as major barriers to business growth and negatively impact EoDB:
Long delays in getting approvals, permits, or utility connections stall business setups, trap essential capital, and discourage new investments.
High taxes significantly increase the overall cost of operations, lower profit margins, and can make a country less competitive globally.
Lots of paperwork creates an administrative burden, increases compliance costs, and slows down everyday business transactions.
Key Points
Ease of Doing Business (EoDB) is an aggregate index that measures how easily entrepreneurs can open and run a small-to-medium enterprise while complying with local regulations.
Key indicators used to evaluate EoDB include the ease of starting a business, getting construction permits, registering property, paying taxes, and enforcing contracts.
Governments worldwide focus on digital reforms—like single-window clearance portals and paperless systems—to establish simpler rules and improve their business environment.
Important Questions and Answers
Question: Which international organization historically published the annual "Doing Business" report ranking countries on their EoDB?
Answer: The World Bank.
Question: What type of digital system allows a business owner to submit all regulatory applications and documents through a single online platform?
Answer: A Single-Window Clearance System.