Doing Business Index : the tree hiding the forest

Good news : Thailand ranks 15th on the “Ease of Doing Business” Index, published by the World Bank, up from 17th in 2006.

Singapore, for the second year, is still in first position.

However, it’s enough to look at the details of the index’s components to turn off a bit our enthusiasm…

The good performance of Thailand is only due to a reform, the E-Customs or “paperless customs”.

However, for Starting a Business, Dealing with Licenses, Registering Property, Getting Credit, Protecting Investors, Paying Taxes, Closing a Business, Thailand is slipping down…

Furthermore, the World Bank seems to be misinformed. The E-Customs system is working for exports… but for imports it has been delayed.

;-)

“The Customs Department will suspend its electronic goods-clearance system due to a number of problems.

Chavalit Sethameteekul, newly appointed director-general of the department, last week promised to clean up within six months the mess caused by the attempt at paperless clearance.

Chavalit has replaced Sathit Limpongpan. The electronic system was launched on January 1, when the department was still under Sathit’s control.

Since then shipping agents have complained that the system’s failure has resulted in delays in goods clearance. Perishable goods have rotted.” (Nation, january 1 2007).

I can assure you that nine month later (now)… imports are still… very paper consuming.

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Thailand Crisis

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But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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