ranks low among best countries for business: Forbes
New York, June 28, 2006 (IANS)
has been ranked 64th in a global list of best countries to do business
in, dropping from 51st place last year. While India has dropped
13 places, China is down two notches to No 79. In the new Forbes
study that compared business climate from various angles in 121
countries, Denmark tops the list, having displaced the US, last
year's leader. Ireland and Finland follow at No 2 and No 3 spots.
US is at No 4 now, followed by UK.
Forbes report has ascribed India and China's fall in rankings this
year to "demonstrated resistance to increasing personal freedoms.
Higher inflation from food and other commodity costs, as well as
increased burdens on entrepreneurs also held the world's most populous
nations back as business destinations".
out that the Indian government has reduced controls on foreign trade
and investment, the business magazine said tariff spikes in sensitive
categories, including agriculture, and incremental progress on economic
reforms still hinder foreign access to India's vast and growing
of government-owned industries remains stalled and continues to
generate political debate; populist pressure from within the UPA
government and from its Left Front allies continues to restrain
needed initiatives," the report added.
said that strong growth combined with easy consumer credit and a
real estate boom fuelled inflation concerns in 2006 and 2007. This
had led to a series of central bank interest rate hikes that have
slowed credit growth and eased inflation concerns.
the study, the magazine said it used expertise, research and published
reports from the Heritage Foundation, World Economic Forum, World
Bank, Transparency International, Freedom House, Deloitte Tax, the
US Chamber of Commerce and Central Intelligence Agency and their
vital analyses of various socioeconomic indicators on the countries
find the best countries to do business in, the magazine said, "We
analyze business climates in each of more than 120 national economies,
focusing on degrees of personal freedoms, like the right to participate
in free and fair elections, or freedom of expression and organisation."
protection examines the recourse held by minority shareholders in
cases of corporate misdeeds, while corruption looks at the number
and frequency of similar misuse of corporate assets for personal
gain. Together with economic policies supportive of free trade and
low inflation, these key points form a snapshot of countries' suitability
for capital investment.
developed nations like Germany (No. 21, down nine) and France (No.
25, down nine), scandals in the banking sector and tougher barriers
for entrepreneurs led to declines.
of the biggest declines, the magazine said, came from Japan (No.
24, down 21), where a Council on Economic and Fiscal Policy spelled
out problems with the world's second-largest economy earlier this
year. Among others, the committee's report cites the nation's 40
percent corporate tax rate as uncompetitive compared with regional
rivals like Hong Kong at 17.5 percent and South Korea at 25 percent.