Doing Business in South America

At the end of last year a survey came out about the processes and costs needed to start a business in over 150 countries. Run by the World Bank Group and the International Finance Corporation, their Doing Business website revealed that the best six places to start a business were:

1. New Zealand
2. Singapore
3. United States
4. Canada
5. Norway
6. Australia

Out of all of those countries, South America did not do so well:

25. Chile
77. Argentina
88. Paraguay
119. Brazil

In Argentina, it takes 32 days and 15 procedures to start a business at a cost rating of 13% of the average person’s gross annual income. In Brazil it you need to go through 17 procedures, wait 152 days, and pay 10% of your annual wage. Back home in Australia it only takes 2 days and 2 procedures and costs 1.9%.

There is a lot more information beyond this, although all business related. It includes things like taxes, licenses, enforcing contracts, trading across borders and many other areas. It certainly reveals a lot about the bureaucracy of each country.

This information is old news for those who follow it, but in looking over it once again, I can now start to appreciate why it is taking so long for me to sort out all of the paperwork with my newly acquired motorbike. After all, if it takes that much effort to do business here, then why should I expect less for changing owners on an old motorbike.