Mexico City, November 15, 2006 –
Doing business became easier in many Mexican states in 2005-2006, according
to the new Doing
Business in Mexico 2007 report,
released today in Mexico City. The report finds that some states compare
well with the best of the world, while others need much reform to become
globally competitive.
Doing Business in Mexico 2007 is the second sub-national report in
the Doing Business series to look at Mexico. In 2005, quantitative
indicators of business regulations and their enforcement were created for
12 cities and states in four areas - starting a business, registering property,
obtaining credit, and enforcing a contract. This year, Doing Business
in Mexico 2007 covers all 31 states of the Mexican Republic and measures
the progress of the 12 states analyzed last year. The report is the result
of a request from the Mexican Association of Economic Development Secretaries
(AMSDE), the Ministry of the Economy (SE) through the Federal Regulatory
Improvement Commission (COFEMER), and the Ministry of Foreign Affairs
(SRE) through the Puebla-Panama Plan General Coordination (CGPPP).
Different state and municipal level regulatory requirements, as well as
differences in the implementation of national-level regulations, either
enhance or constrain local business activity. This explains why an entrepreneur
in Colima spends only one day to comply with all municipal requirements
to start a business, while in Cancún an entrepreneur needs 18 days to complete
all requirements. Municipal and state regulations also dominate property
registration, which takes between four and 10 different steps depending
on the location. Despite the shared laws and identical procedural steps,
the time to enforce a simple commercial debt default varies from eight
months in Zacatecas to 18 months in Baja California Sur. Differences in
court efficiency and in the application of federal procedures account for
the variation.
Publishing comparative data on the ease of doing business inspires local
governments to reform. Regulatory reform has been brisk during the past
year, despite presidential, state, and municipal elections in a number
of locations. Nine out of the 12 states benchmarked in 2005 and Mexico
City reformed in at least one indicator during 2005-2006. The most popular
reform was easing the regulations on starting a business. But reforms also
took place in property registration and enforcing contracts – proof that
governors and mayors have significant influence over the ease of doing
business in their cities and states. By adopting simple reforms and by
implementing them efficiently, they can improve competitiveness and create
more jobs.
Reforms expand the reach of regulation by creating jobs, thus increasing
employment. “Creating jobs is a priority for any government. More business-friendly
regulations create opportunities and a more equitable growth. Mexican states
would greatly benefit from new enterprises and jobs, which can come with
more business-friendly regulations,” said Michael Klein, World Bank-IFC
vice president for financial and private sector development, and IFC chief
economist.
Aguascalientes was the easiest state in which to do business last year.
State and city officials have successfully used the benchmark as a promotional
tool to compete for business at home and abroad. Simultaneously, they have
continued to press ahead with reforms. As a result, Aguascalientes earned
the top rank again this year. Querétaro, the lowest ranked overall performer
last year, created a public-private task force dedicated to improving its
benchmarks. The task force systematically studied bottlenecks, proposed
reforms, and measured progress throughout the year. The reforms helped
Querétaro climb nine ranks on the ease of doing business to number seven
out of 31 states and Mexico City. The lesson: what gets measured gets done.
Doing business in Mexico
Where is it easiest?
|
| Easiest
|
1
| Aguascalientes, Aguascalientes
|
2
| Guanajuato, Celaya
|
3
| Nuevo León, Monterrey
|
4
| Sonora, Hermosillo
|
5
| Campeche, Campecheo
|
6
| Zacatecas, Zacatecas
|
7
| Querétaro, Querétaro
|
8
| Mochoacán, Morelia
|
9
| Sinaloa, Culiacán
|
10
| Mexico City
|
11
| Colima, Colima
|
12
| Durango, Durango
|
13
| Coahuila, Torreón
|
14
| Chihuahua, Ciudad Juárez
|
15
| Hidalgo, Pachuca de Soto
|
16
| Tamaulipas, Reynosa
|
17
| Jalisco, Guadalajara
|
18
| Baja California, Tijuana
|
19
| San Luis Potosí, San Luis Potosí
|
20
| Yucatán, Mérida
|
21
| Baja California Sur, La Paz
|
22
| Tlaxcala, Tlaxcala
|
23
| Veracruz, Coatzacoalcos
|
24
| Chiapas, Tuxla Gutiérrez
|
25
| Oaxaca, Salina Cruz
|
26
| Tabasco, Centro/Villahermosa
|
27
| Nayarit, Tepic
|
28
| Puebla, Puebla
|
29
| Estado de México, Tlalnepantla de Baz
|
30
| Guerrero, Acapulco
|
31
| Morelos, Cuernavaca
|
32
| Quintana Roo, Benito Juárez/Cancún
|
| Most difficult |
Since the last report, various reform initiatives were widely discussed
throughout the year. States and cities not included in the previous Doing
Business survey took note and requested the study’s expansion to all 31
states. In this year’s report, three of the top six performers are “new”
states: Sonora, which ranks fourth, Campeche in fifth place, and Zacatecas
in sixth. Sonora and Campeche are especially efficient when it comes to
property registration, ranking first and second in that indicator. Zacatecas
stands out both in the ease of registering collateral to access credit,
as well as in the ease of enforcing contracts, where it is the top performer.
Such state and city level reforms are becoming increasingly important in
a globalized world, where specific locations as much as countries compete
for investment – e.g. Monterrey versus Shanghai rather than Mexico versus
China.
###
The Doing Business project is based on the efforts of more than 5,000 local
experts – business consultants, lawyers, accountants, government officials,
and leading academics around the world, who provided methodological support
and review. The data, methodology, and names of contributors are publicly
available online at http://www.doingbusiness.org.
For interview requests, media queries or to RSVP please contact:
Yadira Mena Flores: 57299100 extension: 17640, cell 0445513996647
Email: ymena@cofemer.gob.mx
Or Gabriela Aguilar Martinez, 52-55-5480-4252, Email: gaguilar2@worldbank.org
For more information on the Doing Business report series, please visit:
www.doingbusiness.org
For copies of the Doing Business in Mexico report, please visit: http://www.doingbusiness.org/mexico
|