Due to a number of governmental reforms, Montenegro rose from #56 to #51 in the World Bank’s 2012 Doing Business rankings.
The Montenegrin government also improved 38 places to #81 in terms of Paying Taxes. Obviously there is additional room for improvement in this category. It requires 320 hours for a business to pay Montenegrin taxes, as compared to an OECD average of 176 hours. This is largely because a Montenegrin business is required to make 29 tax payments per year, as compared to an OECD average of only 12 payments per year.
Montenegro moved down 5 spots to #117 for Registering Property. It takes an average of 71 days to register property in Montenegro, compared with a new lower OECD average of 26. This is another area where small improvements can create large results.
We also moved down 13 spots to #58 for Starting a Business, which used to be one of Montenegro’s strongest areas of improvement back in 2011, when we gained 30 spots over our 2010 numbers. It still requires 6 procedures and approximately 10 days to start a business in Montenegro. In comparison, a business can be started in New Zealand with 1 procedure in 1 day.
Our ranking for Enforcing Contracts moved up 2 to #135. This still poor ranking reflects the difficult and expensive modernizations which must be made to the Montenegrin judiciary.
For “Resolving Insolvency”, our rankings went up by 9 places to #44. In Getting Electricity our rank remains unchanged at #69.
Montenegro dropped 5 places to #42 in Trading Across Borders. Importing or exporting in Montenegro requires six different government forms. In comparison, a business in France can import or export with only 2 government documents.
By making no improvements, we fell 3 spots to #32 for Protecting Investors. Other nations made improvements in this category, which moved our relative ranking down.
We fell by one spot to #176 for Dealing with Construction Permits although The Montenegrin government made significant reforms in this category.
|Starting a Business||45||58||-13|
|Dealing with Construction Permits||175||176||-1|
|Trading Across Borders||37||42||-5|
Significant progress in all of these categories is needed to improve the economy of Montenegro and the economic well-being of the people of Montenegro. The areas needing greatest improvement are paying taxes (#81), enforcing contracts (#135), and registering property (#117).
Macedonia holds an impressive #23 spot in the Doing Business rankings, followed closely by Slovenia at #35. Croatia trails Montenegro at #84, followed by Serbia at #86. Kosovo is still not doing too well, but they improved their ranking by 28 places to 98. Bosnia and Herzegovina ranks even worse, coming in at #126.
For more information, read the Summary of Doing Business 2013 data for Montenegro or the 2013 Montenegro Economy Profile.