Due to a number of governmental reforms, Montenegro rose from #56 to #51 in the World Bank’s 2012 Doing Business rankings.
We jumped to #4 from #9 among 183 nations in terms of Getting Credit for businesses. This leaves Montenegro on par with leading nations such as Singapore and South Korea.
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
|Dealing with Construction Permits
|Trading Across Borders
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.