In a record year for regulatory reform worldwide, most economies in East Asia and the Pacific strengthened business regulations, making them more efficient to help increase opportunities for local firms. Tonga, in particular, recorded an impressive ranking of 52 out of 183 countries, making it the leading performer in doing business in the Pacific region.

Tonga reformed in this year's study in the area of paying taxes. The adoption of a new income tax act allows for accelerated depreciation and amortization of intangibles and preliminary expenditures, while also introducing self-assessment.

"The easing of compliance processes on businesses shows that the government is committed to improving the private sector," said Christopher Hartwell, IFC's Senior Advisor on Investment Climate. "Tax reform is just the beginning. Continued reform across more areas will allow for the development of a sustainable private sector, leading to more jobs and income opportunities for the Tongan people. We hope Tonga will continue along the reform path in the years to come."

Between June 2008 and May 2009 a record 131 of 183 economies around the globe reformed business regulation, according to Doing Business 2010: Reforming through Difficult Times, the seventh in a series of annual reports published by IFC and the World Bank. In East Asia and the Pacific 17 of 24 economies made reforms against the backdrop of the global economic crisis.

Doing Business ranks 183 economies based on 10 indicators of business regulations that track the time and cost needed by domestic companies to meet business regulations such as start-up and operations, trading across borders, paying taxes, and closing a business. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems. World Bank Group, 15/10/09.