TONGA'S global ranking improved by four places between 2010 and 2011 in a new report from IFC and the World Bank that measures the ease of doing business. Jumping to 58th out of 183 economies, Tonga was ranked highest among all countries - excluding Australia and New Zealand - in the Pacific region.

Released today, Doing Business 2012: Doing Business in a More Transparent World assesses regulations affecting domestic firms in 183 economies and ranks the economies in 10 areas of business regulation, such as starting a business, resolving insolvency, and trading across borders. This year, the rankings on ease of doing business have expanded to include indicators on getting electricity.

As well as Solomon Islands and Vanuatu, Tonga was among just four countries in East Asia and the Pacific which improved in three or more areas measured by the report. According to the report, Tonga made starting a business easier by implementing electronic systems for registrations; made getting electricity faster and made it easier to access credit.

"This is a mark of success for Tonga and it shows the commitment the government is making towards implementing critical reforms, which are helping promote a more positive business environment for local entrepreneurs," said Jonathon Kirkby, Pacific Program Manager for IFC. "As part of ongoing efforts and commitment, these steps will make it easier to start and run businesses for the people of Tonga."

Fourteen of East Asia and the Pacific's 24 economies improved business regulations in the past year. This year, Singapore led on the overall ease of doing business for the sixth straight year, followed by Hong Kong SAR, China; New Zealand; the United States; and Denmark.

New data show that improving access to information on business regulations can aid entrepreneurs. "Effective use of information technology can make things easier for entrepreneurs," said Sylvia Solf, lead author of the report. Tonga is among several countries that have used new technologies to simplify business start-up.

Over the past six years, a new measure shows that 22 economies in East Asia and the Pacific have made their regulatory environment more business-friendly. "Making business regulation more transparent and efficient increases opportunities for economic growth," said Augusto Lopez-Claros, Director, Global Indicators and Analysis, World Bank Group. "In East Asia and the Pacific, businesses have benefited from the region's broad and sustained regulatory reforms."

About the Doing Business report series
Doing Business analyzes regulations that apply to an economy's businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of doing business rankings are based on 10 indicators and cover 183 economies. Previous year's rankings are back-calculated to account for the addition of new indicator(s), data corrections, and methodology changes in existing indicators so as to provide a meaningful comparison with the new rankings. 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, the level of skills, or the strength of financial systems. Its findings have stimulated policy debates in more than 80 economies and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies.

About the World Bank Group

The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. IFC and World Bank, 20/10/11.