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Higher ranking in Doing Business index is insufficient for Belarus to boost investment, says World Bank representative

A higher ranking in the World Bank's Doing Business index is insufficient for Belarus to boost foreign investment, Ivan Velev, the WB resident representative, said in Minsk on Tuesday, as quoted by BelaPAN.

The Belarusian authorities overestimate the effects of the ranking on the country’s attractiveness for investment, Mr. Velev said while speaking at a conference that focused on the government’s plans to move up in the global index.

“Even if Belarus makes it into the top ten countries with the best business environment, it will not automatically mean a surge in investment,” he said, noting that the WB also had not taken into account the country’s ranking when considering providing loans to Belarus.

The WB representative said that a higher ranking was only one factor that could prompt investors to take a favorable decision.

Alyaksey Pikulik, an expert of the Vilnius-registered Belarusian Institute of Strategic Studies (BISS), shared the opinion that a higher ranking would not boost foreign investment. “Serious investors use other instruments to assess risks,” he said.

The expert said that Belarus might make it into the top ten by 2012, noting that even “cosmetic changes could be sufficient" to move up in the index.

As far back as 2008, Alyaksandr Lukashenka ordered his government to take measures to fare better in the table. In the most recent index, the country moved up 24 places to rank as the 58th best country for doing business.

“Even half-way reforms that are carried out rather for the purpose of improving the image may have positive effects for the country in general,” Mr. Pikulik said.

The expert said that the government should improve its credit ranking, strengthen safeguards for investors and simplify customs clearance formalities.

To secure a better “paying tax” indicator in the index, the government should scrap some taxes, which number 56 at present, and ease formalities for filing tax returns, Mr. Pikulik said.