The World Bank has offered an interesting metaphor for the reason it comes out with a yearly survey on the ease of doing business in all the world's economies.
It likened the study to a "cholesterol test" but focusing on the regulatory environment for local businesses.
"A cholesterol test does not tell us everything about the state of our health," the bank said in the latest "Doing Business" report, published Sept. 8. "But it does measure something important for our health. And it puts us on watch to change behaviors in ways that will improve not only our cholesterol rating but also our overall health."
So what's the state of today's global economic health? Some would say pretty bad, though many are hoping for a recovery.
Using the cholesterol analysis, Singapore would therefore be in the pink of health, having led the list for four straight years. Unlike some of its contemporaries in the top 10 roster, it continues to find ways to improve, having introduced three reforms between June 2008 and May 2009.
The U.K., Ireland and Norway were not as aggressive but also acted and adopted reforms.
The U.S., New Zealand, Denmark, Canada and Australia, meanwhile, did nothing. They must be satisfied with their "cholesterol" level.
But Rwanda was the star during the subject period. Although tied with Kyrgyzstan and Macedonia with seven reforms, Rwanda was named best in three of nine indicators - employing workers, getting credit, and protecting investors.
The six other indicators went to six different nations: starting a business, Samoa; dealing with construction permits, U.K.; registering property, Mauritius; paying taxes, East Timor; trading across borders, Georgia; enforcing contracts, Botswana; and closing a business, Malawi.
Colombia actually topped Rwanda by one reform. But this only managed to bring the country 12 ranking places up, from 49 to 37. Rwanda, meanwhile, made a gigantic leap of 76 places, from 143 to 87. No wonder it bagged the world's leading reformer title!
Belarus, the United Arab Emirates, Moldova, Tajikistan, Egypt and Liberia complete the chart of top 10 reformers.
That's a mix of countries from developing regions such as Africa, Latin America, Eastern Europe. and Central Asia, where reforms can certainly help them weather the downturn by encouraging economic activities of domestic small and medium-sized enterprises.
In addition, donor governments have made reforms as condition for giving more aid to developing nations. Hence, it's win-win for reforming countries: a win for better business climate and a win for higher donor confidence.
