Chile ranked 41 of 183 countries in this year’s “Doing Business” list produced by the World Bank and the International Monetary Fund (IMF), two places better than its ranking last year. The South American nation has become a regional hot spot for entrepreneurs and international businesses, thanks to a concerted effort by various government ministries to attract foreign capital.
The annual list measures the feasibility and challenges of conducting business in most of the world’s countries. Chile debuted on the list in 2007 at number 24, when the total number of countries included was only 128. Since 2007, the World Bank and IMF have changed various indicators every year for each new edition of the list, and Chile’s performance has generally improved each year.
Chile’s upward mobility on the 2012 list is best represented in the sub-category “Starting a Business,” in which Chile jumped from 62nd place last year to spot 27 in the latest report. Whereas starting a business used to take an average of 27 days, a recent law has cut the average start-up time to just seven days.
Doing Business made special mention of Chile’s initiatives to help new businesses, and in particular the ability to publish a new company online for no cost.
“Getting Credit” was another sub-category with a stand-out performance by Chile, which hopped from 72 up to 48 this year. The international business ranking for “Trading Across Borders” also showed a slight increase, moving up from 68 to 62.
Chile lost ground in the sub-categories that deal with construction permits – slipping from 68 to 90 – as well as “Resolving Insolvency,” which deals with the the process of closing a business, where Chile ceded several spots to countries that experienced gains in that sub-category.
An experimental indicator that deals with entrepreneurs’ access to electricity was officially published for the first time this year, and Chile ranked 41 on the global list. Regional neighbor Uruguay debuted at number 7, and the Latin American-Caribbean region was deemed the best for electrical accessibility outside Europe and the United States.
The top-ranked countries on the list include Singapore, Hong Kong and New Zealand, followed by the United States and Denmark.