LOUIS, MISSOURI — This year, the World Bank released its first Business Ready (B-Ready) report not only to assess the global business environment but to redefine what it means for a place to have an enabling environment for businesses to thrive.
Building upon the lessons from its discontinued Ease of Doing Business report, the B-Ready framework provides a more holistic approach, evaluating economies across three pillars: Regulatory Framework, Public Services, and Operational Efficiency.
This shift broadens the focus from merely facilitating business operations to promoting a business environment that benefits society as a whole.
For the Philippines—and cities like Dumaguete—the findings from this report present valuable insights for fostering local development, and driving economic reforms that allow even the smallest players in our economic ecosystem to thrive.
From the perspective of the B-Ready framework, it’s not just about how fast you can process your business permits but also about whether employees are being paid fairly for their hard work and, ultimately, people’s quality of life as they continue to hustle and do more than just make their ends meet.
At its core, B-Ready emphasizes the importance of a robust and inclusive private sector. Globally, challenges such as job creation, sustainable growth, and entrepreneurship can only be addressed through a flexible business environment that serves both companies and the public.
The report’s three pillars serve as the foundation for this transformation. The Regulatory Framework looks beyond simple metrics like business registration timelines, and digs into the quality and fairness of regulations.
For example, it examines whether labor laws protect workers while allowing businesses to operate efficiently.
Public Services, the second pillar, assesses how government services—such as utilities and infrastructure—support businesses. Even with excellent regulations, economies often fall short due to poor public service delivery.
Lastly, Operational Efficiency evaluates how easily businesses can comply with regulations, and use public services. This includes the ease of accessing credit or resolving disputes, which directly affects businesses’ day-to-day operations.
The methodology underpinning the B-Ready report reflects a significant advancement in data collection and analysis. This year, the report assessed 50 economies through a detailed evaluation that combines expert opinions with firm-level surveys. The World Bank used expert questionnaires to gather qualitative data on the regulatory framework and public services, drawing insights from over 2,500 experts in the business climate across various sectors.
Complementing this qualitative data, the B-Ready project included responses from more than 29,000 firms that participate in the World Bank’s enterprise surveys. This dual approach ensures a balanced view of both the legal framework and actual conditions in business environments.
The report analyzed nearly 1,200 indicators, covering all major topics related to a firm’s life cycle, and allows economies to be benchmarked against each other in a meaningful way. This robust methodology ensures that the findings are not only comprehensive but also actionable, providing clear pathways for reform.
In the case of the Philippines, the report reveals a mixed performance. Ranked in the third quintile overall, the country’s regulatory framework shows promise, but there are still hurdles to overcome.
On the regulatory front, the Philippines performs reasonably well, placing in the second quintile, which means that the country has established clear rules for business operations.
However, bureaucratic complexities still pose a challenge. Businesses may face delays in obtaining permits, such as for construction or environmental compliance, and these delays can hinder new ventures and expansions–and can cost entrepreneurs a lot of money and missed opportunities.
Where the country truly struggles is in the provision of public services, ranking in the fourth quintile. The report highlights that while laws and regulations might be in place, the lack of reliable public services—particularly in terms of infrastructure like electricity and water—continues to undermine the private sector’s potential. This “implementation gap” is particularly problematic in the Philippines, where uneven access to basic utilities can severely impact business operations, especially outside major urban centers.
Despite these challenges, Filipino firms show resilience in navigating regulatory and operational hurdles. The Philippines ranks in the third quintile for operational efficiency, showing that businesses can work around inefficiencies, although they still face significant delays in dispute resolution and credit access. This gap highlights the need for targeted reforms to improve the country’s business environment.
For Dumaguete City, these insights are particularly relevant. As an emerging hub for tourism, investment, education, and digital nomads, Dumaguete is at a crucial moment in its development. The B-READY findings offer a clear roadmap for the city to improve its local business climate. The first step is to streamline the regulatory process. By simplifying business registration and permits, Dumaguete can attract more micro, small and medium-sized enterprises (MSMEs), which are the lifeblood of the local economy. The city government can also strengthen policies to protect workers without creating unnecessary barriers for businesses.
More critically, Dumaguete must address any public service gaps. The report’s emphasis on public services directly applies to the city’s persisting challenges with energy and water supply, which can disrupt business operations. By investing in reliable infrastructure, particularly in utilities and digital connectivity, the city can position itself as a competitive destination for both local and foreign investors. The rapid adoption of digital technologies, as encouraged by the B-READY report, could also enhance the efficiency of government services, making it easier for businesses to comply with regulations and access necessary resources.
Operational efficiency is another area where Dumaguete can shine. The local government can improve its dispute resolution processes by setting up specialized business courts or alternative mechanisms that expedite commercial dispute settlements, if possible. Additionally, by collaborating with local financial institutions, Dumaguete could offer better access to credit for MSMEs, spurring business growth and expansion.
Overall, the B-Ready report highlights a path forward not only for Dumaguete but for many developing cities in the Philippines. The findings underscore the importance of creating a business environment where regulatory frameworks, public services, and operational efficiencies work in harmony. For the City of Gentle People, addressing these areas can transform it into a model for sustainable, inclusive growth.
The stakes are high. As Dumaguete continues to attract investors, tourists, and students, its ability to provide reliable services and streamline business processes will be key to its long-term success. The city can capitalize on its unique position by drawing from applicable best practices in the B-READY report. By doing so, our city can ensure that its growth is not only rapid but also resilient and inclusive, benefiting everyone.
B-Ready is not just a benchmark but a valuable tool for local governments, businesses, and policymakers. For cities like ours, the report’s insights provide a blueprint for creating a more competitive, sustainable, and inclusive business environment. By focusing on improving public services, streamlining regulations, and enhancing operational efficiency, Dumaguete can truly soar and lead the way as a model of progressive urban development in the country.
__________________________________
Author’s email: thedumalady@gmail.com
