New Delhi, Dec 6 (UNI) Is a democratic form of government better than an autocratic one for achieving high growth? A scientific answer to this oft-repeated question was given here today by Mr Michael Klein, World Bank- IFC Vice President, while launching a Report titled: 'Doing Business 2008.' Mr Klien said empirical evidence and a host of studies show that the growth in a democratic set was far more stable-- "with little variations"-- than in a dictatorial government. In an autocratic set up growth could move both ways-- devoid of development or rapid growth.
The ultimate answer to growth in a dictatorial government would depend upon the compulsions of the autocratic regime and the means it adopts to legitimise power.
Besides, political fragmentation in a country could provide no clue to the impact of the nature of coalition on government regulation and growth.
In short, growth in a country like India could be slightly slow but sure and sustained.
The Report by International Finance Corporation (IFC), the World Bank and CII assigns India a low ranking of 120 among 178 economies in terms of ease of doing business. The country, however, has moved up 12 notces from last year. India ranked 132 last year.
The upward climb on the ladder by India is faster than that of China, which moved up nine places.
According to the Report, India has emerged as the top reformer globally in trading across borders and South Asia's top reformer on the overall ease of doing business.
Mr Klien highlighted the need for maintaining the momentum of reforms. Besides, it made it easier to trade across borders by recently increasing access to credit by expanding credit bureau coverage to individuals as well as businesses. It also introduced electronic registry for security rights granted by companies.
In trading across borders India ranks 79 out of 178 countries in 2007, a jump of 63 places compared to last year.
The Report ranks countries on ten parametres on the ease with which business can be done. These are: tracking business regulation in starting a business, dealing with licences, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing businesses.
India's ranking among its neigbouring countries, however, is lower than that of the Maldives (60), Pakistan (76), Bangladesh (107), Sri Lanka (101), Nepal (111), and Bhutan (119). Though China ranks 83, it attracts large volumes of FDI.
In the South Asan region, India is ahead of only Afghanistan (159). Another recent favourite hot spot of FDI players is Brazil which ranks 122.