Useful Charts and Graphs from the WDR 2002

Figure 1.4 - Cost of business registration (as percentage of GNP per capita) is higher for lower-income countries
	Costs, capacity, and corruption. The cost of government regulation, whether in financial or other terms, needs to be consistent with a country’s per capita income to be effective. For example, a recent study covering 85 countries found that in many developing countries, the financial cost of complying with regulations for registering a business is very high relative to per capita gross national product (GNP) (figure 1.4a) and higher than industrial country averages.11 Surprisingly, developing countries that have less administrative capacity also require more procedures to register a business (figure 1.4b). The high cost, whether in complexity or resources, deters entry into the formal sector, potentially reducing competition and incurring additional costs in the form of increasing corruption (figure 1.4c). A World Bank study also finds that in many African countries, restrictive regulations and practices are often aimed at generating rents for officials and favored private agents or groups, constraining business activity in both agriculture and industry. - WDR 2002, page 12