Below is a list of frequently asked questions by visitors while on tour
If you need any other information, please refer to these frequently asked questions to get more information!
Until the most recent update of methodology in 2013, the overall PCI comprises ten subindices reflecting economic governance areas that affect private sector development. A province that is considered to perform well on the PCI is the one that has: 1) low entry costs for business start-up; 2) easy access to land and security of business premises; 3) a transparent business environment and equitable business information; 4) limited time requirements for bureaucratic procedures and inspections; 5) minimal informal charges; 6) minimal crowding out of private activity from policy biases toward state, foreign, or connected firms; 7) proactive and creative provincial leadership in solving problems for enterprises; 8) developed and high-quality business support services; 9) sound labor training policies; and 10) fair and effective legal procedures for dispute resolution.
TO BE MORE SPECIFIC: 1. Entry Costs:A measure of the time it takes firms to register, acquire land, and receive all the necessary licenses to start business, the number of licenses required, and the perceived degree of difficulty to obtain all licenses and permits. 2. Land Access and Security of Tenure:A measure combining two dimensions of the land problems confronting entrepreneurs: how easy it is to access land; and the security of tenure once land is acquired. The first dimension comprises: whether firms possess their official land use rights certificate; whether they have enough land for their business expansion requirements; whether they are renting from SOEs; and an assessment of land conversion efforts. The second dimension includes perceptions of various tenure security risks (such as expropriation, unfair compensation values, or changes in the lease contract), as well as the duration of tenure. 3. Transparency and Access to Information: A measure of whether firms have access to the proper planning and legal documents necessary to run their business, whether those documents are equitably available, whether new policies and laws are communicated to firms and predictably implemented, and the business utility of the provincial web page. 4. Time Costs and Regulatory Compliance: A measure of how much time firms expend on bureaucratic compliance, as well as how often and how long firms must shut their operations down for inspections by local regulatory agencies. 5. Informal Charges: A measure of how much firms pay in informal charges, how much of an obstacle those extra fees pose for their business operations, whether payment of those extra fees results in expected results or ‘services’, and whether provincial officials use compliance with local regulations to extract rents. 6. Bias Against Private Firms (Competition Environment): A measure of the competition regime confronting private business, focusing on the perceived bias of provincial governments toward state owned enterprises (SOEs), foreign firms, and connected entrepreneurs, notably in terms of incentives, policy, and access to capital. 7. Pro-activity of Provincial Leadership: A measure of the creativity and astuteness of provinces in implementing central policy, designing their own initiatives for private sector development, and working within (sometimes unclear) national regulatory frameworks to assist and interpret in favor of local private firms. 8. Private Sector Development Services: A measure of provincial services for private sector trade promotion, provision of regulatory information to firms, business partner matchmaking, and technological services for firms. In 2009, this index was altered slightly to promote the development of private business service providers. Early iterations had the perverse effect of encouraging provinces to develop such services and offer them for free, which was crowding out the ability of local businesses to develop and play this role. 9. Labor Training: A measure of the efforts by provincial authorities to promote vocational training and skills development for local industries, and to assist in the placement of local labor. 10. Legal Institutions: A measure of the confidence of the private sector in the provincial legal institutions, whether firms regard provincial legal institutions as an effective vehicle for dispute resolution, or as an avenue for lodging appeals against corrupt behavior by officials (Malesky 2005).
Sub-indices Weight (%)
|1. Entry Costs||5|
|2. Land Access||5|
|4. Time Costs||5|
|5. Informal Charges||10|
|6. Policy Bias||5|
|7. Proactivity of Provincial Leadership||5|
|8. Business Support Services||20|
|9. Labor Training||20|
|10. Legal Institution||5|