The most popular reform in 2005/06 was easing the regulations of business start-ups. Forty-three countries simplified procedures, reducing costs and delays. The second most popular reform-implemented in 31 countries-was reducing tax rates and the administrative hassle of paying taxes, according to the report.
"Whatever reformers do, they should always ask the question, "Who will benefit the most? If reforms are seen to benefit only foreign investors, or large investors, or bureaucrats-turned-investors, they reduce the legitimacy of the government. Reforms should ease the burden on all businesses: small and large, domestic and foreign, rural and urban. This way there is no need to guess where the next boom in jobs will come from. Any business will have the opportunity to thrive," said Simeon Djankov, an author of the report.
In a separate study, also released on Wednesday, South Africa's Bureau for Economic Research, found that regulatory constraints were the biggest problem facing South Africa's businesses and economy.
Many analysts in SA feel that the country's economy is changing to an infrastructure-led economy as government spend kicks in over five years and the consumer-led boom slows, and it is critical for overall GDP growth that these projects come on stream with as little fuss as possible.