Doing Business in the Caribbean 2017: Central America Leads By Example

Doing Business 2017: Equal Opportunity for All is the 14^th in the long-standing series of co-publications by the World Bank and International Financial Corporation (IFC). This annual report on the ease in doing business, now in 190 nations, covers the period from June 2015 to June 2016.

For the past 3 years, I have reviewed such reports and, with the exception of last year, published two articles from each: first examining the global ranking of Caribbean states, followed by an itemized breakdown of their performance. This article reviews “Doing Business 2017”.

Last year Doing Business 2016: Measuring Regulatory Quality and Efficiency used a new methodology for its analysis and also additional data not previously measured. So, comparison with the previous year was difficult, to say the least, and proved too much to allow writing a second article.

Like the last, the current report has also made changes which make an itemized breakdown difficult, if not impossible. So, this article will again be limited to the review of global rankings of Caribbean States; and again, the states referred to will be members of the Association of Caribbean States (ACS).

The two tables below present data for these states. Last year’s data is included as a convenience, but it is stressed that differences may simply indicate the change in the methodology used in preparing the report, which negatively impacted only the ranking of the Caribbean Islands.

ACS Caribbean Island States	Population (Millions)	Income (US $)	2016	2017
Caribbean Islands	29.9	6,455	104	111
Caribbean SIDS	8.9	13,687	98	110
Puerto Rico (US)	3.5	19,150	57	55
Independent Caribbean SIDS	5.4	10,107	102	115
Jamaica	2.7	5,010	64	67
Trinidad	1.4	18,600	88	96
Bahamas, The	0.4	21,310	106	121
Barbados	0.3	14,800	119	117
OECS	0.7	9,370	107	116
St. Lucia	0.2	7,390	77	87
Dominica	0.1	6,760	91	101
Antigua & Barbuda	0.1	13,390	104	113
St. Vincent & the Grenadines	0.1	6,670	111	125
St. Kitts & Nevis	0.1	15,560	124	134
Grenada	0.1	8,430	135	138
Large Caribbean Island States	21.2	3,450	137	142
Dominican Republic	10.5	6,130	93	103
Haiti	10.7	820	182	181

Table 1: Ratings of Caribbean Islands

Table 1 conveys information on 13 Caribbean Islands, divided into two groups: 11 Small Island Developing States (SIDS) and 2 large island-states: namely the Dominican Republic and Haiti. The SIDS group is further sub-divided into three groups.

Puerto Rico, being the only SIDS that is not politically independent, is a group unto itself. The 6 smallest islands belong to the Organization of Eastern Caribbean States (OECS); and, the remaining 4 states comprise the last group.

Table 2 conveys information on 12 ACS Latin American (LatAm) states. Like the Caribbean Islands, these LatAm states are divided into two groups – Central, and South American States. The former comprises 8 states and the latter 4 states.

ACS Latin American States	Population (Millions)	Income (US $)	2016	2017
Latin American States	250.8	8,850	102	102
Central American States	169.7	8,480	86	85
Mexico	127.0	9,710	38	47
Costa Rica	4.8	10,210	58	62
Panama	3.9	12,050	69	70
Guatemala	16.3	3,590	81	88
El Salvador	6.1	3,940	86	95
Honduras	8.1	2,270	110	105
Belize	0.4	4,420	120	112
Nicaragua	6.1	1,940	125	127
South American States	81.1	9,640	133	127
Colombia	48.2	7,130	54	53
Guyana	0.8	4,090	137	124
Suriname	0.5	9,300	156	158
Venezuela	31.1	12,080	186	187

Table 2: Ratings of ACS Latin American States

It should also be noted that this table includes three CARIFORUM member-states: Belize, in the Central American group, as well as Guyana and Suriname in the South American group. With the exception of Puerto Rico, all Caribbean islands in table 1 are CARIFORUM states.

Doing Business Regional Profile 2017: Latin America and the Caribbean lists 32 LAC states. With the exception of Puerto Rico, 24 of these are ACS members. The 17 remaining LAC states are all located in South America. Average rating for the Caribbean Island ACS members is below the LAC average of 107.

But, 9 of the top 12 LAC performers are ACS member states, just like “Doing Business 2015”, but less than the top 10 in “Doing Business 2016”. Again, this is mostly due to the superior rankings of the Central American sub-group, though this number does include 3 Caribbean Island ACS members.

Currently, the top 12 ranked LAC performers, from highest to lowest, are: Mexico, Colombia, Peru, Puerto Rico, Costa Rica, Jamaica, Panama, Saint Lucia, Guatemala, Uruguay, El Salvador, Trinidad and Tobago. Of these, Peru, Puerto Rico, and Uruguay are the only states that are not ACS members.

Six LatAm ACS member-states are in the top 12: Colombia being the sole South American member, of its group of 4. Mexico, Costa Rica, Panama, Guatemala and El Salvador comprise the remaining 5, of the 8 member Central American group.

No large Caribbean-Island state is present. Jamaica, Trinidad and Tobago are 2 of the 4 larger ACS SIDS that are top performers. Puerto Rico is also among the top performers. But, Saint Lucia is the sole member of the 6 OECS members that is a top performer.

The superior ranking of the LatAm sub-group is specifically due to performance of Mexico, and Colombia: Mexico with rank of 47 being best performer in the Central America group and Colombia, ranked 53, best of the South America group. The former being ranked higher than the latter.

Only 2 of the 8 Central American group members were below the LAC average. One which was below average – Belize - is a CARIFORUM member. Otherwise, only Puerto Rico, and Jamaica ranked above the Central America group average of 85.

Regrettably, ACS still comprises 7 of the 8 lowest ranked economies in LAC. In ascending order from the lowest, these are: Venezuela, Haiti, Suriname, Bolivia, Grenada, Saint Kitts and Nevis, Nicaragua, and Saint Vincent and the Grenadines. Bolivia is the sole non-ACS member.

The South American group has the largest discrepancy in ranks: Colombia is at the top with 53 and Venezuela the last at 187: the remaining 2 – Guyana and Suriname – being CARIFORUM members: Suriname and Venezuela being in the bottom 8.

The Association of Caribbean States not only has the most capable states to effect reform, but it also has the most deserving of states. Therefore, it seems to be the body most suitable to facilitate this reform in the shortest order. Indifference to reform should not be allowed to further deteriorate performance.

Central America is leading by example. Can other ACS members, including CARIFORUM members, follow suit? Can we all collaborate to bring about well-needed reform and a better future? We can, and we must, but we need to actively effect change now and stop procrastinating.


Paul Hay is a Jamaican national, founder of PAUL HAY Capital Projects: a consultancy, based in Kingston Jamaica, with a vision of providing strategic planning and implementation services to organizations for non-residential facilities in the Caribbean.

Related articles:

Doing Business in the Caribbean 2018: El Salvador Shines

Doing Business in the Caribbean 2016: Central America shows the way

Greater Caribbean Business in 2015

Doing Business in the Caribbean 2015: Who Cares?

Business in the Caribbean 2014: CARIFORUM needs Reform, part 2

Business in the Caribbean 2014: CARIFORUM needs Reform

Singapore: Example to the Caribbean in Doing Business 

Doing Business in the Caribbean 2016: Central America shows the way

DoingBusiness 2016: Measuring Regulatory Quality and Efficiency is the 13^th in the long-standing series of co-publications by the World Bank and International Financial Corporation (IFC). This annual report on the ease in doing business in 189 nations covers the period from June 2014 to June 2015.

I have been reviewing such reports for the past two years, and have published two articles from each review: first to examine the global ranking of Caribbean states, then to breakdown their performance into the 10 indicators used in the ranking process. This article reviews “Doing Business 2016”.

Last year in “Doing Business in the Caribbean: Who Cares?” and “Greater Caribbean Business in 2015”, I suggested  collaboration within the Association of Caribbean States (ACS) in order to effect well needed reform, especially considering commonalities that existed within its membership.

The Latin America and Caribbean (LAC) region has a number of groupings that could undertake such reform in “Doing Business”. However, the ACS stands out, because it is focused on the Caribbean. The two tables below present data primarily for member-states.

Caribbean Island	Population (Millions)	Income (US $)	2015	2016
Caribbean Islands	29.9	6,455	102	104
Caribbean SIDS	8.9	13,687	96	98
Puerto Rico (US)	3.5	19,210	56	57
Independent Caribbean SIDS	5.4	10,107	100	102
Jamaica	2.7	5,042	71	64
Trinidad	1.3	16,562	85	88
Bahamas, The	0.4	21,010	108	106
Barbados	0.3	15,579	116	119
OECS	0.7	9,080	104	107
St. Lucia	0.2	7,090	77	77
Dominica	0.1	7,070	89	91
Antigua & Barbuda	0.1	13,360	99	104
St. Vincent & the Grenadines	0.1	6,560	106	111
St. Kitts & Nevis	0.1	14,540	122	124
Grenada	0.1	7,850	130	135
Large Caribbean Island States	21.0	3,390	137	137
Dominican Republic	10.5	5,950	93	93
Haiti	10.5	830	182	182

Table 1: Ratings of Caribbean Islands

Previously, I had advocated reform through the Caribbean Forum (CARIFORUM). However, ACP’s 25 member states comprise 15 CARIFORUM member-states. Cuba is another member, and 8 Caribbean Overseas Territories are associate members, though neither are part of “Doing Business 2016”.

ACS therefore has a wider membership of Caribbean islands than CARIFORUM. Also, “ACS provides a framework for the dialogue and activity necessary to further advance economic integration and intra-regional trade and investment, thereby improving competitiveness of the Greater Caribbean region”.

DoingBusiness Regional Profile 2016: Latin America and the Caribbean lists 32 LAC states. With the exception of Puerto Rico, 24 of these are ACS members. Nevertheless, data for Puerto Rico was reviewed and is presented for reference. All the other LAC states are located in South America.

Both tables present general information on the relevant economies, as well as their rankings for 2015 and 2016. Table 1 conveys information on 13 Caribbean Islands, divided into two groups: 11 Small Island Developing States (SIDS) and 2 large island-states: namely the Dominican Republic and Haiti.

The SIDS are sub-divided into three groups. Puerto Rico, being the only island that is not politically independent, is a group unto itself. The 6 smallest islands belong to the Organization of Eastern Caribbean States (OECS) – the next group; and, the last comprises the 4 remaining SIDS.

Table 2 conveys information on 12 ACS Latin American (LatAm) states. Like the Caribbean Islands, these LatAm states are divided into two groups – Central, and South American States. The former comprises 8 states and the latter 4 states.

It should also be noted that this table includes three CARIFORUM member-states: Belize, in the Central American group, as well as Guyana and Suriname in the South American group. With the exception of Puerto Rico, all Caribbean islands in table 1 are CARIFORUM states.

ACS Latin American States	Population (Millions)	Income (US $)	2015	2016
Latin American States	250.8	8,850	104	102
Central American States	169.7	8,480	90	86
Mexico	123.8	9,980	42	38
Costa Rica	4.9	9,750	79	58
Panama	3.9	10,970	66	69
Guatemala	15.9	3,440	81	81
El Salvador	6.4	3,780	115	86
Honduras	8.3	2,190	97	110
Belize	0.3	4,760	118	120
Nicaragua	6.2	1,830	123	125
South American States	81.1	9,640	131	133
Colombia	48.9	7,780	52	54
Guyana	0.8	3,970	132	137
Suriname	0.5	9,640	154	156
Venezuela	30.9	12,820	184	186

Table 2: Ratings of ACS Latin American States

In both tables, 2015 rankings are generally lower than those published in “Doing Business in the Caribbean: Who Cares?”. These rankings were actually revised using a new evaluation process developed for the 2016 rankings: thereby facilitating comparison between the current and past year.

Of all ACS members, only the OECS improved its average 2015 rankings in the revision. This was due to significant improvement in the rankings of Saint Lucia and Dominica, which superseded Antigua and Barbuda as the top performers within OECS: other member states having marginally worse rankings.

OECS average 2015 ranking was revised to 104: equal to that of the LatAm states. But, the average 2015 ratings for independent SIDS as a whole remained superior. The average 2016 rating for ACS LatAm states marginally improved, while that of independent SIDS worsened to become equal, at 102.

For the LatAm ACS, the Central America group benefited from the revised 2015 ranking. Only Honduras improved in rank, but Belize held firm. In the process, Honduras superseded El Salvador in the revised standings. Similarly, Mexico and Panama fared better than their counterparts in this revision.

Mexico was ranked higher than Colombia, previously the top performer within ACS: thus making it top 2015 performer within ACS. Similarly, Panama superseded Costa Rica in the revised ranking. Of the three changes in standing, only Mexico and Colombia maintained their relative positions in the 2016 ranking.

In “Doing Business 2015”, 9 out of the top 12 LAC performers were ACS member-states. In “Doing Business 2016”, this has improved to 10 of the top 12 performers. This improvement is solely due to significant improvement in the rankings of the Central American sub-group.

Currently, the top 12 LAC performers, from highest to lowest rank, are: Mexico, Peru, Colombia, Puerto Rico, Costa Rica, Jamaica, Panama, Saint Lucia, Guatemala, El Salvador, Trinidad and Tobago, and Dominica. Of these, Peru and Puerto Rico are the only states that are not ACS members.

Six Latin American ACS member-states are in the top 12: Colombia being the sole South American member, of its group of 4. Mexico, Costa Rica, Panama, Guatemala and El Salvador comprise the remaining 5, of the 8 member Central American group.

With the exception of Puerto Rico, four Caribbean islands are in the top 12. No large Caribbean-Island state is present. Jamaica, Trinidad and Tobago are 2 of the 4 larger Caribbean SIDS that are top performers: Saint Lucia and Dominica being 2 of the 6 OECS members that are also top performers.

The improvement of the 2016 average rank for the Central America sub-group is specifically attributed to advancements by Mexico, Costa Rica, and El Salvador. The latter two, having been superseded in the revised ranking, managed to retake their previous positions. Guatemala held firm.

For the Caribbean Islands, only Jamaica and The Bahamas improved in the 2016 rankings, with Saint Lucia, Dominican Republic, and Haiti holding firm. Though improved, The Bahamas rating was still below-average. But, that of the Dominican Republic remained above-average.

In the Jamaica Gleaner publication dated October 28, 2015, the article “Jamaica Citedfor Doing Reforms in Doing Business Report” stated that:

“Jamaica... has been cited by the World Bank, alongside Costa Rica and Mexico, as executing the most reforms in the region in the last five years”, and “also found that Jamaica is among the global top 10 improvers ‘as it implemented a regional high of four reforms’ ”.

Regrettably, ACS also comprises 7 of the 8 lowest ranked economies in LAC. In ascending order from the lowest ranked, these are: Venezuela, Haiti, Bolivia, Suriname, Guyana, Grenada, Nicaragua, Saint Kitts and Nevis. Of these, Bolivia is the sole non-ACP member.

Only the larger SIDS are not a part of this group. Haiti is one of the two large Caribbean island states in the group; Grenada, Saint Kitts and Nevis: 2 of the 6 OECS. Venezuela, Suriname, and Guyana are 3 of the 4 South American states; and Nicaragua: the sole Central American state.

The South American sub-group therefore has the largest discrepancy in ranks: Colombia is in the top 12, but the others are in the bottom 8. Two of these are CARIFORUM states; or put differently, 5 of the 7 lowest ranked ACS members are also CARIFORUM members.

The Greater Caribbean not only has the most capable states to effect reform, but it also has the most deserving of states. Again, in “Doing Business in the Caribbean:Who Cares?”, I had proposed using the Asia-Pacific Economic Cooperation (APEC) as a model for ACS to address reform within the sub-region.

On the whole though, the relative standings of most states within the sub-region were unchanged: even in the case of Mexico and Jamaica, whose global ranks improved. However, Costa Rica and El Salvador improved their standings: Panama and Honduras falling below Jamaica and The Bahamas respectively.

Otherwise, five (5) islands fell in the regional standings.  Listed from the highest to lowest ranked, they are: Saint Lucia, Trinidad and Tobago, Dominica, Dominican Republic, and Saint Vincent and the Grenadines. The global rank for Saint Lucia actually held firm, but all the others fell.

It should now be apparent that states have to improve their global ranks just to maintain their relative regional standing. The global ranks of Mexico and Jamaica improved by 4 and 7 places respectively, just to maintain their respective standings of 1^st and 6^th.

Though Mexico was the top performer, it is instructive to note that Costa Rica moved up 21 places globally, from 79 to 58, to take the 5^th spot: thus preventing Jamaica from advancing in the regional standing, even though it had moved up 7 places globally. It was simply not good enough.

To actually improve in standing, substantial improvements have to be made. Costa Rica’s global ranking moved up 21 places to take it from 8^th to 5^th in region. El Salvador moved up 29 places, from 115 to 86, to take it from 17^th to 10^th place regionally.

With the widening of the Panama Canal now complete, a significant increase in trade and investment can be expected in the Greater Caribbean. So, improving competitiveness of local firms is imperative and this through the improved competitiveness of Greater Caribbean states.

The indifference to reform should not be allowed to further deteriorate performance in “Doing Business”. ACS seems to be the regional body most able to facilitate this reform in the shortest order, and time is of the essence to capitalize on expected increase in investment and trade within the Basin.

Central America seems to be championing reform in their individual nations. Can the other LatAm ACS members and the Caribbean islands follow suit? More importantly, can we all collaborate to be able to capitalise on gains expected in the near future? Only time will tell.


Paul Hay is a Jamaican national, founder of PAUL HAY Capital Projects: a consultancy, based in Kingston Jamaica, with a vision of providing strategic planning and implementation services to organizations for non-residential facilities in the Caribbean.

Related articles:

Doing Business in the Caribbean 2018: El Salvador Shines

Doing Business in the Caribbean 2017: Central America Leads By Example

Doing Business in the Caribbean 2015: Who Cares?

Greater Caribbean Business in 2015

Business in the Caribbean 2014: CARIFORUM needs Reform, part 2

Business in the Caribbean 2014: CARIFORUM needs Reform

Singapore: Example to the Caribbean in Doing Business