St. Kitts and Nevis’ economic strength dwindled in the World Bank’s most recent rankings on the “Ease of Doing Business.” SKN fell 7 spots to 134th out of 190 countries ranked, due to decreases in categories like receiving construction permits, power and credit.
The ratings were determined by establishing the distance between a “frontier” or perfect economy and the current economic situation for each specific nation in reality, based on the rules and regulations established by the governing class of those countries.
A higher ease of doing business implies the regulatory environment of a country’s government is more conducive to the starting and operation of a local business, according to the World Bank. Countries ranks were determined by a variety of categories, ranging from starting a business to resolving insolvency.
St. Kitts and Nevis’ rating has dropped every year since 2010, when it scored a 61 out of a possible 100 points. The 2017 ratings have given SKN a score of 53. The calculation of a frontier economy was made from a collection of the best performances across all economies and across time.
The largest factor in the Federations drop over the years is the ‘getting electricity’ category. A score of 92 in 2010 established St. Kitts and Nevis as a global leader in the subject. But it’s credibility has decreased by 22 points across the span of seven years, most notably in 2014, when the rating dropped 24 points in a single year.
The World bank defines the electricity category as a track of the procedures, time and cost required for a business to obtain a permanent electricity connection, as well as assessing the efficiency, reliability and transparency of power supply and price of electricity.
Other double-digit decreases in categories such as getting credit (down 18 points), Protecting minority investors (down 12 points) and paying taxes (down 11 points) have substantially contributed to the lower ranking.
The only categories in which the Federation has shown improvement since 2010 are the nation’s trade across borders (up two points) and enforcing contracts (up 12 points).
While a few dips in rating is nothing worth raising alarms over, this long term slide across the board is indicative that the economy is not improving as it should be, according to the World Bank’s formula. It is also important to remember that these slides do not necessarily mean the situation has gotten worse, rather it implies that other nations are expanding and improving their economic abilities at a faster rate.