The report examines the performance of 33 small island states based on 10 indicators of business regulation that record the time and cost to meet government requirements in starting and operating a business, trading across borders, paying taxes, and closing a business. Also included within findings are comparisons into the regulatory environment for businesses in each of the small island economies.

The report finds that Singapore is the easiest place in the world to do business, while Mauritius, St. Lucia, and Fiji are leading the way in Africa, the Caribbean, and the Pacific, respectively. The Dominican Republic is this year’s top small-island reformer as well as a top-10 reformer globally.

Svetlana Bagaudinova, author of the report, said: “Better business regulations give firms more opportunities to grow and create jobs, which is critical for small island states that have to overcome challenges posed by size and distance. Being small can even be an advantage because reform can happen faster and deliver results sooner.”

Mauritius, which ranks 24th on the ease of doing business globally, was cited an example of how a sustained, high-level commitment to reform can transform the business environment and deliver results. Over the past two years, Mauritius has enjoyed a steady increase in the annual growth rate, from 2.2% in 2005 to 5.4% in 2007. Also, unemployment has dropped from 9.6% in 2005 to 8.5% in 2007.

Thordur Gudjonsson, Director of Iceland’s Department of International Development, said: “Small island economies need global integration, regional cooperation, and to share good practices in regulatory reform to better compete in the world economy. This report is a navigation card on business regulatory reforms tailored to their specific needs and challenges.”