Corporate Governance 675. 676. Chapter 5 Registering property. Formal property titles help to promote the transfer of land, encourage investment and give entrepreneurs access to formal markets. However, a large share of property in developing economies is not formally registered. Entrepreneurs may not use informal titles as security for getting loans. This limits the financing opportunities for businesses. Many governments have recognised this and have started extensive property titling programmes. However, bringing assets into the formal sector is only part of the story. The more difficult and costly it is to transfer property formally, the greater the chances that formalised titles will quickly become informal again. Eliminating unnecessary obstacles to registering and transferring property is therefore important for economic development. As a result of efforts by the TWGs to improve the business environment, Mauritius’s ranking in registering property globally improved from 157 in the Doing Business Survey 2008 to 127 in 2009 (see table 5.3). However, registering property is still an area where Mauritius ranks very badly. Chapter 5 679. Source: World Bank. Doing Business Survey 2009. Doing business 2007 Doing business 2008 Doing business 2009 Rank Procedures (number) Duration (days) 157 127 6 6 4 210 210 210 Source: World Bank. Doing Business Survey 2009. 248 677. According to the interaction the CRM had with stakeholders, registering property in Mauritius is a simple process and the duration (in days) it takes to register property is a maximum of 10 as opposed to the 210 days reported in the Doing Business Survey. 678. Getting credit. Firms consistently rate access to credit as among the greatest barriers to their operations and growth. The Doing Business Survey uses two sets of indicators of how well credit markets function: one is credit registries and the other is the legal rights of borrowers and lenders. Credit registries are institutions that collect and distribute credit information on borrowers. They can increase access to credit greatly. By sharing credit information, they help lenders to assess risk and allocate credit more efficiently. Again, getting credit is the area where Mauritius ranks very badly after registering property in the Doing Business Survey (see figure 5.2). However, participants again felt that getting credit in Mauritius was not too difficult. Figure 5.2: Ranking of Mauritius on ease of getting credit 680. Table 5.3: Registering property in Mauritius Corporate Governance Protecting investors. Companies grow by raising capital, either through bank loans or by attracting equity investors. Selling shares allows companies to expand without having to provide collateral and repay bank loans. However, investors worry about their money and look for laws that protect them. Mauritius ranks an impressive 11 out of the 181 economies worldwide on this indicator. Figure 5.3 illustrates Mauritius’s ‘protecting investors’ index compared with best practice and those of selected countries. Figure 5.3: Ranking of Mauritius in protecting investors Source: World Bank. Doing Business Survey 2009. 681. Enforcing contracts. Businesses are more likely to engage with new borrowers or customers if contracts are enforced efficiently. The Doing Business Survey tracks the efficiency of the judicial system 249