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Economic Opportunities for Women in the East Asia and Pacific Region

all indicators but do less well than those in Europe and Central Asia as well as the Latin America and Caribbean regions. This being said, the aggregated regional numbers are rather poor in absolute terms on all Doing Business credit indicators (World Bank 2009). As table 2.1 shows, for example, only 21.6 percent of adults in the East Asia and Pacific region are covered by either public credit registries or private credit bureaus. The region’s Depth of Credit Information Index score is 1.9 out of 6.0; only Sub-Saharan Africa scores lower. Moreover, creditor rights have unsatisfactory protection, on average, as shown by the score of 5.7 out of 10 on the Strength of Legal Rights Index. The access-to-credit indicators also show that country-specific performance varies widely within the region. Figure 2.3 compares the performance of East Asian and Pacific economies on a composite access-to-credit indicator (normalized score/100) based on two Doing Business indicators: the Depth of Credit Information Index and the Legal

Table 2.1

Getting Credit: East Asia and Pacific vs. Other Regions

Region East Asia and Pacific Eastern Europe and Central Asia Latin America and the Caribbean Middle East & North Africa South Asia Sub-Saharan Africa OECD member countriesc

Strength of Legal Rights Indexa (0–10)

Depth of Credit Information Indexb (0–6)

Public credit registry coverage (% of adults)

Private credit bureau coverage (% of adults)

5.7

1.9

7.2

14.4

6.6

4.0

9.7

19.4

5.5 3.3 5.3 4.6 6.8

3.3 3.3 2.1 1.5 4.9

10.0 5.0 0.8 2.4 8.8

33.2 10.9 3.3 4.5 59.6

Source: World Bank 2009. a. The Doing Business Strength of Legal Rights Index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. b. The Doing Business Depth of Credit Information Index measures rules affecting the scope, accessibility, and quality of credit information available through either public or private credit registries. A score of 1.0 is assigned for each of the following six features of the public registry or the private credit bureau (or both): (1) Both positive credit information and negative information are distributed. (2) Data on both firms and individuals are distributed. (3) Data from retailers and utility companies are distributed to financial institutions. (4) More than two years of historical data are distributed. Registries that erase data on defaults as soon as they are repaid obtain a score of 0.0 for this indicator. (5) Data on loans below 1 percent of income per capita are distributed. A registry must have a minimum coverage of 1 percent of the adult population to score a 1.0 for this indicator. (6) Regulations guarantee borrowers the right to access their data in the largest registry in the economy. c. OECD = Organisation for Economic Co-operation and Development. The 30 current OECD member countries include Australia, Austria, Belgium, Canada, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, the Republic of Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom, and the United States.

Economic Opportunities for Women in the East Asia and Pacific Region  

The East Asia and Pacific region has made great progress, relative to other regions, with regard to both economic development and, specifica...

Economic Opportunities for Women in the East Asia and Pacific Region  

The East Asia and Pacific region has made great progress, relative to other regions, with regard to both economic development and, specifica...