The Republic of Palau has significantly improved its ratings allowing for ease of business, reports World Bank’s 2014 Doing Business report.
Palau previously ranked at 114 in 2013 however this year the island nation moved up to 100 just below Vietnam and the Solomon Islands.
Palau improved its ranking through the secured transactions act, which established a centralized collateral registry for borrowers.
According to the report, Palau improved the most in the area of getting credit where the island nation now ranks 86 out of 189 countries as well as improved in the enforcing contracts area.
The Federated States of Micronesia however dropped six places from its previous ranking to where it sits now at 156 out of 189 countries.
In the Marshall Islands, the island nation dropped from 110 to 114, Palau’s previous ranking, but has made some improvements in the area of resolving insolvency.
In ranking countries using a variety of indicators on business regulations and property rights protection, Doing Business covers eleven areas affecting the life of a business such as getting electricity, credit, permits, paying taxes and protecting investors.
In the Pacific, New Zealand tops island nations in ease of doing business in ranking number 3 this year behind Hong Kong at number 2 and Singapore at number 1.
The annual report is organized by the World Bank and the International Finance Corporation.