BRUSSELS, Sept. 6 (Xinhua) -- The World Bank has said that 11 percent of public finances are spent on drawing up regulations for the business sector, making the country stand out with its plethora of red tape, Dutch newspaper Het Financiele Dagblad said Wednesday.

    "If the Netherlands reduced the number of public sector workers by 15 percent, it would free up enough money to cover half of the public health care costs," World Bank economist Caralee McLiesh was quoted as saying.

    McLiesh is one of the authors of the World Bank report entitled "Doing Business 2007."

    In an interview with the Dutch financial daily, McLiesh also feels that the quality of public services could improve if the red tape is reduced.

    In a survey covering 175 countries, Singapore is regarded as the best place for doing business. The Netherlands ranks 22nd, just behind Germany and ahead of South Korea.

    The World Bank said that the Netherlands' strong points lie in the way it facilitates trade with foreign countries, its adequate bankruptcy laws and the fact that credit facilities are readily available.

    Besides the red tape, the weaknesses lie in the areas of tax legislation, protection of investors and the flexibility of the labor market.

    Because of these weaknesses, the gap with the emerging economies is narrowing and is in some cases the reason why the Netherlands has been outstripped in terms of business climate by countries such as Thailand, Estonia, Lithuania and Puerto Rico. Enditem