{"id":141033,"date":"2021-10-13T18:16:22","date_gmt":"2021-10-13T12:46:22","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=141033"},"modified":"2021-10-20T14:27:59","modified_gmt":"2021-10-20T08:57:59","slug":"explained-the-ease-of-doing-business-rankings-controversy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/explained-the-ease-of-doing-business-rankings-controversy\/","title":{"rendered":"Explained: The Ease of Doing Business rankings controversy\u00a0"},"content":{"rendered":"


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Synopsis<\/span><\/b>: Recommendations to improve the ranking methodology employed by now scrapped Ease of Doing Business index report.<\/span>\u00a0<\/span><\/p>\n

Introduction<\/span><\/b>\u00a0<\/span><\/h5>\n

Few days ago, the executive board of the International Monetary Fund (IMF) backed its Managing Director, Kristalina Georgieva, stating full confidence in her. The purpose was to end the long and increased questioning\u00a0about Georgieva\u2019s role in manipulating the World Bank\u2019s Ease of Doing Business rankings when she was the chief executive there.<\/span>\u00a0<\/span><\/p>\n\n\n\n
Must Read<\/strong>: The end of Doing Business report – Explained, pointwise<\/span><\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What is the controversy\u00a0and how\u00a0Kristalina Georgieva is linked with it?<\/span><\/b>\u00a0<\/span><\/h5>\n

In August 2020, the World Bank suspended its EoDB rankings after finding some \u201cdata irregularities\u201d. \u201cA number of irregularities have been reported <\/span>regarding changes to the data in the Doing Business 2018 and Doing Business 2020 reports, <\/span><\/b>published in October 2017 and 2019. The <\/span>changes in the data were inconsistent with the Doing Business methodology.<\/span><\/b>\u00a0Kristalina Georgieva was the\u00a0Managing Director of the IMF at that time.<\/span>\u00a0<\/span><\/p>\n

How can the ranking methodology be improved?<\/span><\/b>\u00a0<\/span><\/h5>\n

Recently, the World Bank also published the findings of an external panel review of its EoDB methodology. It stated that \u201cthe current methodology should be significantly modified, implying a major overhaul of the project.<\/span>\u00a0<\/span><\/p>\n

Some of the key recommendations are:<\/span><\/b>\u00a0<\/span><\/p>\n

First,<\/b><\/em>\u00a0A substantial methodological shift away from hypothetical case studies and in favour of more data collection from representative samples of \u201cactual\u201d business owners and operators on their de facto experiences of doing business.<\/span>\u00a0<\/span><\/p>\n

Second,<\/b><\/em>\u00a0don\u2019t ignore the government functions that provide essential public goods to the private sector: transport and communications infrastructure, a skilled workforce, law and order, etc.<\/span>\u00a0<\/span><\/p>\n

Third<\/em>,<\/span><\/b>\u00a0do not rank countries on their tax rates. \u00a0<\/span>\u00a0<\/span><\/p>\n

Fourth<\/em>,<\/span><\/b> eliminate the indicators \u201cProtecting Minority Shareholders\u201d and \u201cResolving Insolvency.\u201d<\/span>\u00a0<\/span><\/p>\n

Five<\/b><\/em>, make the \u201cContracting with Government\u201d indicator more relevant.<\/span>\u00a0<\/span><\/p>\n

Six,<\/b><\/em> restore and improve the \u201cEmploying Workers\u201d indicator, but do not rank countries based on this information.<\/span>\u00a0<\/span><\/p>\n

Seven<\/em><\/strong>,<\/strong> improve the transparency and oversight of Doing Business.<\/span>\u00a0<\/span><\/p>\n

Source:\u00a0<\/span><\/b>This post is based on the article ”\u00a0<\/span>Explained: The Ease of Doing Business rankings controversy<\/span><\/b>\u00a0” published in <\/span>The Indian Express <\/span><\/b>on <\/span>13th October 2021.<\/span><\/b>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Synopsis: Recommendations to improve the ranking methodology employed by now scrapped Ease of Doing Business index report.\u00a0 Introduction\u00a0 Few days ago, the executive board of the International Monetary Fund (IMF) backed its Managing Director, Kristalina Georgieva, stating full confidence in her. The purpose was to end the long and increased questioning\u00a0about Georgieva\u2019s role in manipulating… Continue reading Explained: The Ease of Doing Business rankings controversy\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10181,630,9848],"class_list":["post-141033","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-changes-in-industrial-policies","tag-ease-of-doing-business","tag-reports-and-index","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/141033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=141033"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/141033\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=141033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=141033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=141033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}