{"id":31777,"date":"2018-10-29T11:11:52","date_gmt":"2018-10-29T05:41:52","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=31777"},"modified":"2018-10-29T11:11:52","modified_gmt":"2018-10-29T05:41:52","slug":"recalculating-ease-of-doing-business","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/recalculating-ease-of-doing-business\/","title":{"rendered":"Recalculating ease of doing business\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/opinion\/op-ed\/recalculating-ease-of-doing-business\/article22515421.ece\"><span style=\"font-weight: 400;\">Recalculating ease of doing business<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<p><span style=\"font-weight: 400;\"> Recently, the World Bank announced that it would revise the methodology it uses to calculate the ease of doing business index.<\/span><\/p>\n<p><b>What is the controversy?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">This move that is expected to affect the rankings of countries in the last four years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The index ranks countries based on how welcoming they are to businesses, as measured by criteria like the number of days it takes to start a business or obtain a licence.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The decision to revise the methodology comes after the Bank\u2019s chief economist Paul Romer raised concerns that the rankings could have been influenced by politics.<\/span><\/li>\n<\/ul>\n<p><b>Why is it significant?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> The ease of doing business index has become a popular tool tracked by governments trying to show the world that they offer a favourable investment climate for private businessmen.<\/span><\/li>\n<\/ul>\n<p><b>What are the other issues?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> It limits its sample size to just a few major cities, thus projecting an imperfect picture of overall business conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The bank is right to measure a country\u2019s business environment based on written legal rules rather than investigating the actual ground conditions in which businesses operate.<\/span><\/li>\n<\/ul>\n<p><b>Ease of doing business index:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The ease of doing business index is an index created by Simeon Djankov at the World Bank Group.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The World Bank included the \u201cpost-filing index\u201d criteria for the first time in its 2017 Doing Business report under the \u201cPaying Taxes\u201d head.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> This restricted India\u2019s improvement in ranking to just one place\u2014to 130 out of 190 countries\u2014despite a slew of reforms undertaken by the government.<\/span><\/li>\n<\/ul>\n<p><b>India\u2019s ranking:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">India came in at <\/span><b>100th place (out of 190) <\/b><span style=\"font-weight: 400;\">in the World Bank\u2019s Ease of Doing Business Report 2018.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Recalculating ease of doing business\u00a0 Context: Recently, the World Bank announced that it would revise the methodology it uses to calculate the ease of doing business index. What is the controversy? This move that is expected to affect the rankings of countries in the last four years. The index ranks countries based on how welcoming&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/recalculating-ease-of-doing-business\/\">Continue reading <span class=\"screen-reader-text\">Recalculating ease of doing business\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-31777","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704664496},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31777","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=31777"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/31777\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=31777"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=31777"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=31777"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}