Ease of Doing Business Rankings: Context
- Recently World Bank informed it had paused the next Doing Business report and initiated a series of reviews and audits of the report and its methodology.
- World Bank also informed that it will be working on a new approach to assessing the business and investment climate.
Ease of Doing Business Rankings: Reasons for discontinuation
- Ease of Doing Business Rankings was paused as World Bank found data irregularities on Doing Business 2018 and 2020 which were reported internally in June 2020.
- Ethical Issues: Distortion of data in the internal reports raised ethical matters, including the conduct of former Board officials as well as current and/or former Bank staff, leading to this decision of World Bank.
Ease of Doing Business Rankings: Key Points
- Background: The Ease of Doing Business Report was introduced by the World Bank in 2003.
- Objective: to provide an assessment of objective measures of business regulations and their enforcement across 190 economies.
- Parameters used for Ranking: Ease of Doing Business Report used the following ten parameters-
- Starting a Business,
- Dealing with Construction permits,
- Electricity availability,
- Property registration,
- Credit availability,
- Protecting minority Investors,
- Paying Taxes,
- Trading across borders,
- Contracts enforcement, and
- Resolving Insolvency.
- Significance of Ease of Doing Business Report:
- Informs the actions of policymakers,
- Helps countries make better-informed decisions, and
- Allows stakeholders to measure economic and social improvements more accurately
- Acts as a valuable tool for the private sector, civil society, academia, journalists, and others, broadening understanding of global issues.
Ease of Doing Business Rankings: India’s Performance
- India showed the most notable improvement in 2017, 2018, and 2019 Ease of Doing Business Ranking.
- India’s 2017 Ranking- 100th Rank
- India’s 2018 Ranking- Placed at 77th Position
- India’s 2019 Ranking (most recent)- Secured 63rd Ranking
- India’s ranking in the Ease of Doing Business Report basically depended on the performance of only two cities- Delhi and Mumbai.
- Weightage of Mumbai- 47%
- Weightage of Delhi- 53%