World Bank Stops ‘Ease of Doing Business’ Report
Part of: Prelims and GS II – International relations
Context The World Bank would discontinue the practice of issuing ‘Doing Business report’ following an investigation reported “data irregularities” in its 2018 and 2020 editions (released in 2017 and 2019, respectively) and possible “ethical matters” involving bank staff.
- It will be working on a new approach to assessing the business and investment climate.
About Ease of Doing Business Report
- The report was introduced in 2003 to provide an assessment of objective measures of business regulations and their enforcement across 190 economies on ten parameters affecting a business through its life cycle.
- Notably, in three reports, released in 2017, 2018 and 2019, India ranked among the top 10 economies showing “the most notable improvement”.
About World Bank
- It was created in 1944, as the International Bank for Reconstruction and Development (IBRD) along with the International Monetary Fund (IMF).
- The IBRD later became the World Bank.
- It works for sustainable solutions that reduce poverty and build shared prosperity in developing countries.
- Major reports:
- Ease of Doing Business.
- Human Capital Index.
- World Development Report.
- Its Five development institutions:
- International Bank for Reconstruction and Development (IBRD): provides loans, credits, and grants.
- International Development Association (IDA): provides low- or no-interest loans to low-income countries.
- International Finance Corporation (IFC): provides investment, advice, and asset management to companies and governments.
- Multilateral Guarantee Agency (MIGA): insures lenders and investors against political risk such as war.
- International Centre for the Settlement of Investment Disputes (ICSID): settles investment-disputes between investors and countries.