Despite India's reforms in taxation and digital governance, the Ease of Doing Business (EoDB) ranking has been discontinued by the World Bank. What led to this decision?
Show answer & explanation
Correct answer: C
Explanation
Solution: The correct answer is Accusations of data manipulation involving certain countries.
Explanation:
☛ In September 2021, the World Bank Group officially announced the discontinuation of its flagship Doing Business report (Ease of Doing Business ranking).
☛ The decision followed an independent internal probe and investigation conducted by the law firm WilmerHale.
☛ The investigation revealed data irregularities and undue pressure from top leadership to alter rankings of certain countries, notably China, Saudi Arabia, United Arab Emirates, and Azerbaijan in the 2018 and 2020 editions.
☛ Due to serious ethical concerns regarding data integrity and institutional credibility, the World Bank decided to halt future publications of the report.
Extra Exam-Relevant Facts:
☛ Doing Business Report: It was first published by the World Bank in 2003 to measure the regulations directly affecting businesses across economies.
☛ India's Performance: India made a massive leap from 142nd rank (2014) to 63rd position in the last published report (Doing Business 2020).
☛ Replacement Initiative: The World Bank replaced this index with a new corporate benchmarking framework named 'Business Ready' (B-READY).
☛ Indicators: The original Ease of Doing Business index evaluated countries across 10 key parameters, including starting a business, dealing with construction permits, paying taxes, and resolving insolvency.
Important One-Liners for Upcoming Exams:
☛ In which year did the World Bank discontinue the Ease of Doing Business report? → September 2021
☛ What was India's rank in the final Ease of Doing Business 2020 report? → 63rd
☛ What is the name of the new framework launched by the World Bank to replace Doing Business? → Business Ready (B-READY)
☛ Where is the headquarters of the World Bank located? → Washington, D.C., United States
☛ In which year was the first Doing Business report published by the World Bank? → 2003