The Ease of Doing Business (EODB) indicator "Enforcing Contracts" measures:
Show answer & explanation
Correct answer: C
Explanation
Correct Answer:-
Efficiency of the judicial system in resolving commercial disputes
Explanation:-
The 'Enforcing Contracts' indicator in the World Bank's 'Ease of Doing Business' (EODB) index primarily measures the ability of a country's courts to resolve commercial disputes in a timely and effective manner. It tracks the time it takes, the cost involved, and the quality of the judicial process in resolving a dispute.
Key Points:-
The 'Enforcing Contracts' indicator is a key measure of 'judicial quality' and the 'effectiveness of business laws' in a country's commercial environment.
This indicator helps assess how robust the legal framework is for protecting investments.
Other indicators in this index included dealing with construction permits, getting electricity, getting credit, and resolving insolvency.
Important Questions and Answers:
Question: Which institution used to publish the Ease of Doing Business (EODB) index?
Answer: The World Bank. (Note: The World Bank discontinued this report in 2021, but it remains an important economic concept for competitive exams.)
Question: Which specialized court functions for the resolution of commercial disputes in India?
Answer: Commercial Courts, which have been established specifically for the speedy disposal of business disputes.