Which indicator in EODB (Ease of doing business) measures the time and cost to resolve commercial disputes ?
Show answer & explanation
Correct answer: B
Explanation
Answer: Enforcing contracts
Explanation
The Enforcing Contracts indicator in the Ease of Doing Business (EODB) framework measures the efficiency of the judicial system in resolving a commercial dispute. It tracks the specific steps, the time required, and the cost involved from the moment a plaintiff files a lawsuit in court until the final payment or judgment is enforced.
This indicator specifically looks at:
Time: The number of days to resolve a dispute (filing, trial/judgment, and enforcement).
Cost: The total cost as a percentage of the claim value (attorney fees, court fees, and enforcement fees).
Quality of Judicial Processes: An index evaluating whether a country has adopted good practices such as court automation, case management, and alternative dispute resolution.
Key Facts for Exams
Origin: The Ease of Doing Business Index was historically published by the World Bank.
Total Indicators: The traditional EODB index consisted of 10 indicators.
India's Context: India made significant jumps in the EODB rankings, moving from 142nd in 2014 to 63rd in 2019.
Focus Cities: Delhi and Mumbai.
Exam-Related Practice Questions
Q: Which international organization was responsible for publishing the Ease of Doing Business report?
Answer: The World Bank.
Q: What is the name of the new project by the World Bank that is replacing the "Doing Business" report?
Answer: Business Ready (B-READY).