World Bank’s Business Report Misleading, Chief Economist Apologies

The chief economist of the world bank, in a recent interview with the Wall Street Journal, said that recently, World bank has changed its calculating and ranking measures in the process of presenting a list of countries in the index of ease of doing business

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The chief economist of the world bank, in a recent interview with the Wall Street Journal, said that recently, World bank has changed its calculating and ranking measures in the process of presenting a list of countries in the index of ease of doing business.

He, further adds that the changed structure is misleading and not fair since it does not treat each country equal. Statements like these make people wonder where they should put their trust, which is becoming a lost entity nowadays. The world bank has released a statement after the interview saying the index prepared by the world bank is based on the hard facts and not on imaginary quantities.

World bank never favours any country and treats everyone equal. The aim is to provide an accurate and true picture of the situation which can help countries improve upon their weakness resulting from different segments. The chief economist did not mention any list of countries who might have been beneficiary of the flawed calculation but mentioned the name of Chile, which has seen its ranking improve drastically in the latest ease of doing business report presented.

Many other countries have also seen their positions improve in the ease of doing business, but nothing can be said about anyone in particular till the data is presented. While all the claims have been refuted by the World Bank, but it does offer enough reasons to worry about the structure behind the presentation of the Global index of ease of doing business.

The index comprises the list of countries who are working very hard on improving the business and investment scenario in their country. Providing business what they need to produce growth and jobs,  is the primary aim of the countries who seem to top the index.

The World Bank

While the list announces some of the names of the countries who are always favourite on the list but nothing suspicious can be said about them. Cheif economist Paul Romer said that they will redo the rankings as some countries positions do not reflect the actual position in the rankings.

The list is prepared to attract investment in a country. The list has been topped by the Newzeland, while Singapore and Denmark come at the second and third respectively. It will be likely to see how the rankings change once the methodologies are changed or varied. While India has also improved its ranking this year, the ranking is based on a variety of factors, such as getting electricity, getting credit, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

Each category is awarded a finite point according to the data collected by the World Bank. The overall score is calculated based on the total scores of various categories. This report and like many other reports is periodically produced by the many other agencies of the UNO. We hope to see a better system and clarification from the organization which is trusted and respected worldwide.

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