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Ease of doing business index

From Wikipedia, the free encyclopedia
Economic indicator
This article'sfactual accuracy may be compromised due to out-of-date information. Please help update this article to reflect recent events or newly available information.(October 2024)

Theease of doing business index was an index created jointly bySimeon Djankov, Michael Klein, andCaralee McLiesh, three leadingeconomists at theWorld Bank Group, following the release ofWorld Development Report 2002.[1][2][3] The academic research for the report was done jointly with professorsEdward Glaeser,Oliver Hart, andAndrei Shleifer. Though the first report was authored by Djankov, Klein, and McLiesh, and they continue to be listed as "founders" of the report, some sources attribute the genesis of the idea to Djankov and Gerhard Pohl (Dr. Pohl was the longtime director of private sector development within the Europe and Central Asia unit).[4][5] Higher rankings (a low numerical value) indicated better, usually simpler, regulations for businesses and stronger protections ofproperty rights.Empirical research funded by theWorld Bank to justify their work show that the economic growth effect of improving these regulations is strong.[6] Other researchers find that the distance-to-frontier measure introduced in 2016 after a decision of theWorld Bank board is not correlated with subsequent economic growth or investment.[7]

"World Development Report 2002", the basis of the research behind Doing Business, analyzes how to build effective institutions.[8] In understanding what drives institutional change, the report emphasizes the importance of history, highlighting the need to ensure effective institutions through a design that complements existing institutions, human capabilities, and available technologies. The study was guided byJoseph Stiglitz and Roumeen Islam with principal authorsSimeon Dyankov and Aart Kraay. Several background papers, including byNobel Prize winnersRobert Shiller,Amartya Sen andGabriel García Márquez, were published in academic journals or books.[9][10][11][12][13]

The report was discontinued by the World Bank on September 14, 2021 following an audit documenting how bank leadership pressured experts to manipulate the results of the 2018 and 2020 reports.[14][15][16] Several organizations have proposed replacements, including the Antigua Forum, the World Bank, and theFraser Institute.[17][18][19][20] In 2023 theTempleton Foundation extended a grant to Professor Robert Lawson atSouthern Methodist University to propose a methodology for restarting the project in academia.[21]

The World Bank released the methodology for the replacement of the index in May 2023. For each of the twelve topic areas, the document provides the motivation, selected indicators, detailed questionnaires, benchmarking parameters, detailed scoring rules, and data collection sources. The World Bank conducted a series of methodology workshops worldwide. Their main purpose was to provide a detailed presentation on the project’s methodology, including overall scope and topic-specific information. The workshops also served to raise awareness about this new benchmarking initiative and disseminate its potential for reform advocacy, policy advice, and development research. The relaunch took place in October 2024 under the moniker "Business Ready," after two delays.[22][23]

World Bank's Ease of Doing Business index map for 2020
  ≥ 85.0
  80.0–84.9
  75.0–79.9
  70.0–74.9
  65.0–69.9
  60.0–64.9
  55.0–59.9
  50.0–54.9
  45.0–49.9
  40.0–44.9
  35.0–39.9
  30.0–34.9
  ≤ 25.0
  Data unavailable

Methodology

[edit]

The report was abenchmark study ofregulation.[8] The survey consisted of a questionnaire designed by theDoing Business team with the assistance of academic advisers. The questionnaire centered on a simple business case that ensures comparability across economies and over time. The survey also based assumptions on the legal form of the business, size, location, and nature of its operations.[24] The ease of doing business index was meant to measure regulations directly affecting businesses and did not directly measure more general conditions such as a nation's proximity to large markets, quality of infrastructure, inflation, or crime.

The next step was gathering data surveys of over 12,500 expert contributors (lawyers, accountants, etc.) in 190 countries who deal with business regulations in their day-to-day work. These individuals interacted with theDoing Business team in conference calls, written correspondence, and visits by the global team. For the 2017 report, team members visited 34 economies to verify data and to recruit respondents. Data from the survey was subjected to several rounds of verification. The surveys were not astatistical sample, and the results were interpreted and cross-checked for consistency before being included in the report. Results were also validated with the relevant government before publication. Respondents filled out written surveys and provided references to the relevant laws, regulations, and fees based on standardized case scenarios with specific assumptions, such as the business being located in the largest business city of theeconomy.[24]

A nation's ranking on the index was based on an average of 10 subindices:

  • Starting a business – Procedures, time, cost, and minimum capital to open a new business
  • Dealing with construction permits – Procedures, time, and cost to build a warehouse
  • Getting electricity – procedures, time, and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse
  • Registering property – Procedures, time, and cost to register commercial real estate
  • Getting credit – Strength oflegal rights index, depth ofcredit information index
  • Protecting investors – Indices on the extent of disclosure, the extent of director liability, and ease of shareholder suits
  • Paying taxes – Number of taxes paid, hours per year spent preparingtax returns, and total tax payable as a share ofgross profit
  • Trading across borders – Number of documents, cost, and time necessary toexport andimport
  • Enforcing contracts – Procedures, time, and cost to enforce a debt contract
  • Resolving insolvency – The time, cost, andrecovery rate (%) under abankruptcy proceeding

The Doing Business project also offers information on the following datasets:

  • Distance to the frontier – Shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included since each indicator was included inDoing Business
  • Good practices – Provide insights into how governments have improved the regulatory environment in the past in the areas measured byDoing Business

For example, according to theDoing Business (DB) 2013 report,Canada ranked third on the first subindex "Starting a business" behind onlyNew Zealand andAustralia. In Canada, there is 1 procedure required to start a business which takes on average 5 days to complete. The official cost is 0.4% of thegross national incomeper capita. There was nominimum capital requirement. By contrast, inChad which ranked among the worst (181st out of 185) on this same subindex, there were 9 procedures required to start a business taking 62 days to complete. The official cost was 202% of the gross national income per capita. A minimumcapital investment of 289.4% of the gross national income per capita is required.

While fewer and simpler regulations often imply higher rankings, this was not always the case. Protecting the rights of creditors and investors, as well as establishing or upgrading property and credit registries, may mean that more regulation is needed.

In most indicators, the case study referred to a small domestically owned manufacturing company—hence the direct relevance of the indicators to foreign investors and large companies is limited. DB uses a simple averaging approach for weighting sub-indicators and calculating rankings.[8] A detailed explanation of every indicator can be found through the DB website and a .xls archive that simulates reforms.

Somecaveats regarding the rankings and main information presented have to be considered by every user of the report. Mainly:

  • Doing Business did not measure all aspects of the business environment that matter to firms or investors, such as the macroeconomic conditions, or the level of employment, corruption, stability, orpoverty, in every country.
  • Doing Business did not consider the strengths and weaknesses of neither theglobal financial system, nor thefinancial system of every country. It also doesn't consider the state of the finances of the government of every country.
  • Doing Business does not cover all the regulations or all the regulatory requirements. Other types of regulation such as financial market, environment, orintellectual property regulations that are relevant for the private sector are not considered.

TheDoing Business report was not intended as a complete assessment of competitiveness or the business environment of a country and should rather be considered as a proxy of the regulatory framework faced by the private sector in a country.

History

[edit]

TheDoing Business report has its origins in a 2002 paper published in theQuarterly Journal of Economics bySimeon Djankov, Rafael La Porta, Florencio Lopez-de-Silanes andAndrei Shleifer under the title"The Regulation of Entry". The study presents data on the regulation of entry ofstart-up firms in 85 countries covering the number of procedures, official time and official cost that a start-up must bear before it can operate legally. The main findings of the paper are that: "Countries with heavier regulation of entry have highercorruption and larger unofficial economies, but no better quality of public or private goods. Countries with more democratic and limited governments have lighter regulation of entry." The paper became widely known, with over five thousand academic references, because it provides quantitative evidence that entry regulation benefits politicians andbureaucrats without adding value to the private sector or granting any additional protection.[25][26]

Several countries have launched reforms to improve their rankings.[27][28] These efforts are motivated to a great scope by the fact that the World Bank Group publishes the data, and hence coverage by themedia and the private sector every year. Also,Doing Business highlights every year the successful reforms carried out by each country. The Regulation of Entry was published,Simeon Djankov andAndrei Shleifer have published nine other academic studies, one for each set of indicators covered by the report.[9][10][11][29][30][31][32]

Over 18 years, 2003 to 2020, the reports recorded nearly 5,000 regulatory reforms implemented by 190 economies.

  • Poland was the global top improver in the past year. It enhanced the ease of doing business through four institutional or regulatory reforms, making it easier to register property, pay taxes, enforce contracts, and resolve insolvency.
  • Worldwide, 108 economies implemented 201 regulatory reforms in 2011/12 making it easier to do business as measured byDoing Business. Reform efforts globally have focused on making it easier to start a new business, increasing the efficiency of tax administration, and facilitating trade across international borders. Of the 201 regulatory reforms recorded in the past year, 44% focused on these 3 policy areas alone.
  • Singapore topped the global ranking on the ease of doing business for the seventh consecutive year, followed by Hong Kong SAR;New Zealand; theUnited States; andDenmark.Georgia was a new entrant to the top 10.

In 2014Doing Business covered regulations measured from June 2012 through May 2013 in 189 economies. Singapore was the first economy of the global ranking followed by Hong Kong SAR, New Zealand, the United States, Denmark, Malaysia, South Korea, Georgia, Norway, and the United Kingdom. The UK'sConfederation of British Industry (CBI) published a recommendation aiming to move the UK from tenth position to fifth by 2020.[33] For the first time data about Libya, Myanmar, San Marino, and South Sudan were collected for this report. 114 economies adopted 238 regulatory reforms during 2012/13: the reforms increased by 18% compared to the previous year.

In 2015,Doing Business covered regulations measured from June 2013 through June 2014 in 189 economies, including territories likeHong Kong.[34] For the first time this year,Doing Business collected data for 2 cities in 11 economies with more than 100 million inhabitants. These economies include Bangladesh, Brazil, China,India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation, and the United States. The added city enables a sub-national comparison and benchmarking against other large cities.[35]

In 2021, the World Bank discontinuedDoing Business, following allegations of data manipulation, undue influence, and unethical behavior by several staff including Djankov, including former World Bank vice-president Farid Belhaj, former World Bank research director Shanta Devarajan, former World Bank presidentJim Yong Kim, and IMF managing directorKristalina Georgieva.[36][16][37][38][39]

In October 2023,The Economist summarized the impact of the project, tracing its origins back to Austrian economistFriedrich Hayek. This Nobel-prize-winning economist and philosopher published the first volume of his magnum opus, “Law, Legislation and Liberty” in 1973, where he argued that the common-law approach is more amenable to freedom than its civil-law counterpart. Both Hayek and the Doing Business authors over-promised on the effects of regulatory reform.[40] A 2024 paper by scholars at theUniversity of Torino however finds significant positive effects on economic growth from reforms associated with Doing Business.[41]

Research and influence

[edit]

As stated in the report, "Empirical research is needed to establish the optimal level of business regulation—for example, what the duration of court procedures should be and what the optimal degree of social protection is. The indicators compiled in theDoing Business project allow such research to take place. Since the start of the project in November 2001, more than 3,000 academic papers have used one or more indicators constructed inDoing Business and the related background papers by its authors."[42] An example of such empirical research is a paper on business regulation and poverty, published inEconomics Letters.

More than 3,000 academic papers used data from the index.[43] The effect of improving regulations on economic growth is claimed to be very strong. Moving from the worst one-fourth of nations to the best one-fourth implies a 2.3 percentage point increase in annual growth. Another 7,000 working papers in economics and social science departments use the data from theDoing Business report. The 2016Nobel Prize Winner in EconomicsOliver Hart is among the authors of such papers.

The various sub-components of the index in themselves provided concrete suggestions for improvement. Many of them may have been relatively easy to implement and uncontroversial (except perhaps among corrupt officials who may gain from onerous regulations requiring bribes to bypass). As such, the index has influenced many nations to improve their regulations. Several have explicitly targeted to reach a minimum position on the index, for example, the top 25 list. To consider the element of corruption and transparency in the economy, the index has also been combined with theCorruption Perceptions Index in the annual Best European Countries for Business publication.[44]

Somewhat similar annual reports are theIndices of Economic Freedom and theGlobal Competitiveness Report. They, especially the latter, look at many more factors that affect economic growth, like inflation and infrastructure. These factors may however be more subjective and diffuse, since many are measured using surveys and they may be more difficult to change quickly compared to regulations.

A November 2017EconTalk podcast explains the lasting influence in academia and policy circles of the Doing Business report. Financial crises cyclically peak interest in research on insolvency, using the Doing Business data.[45]

Doing Business Report

[edit]

TheDoing Business Report (DB) was an annually published report which was developed by a team led by Djankov in 2003. It was published by theWorld Bank Group every year from 2003 to 2019 and aimed to measure the costs to firms of business regulations in 190 countries. The study was one of the flagship knowledge products of the World Bank Group in the field ofprivate sector development and is claimed to have motivated the design of several regulatory reforms indeveloping countries. The study presented every year a detailed analysis of costs, requirements, and procedures a specific type ofprivate firm is subject in all countries, and then, createsrankings for every country. The study is also backed up by broadcommunication efforts, and by creating rankings, the study spotlights countries and leaders that are promoting reforms.[46]

The DB was widely known and used byacademics, policy-makers,politicians, development experts,journalists, and the business community to highlightred tape and promote reforms. As stated by theIEG study from the World Bank:

"For country authorities, it sheds a bright, sometimes unflattering, light on regulatory aspects of their business climate. For business interests, it has helped to catalyze debates and dialogue about reform. For the World Bank Group, it demonstrates an ability to provide global knowledge, independent of resource transfer andconditionality. The annual exercise generates information that is relevant and useful".

According to the DB, the regulation does matter for the development of the private sectors, and several reforms are suggested across the report to promote the development of the private sector and enable the business environment. Some highlighted findings of the DB are:

Contents

[edit]

In 2017, the study contains quantitative measures of regulations for starting abusiness, dealing withconstruction permits, employing workers, registering property, getting credit, protectinginvestors,taxes,trading across borders, enforcingcontracts, getting an electricity connection, and closing a business. As stated in the introduction of the study, "A fundamental premise of DB is thateconomic activity requires good rules. These include rules that establish and clarify property rights and reduce the costs of resolving disputes, rules that increase the predictability of economic interactions, and rules that provide contractual partners with core protections against abuse."

Evaluation

[edit]

Doing Business was a controversial study, with passionate critics and devoted fans. As recognized by theIndependent Evaluation Group of the World Bank, some have questioned the reliability andobjectivity of its measurements while others doubt the relevance of the issues it addresses or fears it may unduly dominate countries reform agendas at the expense of more crucial development objectives. Attention given to the indicators may inadvertently signal that the World Bank Group values less burdensome business regulations more highly than its other strategies forpoverty reduction andsustainable development.

Several limitations were present in the DB studies and have to be kept in mind when using the study:

  • The indicators and measures were referred to the costs, requirements, and fees of doing business in the country's largest business city; thus conditions elsewhere within the country may have differed.
  • To achieve cross-countrystandardization respondents were asked to give estimates for alimited liability company of a specific size.[vague] Costs for other forms and scales of businesses may have differed.
  • Transactions and fees to have cost out were very specifically defined. The costs of other types of transactions may differ.
  • The cost estimates come from individuals identified as expert respondents. Sometimes the estimates given by such individuals may differ with other experts and with public officials. If so, the responses are cross-checked for consistency.
  • The estimates assumed that a business knows what is required and does not waste time. Satisfying regulatory requirements will take longer if the business lacks information or is unable to follow up promptly. A related point here is that DB does not allow for "workarounds", "facilitating fees", and "learning time" that speed or delay approvals and causes variation costs.

Related studies

[edit]

Published for seventeen years, the DB has originated a growing body ofresearch on how performance on DB indicators, and reforms generated by the reports, related to specific development desirable outcomes. As stated by the DB 2010, about "405 articles have been published in peer-reviewedacademic journals, and about 1143 working papers are available through Google Scholar".

DB was widely used as a study to measurecompetitiveness. However, regulation rather than competitiveness is the main objective in the DB. Other studies that are also used to measure competitiveness and recognized as business enabling environment ranking systems are theGlobal Competitiveness Index, theIndex of Economic Freedom, and the Global Entrepreneurship Monitor, among others.[47]

Controversies

[edit]

2018 manipulation scandal

[edit]

On 12 January 2018,Paul Romer, theWorld Bank's chief economist, announced that past releases of the index would be corrected and recalculated going back at least four years. Romer apologized toChile, saying that the former director of the group responsible for the index had repeatedly manipulated its methodology, unfairly penalizing the country's rankings during the administration of left-wing PresidentMichelle Bachelet. In response, Bachelet announced that Chile would formally request a complete investigation by the World Bank.[48][49] The report revealed that there were more extensive data irregularities, specifically in China's data.[50][51]The Economist claimed that the project's director Augusto Lopez Claros had pressed staff to not show improvements in the indicators duringMichelle Bachelet's term in office.[52]

2020 data irregularities controversy

[edit]

Several major newspapers – including theFinancial Times,The Economist, andThe Wall Street Journal – report that the data ofChina,Azerbaijan,United Arab Emirates, andSaudi Arabia among others were suspected to be "inappropriately altered" in the 2020 Doing Business publication.[53][54][55] In light of the data irregularities, the World Bank announced on 27 August 2020 that it would pause the Doing Business publication while it conducts a review of data changes for the last five reports and an internal audit of data integrity.[56][57]

Following these revelations, some organizations paused the use of Doing Business data, and supplemented these reports with data from alternative indicators measuring the same concepts.[58] On 16 December 2020, the World Bank released 3 reports about the conclusions of the reviews examining the data irregularities:[59]

  • A review of the specific irregularities identified.[59]
  • An independent confirmation of these irregularities.[59]
  • An independent review of Doing Business's processes for data production and management.[60]

These reviews found that, while the specific issues uncovered in this breach had been addressed, a culture where management pressured experts to manipulate data persisted: "The DB team members reported undue pressure, both directly and indirectly by Bank management to manipulate data in 2017 during the 2018 report production process and in 2019 during the 2020 report production process. The lack of a safe speak-up environment within the DB team led to a fear of retaliation for those who would escalate and report pressures to manipulate data. This contributed to the compromise of data integrity in the DB report."[60] These reports found that over half of Doing Business staff interviewed admitted to manipulating data.[61]

Other analytical projects at the World Bank, the World Bank Enterprise Surveys, were also revealed to be "vulnerable to the ordering of questions."[62]

"Our results indicate that of the 15 business environment obstacle ratings, only 4 show a statistically significant difference – political instability, corruption, electricity, and business licensing and permits. After using a regression analysis framework to account for several factors, only two business environment elements have a statistically significant difference across the two groups – business licensing and permits, and corruption."[63]

Cancellation and Response

[edit]

In September 2021, the World Bank discontinued the Doing Business report following the release of an independent report detailing the specifics of the 2020 and 2018 irregularities, including detailed explanations of how senior leaders at the bank manipulated data and pressured experts to change rankings and methodology to improve scores for certain countries.[64][16]

The report fromWilmerHale provided details on the 2018 and 2020 manipulation scandals, implicating the then-president of the BankJim Yong Kim, the then-CEO of the BankKristalina Georgieva, and one of the founders of the reportSimeon Djankov, in data manipulation for the purposes of raising the scores of some countries (China and Saudi Arabia) and reducing the scores of others (Azerbaijan).[37][15][50] In 2018 in an effort to secure funding from China, Kim, Georgieva, and Djankov repeatedly pressured the team that creates the data to pursue multiple avenues to improve China's score, eventually resorting to having members of the team unlock the report and change three of China's data points after the scores had been finalized.[65][50] Georgieva issued a statement disagreeing with the characterization of her actions in the report.[66]

According to the report, in 2020 Djankov pressured the Doing Business team to change Saudi Arabia's score in an effort to rank better than Jordan due to extensive Reimbursable Advisory Services contracts between the Bank and Saudi Arabia. The change in methodology also lead to the UAE improving in score but not overall ranking. Also in 2020, Djankov ordered a review of three of Azerbaijan's data points, citing harassment of lawyers as the reason.[67] The team reviewed these data points and concluded that they were accurate. Djankov ignored these recommendations and changed Azerbaijan's score, also altering the overall methodology of the report to ensure that Azerbaijan scored lower, arguing that the government counterparts had pressured respondents.[68][69]

Beyond these allegations, the report documents a culture of pressure from the highest levels of World Bank management, particularly under the leadership of Djankov.[50][70] According to the report

"nearly every Doing Business employee with whom we spoke described the environment on the Doing Business team under the management of Mr. Djankov to be, at best, deeply problematic, and, at worse, emotionally harrowing. Employees said that Mr. Djankov was a "bully" who instilled fear on the team; that he managed “by terror and intimidation”; that his management style constituted “psychological terrorism” that created a “toxic environment”; that he was a “larger than life fear factor” for everyone on the team; and that his management style was pompous and undiplomatic."[50]

The report also documents the culture of fear that prevented employees from reporting these irregularities, with Djankov threatening retaliation against anyone that threatened his authority, and "dangled promotions in front of Doing Business leadership to incentivize compliance with his personal objectives."[50]

Response to the WilmerHale Report

[edit]

Following these reports, various agencies expressed concern about the allegations and their effect on the world's faith in data produced by the World Bank.[71][72] US Treasury SecretaryJanet Yellen called for strong action to prevent misconduct and strengthen data integrity.[73] Other US agencies called the report "serious and troubling" and replaced data from the Doing Business report with other sources.[72][74][75]

When these allegations came to light, Georgieva was serving as the managing director of theInternational Monetary Fund.[76] The IMF's board reviewed the allegations, but found that the report "did not conclusively demonstrate" that she engaged in data manipulation.[77] The US government refused to publicly support Georgieva, but did not call for her removal.[77]

Response to Report Cancellation

[edit]

The cancellation of the report led to a range of responses from academics andthink tanks, with some claiming that its cancellation was overdue, and others arguing it was an overreaction.[40] According to the progressiveOakland Institute "Even before the extent of the data manipulation came to light and destroyed any credibility of the DBR, the rankings had been built on a flawed premise that rewards countries for reducing their labor standards, destroying the environment, and providing easy access for corporate pillaging and land grabs."[78] The director of policy and research for the Cicero Institute, noted that institutions like the World Bank are especially prone to corruption like this:

"Multilateral institutions like the World Bank are particularly susceptible to such forces. Their structures ensure that each government gets a say, while no one government is held accountable. When Georgieva thanked a data manipulator for doing his “bit for multilateralism,” she was more right than she knew. Like many supposedly not-for-profit international organizations, the World Bank also found ways to peddle its influence. It began selling “Reimbursable Advisory Services” to countries that wanted to improve their ranking on the index."[79]

Others criticized the cancellation of the report. Professor Robert Lawson, Fullinwider Chair in Economic Freedom atSouthern Methodist University described this decision as "throwing the baby out with the bathwater."[80] According to Ian Vasquez, director for policy at theCato Institute, aUS-based libertarianthink tank:

"It was a serious mistake for the World Bank to discontinue the Doing Business report. It did so out of concerns about data irregularities for two years affecting four countries. Instead of instituting sensible, new measures on process and methodology as recommended by the firm that conducted an independent review for the World Bank, the bank chose to scrap the Doing Business report altogether. From the outside, it very much looks like the decade‐long campaign by critics of market‐oriented policies finally triumphed."[81]

Reception

[edit]

TheDoing Business methodology regarding labor regulations was criticized by theInternational Trade Union Confederation because it favored flexible employment regulations.[82] In early reports, the easier it was to dismiss a worker for economic reasons in a country, the more its rankings improved. The Employing Workers index was revised in Doing Business 2008 to be in full compliance with the 188International Labour Organization conventions. It has subsequently been removed from the rankings. The ITUC debuted the Global Rights Index in 2014 as a response to theDoing Business report.[83]

In 2008 the World Bank Group's Independent Evaluation Group, a semi-independent watchdog within the World Bank Group, published an evaluation of theDoing Business index.[84] The report,Doing Business: An Independent Evaluation, contained both praise and criticism ofDoing Business. The report recommended that the index be clearer about what is and is not measured, disclose changes to published data, recruit more informants, and simplify the Paying Taxes indicator.

In April 2009 the World Bank issued a note with revisions to the Employing Workers index.[85] The note explained that scoring for the "Employing Workers" indicator would be updated inDoing Business 2010 to give favorable scores for complying with relevant ILO conventions. The Employing Workers indicator was also removed as a guidepost for Country Policy and Institutional Assessments, which help determine resources provided to IDA countries.

A study commissioned by the Norwegian government alleges methodological weaknesses, an uncertainty in the ability of the indicators to capture the underlying business climate and a concern that countries may find it easier to change their ranking inDoing Business than to change the underlying business environment.[86]

In 2013, an independent panel appointed by the President of the World Bank and headed by Trevor Manuel of South Africa issued a review expressing concern about the potential for the report and index to be misinterpreted, and the narrowness of the indicators and information base. It recommended that the report be retained, but that the aggregate rankings be removed and that a peer-review process is implemented (among other things). Regarding the topics of Paying Taxes and Employing Workers, it noted that "The latter has already been excluded from the report's rankings. While there is a persuasive case for paying attention to these aspects of doing business, the Bank will need to carefully consider the correct way to assess the regulation and legal environment of these areas if these indicators are to be retained."[87]

In 2018, another independent evaluation,[88] was commissioned by theWorld Bank Group. The evaluation praised theDoing Business report for its objectivity and focus on regulatory reform. It suggested adding peer-reviewed research papers behind every set of indicators. Subsequently, the World Bank has added one such research article, underlying the indicator on property registration.[89]

Ranking

[edit]

The last published rankings came from the "Doing Business 2020" report. Ranking of economies was introduced in the "Doing Business 2006" report.[90]

New Zealand topped theEase of Doing Business rankings in 2017, 2018, 2019, and 2020. Singapore topped theEase of Doing Business rankings in 2007–2016.[91]

One interesting fact is that although richer countries on average are ranked higher than poor countries, there are some remarkable exceptions, particularly oil-rich countries. For example, Kuwait (ranked 83), Qatar (ranked 77), Oman (ranked 68) Saudi Arabia (ranked 62). Compare to lower-income countries: India (ranked 63), Kenya (ranked 56), Colombia (ranked 67), Uzbekistan (ranked 69). Notable exceptions are Norway (ranked 9) and the United Arab Emirates (ranked 16).[92]

China's 2018 ranking, and 2020 rankings of the UAE and Saudi Arabia are alleged to have been artificially strengthened by an internal audit of the rankings.[50] In contrast, Azerbaijan's 2019 ranking is alleged to have been artificially lowered.[50]

JurisdictionClassification202020192018201720162015201420132012201120102009200820072006
[93][94][95][96][97][98][99][100][101][102][103][104][105][106][107]
 New ZealandVery Easy111122333322221
 SingaporeVery Easy222211111111112
 Hong KongVery Easy345453222234457
 DenmarkVery Easy433334555665578
 South KoreaVery Easy55545457881619233023
 United StatesVery Easy686877444543333
 GeorgiaVery Easy76916241589161211151837100
 United KingdomVery Easy8977681077456669
 NorwayVery Easy978696966810101195
 SwedenVery Easy1012109811141314141817141314
 LithuaniaVery Easy111416212024172727232628261615
 MalaysiaVery Easy12152423181861218212320242521
 MauritiusVery Easy132025493228201923201724273223
 AustraliaVery Easy1418141513101110151099986
 TaiwanVery Easy151315111119161625334661504735
 United Arab EmiratesVery Easy161121263122232633403346687769
 North MacedoniaVery Easy171011101230252322383271759281
 EstoniaVery Easy181612121617222124172422171716
 LatviaVery Easy191919142223242521242729222426
 FinlandVery Easy20171313109121111131614131413
 ThailandVery Easy212726464926181817191213151820
 GermanyVery Easy222420171514212019222525202119
 CanadaVery Easy232218221416191713788744
 IrelandVery Easy24231718171315151097781011
 KazakhstanVery Easy252836354177504947596370716386
 IcelandVery Easy26212320191213149151411101212
 AustriaVery Easy272622192121302932322827253032
 RussiaVery Easy283135405162921121201231201201069679
 JapanVery Easy293934343429272420181512121110
 SpainVery Easy303028323333524444496249383930
 ChinaVery Easy3146787884*90969191798983839391
 FranceVery Easy323231292731383429263131313544
 TurkeyVery Easy334360695555697171657359579193
 AzerbaijanVery Easy342557656380706766543833969998
 IsraelVery Easy354954525340353834292930292629
 SwitzerlandVery Easy363833312620292826272121161517
 SloveniaVery Easy3740373029*51333537425354556163
 RwandaVery Easy3829415662463252455867139150158139
 PortugalVery Easy393429252325313030314848374042
 PolandVery Easy403327242532455562707276747554
 Czech RepublicVery Easy413530273644756564637475565241
 NetherlandsVery Easy423632282827283131303026212224
 BahrainVery Easy436266636553464238282018
 SerbiaVery Easy444843485991938692898894866892**
 SlovakiaVery Easy4542393329*37494648414236323637
 BelgiumVery Easy464552424342363328252219192018
 ArmeniaVery Easy474147383545373255484344393446
 MoldovaVery Easy48474444526378838190941039210383
 BelarusVery Easy493738374457635869685885110129106
 MontenegroVery Easy505042514636445156667190817092**
 CroatiaVery Easy5158514340658984808410310697124118
 HungaryVery Easy525348414254545451464741456652
 MoroccoVery Easy536069687571879794114128128129115102
 CyprusEasy5457534547643936403740
 RomaniaEasy555245363748737272565547484978
 KenyaEasy56618092108136129121109989582728368
 KosovoEasy5744406066758698117119113
 ItalyEasy585146504556657387807865538270
 ChileEasy595655574841343739434940332825
 MexicoEasy6054494738*39534853355156444373
 BulgariaEasy6159503938*38586659514445465462
 Saudi ArabiaEasy629292948249262212111316233838
 IndiaEasy6377100130130142134132132134133122120134116
 UkraineEasy647176808396112137152145142145139128124
 Puerto RicoEasy656464555747404143473535281922
 BruneiEasy6655567284*101597983112968878
 ColombiaEasy676559535434434542393753667966
 OmanEasy687871667066474749576557495551
 UzbekistanEasy6976748787141146154166150150138138147138
 VietnamEasy7069688290789999987893929110499
 JamaicaEasy717570676458949088817563635043
 LuxembourgEasy72666359615960565045645042
 IndonesiaEasy73737291109114120128129121122129123135115
 Costa RicaEasy74676162588310211012112512111711510589
 JordanEasy7510410311811311711910696111100101807874
 PeruEasy766858545035424341365662586571
 QatarEasy778383836850484036503937
 TunisiaEasy788088777460515046556973888058
 GreeceEasy79726761606172781001091099610010980
 KyrgyzstanEasy8070777567102687070444168949084
 MongoliaEasy817462645672767686736058524561
 AlbaniaEasy8263655897*68908582828286136120117
 KuwaitEasy839796102101*861048267746152404647
 South AfricaEasy848282747343413935343432352928
 ZambiaEasy8587859897*111839484769010011610267
 PanamaEasy867979706952556161727781658157
 BotswanaEasy878681717274565954524538514840
 MaltaEasy888484768094103102
 BhutanEasy8981757371125141148142142126124119138104
 Bosnia and HerzegovinaEasy90898681791071311261251101161191059587
 El SalvadorEasy9185739586109118113112868472697176
 San MarinoEasy92889379769381
 Saint LuciaEasy93939186771006453525336343427
 NepalEasy941101051079910810510810711612312111110055
 PhilippinesEasy951241139910395108138136148144140133126113
 GuatemalaEasy969897888173799397101110112114118109
 TogoEasy97137156154150149157156162160165163156151149
 SamoaMedium989087899667615760615764614139
 Sri LankaMedium99100111110107998581891021051021018975
 SeychellesMedium10096959395858074103951111049084
 UruguayMedium1019594909282888990124114109986485
 FijiMedium1021011019788*81626077625439363134
 TongaMedium1039189857869576258715243475136
 NamibiaMedium104107106109101*88988778696651434233
 Trinidad and TobagoMedium1051051029688*796669689781806759
 TajikistanMedium106126123128132166143141147139152159153133
 VanuatuMedium1079490849476748076605960625849
 PakistanMedium108136147144138128*110107105838577767460
 MalawiMedium10911111013314116417115714513313213412711096
 Côte d'IvoireMedium110122139142142147167177167169168161155141145
 DominicaMedium111103981019197*7768658883747772
 DjiboutiMedium11299154171171155160171170158163153146161
 Antigua and BarbudaMedium113112107113104897163576450424133
 EgyptMedium11412012812213111212810911094106114126165141
 Dominican RepublicMedium11510299103938411711610891869799117103
 UgandaMedium11612712211512215013212012312211211111810772
 PalestineMedium117116114140129143138135131135139131117127125
 GhanaMedium118114120108114*70676463679287879482
 BahamasMedium11911811912110697*847785776855
 Papua New GuineaMedium12010810911914513311310410110310295845764
 EswatiniMedium1211171121111051101231231241181151089576
 LesothoMedium122106104100114*128*13613614313813012312411497
 SenegalMedium123141140147153161178166154152157149162146132
 BrazilMedium124109125123116120116130126127129125122121119
 ParaguayMedium1251131081061009210910310210612411510311288
 ArgentinaMedium12611911711612112412612411311511811310910177
 IranMedium127128124120118130152145144129137142135119108
 BarbadosMedium1281291321171191069188
 EcuadorMedium129123118114117115135139130130138136128123107
 Saint Vincent and the GrenadinesMedium1301301291251111038275757570665485
 NigeriaMedium13114614516916917014713113313712511810810894
 NigerMedium132143144150160168176176173173174172169160150
 HondurasMedium133121115105110104*127125128131141133121111112
 GuyanaMedium134134126124137123115114114100101105104136105
 BelizeMedium135125121112120118106105939980785956
 Solomon IslandsMedium136115116104112879792749610489796953
 Cape VerdeMedium137131127129126122121122119132146143132125
 MozambiqueMedium138135138137133127139146139126135141134140110
 Saint Kitts and NevisMedium13914013413412412110196958776676444
 ZimbabweMedium140155159161155171170173171157159158152153126
 TanzaniaMedium141144137132139131145134127128131127130142140
 NicaraguaMedium142132131127125119124119118117117107936759
 LebanonMedium143142133126123104*11111510411310899858695
 CambodiaMedium144138135131127135137133138147145135145143133
 PalauMedium14613313013613611310011111612097918262
 GrenadaMedium147147142138135126107100739291847073
 MaldivesMedium148139136135128116959579858769605331
 MaliBelow Average149145143141143*146155151146153156166158155146
 BeninBelow Average150153151155158151174175175170172169151137129
 BoliviaBelow Average151156152149157157162155153149161150140131111
 Burkina FasoBelow Average152151148146143*167154153150151147148161163154
 MauritaniaBelow Average153148150160168176173167159165166160157148127
 Marshall IslandsBelow Average1541501491431401391141011061089893898748
 LaosBelow Average155154141139134148159163165171167165164159147
 GambiaBelow Average156149146145151138150147149146140130131113
 GuineaBelow Average157152153163165169175178179179173171166157144
 AlgeriaBelow Average158157166156163154153152148136136132125116128
 MicronesiaBelow Average15916015515114814515615014014112712611210656
 EthiopiaBelow Average16015916115914613212512711110410711610297101
 ComorosBelow Average160164158153154159158158157159162155146144
 MadagascarBelow Average161161162167164163148142137140134144149149131
 SurinameBelow Average162165165158156162161164158161155146142122
 Sierra LeoneBelow Average163163160148147140142140141143148156160168136
 KiribatiBelow Average164158157152149134122117115937979736045
 MyanmarBelow Average165172171170167177182
 BurundiBelow Average166168164157152152140159169181176177174166143
 CameroonBelow Average167166163166172158168161161168171164154152130
 BangladeshBelow Average1681761771761741731301291221071191101078865
 GabonBelow Average169169167164162144163170156156158151144132
 São Tomé and PríncipeBelow Average170170169162166153169160163178180176163169123
 SudanBelow Average171162170168159160149143135154154147143154151
 IraqBelow Average172171168165161156151165164166153152141145114
 AfghanistanBelow Average173167183183177183164168160167160162159162122
 Guinea-BissauBelow Average174175176172178179180179176176181179176173
 LiberiaBelow Average175174172174179174144149151155149157170
 SyriaBelow Average176179174173175175165144134144143137137130121
 AngolaBelow Average177173175182181181179172172163169168167156135
 Equatorial GuineaBelow Average178177173178180165166162155164170165165150
 HaitiBelow Average179182181181182180177174174162151154148139134
 CongoBelow Average180180179177176178185183181177179178175171148
 Timor LesteBelow Average181178178175173172172169168174164170168174142
 ChadBelow Average182181180180183185189184183183178175173172152
 Democratic Republic of CongoBelow Average183184182184184184183181178175182181178175155
 Central African RepublicBelow Average184183184185185187188185182182183180177167153
 South SudanBelow Average185185187186187186186
 LibyaBelow Average186186185188188188187
 YemenBelow Average1871871861791701371331189910599981139890
 VenezuelaBelow Average188188188187186182181180177172177174172164120
 EritreaBelow Average189189189189189189184182180180175173171170137
 SomaliaBelow Average190190190190

* – same rank is for multiple jurisdictions
** – the State Union of Serbia and Montenegro

Note: Rankings at the time of annual report publication. Rankings are subject to revision.

See also

[edit]

References

[edit]
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  2. ^"Founders".World Bank. Retrieved30 June 2021.
  3. ^Djankov, Simeon (February 2016)."The Doing Business Project: How It Started"(PDF).Journal of Economic Perspectives.30 (1):247–248.doi:10.1257/jep.30.1.247.ISSN 0895-3309. Archived fromthe original(PDF) on 21 May 2024. Retrieved26 February 2024.
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External links

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