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Ease of doing business index
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{{Use dmy dates|date=July 2012}}The ease of doing business index is an index created by Simeon Djankov at the World Bank Group. The academic research for the report was done jointly with professors Oliver Hart and Andrei Shleifer.WEB,weblink Doing Business - Measuring Business Regulations - World Bank Group
, Doing Business, 2011-12-30, 2013-05-20, Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights. Empirical research funded by the World Bank to justify their work show that the economic growth impact of improving these regulations is strong.WEB,weblink Doing Business report series – World Bank Group, Doingbusiness.org, 2013-05-20,
"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 the Doing 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 in Doing Business and the related background papers by its authors."Ease of doing business, Page 111.(File:Doing business 2017.svg|400px|thumb|Choropleth map of the World Bank's Doing Business index from "Doing Business 2017")

Methodology

The report is above all, a benchmark study of regulation. The survey consists of a questionnaire designed by the Doing Business team with the assistance of academic advisers. The questionnaire centers on a simple business case that ensures comparability across economies and over time. The survey also bases assumptions on the legal form of the business, size, location, and nature of its operations.WEB,weblink Improvements made to methodology this year - Doing Business - World Bank Group, www.doingbusiness.org, 2017-01-14, The ease of doing business index is meant to measure regulations directly affecting businesses and does not directly measure more general conditions such as a nation's proximity to large markets, quality of infrastructure, inflation, or crime.The next step of 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 interact with the Doing 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 is subjected to several rounds of verification. The surveys are not a statistical sample, and the results are interpreted and cross-checked for consistency before being included in the report. Results are also validated with the relevant government before publication. Respondents fill out written surveys and provide 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 the economy.A nation's ranking on the index is based on the 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 of legal rights index, depth of credit information index
  • Protecting investors – Indices on the extent of disclosure, extent of director liability, and ease of shareholder suits
  • Paying taxes – Number of taxes paid, hours per year spent preparing tax returns, and total tax payable as share of gross profit
  • Trading across borders – Number of documents, cost, and time necessary to export and import
  • Enforcing contracts – Procedures, time, and cost to enforce a debt contract
  • Resolving insolvency – The time, cost, and recovery rate (%) under bankruptcy proceeding
The Doing Business project also offers information on following datasets:
  • Distance to 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 in Doing Business
  • Entrepreneurship – Measures entrepreneurial activity. The data is collected directly from 130 company registrars on the number of newly registered firms over the past seven years
  • Good practices – Provide insights into how governments have improved the regulatory environment in the past in the areas measured by Doing Business
  • Transparency in business regulation – Data on the accessibility of regulatory information measures how easy it is to access fee schedules for 4 regulatory processes in the largest business city of an economy
For example, according to the Doing Business (DB) 2013 report, Canada ranked third on the first subindex "Starting a business" behind only New Zealand and Australia. 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 the gross national income per capita. There is no minimum capital requirement. By contrast, in Chad which ranked among the worst (181st out of 185) on this same subindex, there are 9 procedures required to start a business taking 62 days to complete. The official cost is 202% of the gross national income per capita. A minimum capital investment of 289.4% of the gross national income per capita is required.While fewer and simpler regulations often imply higher rankings, this is 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 refers 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 weighing sub-indicators and calculating rankings. A detailed explanation of every indicator can be found through the DB website, and a .xls archive that simulates reforms.Some (:wikt:caveat|caveat)s regarding the rankings and main information presented have to be considered by every user of the report. Mainly:
  • Doing Business does not measure all aspects of the business environment that matter to firm or investors, such as the macroeconomic conditions, or the level of employment, corruption, stability or poverty, in every country.
  • Doing Business does not consider the strengths and weaknesses of neither the global financial system, nor the financial 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 regulation, or all the regulatory requirements. Other types of regulation such as financial market, environment, or intellectual property regulations that are relevant for the private sector are not considered.
The Doing Business report is not intended as a complete assessment of competitiveness or of 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

The Doing Business report has its origins in a paper first published in the Quarterly Journal of Economics by Simeon Djankov, Rafael La Porta, Florencio Lopez-de-Silanes and Andrei Shleifer called "The Regulation of Entry" in 2002. The paper presented data on the regulation of entry of start-up firms in 85 countries covering the number of procedures, official time and official cost that a start-up must bear before it could operate legally. The main findings of the paper were that: "Countries with heavier regulation of entry have higher corruption 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 because it provided quantitative evidence that entry regulation benefits politicians and bureaucrats without adding value to the private sector, or granting any additional protection.Djankov, Simeon, et al., "The Regulation of Entry", The Quarterly Journal of Economics, Vol.CXVII February 2002, Issue ISeveral countries have launched reforms to improve their rankings.NEWS,weblink Time to make in India?, 2014-09-25, The Economist, 0013-0613, 2017-01-14, WEB,weblink Ranking the rankings, The Economist, 2017-01-14, These efforts are motivated to a great scope by the fact that the World Bank Group publishes the data, and hence coverage by the media and the private sector every year. Also, Doing Business highlights every year the successful reforms carried out by each country. Since The Regulation of Entry was published, Simeon Djankov and Andrei Shleifer have published eight other academic studies, one for each set of indicators covered by the report.In 2013, Doing Business covered regulations measured from June 2011 through May 2012. Over the previous decade, the reports recorded nearly 2,000 regulatory reforms implemented by 180 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 by Doing 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; the United States; and Denmark. Georgia was a new entrant to the top 10.
In 2014 Doing Business covered regulations measured from June 2012 through May 2013 in 189 economies.
  • Singapore is 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.
  • For the first time data about Libya, Myanmar, San Marino, and South Sudan were collected.
  • 114 economies adopted 238 regulatory reforms in 2012/13 (the reforms increased of 18% compared to the previous year).
In 2015, Doing Business covered regulations measured from June 2013 through June 2014 in 189 economies.WEB,weblink Doing Business 2015, World Bank. Published: October 29, 2014., 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.

Research and influence

More than 3,000 academic papers have used data from the index.WEB,weblink Doing Business and related research - World Bank Group
, Doingbusiness.org, 2013-05-20, 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 the Doing Business report. The 2016 Nobel Prize Winner in Economics Oliver Hart (economist) is among the authors of such papers.
The various sub-components of the index in themselves provide concrete suggestions for improvement. Many of them may be 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.Somewhat similar annual reports are the Indices of Economic Freedom and the Global 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 2017 EconTalk podcast explains the lasting influence in academia and policy circles of the Doing Business report.

Doing Business Report

The Doing Business Report (DB) is a report started by Simeon Djankov and elaborated by the World Bank Group since 2003 every year that is aimed to measure the costs to firms of business regulations in 190 countries. The study has become one of the flagship knowledge products of the World Bank Group in the field of private sector development, and is claimed to have motivated the design of several regulatory reforms in developing countries. The study presents every year a detailed analysis of costs, requirements and procedures a specific type of private firm is subject in all countries, and then, creates rankings for every country. The study is also backed up by broad communication efforts, and by creating rankings, the study spotlights countries and leaders that are promoting reforms.World Bank: "Doing Business 2010", World Bank Group, 2010, U.S.A.The DB has been widely known and used by academics, policy-makers, politicians, development experts, journalists, and the business community to highlight red tape and promote reforms. As stated by the IEG 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 and conditionality. The annual exercise generates information that is relevant and useful.”According to the DB, regulation does matter for the development of the private sectors, and several reforms are suggested across the report in order to promote the development of the private sector and enable the business environment. Some highlighted findings of the DB are:

Contents

In 2017, the study contains quantitative measures of regulations for starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, taxes, trading across borders, enforcing contracts, getting an electricity connection, and closing a business. As stated in the introduction of the study, "A fundamental premise of DB is that economic 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

Doing Business is a controversial study, with passionate critics and devoted fans. As recognized by the Independent Evaluation Group of the World Bank, some have questioned the reliability and objectivity of its measurements while others doubt the relevance of the issues it addresses or fear 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 for poverty reduction and sustainable development.According to Snodgrass, several limitations are present in the DB studies and have to be kept in mind when using the study:
  • The indicators and measures are referred to the costs, requirements, and fees of doing business in the country's largest business city; thus conditions elsewhere within the country may differ.
  • To achieve cross-country standardization respondents are asked to give estimates for a limited liability company of a specific size.{{vague|date=August 2014}} Costs for other forms and scales of businesses may differ.
  • Transactions and fees to be cost out are 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 assume that a business knows what is required and does not waste time. Satisfying regulatory requirements will obviously take longer if the business lacks information or is unable to follow up promptly. A related point here is that DB may not understand "work-arounds", "facilitating fees", and "learning time" that speed or delay approvals and causes variation costs.

Related studies

Published now for twelve years, the DB has originated a growing body of research 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-reviewed academic journals, and about 1143 working papers are available through Google Scholar".The DB has acknowledged the limitation of getting data from one city to give information and a ranking valid for all the country. Several regional and sub-national studies have been carried out using the Doing Business methodology to assess variations within countries and regions across different cities, including sub-national studies for countries like Brazil, Mexico, and Colombia, and regional studies for the Caribbean, the Arab World, Bulgaria, and other south eastern European countries. All studies are available from the DB website.DB sometimes unintentionally has been widely used as a study to measure competitiveness. 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 the Global Competitiveness Index, the Index of Economic Freedom, and the Global Entrepreneurship Monitor, among others.Snodgrass, Sonald, "Alternative Business Enabling Environment Rankings. A Review", USAID / Business Growth Initiative, USAID

2018 manipulation scandal

On 12 January 2018, Paul Romer, the World Bank's chief economist, announced that past releases of the index would be corrected and recalculated going back at least four years. Romer apologised to Chile, saying that the former director of the group responsible for the index had repeatedly manipulated its methodology, unfairly penalising the country's rankings during the administration of left-wing President Michelle Bachelet. In response, Bachelet announced that Chile would formally request a complete investigation by the World Bank.NEWS, Chile slams World Bank for bias in competitiveness rankings,weblink Reuters, 2018, NEWS, Zumbrun, Josh, Talley, Ian, World Bank Unfairly Influenced Its Own Competitiveness Rankings,weblink Wall Street Journal, 12 January 2018,

Ranking

The most recent rankings come from the "Doing Business 2019" report. Ranking of economies was introduced in the "Doing Business 2006" report.WEB,weblink Doing Business 2018 - Equal Opportunity for All - World Bank Group, www.doingbusiness.org, New Zealand has topped the Ease of Doing Business rankings in 2017, 2018 and 2019.Singapore topped the Ease of Doing Business rankings in 2007–2016.WEB, Singapore Tops World Bank Survey,weblink Bloomberg, 23 August 2011, Based on Singapore's experience, IDA International is collaborating with public agencies in several countries in the areas such as ICT strategy, national infocomm planning and solutions implementation that can help increase the ease of doing business. One interesting fact is that although richer countries on average are ranked higher than poor countries, are there some remarkable exceptions. One sunch example is that Kuwait, one of the richest countries in the world, is lower ranked (97) than the much poorer countries Kenya (ranked 61), Colombia (ranked 65) and Uzbekistan (ranked 76)WEB,weblink Rankings, World Bank, en, 2019-06-09, . Kuwait has addressed its poor business climate in its newest development plan, Kuwait Vision 2035.{| class="wikitable sortable mw-datatable" style="margin:1em left 1em auto;"!Classification! scope="col" | Jurisdiction! scope="col" | 2019! scope="col" | 2018! scope="col" | 2017! scope="col" | 2016! scope="col" | 2015! scope="col" | 2014! scope="col" | 2013! scope="col" | 2012! scope="col" | 2011 ! scope="col" | 2010 ! scope="col" | 2009! scope="col" | 2008! scope="col" | 2007! scope="col" | 2006
|Very Easy
New Zealand}} | 1
|Very Easy
Singapore}} | 2
|Very Easy
Denmark}} | 8
|Very Easy
Hong Kong}} | 7
|Very Easy
South Korea}} | 27
|Very Easy
Georgia}} | 100
|Very Easy
Norway}} | 5
|Very Easy
United States}} | 3
|Very Easy
United Kingdom}} | 9
|Very Easy
North Macedonia}} | 81
|Very Easy
United Arab Emirates}} | 69
|Very Easy
Sweden}} | 14
|Very Easy
Taiwan}} | 35
|Very Easy
Lithuania}} | 15
|Very Easy
Malaysia}} | 21
|Very Easy
Estonia}} | 16
|Very Easy
Finland}} | 13
|Very Easy
Australia}} | 6
|Very Easy
Latvia}} | 26
|Very Easy
Mauritius}} | 23
|Very Easy
Iceland}} | 12
|Very Easy
Canada}} | 4
|Very Easy
Ireland}} | 11
|Very Easy
Germany}} | 19
|Very Easy
Azerbaijan}} | 98
|Very Easy
Austria}} | 32
|Very Easy
Thailand}} | 20
|Very Easy
Kazakhstan}} | 86
|Very Easy
Rwanda}} | 139
|Very Easy
Spain}} | 30
|Very Easy
Russia}}| 79
|Very Easy
France}} | 44
|Very Easy
Poland}} | 54
|Very Easy
Portugal}} | 42
|Very Easy
Czech Republic}} | 41
|Very Easy
Netherlands}} | 24
|Very Easy
Belarus}} | 106
|Very Easy
Switzerland}} | 17
|Very Easy
Japan}} | 10
|Very Easy
Slovenia}} | 63
|Very Easy
Armenia}} | 46
|Very Easy
Slovakia}} | 37
|Very Easy
Turkey}} | 93
|Very Easy
Kosovo}} | {{n/a}}
|Very Easy
Belgium}} | 18
|Very Easy
China}} | 91
|Very Easy
Moldova}} | 83
|Very Easy
Serbia}} | 92**
| Very Easy
Israel}} | 29
|Very Easy
Montenegro}} | 92**
|Very Easy
Italy}} | 70
|Very Easy
Romania}} | 78
|Very Easy
Hungary}} | 52
|Easy
Mexico}} | 73
|Easy
Brunei}} | {{n/a}}
|Easy
Chile}} | 25
|Easy
Cyprus}} | {{n/a}}
|Easy
Croatia}} | 118
|Easy
Bulgaria}} | 62
|Easy
Morocco}} | 102
|Easy
Kenya}} | 68
|Easy
Bahrain}} | {{n/a}}
|Easy
Albania}} | 117
|Easy
Puerto Rico}} | 22
|Easy
Colombia}} | 66
|Easy
Luxembourg}} | {{n/a}}
|Easy
Costa Rica}} | 89
|Easy
Peru}} | 71
|Easy
Vietnam}} | 99
|Easy
Kyrgyzstan}} | 84
|Easy
Ukraine}} | 124
|Easy
Greece}} | 80
|Easy
Indonesia}} | 115
|Easy
Mongolia}} | 61
|Easy
Jamaica}} | 43
|Easy
Uzbekistan}} | 138
|Easy
India}} | 116
|Easy
Oman}} | 51
|Easy
Panama}} | 57
|Easy
Tunisia}} | 58
|Easy
Bhutan}} | 104
|Easy
South Africa}} | 28
|Easy
Qatar}} | {{n/a}}
|Easy
Malta}} | {{n/a}}
|Easy
El Salvador}} | 76
|Easy
Botswana}} | 40
|Easy
Zambia}} | 67
|Easy
San Marino}} | {{n/a}}
|Easy
Bosnia and Herzegovina}} | 87
|Easy
Samoa}} | 39
|Easy
Tonga}} | 36
|Easy
Saudi Arabia}} | 38
|Easy
Saint Lucia}} | {{n/a}}
|Easy
Vanuatu}} | 49
|Easy
Uruguay}} | 85
|Easy
Seychelles}} | {{n/a}}
|Easy
Kuwait}} | 47
|Medium
Guatemala}} | 109
|Medium
Djibouti}} | {{n/a}}
|Medium
Sri Lanka}} | 75
|Medium
Fiji}} | 34
|Medium
Dominican Republic}} | 103
|Medium
Dominica}} | {{n/a}}
|Medium
Jordan}} | 74
|Medium
Trinidad and Tobago}} | {{n/a}}
|Medium
Lesotho}} | 97
|Medium
Namibia}} | 33
|Medium
Papua New Guinea}} | 64
|Medium
Brazil}} | 119
|Medium
Nepal}} | 55
|Medium
Malawi}} | 96
|Medium
Antigua and Barbuda}} | {{n/a}}
|Medium
Paraguay}} | 88
|Medium
Ghana}} | 82
|Medium
Solomon Islands}} | 53
|Medium
Palestine}} | 125
|Medium
Swaziland}} | {{n/a}}
|Medium
Bahamas}} | {{n/a}}
|Medium
Argentina}} | 77
|Medium
Egypt}} | 141
|Medium
Honduras}} | 112
|Medium
Côte d'Ivoire}} | 145
|Medium
Ecuador}} | 107
|Medium
Philippines}} | 113
|Medium
Belize}} | {{n/a}}
|Medium
Tajikistan}}| {{n/a}}
|Medium
Uganda}} | 72
|Medium
Iran}} | 108
|Medium
Barbados}}| {{n/a}}
|Medium
Saint Vincent and the Grenadines}}| {{n/a}}
|Medium
Cape Verde}}| {{n/a}}
|Medium
Nicaragua}}| 59
|Medium
Palau}}| {{n/a}}
|Medium
Guyana}} | 105
|Medium
Mozambique}} | 110
|Medium
Pakistan}}| 60
|Medium
Togo}}| 149
|Medium
Cambodia}}| 133
|Medium
Maldives}}| 31
|Medium
Saint Kitts and Nevis}}| {{n/a}}
|Medium
Senegal}} | 132
|Medium
Lebanon}}| 95
|Medium
Niger}}| 150
|Medium
Tanzania}}| 140
|Medium
Mali}}| 146
|Medium
Nigeria}}| 94
|Medium
Grenada}} | {{n/a}}
|Below Average
Mauritania}} | 127
|Below Average
Gambia}}| {{n/a}}
|Below Average
Marshall Islands}}| 48
|Below Average
Burkina Faso}}| 154
|Below Average
Guinea}}| 144
|Below Average
Benin}} | 129
|Below Average
Laos}}|154| 147
|Below Average
Zimbabwe}}| 126
|Below Average
Bolivia}} | 111
|Below Average
Algeria}} | 128
|Below Average
Kiribati}}| 45
|Below Average
{{flag|Ethiopia}}| 101
|Below Average
Micronesia}}| 56
|Below Average
Madagascar}}| 131
|Below Average
Sudan}}| 151
|Below Average
Sierra Leone}}| 136
|Below Average
Comoros}}| {{n/a}}
|Below Average
Suriname}}| {{n/a}}
|Below Average
Cameroon}}| 130
|Below Average
Afghanistan}}| 122
|Below Average
Burundi}}| 143
|Below Average
Gabon}} | {{n/a}}
|Below Average
São Tomé and Príncipe}}| 123
|Below Average
Iraq}} | 114
|Below Average
Myanmar}} | {{n/a}}
|Below Average
Angola}}| 135
|Below Average
Liberia}} | {{n/a}}
|Below Average
Guinea-Bissau}}| {{n/a}}
|Below Average
Bangladesh}}| 65
|Below Average
Equatorial Guinea}} | {{n/a}}
|Below Average
Timor Leste}}| 142
|Below Average
Syria}} | 121
|Below Average
Congo}} | 148
|Below Average
Chad}} | 152
|Below Average
Haiti}} | 134
|Below Average
Central African Republic}}| 153
|Below Average
Democratic Republic of Congo}} | 155
|Below Average
South Sudan}} | {{n/a}}
|Below Average
Libya}}| {{n/a}}
|Below Average
Yemen}}| 90
|Below Average
Venezuela}} | 120
|Below Average
Eritrea}} | 137
|Below Average
Somalia}} | {{n/a}}
  • – same rank is for multiple jurisdictions
    • – the State Union of Serbia and Montenegro
Note: Rankings at time of annual report publication. Rankings are subject to revision.

Criticism

The Doing Business methodology regarding labor regulations was criticized by the International Trade Union Confederation because it favored flexible employment regulations.WEB,weblink ITUC-CSI-IGB – International Trade Union Confederation, Ituc-csi.org, 2006-12-14, 2012-06-27, 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 188 International Labour Organization conventions. It has subsequently been removed from the rankings. The ITUC debuted the Global Rights Index in 2014 as a response to the Doing Business report.Tamara Gausi (21 May 2014). New Global Index Elevates Workers' Rights over "Doing Business". Equal Times. Retrieved 30 May 2014; see also: ITUC Global Rights Index: The world's worst countries for workers.In 2008 the World Bank Group's Independent Evaluation Group, a semi-independent watchdog within the World Bank Group, published an evaluation of the Doing Business index.WEB,weblink Doing Business – Doing Business: An Independent Evaluation, Web.worldbank.org, 2008-06-26, 2012-02-14, The report, Doing Business: An Independent Evaluation, contained both praise and criticism of Doing 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.WEB,weblink EWI Revisions, Doingbusiness.org, 2012-06-27, The note explained that scoring for the "Employing Workers" indicator would be updated in Doing 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 general worry that many countries may find it easier to change their ranking in Doing Business than to change the underlying business environment.WEB,weblinkweblink" title="web.archive.org/web/20110726171432weblink">weblink 2011-07-26, Be careful when Doing Business, 2012-06-27, In June 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, the narrowness of the indicators and information base, the data collection methodology, and the lack of peer review. It recommended that the report be retained, but that the aggregate rankings be removed and that a peer-review process be 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."http://www.dbrpanel.org/sites/dbrpanel/files/doing-business-review-panel-report.pdfThe Doing Business criteria for measuring the time needed to complete a procedure were based on some simplified assumptions: "It is assumed that the minimum time required for each procedure is 1 day. Although procedures may take place simultaneously, they cannot start on the same day (that is, simultaneous procedures start on consecutive days)". These assumptions generated some criticisms especially by countries that were able to complete one or more procedures simultaneously and could therefore be penalized in the final rank. World Bank claimed that the same criteria are applied to all economies and therefore would not produce biased results. In 2014 the possible biases in applying the DB time indicator were mathematically demonstrated in a scientific articleWEB,weblink World Bank Doing Business Project and the statistical methods based on ranks: the paradox of the time indicator., Rivista italiana di economia demografia e statistica, 2014, Volume LXVIII, Issue 1, ideas.repec.org, 2014-07-13, appeared on the Rivista italiana di economia demografia e statistica (Italian Review of Economics, Demography, and Statistics - RIEDS). World Bank partially reviewed the criteria inserting a new assumption for telematics procedures: "each telematics procedure accounts for 0.5 day instead of one day (and telematics procedures can also take place simultaneously)".

See also

References

{{Reflist}}

External links

{{Politics country lists}}

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Eastern Philosophy
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