World Bank altered ‘Doing Business’ data to improve China ranking: Probe

The World Bank has decided to discontinue its report “Doing Business” after an investigation found out that officials juggled data to boost China’s rankings. The report is used by companies and investors to help decide where to invest money, open manufacturing plants or sell products.

The investigation was conducted by the law firm WilmerHale after internal questions involving “data irregularities” in the 2018 and 2020 editions of the report and possible “ethical matters” involving bank staff. After the revelations top bank officials have come under pressure. 

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As per the report, then-World Bank President Jim Yong Kim and from then-Chief Executive Kristalina Georgieva and one of her advisers pressurised staff members to change the data to improve China’s standing. 

Georgieva, now director of the International Monetary Fund, said she disagreed with the findings.

“I disagree fundamentally with the findings and interpretations of the Investigation of Data Irregularities as it relates to my role in the World Bank’s Doing Business report of 2018,” Georgieva said in a statement.

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“China is clearly not shy about using its rising clout in international organizations to control the narrative about its economy and its government’s policy choices. For international institutions trying to remain relevant in a fast-changing world, keeping a major shareholder such as China happy can sometimes override more objective analytical considerations,” Eswar Prasad, a professor of trade policy at Cornell University said. 

Doing Business looks at taxes, red tape, regulation and other business conditions. It is cited by some governments in trying to attract investment. It ranks countries on factors such as how straightforward or burdensome it is to register a business, legally enforce a contract, resolve a bankruptcy, get an electrical connection or obtain construction permits.

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The Chinese foreign ministry expressed hope the World Bank would “conduct a comprehensive investigation” to “better maintain the professionalism and credibility” of Doing Business.

“The Chinese government attaches great importance to optimising the business environment,” said a ministry spokesperson, Zhao Lijian.

With inputs from the Associated Press