The World Bank has announced plans to introduce a new and more robust system for assessing the business climate in countries, aiming to enhance the transparency and accuracy of its rankings. The new approach is set to be launched later this year and will be based on input from businesses operating in the countries being assessed.
The World Bank’s existing rankings have been criticised in the past for a lack of transparency and for being too heavily influenced by the perceptions of outside experts. Under the new system, businesses in the countries being assessed will be surveyed about their experiences with government regulations and other factors that affect their ability to operate effectively.
The updated rankings will also include new indicators to better capture the quality of infrastructure, the ease of obtaining permits and licenses, and the level of digitisation in a country’s business environment.
The World Bank said it hopes that the new rankings will provide a more accurate and useful tool for policymakers, investors, and business leaders to evaluate the business landscape in different countries and make more informed decisions.
The World Bank’s announcement comes at a time when countries around the world are looking to attract green investment and boost economic growth following world leaders engaging in an urgent race for renewable energy security and sustainability transition.
By providing more reliable and transparent data on the business topography in different countries, the new rankings could play an important role in guiding these efforts.
“The main thing that went wrong was the data integrity of Doing Business was compromised,” Norman Loayza, director of the World Bank’s Indicators Group, which leads the project, said. “The main point for us is that we need to ensure data integrity and we have a very comprehensive approach to do that.”
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