Doing Business: Independent Evaluation: Taking the Measure by World Bank

By World Bank

This autonomous assessment of the Doing enterprise signs assesses the equipment and methods used to build the symptoms, their relevance to improvement results, and their usefulness to coverage makers and different stakeholders. It makes options for making improvements to the gathering and presentation of information and for better readability in speaking what the indications can and can't seize.

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Extra info for Doing Business: Independent Evaluation: Taking the Measure of the World Bank/IFC Doing Business Indicators

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For example, 23 countries earlier identified as having reduced their corporate taxes show no changes in tax rates using the revised data. DB highlights reforms to getting credit in Italy and trading across borders in China, but the revised data revealed that the relevant subindicators actually deteriorated (World Bank-IFC 2006b, pp. 3, 30). DB should make clear that its rankings are subject to change and fully explain the extent, nature, and implications of these changes on country rankings. Constructing the Rankings The DB process first establishes cardinal values for each subindicator: time, costs, number of procedures, and the like.

Constraint is not offered as a potential response in one of the surveys. 5 D O I N G B U S I N E S S : A N I N D E P E N D E N T E VA L U AT I O N tors for economic performance and quality of public administration in the same direction (based on Altenburg and von Drachenfels 2006). Recent research has begun to test the links between the DB indicators and economic outcomes, although this research has been constrained by DB’s short time series. Djankov, McLiesh, Ramalho, and Shleifer (2008) looked at reforms in getting credit, and found that credit rises after improvements in creditor rights and information.

A recent review noted that “Empirical studies show that only a very small number of micro-enterprises ever manage to upgrade and grow into larger units. The reasons are manifold. Micro-entrepreneurs may, for instance, lack information, technical skills, managerial competence, entrepreneurial spirit, and capital. . To graduate out of informality is thus a slow and difficult process of cultural change” (Altenburg and von Drachenfels 2006, p. 406). DB focuses on the idea that excessive regulation of private sector activity inhibits the transition from the informal to the formal economy.

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