China's position in World Bank doing business report slumps by 7 places in corrected assessment
Dec 20, 2020
Washington [US], December 20 : After China and three other countries submitted data that was "inappropriately altered" with regard to the Ease of Doing Business Report, the World Bank has now corrected the data and now China has slipped seven positions below to 85 in the index for 2018.
In Doing Business report 2018, the published score of China including irregularities affecting the Starting a Business, Getting Credit, and Paying Taxes indicators was 65.3 with a global ranking of 78, identical to its rank in the Doing Business 2017 report, according to World Bank's statement.
After correcting the irregularities described above, the Doing Business 2018 score is 64.5. Taking as given the published data for all other countries, China's global ranking in Doing Business 2018 would have been 85, a decline of seven places relative to the previous year," the statement read.
"These irregularities were reported to DEC management by Doing Business team members and triggered the pause of the Doing Business report announced on August 27, 2020, as well as this review," it added.
Apart from China, three other countries reported irregularities in data that included Saudi Arabia, the UAE and Azerbaijan.
In the case of Azerbaijan, In Doing Business 2020, the published score including irregularities affecting the Getting Electricity, Enforcing Contracts, and Trading Across Borders indicators was 76.7 with a global ranking of 34. After correcting the irregularities, the Doing Business 2020 score is 78.5.
"Taking as given the published data for all other countries, Azerbaijan's global ranking would be 28 and it would have been on the list of top 10 improvers in the Doing Business 2020 report had these irregularities not occurred," the World Bank said.
In the case of Saudi Arabia, in the 2020 report, the published score including irregularities affecting the Getting Credit and Paying Taxes indicators was 71.6 with a global ranking of 62. After correcting these irregularities, the Doing Business 2020 score is 70.9. However, if irregularities had not occurred, Saudi Arabia's position would stand at 63.
The UAE on the other hand, including irregularities affecting the Paying Taxes indicator, was 80.9 with a global ranking of 16 and after correcting this irregularity, the Doing Business 2020 score is 80.8. The global ranking would be unchanged at 16 even after correcting the irregularity.
"Taking as, given the published data for all other countries, the United Arab Emirates' global ranking would be unchanged at 16," the statement said further.
In August, it was reported that China along with three other countries had submitted data that was "inappropriately altered", which led to the World Bank put a pause on its 'Doing Business' report.
China along with three other countries -- Azerbaijan, the United Arab Emirates and Saudi Arabia-- appeared to have inappropriately altered their data, said a person with knowledge of the decision, reported the Wall Street Journal.
The World Bank said that the review process did not identify any further specific data irregularities beyond those affecting these four countries as described in this document.
India had jumped 14 positions to be ranked 63rd among 190 countries in the World Bank's ease of doing business 2020 survey.
