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A World Bank internal audit report did not find any irregularities in the data used by India in the ‘Ease of Doing Business’ index, but found that China used its clout to pressure the top management into reversing its dip in ranking, according to official sources.
The World Bank on Thursday said it ended the publication of its ‘Doing Business’ report on the country-wise investment climate after a board-ordered investigation conducted by law firm WilmerHale cited undue pressure by top bank officials to boost China’s ranking in 2017.
“India remains the preferred investment destination for the world and a reliable, trustworthy partner while China has slipped in attractiveness. Fraud by China will boost multilateral initiatives like supply chain resilience to move manufacturing to India,” the official told BusinessLine , underlining the opportunity opening up for the country.
After reviewing all information available to date on ‘Doing Business’, including past reviews, audits, and the report the Bank released today on behalf of the Board of Executive Directors, the World Bank Group management has decided to discontinue the ‘Doing Business’ report, a World Bank statement said.
Shifting ranks
India had successfully improved its position from 142 in 2014 to 63 in 2020. The fact that the World Bank audit has not found any irregularities with India’s ranking reflects positively on its rapid improvement as an investment destination.
“We hope that something good will come out for India from the World Bank audit report and its credibility will go up further,” the official said.
“During the sensitive capital raising year of 2017, China was able to leverage its clout and pressure the World Bank top management into reversing its (China’s) dip in ranking; but for this, China’s rank would have fallen to 85 from 78. While India’s ranking improved too, no irregularities have been reported,” the source said.
The group preparing the report discussed methodological changes that might boost China’s ranking, WilmerHale’s investigation showed.
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