Introduction & Modus Operandi:
The ease of doing business index was created by leading economists of World Bank Group. The names of economists are Mr. Simeon Djankov, Michael Klein and Caralee McLiesh. It was based on World Development Report, 2002. Although this report was discontinued in 2021 owing to few unavoidable reasons, yet in May, 2023, the World Bank again provided a new methodology for index. This new index focused on effects of government regulations on business. A questionnaire based survey was also done. An intricate point to note here is that it did not focus on market conditions, business environment, infrastructure and other operational reasons behind business success. Hence, it was more law oriented. The Doing Business team of World Bank interacted with industry experts, individuals, professional institutions, professionals of various countries through emails, conference calls and other online media. For verification of the answers of survey, few countries were physically visited by the surveyors. Also, the data was cross-checked with governments of respective economies. Basically, based on the respective case scenarios, quoting the relevant provision of law, respondents filled in the details.
Key Parameters:
The scales on which an economies’ ease of doing business was judged are as follows:-
- Ease of permissions for starting a venture
- Credit availability
- Contract Enforcement
- Ease of property registration
- Taxation rates
- Cross border transactions
- Minimum capital required for opening the business.
There were numerous other parameters, the major ones amongst them are mentioned above. Now, World Bank will publish its latest Index of doing business in September, 2024 wherein the list of countries on the basis of benchmarks will be mentioned. Economist of Central bank of every country along with entrepreneurs have an eye on this top to bottom list. It will definitely have the effect on business decisions and start up inspiration. It will consequently lead to economic growth in 2025.
