Understanding the World Bank Business Index: A Comprehensive Report

The World Bank Business Index is a comprehensive report that provides insights into the ease of doing business in different countries. It ranks countries based on their business environment, with a score out of 100.

The report assesses various aspects of business regulation, including starting a business, paying taxes, and enforcing contracts. This helps businesses and investors make informed decisions when operating in different countries.

Countries are grouped into six regions: East Asia and Pacific, Europe and Central Asia, Latin America and the Caribbean, Middle East and North Africa, South Asia, and Sub-Saharan Africa. This regional classification allows for a more nuanced understanding of business environments within each region.

A score of 100 represents the best possible business environment, while a score of 0 represents the worst.

The World Bank's Business Environment Report is a game-changer for countries looking to improve their business climate. It's a publication that benchmarks business regulation in 190 countries worldwide, with a high ease of doing business ranking indicating a more conducive regulatory environment for starting and operating a local business.

The report assesses 10 indicators, including starting a business, getting credit, construction permits, and paying taxes. Countries like Pakistan and India have made significant reforms in these areas, improving their rankings in the report. For example, Pakistan's ranking improved by 11 notches in 2019, thanks to reforms in starting a business and resolving insolvency.

The World Bank has also introduced a new methodology for the report, which will refine the way it measures business environment. The first edition of the report will cover 40-50 countries, with subsequent editions adding more countries till the third report, which will cover 120-150 countries. This change aims to make the report more robust and credible.

Countries like Bhutan have made significant improvements in their business climate, allowing small business owners to register their companies online and receive legal documents by email in seconds. This kind of innovation can have a significant impact on businesses, even if it doesn't always show up in the rankings.

Here are some of the reforms that have been acknowledged in the report:

These reforms demonstrate the importance of improving the business environment for economic growth and development. By making it easier to start and operate a business, countries can attract more investment, create jobs, and improve living standards.

India's business climate has seen significant improvements in recent years. The country has jumped 12 spots in the World Bank's Ease of Doing Business index, ranking 130 out of 189 countries.

The government has been actively working to improve the business climate, with the World Bank noting that India has accelerated efforts to improve the business climate in the past year. This improvement in ranking marks a significant shift in trend after several years of decline.

Some notable reforms include amending the Companies Act to remove provisions for minimum paid-up capital and streamlining the process to obtain electricity connections in Mumbai and Delhi. These changes have been lauded by the World Bank in its latest report.

The government has also implemented several other reforms, including enabling e-payment for contributions to the Employees' Provident Fund Organisation and Employees' State Insurance Corporation of India. Additionally, construction permit applications in Delhi and Mumbai can now be made online.

The Ease of Doing Business Index comprises ten indicators on which the ranking is issued. These indicators include starting a business, getting credit, construction permit, getting electricity, registering property, protecting minority investors, resolving insolvency, enforcing contracts, trading across borders, and paying taxes.

Here are the ten indicators used in the Ease of Doing Business Index:

The World Bank's Doing Business Report is a publication that benchmarks business regulation in 190 countries worldwide. It ranks countries on the ease of doing business, with a high ranking indicating a more conducive regulatory environment for starting and operating a local business.

The report comprises ten indicators, including starting a business, getting credit, and paying taxes. These indicators are used to issue a ranking, with a high ranking meaning the regulatory environment is more business-friendly.

The World Bank has undergone a stakeholder consultation process to refine its methodology and improve the credibility of the rankings. This change is expected to result in a more robust and credible system.

One example of a country that has made significant reforms to improve its business environment is Pakistan. In the 2020 report, Pakistan's ranking improved by 11 notches, from 147 to 136, due to reforms in starting a business and resolving insolvency.

These reforms included enhancing the online one-stop registration system, replacing several forms for incorporation with a single application, and establishing information exchange between the registry and the tax authority. Additionally, Pakistan introduced the reorganization procedure and improved the continuation of the debtor's business during insolvency proceedings.

The World Bank's Doing Business Report has also acknowledged Pakistan's progress in integrating its eServices with the Federal Board of Revenue (FBR) and the Employees Old Age Benefits Institution (EOBI). This integration, known as VOSS, allows entrepreneurs to register with six agencies, including SECP, FBR, and registration with EOBI, PESSI/SESSI, and labor department, by submitting a single online application.

Here are the ten indicators used in the World Bank's Doing Business Report: