World Bank intends to replace canceled ‘Doing Business’ report in two years

The World Bank plans to introduce in about two years a replacement for its “Doing Business” report on the countries’ business climate, which was canceled after a data manipulation scandal, chief economist Carmen Reinhart told Reuters.

Reinhart, who was promoted to senior manager as part of the bank’s attempt to rebuild its credibility after ethics concerns, said some important concepts for the new product are already clear.

This includes a mandate for more transparency about methodology, greater reliability in company survey data, and less focus on ranking countries.

“Public disclosure is an important pillar to restore credibility,” Reinhart said.

The bank will also emphasize research data to reduce the role of judgment and eliminate the “beauty pageant” aspect of rankings.

In September, the bank’s board canceled the publication of the annual “Doing Business” rating after an external analysis of data irregularities in the 2018 and 2020 versions alleged that the bank’s senior officials — including then Chief Executive Kristalina Georgieva, who now runs the International Monetary Fund (IMF)—putting pressure on officials to make changes.

The IMF board supported Georgieva after a lengthy review of the allegations, but she could still be involved in the second review.

Reinhart said the saga has undermined the Bank’s credibility and that it will take time and effort to rebuild trust.

“It’s important that credibility metrics are not based on personality, but rather on systems,” she said, adding that the bank had instituted “a lot of safeguards” last year after reviewing several external reports.

“Nothing in life is foolproof, but it reduces the capacity for misuse and abuse,” she said. “Hopefully, credibility will come. You know, credibility is hard to establish and easy to lose. But time will tell.”