This year's Doing Business report, which ranks countries
according to how business-friendly they are, comes in the wake of widespread
criticism of its relevance and robustness. Advance information about Doing
Business 2014 indicates that the recommendations for its comprehensive reform
by a panel of experts nominated by World Bank President Jim Kim have not yet
been implemented.
Christina Chang, CAFOD's lead economic analyst, said:
"Decision makers will rightly wonder how much weight to give to a
publication that has ranked Zambia 12th in the world on access to credit for
businesses, when over 90% of small businesses there cite this as a major
constraint for their success."
The expert panel led by Trevor Manuel concluded that
Doing Business is a "poor guide" for policy-makers and gave a list of
reforms needed to make the World Bank flagship research publication more
robust.
Peter Bakvis, Washington director of the International
Trade Union Confederation, said: "For a decade, Doing Business has been
publishing data on labour regulations, based on the wrong assumption that
driving down labour standards is good for the economy and good for business."
Jesse Griffiths, director of Eurodad (the European
Network on Debt and Development), said: "The World Bank needs to keep up
with new thinking and directions on development
"It is unthinkable that the Bank still issues a
publication that promotes the lowest corporate taxation rates as the ideal for
development. The problem of most developing countries is that they have
collected too little tax from transnational corporations, not too much.
"It's time for the Bank to listen to its independent
panel of experts and stop ranking countries based on the partial and
controversial indicators in Doing Business. They should also slash the
outrageous publicity budget for this flawed report."
The Panel also recommended that Doing Business be moved
to the World Bank's research department so that it can be aligned with progress
in development thinking and the Bank's poverty eradication mandate.
Christina Chang added: "The reform of Doing Business
is important, if we are going to achieve the World Bank's new corporate goals
to eradicate poverty by 2030 and achieve shared prosperity.
"Small businesses provide up to 90 per cent of jobs
in developing countries and represent the most promising route out of poverty
for most poor men and women, but Doing Business does not reflect their
reality. Including their perspectives in
the discussion around Doing Business reform is critical."
Advice ITUC
