World Bank top officials put staffers 'under pressure' to boost China's ranking: Report

World Bank’s top officials placed its staffers “under pressure” to alter data to inflate the rankings for China and Saudi Arabia in 2018 and 2020 editions of the report, concluded an independent investigation. The law firm commissioned by the World Bank to conduct the probe, WilmerHale found that then-CEO Kristalina Georgieva pressured the Doing Business team in 2017 to “change the report's methodology" or "make specific changes" in data points to boost China's ranking in the 2018 edition, reported CNN on September 17.

Reportedly, WilmerHale was commissioned by the World Bank to conduct the probe. According to the 16-page investigation, Chinese government officials repeatedly raised concerns to Georgieva and then-World Bank president, Jim Yong Kim, regarding China’s ranking. The probe also concluded that Georgieva was even involved in the middle of negotiations over a capital increase campaign in which China "was expected to play a key role.”  WilmerHale stated that Georgieva was “directly involved” in pushing China’s ranking. 

According to CNN, during a meeting, World Bank’s then-CEO had "chastised the Bank's then-Country Director for mismanaging the Bank's relationship with China and failing to appreciate the importance of the Doing Business report to the country.” Following the allegations of a discrepancy, World Bank on Thursday had decided to halt the publication of its Doing Business report which assesses regulatory environments of different countries along with the ease of business startups, infrastructure and other business climate measures.

"After reviewing all the information available to date on Doing Business, including the findings of past reviews, audits, and the report the Bank released today (Thursday) on behalf of the Board of Executive Directors, World Bank Group management has taken the decision to discontinue the Doing Business report," World Bank said in a statement posted on the website.

What is Doing Business report? Why’s World Bank under fire?

The Doing Business report is important to several companies and investors across the globe which is used to help them decide where to invest money or manufacturing plans or sell products. In a bid to boost their rankings in the report, countries have often pursued substantive policy changes. For instance, introduce laws that would make it easier for businesses to pay taxes, receive loans or enforce the contracts.

However, World Bank, as per The Associated Press, has been long accused of using a sloppy method to publish the report and also succumbing to political pressure in producing the rankings. Now, WilmerHale has concluded that fudging of data took place to make China look better under Georgieva’s pressure. Then-CEO of World Bank, Georgieva is now the head of the International Monetary Fund (IMF).

The Doing Business report was introduced in 2002 with its annual rankings highlighting which nations have adopted the policies that favour businesses. The report also outlines which countries have improved, and how much they have regressed. The bank is known to collect information from tens and thousands of accountants, lawyers and other professionals in 190 nations. Just last year, New Zealand ranked Number 1 and Somalia was the last, 190. 

IMAGE: AP

(With ANI/AP inputs)