Arbeitsgemeinschaft für Entwicklung und Humanitäre Hilfe
(28.06.2012)The Doing Business indicators are a set of guidelines for governments setting up their investment climate. They cover a variety of topics that are potentially useful to help start a broad debate in developing countries in order to identify necessary reforms and reduce the administrative burdens for businesses. However, rather than fostering broad-based economic development, following the checklist of reforms that make up the doing business rankings can be harmful to countries for four main reasons, outlined below.
Further, in practice the act of scoring and ranking countries
against each other can also distort and inhibit the important debate
surrounding how a country should regulate its economy and promote an enabling
environment that works for all.
Therefore we are calling on the World Bank to:
Four reasons why we think a new approach to
investment climate reforms is needed:
1. The rankings skew government
incentives away from the needs of the majority of poor, most of whom are women
engaged in informal, micro and rural enterprises.
The rankings discourage governments from doing what is needed to help
In some critical areas, rankings promote reforms that are harmful
4. The rankings do not consider the
balance of policy goals. The aim is minimal regulation, not optimal regulation.