Question 15 from UPSC CSE 2016 - Economy

Question

India's ranking in the 'Ease of Doing Business Index' is sometimes seen in the news. Which of the following has declared that ranking?

Accepted Answer

Correct Option: C. World Bank

Strategy: This is a direct factual recall question. The 'Ease of Doing Business Index' is a well-known report in economic news. Aspirants should immediately associate this index with its publishing body, the World Bank. Other options represent organizations known for different sets of global reports.

Key Info: ## Ease of Doing Business Index
- The 'Ease of Doing Business Index' was an annual ranking published by the World Bank Group.
- It measured regulations that enhance or constrain business activity, covering 11 areas of business regulation, including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.
- The report aimed to provide objective measures of business regulations and their enforcement across 190 economies.
- It was launched in 2003 and was a significant indicator for investors and policymakers globally.
- The World Bank discontinued the 'Doing Business' report in September 2020 following allegations of data irregularities and ethical concerns regarding data manipulation in certain country rankings.

## World Bank Group
- An international financial institution that provides financial and technical assistance to developing countries around the world.
- Its mission is to reduce poverty and support development.
- It comprises five institutions: the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID).
- Beyond the 'Doing Business' report, it publishes other key reports such as the World Development Report and Global Economic Prospects.

## Organization for Economic Cooperation and Development (OECD)
- An intergovernmental economic organization with 38 member countries, founded in 1961 to stimulate economic progress and world trade.
- Most OECD members are high-income economies with a very high Human Development Index and are considered developed countries.
- It publishes various reports and analyses on economic, social, and environmental issues, including the PISA (Programme for International Student Assessment) rankings, Economic Outlook, and reports on taxation and innovation.

## World Economic Forum (WEF)
- A Swiss non-profit foundation, best known for its annual meeting in Davos, Switzerland.
- It brings together political, business, cultural, and other leaders of society to shape global, regional, and industry agendas.
- The WEF publishes several influential reports, including the Global Competitiveness Report, the Global Risks Report, and the Global Gender Gap Report.

## World Trade Organization (WTO)
- An intergovernmental organization that regulates and facilitates international trade between nations.
- It was established in 1995 as the successor to the General Agreement on Tariffs and Trade (GATT).
- Its main functions include administering existing trade agreements, acting as a forum for multilateral trade negotiations, and providing a mechanism for resolving trade disputes among its members.

Answer

Option A: Organization for Economic Cooperation and Development (OECD)

Answer

Option B: World Economic Forum

Answer

Option D: World Trade Organization (WTO)