Question 95 from UPSC CSE 2019 - Current Affairs

Question

Which one of the following is not a sub-index of the World Bank's 'Ease of Doing Business Index'?

IASCODEX · Accepted Answer

Correct Option: A. Maintenance of law and order

Strategy: Focus on the specific criteria the World Bank uses for its Ease of Doing Business Index. 'Paying taxes', 'Registering property', and 'Dealing with construction permits' are familiar sub-indices. 'Maintenance of law and order' is not an economic or regulatory factor measured in this index—it's related to governance, not business processes—so eliminate it.

Key Info: The World Bank's Ease of Doing Business Index is an annual ranking assessing the business regulatory environment across economies. It evaluates ten major areas (sub-indices), including:

- Starting a Business: Procedures, time, cost, and minimum capital to open a new business.
- Dealing with Construction Permits: Procedures, time, and cost to build a warehouse.
- Getting Electricity: Process, cost, and time for a business to get a permanent electricity connection.
- Registering Property: Number of steps, time, and cost for property transfers.
- Getting Credit: Legal rights of borrowers and lenders, and information availability.
- Protecting Minority Investors: Rights and protections for minority shareholders.
- Paying Taxes: Number of payments, time, and total tax rate for a business to comply with tax regulations.
- Trading Across Borders: Procedures, time, and cost associated with exporting and importing.
- Enforcing Contracts: Judicial efficiency in contract enforcement.
- Resolving Insolvency: Time, cost, and recovery rate in bankruptcy proceedings.

The index does not include 'maintenance of law and order' as a criterion. Law and order, while important for general governance and investment climate, are not directly measured in the Ease of Doing Business assessment. The report also analyzed labor market regulation but did not include it in the overall ranking as of 2019. The index has now been discontinued post-2021 over data integrity concerns but was widely referenced by policymakers and investors globally.

IASCODEX · Answer

Option B: Paying taxes

IASCODEX · Answer

Option C: Registering property

IASCODEX · Answer

Option D: Dealing with construction permits