Context:
World Bank (WB) launches the first edition of its Business-Ready Index.
Business-Ready (B-Ready) Index:
- Successor to – Ease of Doing Business (EoDB)
- EoDB rankings was discontinued in 2021 due to ethical irregularities
- Assessment Scope – Initially assesses 50 economies, with plans to cover 180 economies by 2026.
- Objective – Provides a quantitative assessment of the business environment, focusing on private sector development.
- Pillars of B-Ready –
- Regulatory Framework – Evaluates the quality and efficiency of regulations.
- Public Services – Assesses the availability and quality of public services provided to businesses.
- Operational Efficiency – Measures the efficiency with which businesses can operate within the regulatory framework and public services provided.
Key Features of the Index:
- Comprehensive Evaluation – Evaluates the business environment from the perspective of both individual firms and the private sector as a whole.
- EoDB focused on individual small/medium firms.
- Qualitative Analysis – Examines both the regulatory burden on firms and the quality of regulations.
- EoDB primarily examined the regulatory burden on firms.
- Balanced Approach – Collects both de jure (statutory laws) and de facto (practical) information on firms.
- Under EoDB, certain indicators covered only de facto regulations, while others covered only de jure.
- Diverse Coverage – Covers all major topics, including those excluded by EoDB, such as employing labor.
Source: World Bank
Previous Year Question
Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’?
[UPSC Civil Service Exam – 2019 Prelims]
(a) Maintenance of law and order
(b) Paying taxes
(c) Registering property
(d) Dealing with construction permits
Answer: (a)
