World Bank discontinues EoDB report due to data rigging scandal

Investors and campaigners expressed dismay after they found some irregularities in the Ease of Doing Business (EoDB) data. According to an internal audit, China's influence at the World Bank has led to data manipulation and ultimately a rigged ranking for China in past EoDB indices. The data manipulation is deemed favouring China.

An investigation by law firm WilmerHale found that Kristalina Georgieva, then chief executive of the World Bank who now heads the International Monetary Fund (IMF), heaped “undue pressure” on employees to boost China’s position in EoDB 2018. Jim Yong Kim, then president of the World Bank, also took part in the scheme, investigators found.

According to Bloomberg, investigators also found that the report’s drafters had looked for ways to “boost Saudi Arabia’s score”, perhaps because the World Bank officials also hoped for significant revenue from advising the Saudi government.

Georgieva, however, denied the accusation. “Let me put it very simply to you. Not true. Neither in this case, nor before or after, I have put pressure on staff to manipulate data,” Georgieva told IMF staff, according to a transcript of an official meeting. She also reiterated her public statement that she “fundamentally disagrees” with the findings in the report. 

Following the scandal, the World Bank decided to discontinue the publication of the EoDB report. 

The EoDB report is considered a valued tool for countries seeking to measure costs of doing business. Its indicators and methodology are designed to help improve the overall business climate, and it ranked countries by how welcoming they are to businesses. 

The report is important to companies and investors around the world, as it helps them decide where to invest their money; where to open manufacturing plants or sell products. Developing countries that want to attract more investment have sought to improve their ranking in the EoDB report.

Some countries would do so by creating substantial policy changes, including by making it easier for businesses to pay taxes, obtain loans, or enforce contracts. In Indonesia, the EoDB was one of the major factors in the creation of the controversial Omnibus Law on Job Creation.