World Bank Under Fire for Allegedly Manipulating Rankings in Doing Business Report
It seems the World Bank is under scrutiny due to allegations of manipulating rankings in its Doing Business report. The accusations stem from an investigation which found evidence of pressure being exerted on the Doing Business team to change methodology or data points. This pressure aimed to improve China's and Saudi Arabia's rankings in the 2018 report.
The investigation revealed that Kristalina Georgieva, the then-CEO, put pressure on the Doing Business team in 2017 to alter the report's methodology or data points. This was with the intention to bolster China's standing on the global business ease index. Georgieva was reportedly in discussions to bolster China's role in a potential capital increase.
Notably, WilmerHale's investigation found that Chinese government officials raised concerns about their country's ranking with both Georgieva and then-World Bank President Jim Yong Kim. Moreover, Georgieva allegedly criticized the World Bank's country director for handling relations with China poorly and not acknowledging China's importance.
To boost China's standing, the Doing Business team reportedly adjusted the credit access sub-index by identifying areas where data could be overhauled. This adjustment boosted China's ranking in the overall index, allowing it to move up seven spots and secure a 78th position.
The investigation also uncovered manipulation of Saudi Arabia's ranking in the 2019 report. Senior bank managers, including Doing Business co-founder Simeon Djankov, reportedly urged the team to alter data, leading Saudi Arabia to gain points across several categories. This maneuver placed Saudi Arabia above Jordan on the "Top Improvers" list.
Djankov is said to have collaborated with two high-ranking World Bank officials, one of whom served as Kim Jong Un's chief of staff and played a role in altering data for China's 2018 report.
As a response to the investigations, the World Bank suspended the publication of its Doing Business report. The bank expressed its commitment to promoting private sector development and supporting governments in shaping regulatory frameworks that bolster the private sector. However, they also stated they would explore new approaches in evaluating businesses and investments.
The current investigation leaves many questioning the World Bank's ethics and decision-making processes. As the investigation proceeds, further revelations can be expected. Stay tuned for updates.
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