World Bank commissioned an independent investigation which revealed that its top tier officials pressurized staffers to inflate China’s ranking. Data was altered in order to improve the Doing Business rankings of China and Saudi Arabia in 2018 and 2020.
World Bank appointed WilmerHale law firm to conduct the investigation. They found out that the then CEO Kristalina Georgieva pressured “Doing Business” team in 2017 to change their methodology such that it inflates China’s rating in 2018 edition. World Bank has decided to discontinue its Doing Business Ranking publication after the incidence came into light.
The probe conducted by WilmerHale revealed that Chinese government officials expressed concerns over their ranking in the said report. They contacted Georgieva and Jim Yong Kim, the then President of World Bank, in order to get their ranking improved.
“After reviewing all the information available on Doing Business, including the findings of past reviews, findings and audit reports that the Bank released on behalf of the Board of Executive Directors, World Bank Group management has taken the decision to discontinue Doing Business Report,” World Bank posted this statement on their website.
What does this mean to India:
This latest probe entails that foreign countries might want to shift their focus towards India. “India remains the preferred investment destination for the world and a reliable, trustworthy destination. Unlike China, which is slipping in attractiveness. Fraud by China will prompt multilateral initiatives such as Supply Chain Resilience Initiative to move manufacturing to India,” a commerce & industry ministry official said.
Image Credits: Wikimedia Commons
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