Easy does it
Modi is right to focus on doing business now. However, his long-term focus should be on improving how business is done
The World Bank’s Doing Business (DB) report provides an annual ranking of 189 countries on the ease of doing business. The DB report has its origin in a paper written by Andrew Shleifer et al in 2002 called The Regulation of Entry. Rankings began in 2006. The ranking is based on a composite score that is an equally weighted average of 10 parameters. These are quantitative measures of regulations for starting a business, dealing with construction permits, employing workers, registering property, getting credit, minority investor protection, paying taxes, trading across borders, enforcing contracts, getting an electricity connection and closing a business. Scores are obtained by doing expert (lawyers, chartered accountants) interviews in each of the countries. In the World Bank’s own words, “for country authorities, it sheds a bright, sometimes unflattering, light on regulatory aspects of their business climate. For business interests, it has helped to catalyse debates and dialogue about reform."