How Doing Business Jeopardizes Institutional Reform
Universitat Pompeu Fabra
May 1, 2008
European Business Organization Law Review, Vol. 10, No. 4, pp. 555-574, 2009
Universitat Pompeu Fabra, Economics and Business Working Paper No. 1088
Simplifying business formalization and eliminating outdated formalities is often a good way of improving the institutional environment for firms. Unfortunately, the World Bank's Doing Business project is harming such policies by promoting a reform agenda that gives them priority even in countries lacking functional business registers, so that the reformed registers keep producing valueless information, but faster. Its methodology also promotes biased measurements that impede proper consideration of the essential tradeoffs in the design of formalization institutions. If Doing Business is to stop jeopardizing its true objectives and contribute positively to scientific progress, institutional reform and economic development, then its aims, governance and methodology need to change.
Number of Pages in PDF File: 22
Keywords: Starting business, doing business, informal economy, company registers
JEL Classification: K22, K23, L59, O17Accepted Paper Series
Date posted: June 11, 2008 ; Last revised: April 20, 2010
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