How Doing Business Jeopardizes Institutional Reform
22 Pages Posted: 11 Jun 2008 Last revised: 22 Jul 2018
Date Written: May 1, 2008
Simplifying business formalization and eliminating outdated formalities is often a good way of improving the institutional environment for firms.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.
Keywords: Starting business, doing business, informal economy, company registers
JEL Classification: K22, K23, L59, O17
Suggested Citation: Suggested Citation