Which one of the following is not a sub-index of the World Bank\'s \'Ease of Doing Business Index\'? (UPSC Prelims 2019)

Question

The correct answer is [A] Maintenance of law and order. The World Bank’s Ease of Doing Business (EoDB) Index originally used 10 specific sub-indices to measure the regulation of business activities, and \"Maintenance of law and order\" was never one of them.

Sub-indices included (Options B, C, and D): The index traditionally measured areas such as Starting a Business, Dealing with Construction Permits (Option D), Getting Electricity, Registering Property (Option C), Getting Credit, Protecting Minority Investors, Paying Taxes (Option B), Trading across Borders, Enforcing Contracts, and Resolving Insolvency.
Maintenance of law and order (Option A - Correct): While essential for a functional economy, this is a broad governance and internal security issue. The EoDB index focused strictly on specific regulatory hurdles and the \"time and cost\" involved in administrative processes rather than general policing or crime rates.
Current Status: It is important to note that the World Bank discontinued the \"Ease of Doing Business\" report in 2021 following data irregularity controversies. It has since been replaced by a new flagship project called Business Ready (B-READY).

The B-READY index aims for a more balanced approach, measuring not just the regulatory burden but also the quality of public services and the actual operational environment for firms.

GKToday Admin · Accepted Answer

Maintenance of law and order The correct answer is [A] Maintenance of law and order. The World Bank’s Ease of Doing Business (EoDB) Index originally used 10 specific sub-indices to measure the regulation of business activities, and \"Maintenance of law and order\" was never one of them.

Sub-indices included (Options B, C, and D): The index traditionally measured areas such as Starting a Business, Dealing with Construction Permits (Option D), Getting Electricity, Registering Property (Option C), Getting Credit, Protecting Minority Investors, Paying Taxes (Option B), Trading across Borders, Enforcing Contracts, and Resolving Insolvency.
Maintenance of law and order (Option A - Correct): While essential for a functional economy, this is a broad governance and internal security issue. The EoDB index focused strictly on specific regulatory hurdles and the \"time and cost\" involved in administrative processes rather than general policing or crime rates.
Current Status: It is important to note that the World Bank discontinued the \"Ease of Doing Business\" report in 2021 following data irregularity controversies. It has since been replaced by a new flagship project called Business Ready (B-READY).

The B-READY index aims for a more balanced approach, measuring not just the regulatory burden but also the quality of public services and the actual operational environment for firms.

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