World Bank (WB) launches the first edition of its Business-Ready Index | Current Affairs | Vision IAS
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World Bank (WB) launches the first edition of its Business-Ready Index

Posted 05 Oct 2024

2 min read

It makes an assessment of 50 economies (excluding India) and aims to cover 180 economies by 2026. 

  • It is a successor to Ease of Doing Business (EoDB) rankings of WB. 
    • EoDB (flagship report of WB) ranked countries based on ease of opening and operating a company.
    • It was of discontinued in 2021 owing to ethical irregularities. 

About Business-Ready (B-Ready) Index

  • It provides a quantitative assessment of business environment (by focusing on three pillars) for private sector development, published annually and covering most economies worldwide.
  • It contributes to meeting the World Bank Group’s twin goals of eliminating poverty and boosting shared prosperity.
The image outlines the three pillars of the B-Ready Index: Regulatory Framework, focusing on rules for business operations; Public Services, supporting compliance and infrastructure; and Operational Efficiency, ensuring ease of compliance and service use.

Features of B-Ready vis-a-vis EoDB

  • Comprehensive:  Evaluates business environment from perspective of an individual firm and from point of private sector development as a whole. 
    • EoDB evaluates same for individual small/medium firms. 
  • Qualitative: Examines regulatory burden on firms and quality of regulation.  
    • EoBD examined only burden of regulation on firms. 
  • Balanced: Collects both de jure (statutory laws) and de facto (practical) information on firms. 
    • In EoDB, certain indicators covered only de-facto regulations while certain covered only de jure.
  • Diverse: Covers all major topics unlike EoDB that excluded some important topics like employing labor. 
  • Tags :
  • World Bank
  • B-READY
  • Ease of Doing Business (EoDB)
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