The World Bank has suspended the publication of a key annual report that countries use to gauge their ease in attracting investors, pending a probe on data irregularities.
The Doing Business report, started 17 years ago, is one of the most quoted by government officials and examines the economies of 190 countries based on how easy it is to do business there.
In a statement, the World Bank said it would review data published in the last five years after finding irregularities in the 2018 and 2020 reports that were inconsistent with the doing business methodology.
“We are conducting a systematic review and assessment of data changes that occurred subsequent to the institutional data review process for the last five Doing Business reports,” said the global lender.
SEE ALSO: I don’t know of cartels in MOH: PS Susan Mochache
“We have asked the World Bank Group’s independent internal audit function to perform an audit of the processes for data collection and review for Doing Business and the controls to safeguard data integrity.”
The bank said the indicators and methodology had been designed with no particular country in mind but rather help improve the overall business climate.
It said it had notified authorities of countries most affected by the data irregularities and, based on the findings, would correct the data.
“We will act based on the findings and will retrospectively correct the data of countries that were most affected by the irregularities,” it said.
- READ MORE
- Governors reject CS Peter Munya’s new regulations on tea sector
- Kenya Airways flies deeper into crisis with Sh14.4b loss
- Tax credit lifts Bamburi profit
- Jubilee Holdings’ profit flat at Sh1.8b
For the reports with irregularities, Kenya moved 12 places up in the 2018 report to position 80 globally compared to 92 in the 2017 survey.
SEE ALSO: Nigeria’s Sh162 billion World Bank loan delayed over reforms
In the 2020 report, Kenya rose five places to stand at position 56.
Kenya has moved 80 places up in the reports since 2014 with their release being welcomed with fanfare by senior government officials.
Last year, Deputy President William Ruto was present during the release of the 2020 Ease of Doing Business Index.
President Uhuru Kenyatta never fails to mention Kenya’s ranking in his speeches as he lures investors into the country. The report is also a popular talking point by officials from the Ministry of Trade.
Over the years, however, the rankings have been heavily scrutinised.
SEE ALSO: G7 to consider extending debt freeze for low-income countries
In 2018, Paul Romer quit as the World Bank’s chief economist after questioning changes to Chile’s rank in the Doing Business report.
He said then that its methodology was politicised and manifested in Chile’s rankings, which mirrored its politics.
