World Bank Abandons 'Doing Business' Report After Probe Finds IMF Boss Cheated China's Ranking Higher

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by Tyler Durden
Thursday, Sep 16, 2021 - 11:24 AM

The World Bank Group today released the findings of its probe into data irregularities discovered in 2018 and 2020 reports; and along with those findings, it confirmed that it will be discontinuing 'Doing Business' reports.

Specifically, Bloomberg reports that International Monetary Fund Managing Director Kristalina Georgieva was cited by the World Bank in the probe....

“The changes to China’s data in Doing Business 2018 appear to be the product of two distinct types of pressure applied by bank leadership on the Doing Business team,” the World Bank said in a report Thursday.

The bank cited “pressure applied by CEO Georgieva and her advisor, Mr. Djankov, to make specific changes to China’s data points in an effort to increase its ranking at precisely the same time the country was expected to play a key role in the bank’s capital increase campaign.”

Georgieva served as chief executive officer of the World Bank prior to moving to head the IMF.

As is usual, Georgieva issued a statement of denial...

I disagree fundamentally with the findings and interpretations of the Investigation of Data Irregularities as it relates to my role in the World Bank’s Doing Business report of 2018,” Georgieva said in a statement.

“I have already had an initial briefing with the IMF’s Executive Board on this matter.”

How does she keep her job after this?

Read World Bank's full statement here:

Trust in the research of the World Bank Group is vital. World Bank Group research informs the actions of policymakers, helps countries make better-informed decisions, and allows stakeholders to measure economic and social improvements more accurately. Such research has also been a valuable tool for the private sector, civil society, academia, journalists, and others, broadening understanding of global issues.

After data irregularities on Doing Business 2018 and 2020 were reported internally in June 2020, World Bank management paused the next Doing Business report and initiated a series of reviews and audits of the report and its methodology. In addition, because the internal reports raised ethical matters, including the conduct of former Board officials as well as current and/or former Bank staff, management reported the allegations to the Bank’s appropriate internal accountability mechanisms.

After reviewing all the information available to date on Doing Business, including the findings of past reviews, audits, and the report the Bank released today on behalf of the Board of Executive Directors, World Bank Group management has taken the decision to discontinue the Doing Business report. The World Bank Group remains firmly committed to advancing the role of the private sector in development and providing support to governments to design the regulatory environment that supports this. Going forward, we will be working on a new approach to assessing the business and investment climate. We are deeply grateful to the efforts of the many staff members who have worked diligently to advance the business climate agenda, and we look forward to harnessing their energies and abilities in new ways.”

Which leave us with just one question... is there any institution left that is not corrupt? (ok, and one more question: is every elite in China's pocket?)

Read the full Ethics Probe findings here.