World Bank survey found that IMF president pushed staff to improve China’s ranking

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World Bank Update

Kristalina Georgieva, president of the International Monetary Fund, was accused by a World Bank investigation for trying to artificially increase China’s ranking in the bank’s influential annual Doing Business Report.

These allegations are related to her tenure as the company’s chief executive officer World Bank And supervise its efforts to raise new funds from stakeholders including China.

Georgieva stated that she fundamentally disagrees with the allegation, which is contained in a report commissioned by the bank by WilmerHale Law Firm.It was proposed internally on Wednesday Issued by the World Bank Board of Directors Thursday.

The bank also stated on Thursday that it has Cease publication Due to ethical issues regarding the conduct of current and former employees involved in its preparations, the Doing Business Report.

WilmerHale’s report found that in the 2018 edition of the “Doing Business Report”, China’s overall ranking was artificially maintained at 78 — the same as the previous year — this was due to changes in the later period that raised its ranking from 85. result.

According to the report, Georgieva She has led efforts to improve China’s rankings in her “concentration” campaign for the World Bank’s capital increase.

According to the report, during the preparation of the “Business Environment Report 2018”, senior Chinese government officials “expressed their concerns to the World Bank President Jin Yong and other senior bank executives many times”, that is, the country’s ranking Does not accurately reflect its economic reforms”.

WilmerHale said that a few days before the publication of the Doing Business Report 2018, he tried to improve China’s ranking from 85, for example, including Hong Kong’s data in its score. The report said that when these efforts failed to achieve the expected results, Georgieva “directly involved.”

The law firm’s report “Data Irregularity Investigation” stated that Georgieva instructed Simeon Djankov, one of the founders of the “Doing Business Report”, to direct the publication of the report, and Gianko He then “cooperated with the management of the Doing Business Report to determine that changes in China’s data may trigger the country’s score and improve its ranking.”

According to the report, the three business conditions indicators of entrepreneurship, legal rights protection and taxation have been revised, which has improved China’s score by nearly one percentage point and its ranking has risen by seven places to 78th.

In a statement issued by the International Monetary Fund, Georgieva said: “I fundamentally disagree with the results and interpretation of the survey data irregularities, because it is consistent with my report in the World Bank’s 2018 Doing Business Report. Is related to the role. I have been with the Executive Board of the International Monetary Fund on this issue.”

WilmerHale’s report also alleges violations in the preparation of the Doing Business 2020 report, which claimed that Saudi Arabia was artificially promoted to the top of its list of best improvers, ahead of Jordan.

Justin Sandefur of the Global Development Center think tank is a long-time critic of Doing Business. He said Wilmer Hale’s allegations are consistent with his own criticism of the report for being too subjective and methodological. .

“Even if there is no change on the ground, the ranking jumps like crazy,” he said. “When you have so many judgment requests, and the report is facing such a huge political pressure, you have the secret of manipulation.”

Sandefur is one of six scholars who have been commissioned to advise Carmen Reinhart, chief economist of the World Bank, on how to improve the business environment. He said he expects that the results submitted two weeks ago will be announced in the next few days.

The World Bank said on Thursday that it is committed to enhancing the role of the private sector in development and will work on “a new method of assessing the business and investment environment.”

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