JAGTIV · Previous Year Questions

UPSC

ECONOMY · 2019

Previous Year Question

Which one of the following is not a sub-index of the World Bank’s Ease of Doing Business Index?

A.

Maintenance of law and order

B.

Paying taxes

C.

Registering property

D.

Dealing with construction permits

Correct Answer: A

Detailed Solution

The World Bank’s Ease of Doing Business Index assessed business regulations and their practical implementation in an economy.

Under the Doing Business 2020 methodology, the aggregate score included the following 10 topics:

  1. Starting a business

  2. Dealing with construction permits

  3. Getting electricity

  4. Registering property

  5. Getting credit

  6. Protecting minority investors

  7. Paying taxes

  8. Trading across borders

  9. Enforcing contracts

  10. Resolving insolvency

Option (a) is the correct answer. General maintenance of law and order was not a separate sub-index of the Ease of Doing Business Index. Broader governance matters such as police administration, crime control and public order were not included under this title in the Doing Business score.

Option (b) was part of the index. “Paying Taxes” examined matters such as the number of tax payments, compliance time, total tax and contribution rate and post-filing procedures.

Option (c) was part of the index. “Registering Property” assessed the procedures, time and cost required to transfer property and the quality of the land-administration system.

Option (d) was part of the index. “Dealing with Construction Permits” assessed the procedures, time and cost associated with permits for standard construction and the quality of building-control mechanisms.

Therefore, only maintenance of law and order was not a sub-index of the Ease of Doing Business Index.

Current position (2026)

Following data irregularities and an internal review, the World Bank discontinued the Doing Business report and Ease of Doing Business ranking on 16 September 2021. Therefore, no new Ease of Doing Business country ranking is published in 2026.

The World Bank has replaced it with the Business Ready (B-READY) framework. The B-READY 2026 methodology covers 10 topics:

  • Business Entry

  • Business Location

  • Utility Services

  • Labor

  • Financial Services

  • International Trade

  • Taxation

  • Dispute Resolution

  • Market Competition

  • Business Insolvency

These topics are examined through three broad pillars—Regulatory Framework, Public Services and Operational Efficiency. The old Ease of Doing Business Index and the current B-READY framework should therefore not be treated as the same ranking.

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