For years the World Bank published the most important country ranking in the world, the “Doing Business” report.

Year after year, countries are listed according to their economic friendliness: How quickly do business start-ups take, how long does it take to be connected to the power grid, how quickly does customs work, what is the legal security, how high are the taxes?

These questions describe the catalog of criteria.

The report was taken very carefully, especially in emerging markets.

It was considered a measure of global reputation and was also used as ammunition in election campaigns.

Winand von Petersdorff-Campen

Business correspondent in Washington.

  • Follow I follow

It has been clear since August last year that there were irregularities in at least the ranking of four countries: China and Saudi Arabia and the United Arab Emirates were raised, while Azerbaijan was downgraded.

An internal investigation report has been available since Thursday, according to which the irregularities can be traced back to manipulations in which the top management level of the World Bank was heavily involved: The now retired World Bank President Jim Yong Kim, the former director of the World Development Report, Simeon Djankow, and finally Kristalina Georgiewa who, as CEO of the development bank, managed day-to-day operations.

Her work at that time is particularly revealing because she has meanwhile become head of the much more powerful International Monetary Fund.

Georgieva rejects allegations

In an initial statement, Georgieva stated that she fundamentally contradicts the findings and interpretations of the report with regard to her role in the preparation of the “Doing Business” report.

You have already informed the Board of Directors of the Monetary Fund.

The World Bank has meanwhile decided to completely suspend the report after it had previously been put on hold.

The allegations are serious: after the irregularities in the rankings became public, the ethics committee of the World Bank commissioned the law firm WilmerHale to answer the following questions: How did the manipulation come about, who commissioned or carried out it and who knew about it?

And: To what extent has the organizational culture favored the trickery?

The 16-page report by the lawyers, which the World Bank has now published, traces the following sequence of events: In 2017, a “Doing Business” report was published that ranked China 78th. Top Chinese officials complained to Kim that the ranking did not reflect the country's reform progress. In his own testimony to the lawyers, Kim told the Chinese that the method of determining the ranking might need to be revised, but they should do their own thing to improve their performance. The frequency of Chinese indications that they wanted to find themselves appropriately in the ranking increased afterwards. Kim's staff contacted the authors of the “Doing Business” report to inquire about China's ranking.

When it became clear that China would even slip to 85th place in 2018, Kim's team initiated several crisis talks with the aim of changing the methodology in favor of China so that it does better. Including Hong Kong and Macau was discussed. At some point, the report said, Georgieva became directly involved in efforts to improve China's ranking. She rejected the proposal to include Hong Kong as politically impossible, but was able to warm to an alternative method of upgrading China. According to the report, Georgieva brought in Simeon Djankow, who had invented the "Doing Business" report. It was clear to those involved that the new goal was to change data points in favor of China. The report's unnamed chief author finally said he could live with a solution,which upgraded China by seven ranks to its old 78th place. Georgieva thanked him and after his testimony said he had made a contribution to multilateralism. The lawyers state in a footnote that Djankow denies his involvement. The lawyers do not find this credible based on emails.