World Bank’s report canceled

Investigators found staff members were pressured to alter data.

WASHINGTON — The World Bank is canceling a prominent report on business conditions around the world after investigators found staff members were pressured by the bank’s leaders to alter data about China and some other governments.

The bank said Thursday it would discontinue “Doing Business” following an investigation prompted by internal reports of “data irregularities” in its 2018 and 2020 editions and possible “ethical matters” involving bank staff.

Staff members changed data on China to improve its ranking under pressure from the office of then-world Bank President Jim Yong Kim and from then-chief Executive Kristalina Georgieva and one of her advisers, an investigation conducted by Washington law firm Wilmerhale for the bank concluded.

Georgieva, now director of the International Monetary Fund, said she disagreed with the findings.

The World Bank, headquartered in Washington, is one of the world’s biggest sources of development funding. “Doing Business,” which looks at taxes, red tape, regulation and other business conditions, is cited by some governments in trying to attract investment.

It ranks countries on factors such as how straightforward or burdensome it is to register a business, legally enforce a contract, resolve a bankruptcy, get an electrical connection or obtain construction permits.

Timothy Ash, senior emerging market sovereign strategy strategist at fixed income manager Bluebay Asset Management, said he “cannot overestimate” the importance of the Doing Business report for banks and businesses trying to assess risk in a particular country.