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India pursuits for improving its rank in World Bank’s Ease of Doing Business rankings as part of an aggressive bid to improve India’s image as a business-friendly economy in the eyes of global investors.
While the intent behind this image make-over is laudable, it is worth asking what influence such rankings have on investment decisions and economic performance of major economies around the world. In principle, the rankings ought to function as a guide for investors who have funds to invest and need to decide where to put their money. But the reality is quite different.
While the debate is far from settled, the striking absence of any correlation between economic performance and score on the World Bank’s index should make us pause, and consider whether it is better to focus on structural reforms or long-term investments in human and physical infrastructure. Such improvements may help us improve our rankings as well but that should at best be a byproduct rather than a target of public policy.
By: Deepak Thakur ProfileResourcesReport error
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