competition success review

competition success review 

competition success review Published this article page no  129 WORLD BANK DISCONTINUE EASE OF DOING BUSINESS (EODB) Why in News? The World Bank Group has announced discontinuation of its Doing Business rankings on country business climates. About Ease of Doing Business Rankings Launched in 2002 Doing Business project provided objective measures of business regulations and their enforcement across 191 economies and selected cities at the subnational and regional level. o It looks at domestic small and mediumsize companies and measures the regulations applying to them through life cycle of a company. In EoDB index from World Bank higher rankings (lower numerical value) indicate simpler regulations for businesses and stronger protections of property rights. India moved to 63rd position (from 142nd in 2014) on Ease of Doing Business Ranking 2020. Issues with Ease of Doing Business rankings Decision to discontinue came after a review of data irregularities found in 2018 and 2020 reports. o Irregularities had affected four countries China Saudi Arabia UAE and Azerbaijan. Libertarian bias as it tends to reduce the complexity of economic activity to a few quantifiable metrics with a libertarian bias creating an incentive for countries to pursue economic policies that conform to World Banks vision of economic development. Gaming the system i.e. obsessing countries to move up in the rankings rather than pushing for longterm structural reform. One size fits all approach and based on the ideological priors of institutions and stakeholders is always likely to contain some fatal flaws. FREE TRADE AGREEMENTS (FTAS) To fasttrack free trade agreement (FTA) negotiations with several countries like the UK Australia the European Union and Canada India is keen to conclude an early harvest trade deal with some of these countries. How Early harvest scheme (EHS) is different from an FTA? Early harvest scheme is a precursor to an FTA between two trading partners. This is to help the two trading countries identify certain products for tariff liberalisation pending the conclusion of FTA negotiation. It is primarily a confidence building measure. A good example of an EHS is the one between India and Thailand which was signed in October 2003 wherein several products were identified to be reduced to zero in a phased manner competition success review buy.

competition success review