Which one of the following is not a sub-index of the World Bank’s “Ease of Doing Business Index”?
Detailed Explanation:
Answer: Option 1 — Maintenance of law and order
The World Bank's Ease of Doing Business Index (discontinued in 2021) measured regulatory efficiency through 10 specific sub-indices that quantified business regulations. Maintenance of law and order, while essential for economic activity, was not one of these measurable indicators. The index focused on specific procedural aspects like paying taxes, registering property, and dealing with construction permits—all of which were official sub-indices.
📝 Short Notes: Ease of Doing Business Index
- Nature: Annual ranking by World Bank measuring business regulation quality and enforcement across 190 economies (discontinued in 2021)
- 10 Sub-Indices: (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
- Methodology: Each indicator measured specific procedures, time, cost, and legal requirements businesses face
- India's Performance: India improved from 142nd rank (2014) to 63rd rank (2020) through reforms like GST, IBC, and digital initiatives
- Discontinuation: World Bank discontinued the index in 2021 following data irregularities and methodology concerns
Question 2 of 5 World Bank and its Initiatives
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