Doing Business and Country Reforms - An IEG Evaluation on the Development Effectiveness of the Use of Doing Business Indicators FY 2010-2020 - Report to the Board from the Committee on Development Effectiveness

Jul 19, 2026

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Committee notes present an IEG evaluation assessing how Doing Business indicators were used to support development effectiveness across FY 2010–2020. The review commends the evaluation’s rigor, highlights implications for designing future business-environment indicators, and stresses robust evidence to validate claims linking reforms to indicator results. Even after discontinuation of the flagship DB report, the committee urges a successor approach that combines de jure regulations with de facto implementation signals, uses complementary diagnostics, and applies safeguards for accuracy, validity, relevance, and country-tailored updates.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages1

Reading Time3 min

Doing Business and Country Reforms

IEG evaluation scope and purpose

Committee assessment and key implications

Guidance for future indicator design and evidence safeguards

Engagement and next steps for the Board and countries

Public Disclosure Authorized Public Disclosure Authorized Doing Business and Country Reforms An IEG Evaluation on the Development Effectiveness of the Use of Doing Business Indicators FY 2010-2020 Report to the Board from the Committee on Development Effectiveness ∗ Meeting of December 8, 2021 The Committee on Development Effectiveness met to consider the IEG’s report Doing Business and Country Reforms-An IEG Evaluation on the Development Effectiveness of the Use of Doing Business Indicators FY 2010-2020 (CODE2021-0067), World Bank Management Response (CODE2021-0068) and IFC Management Response (CODE2021-0069) . The Committee commended IEG for the comprehensive evaluation and appreciated IEG’s commitment to review and correct any facts or misrepresentations in the draft before its public disclosure. IEG noted the implications of its findings and recommendations for new business environment indicators, including connecting the design of new indicators and diagnostics strongly to research and country experience, using new indicators alongside complementary analysis to help inform well-designed and comprehensive reforms focused on binding constraints, rather than as ends of themselves; and assuring that claims made linking reforms captured by the indicators are validated by robust evidence.” Members noted that while the Doing Business (DB) flagship report has been discontinued, enabling a business environment remains a relevant task for the WB and IFC and that important lessons could be drawn by the rich and high-quality analysis to shape the strategic focus and design of the new approach, including connecting policy advice more strongly to research and data and deploying appropriate safeguards to assure accuracy and validity of indicators, focusing on de jure regulations along with their de facto implementation. Therefore, they encouraged Management to deploy appropriate mechanisms and safeguards to assure the accuracy and validity of global indicator-based reports using robust and transparent standards of evidence and that indicators should be considered and interpreted along with complementary diagnostics and analytics, updated periodically and tailored to country contexts. Members stressed that the evaluation’s findings and lessons on the creation and use of indicators were still timely and should thus be used to shape the strategic focus and design of the World Bank’s new approach to global indicators on business reform and investment climate. Given that the Doing Business Report (DBR) was one of the WBG’s most widely read publications and most utilized set of indicators on business regulations to motivate clients to engage in business environment reforms, members and non-members reiterated that the process of designing a successor to the DBR should be a comprehensive one and stressed the need for Management to consult the Board and client countries. They highlighted that the original objectives ofthe DBR remain relevant and encouraged Management to incorporate in the new approach the positive features found in the evaluation as well as IEG’s conclusions as well as the conclusions of other recent evaluations on the DBR, in particular on validity, relevance, and the need to focus more on binding constraints, sustainability, and issues such as working conditions. Members acknowledged that the engagement with the Board on the new approach would begin with the informal meeting scheduled on January 18, 2022. Members agreed that movements in indicators should be interpreted carefully and encouraged Management to ensure that country strategies, policies and development agendas reported reform implementation accurately. They suggested that complementary sources of data, as well as analytical guidance, should be used to validate the relevance of the reform topics. Acknowledging that the DB indicators had had strong weight on de jure information (according to statutory laws and regulations), Management reassured me

FAQs

What period and topic does the evaluation cover?

It evaluates the development effectiveness of using Doing Business indicators for FY 2010–2020 and the related design and application of those indicators in shaping business environment reforms.

Why does the committee emphasize evidence and validation?

Because claims that reforms captured by indicators reflect real outcomes must be validated with robust, transparent evidence to ensure accuracy and validity of indicator-based reporting.

What should the successor approach to business environment indicators focus on?

It should balance de jure regulations with de facto implementation, use complementary diagnostics and analytics alongside indicators, and prioritize binding constraints and country experience when designing reforms.

Jul 19, 2026

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