World Bank taking steps to boost research integrity after data rigging scandal

David Lawder and Andrea Shalal

WASHINGTON – The

World


Bank

is

taking


steps

to rebuild the credibility of its

research


after

a

data



rigging


scandal

forced it to cancel its flagship “Doing Business” report on country business climates,

bank

President David Malpass said on Monday.

Speaking to reporters ahead of the

World


Bank

and International Monetary Fund annual meetings this week, Mr. Malpass said strong

research

products remain a high priority for the

bank

and it would work on new ways to help countries improve their business climates.

Asked how the

bank

would rebuild its credibility

after

the

scandal

, Malpass the

bank

had taken “several

steps

” to improve

research


integrity

, including elevating chief economist Carmen Reinhart to a role in senior management.

Mr. Malpass declined to answer questions on

the IMF executive board’s review of a

World


Bank

external investigation report

alleging that IMF Managing Director Kristalina Georgieva pressured

World


Bank

staff to alter

data

to favor China in the Doing Business report in 2017, when she was the

bank

‘s CEO.

The IMF board was to deliberate again on Monday over whether she should continue as the IMF’s leader.

The same investigation report by law firm WilmerHale found that

World


Bank

staff altered

data

to

boost

Saudi Arabia’s “Doing Business” ranking in October 2019 – six months

after

Mr. Malpass took over the

bank

‘s top job – but it did not find evidence of involvement by the

bank

‘s Office of the President or board members.

Mr. Malpass did not detail other

steps

that the

bank

was

taking

to shore up its

research

function, but said that Reinhart would be a senior president and among the top 10 executives of the

World


Bank

Group that guide policy and decision-making at the Multilateral Development lender.

“I want really to reinforce the importance of top-quality

research

and the

bank

‘s ability to produce that

research

in high volumes,” Mr. Malpass said.

“Doing Business,” which ranked country business climates on measurements such as ease of navigating regulations, financing availability and legal frameworks, was the

bank

‘s most popular publication, current and former

bank

officials say.


Launched in 2003, “Doing Business” was widely used by private fund managers to assess country risks

and guide investment decisions, but countries routinely sought to persuade

research

ers why they deserved a higher ranking.

Mr. Malpass said that helping countries improve their business climates is “vital to development” and a priority for the

World


Bank

, so it will work on new ways to help countries expand their private sectors and foster good business practices. However, he did not provide any details on what those plans may include. –

Reuters