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