World Bank firm on PH’s Doing Business ranking
THE World Bank is firm on the accuracy of its 2019 Easte of Doing Business (EoDB) report after the Finance and Trade departments demanded it to correct the Philippines’ current ranking.
In a statement on Thursday, the Washington, D.C.-based multilateral institution said its Doing Business team had verified the accuracy of the data it collected in the country.
“The data used for the report are received directly from the credit reporting service providers and published as such,” it added.
It also said the Bankers Association of the Philippines (BAP) Credit Bureau has been included in the analysis of Doing Business in the Philippines for the past few years.
“While we are aware of the presence of other credit reporting service providers in the country, the BAP bureau fits with the parameters of the Doing Business methodology,” the World Bank said.
The statement came a week after the departments of Finance (DoF) and Trade and Industry (DTI) demanded the World Bank to revise the Philippines’ ranking, which dropped from 113th place to 124th out of 190 economies.
The departments noted that the report was “grossly inaccurate” and understated the findings in the getting-credit indicator, which offset increases in other EoDB scores the Philippines received.
In the report, the Philippines got an EoDB score of 57.68, with 100 as the highest. It ranked 29th in getting electricity, 63rd in resolving insurgency, 94th in dealing with construction permits, 94th in paying taxes, 104th in trading across borders, 116th in registering property, 132nd in protecting minority investors, 166th place in starting a business, and 184th in getting credit.
“This correction should be done soon, as the report could unduly compromise the Philippines’ standing among the investment community and negatively impact the country’s development, considering that this document is widely used as a reference by investors and survey organizations,” the DoF and DTI had said.
But the World Bank pointed out that its report followed a methodology that is relevant, appropriate and allows for global comparability.
It said the getting credit indicator covers two aspects of access to finance—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending.
The credit reporting sub-indicator also measures the coverage, scope and accessibility of credit information available through credit reporting service providers, such as credit bureaus or credit registries.
Going forward, the World Bank said the Doing Business team would continue to monitor the country’s credit information system and evaluate the status of credit reporting service providers based on a rigorous application of the methodology.
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