In the build up to the World Bank’s release of its tenth annual Doing Business report, aid agency CAFOD is calling on the organisation to remember its only remit is helping poor countries reduce poverty. Doing Business is a World Bank tool ranking the business-friendliness of different governments according to a checklist of primarily deregulatory reforms. Regardless of the realities facing poor countries, Doing Business follows a regime of one size fits all, which can undermine progress on development as governments are encouraged to implement policies which can favour business but not their own population and economy.

CAFOD’s economist Christina Chang said: “The rankings skew vital resources away from small and micro-enterprises which account for the majority of jobs and are critical in reducing poverty.

“It is not just that some reforms promoted by the Doing Business rankings might be irrelevant for the majority of businesses in developing countries – in some instances they are harmful to poor men and women.”

In Zambia, an inter-ministerial committee has been set up to work exclusively on moving Zambia up the Doing Business rankings. Despite the majority of jobs in poorer countries being in small businesses, Zambia’s small business programme receives under £1 million a year in funding. When Zambia has succeeded in hitting 6th place globally on the Bank’s ranking for getting credit, why would it feel the need to help the 98% of small business owners who report lack of credit as their biggest problem?

Under pressure from civil society groups and disgruntled governments, new World bank President Jim Yong Kim has ordered a timely review of the Doing Business project on the eve of its tenth anniversary.

In a new briefing paper, CAFOD highlights the anti-development priorities of the Doing Business rankings and calls on the review to be an independent and comprehensive overhaul that puts poor men and women first.

The briefing can be found here: 

 http://www.cafod.org.uk/Policy-and-Research/Economic-justice (first on the list) or direct link:http://www.cafod.org.uk/content/download/6779/56946/file/DOING%20BUSINESS%20REVIEW%20BRIEF%20OCT2012.pdf