Inquiry puts ex-World Bank officials under scrutiny on China

Kristalina Georgieva

Former officials of the World Bank are under pressure after an investigation found that they pressured staff members of the bank to alter data on global business conditions in order to favor China and some other governments.
The World Bank said it would discontinue its “Doing Business” report in the wake of the investigation, which was conducted by the law firm WilmerHale after internal questions involving “data irregularities” in the 2018 and 2020 editions of the report and possible “ethical matters” involving bank staff.
WilmerHale’s report concluded that Kristalina Georgieva, then the chief executive of the World Bank, and the office of Jim Yong Kim, then the bank’s president, pressured staff members to change data on China to support Beijing’s ranking in the “Doing Business” report. These rankings are important to China and other developing nations because they can affect their ability to attract investment from overseas.
In a statement, Georgieva, who now leads the International Monetary Fund, disputed the report’s conclusion that she was involved in pressuring World Bank staff members to appease China.
“I disagree fundamentally with the findings and interpretations of the Investigation of Data Irregularities as it relates to my role in the World Bank’s Doing Business report of 2018,” her statement said.
The World Bank, based in Washington, is among the world’s largest sources of development funding. “Doing Business,” which evaluates a country’s tax burdens, bureaucratic obstacles, regulatory system and other business conditions, is used by some governments to try to attract investment. The report ranks countries on such factors as how straightforward or burdensome it is to register a business, legally enforce a contract, resolve a bankruptcy, obtain an electrical connection or acquire construction permits.
China has tried over the past two decades to increase its influence over international institutions, including the IMF and the World Health Organization, and their policies.
China is the bank’s third-largest shareholder after the United States and Japan.
Changes made by analysts who prepared the 2018 report raised China’s ranking by seven places to No. 78, according to the report. Other changes affected rankings of Azerbaijan, the United Arab Emirates and Saudi Arabia.
The Chinese foreign ministry expressed hope the World Bank would “conduct a comprehensive investigation” to “better maintain the professionalism and credibility” of “Doing Business.”
“The Chinese government attaches great importance to optimizing the business environment,” said a ministry spokesperson, Zhao Lijian. MDT/AP