The World Bank released this Thursday the Business Ready assessments for Mexico in its three pillars, replacing its Doing Business ranking.
Regarding the first pillar, Mexico ranked ninth in the Regulatory Framework, with 50 economies analyzed.
What does this pillar consist of? The rules and regulations that companies must follow when opening, operating, expanding, reorganizing or closing a business.
The indicators under this pillar distinguish between rules and regulations that promote clarity, fairness and sustainability of the business environment and those that unnecessarily inhibit business activity.
Assessments for Mexico
In the second pillar, Public Services, Mexico ranked nineteenth.
Public services are fundamental. These services include the facilities that governments provide. They are intended to support compliance with regulations. They also include the institutions and infrastructure necessary for business activities.
The indicators in this pillar focus on the business environment. In particular, they relate to the business life cycle. It is important to highlight aspects such as digitization and interoperability of government services. Finally, transparency is also a key factor.
Business Ready
In the third pillar, Operational Efficiency, Mexico achieved the thirtieth position.
Operational efficiency captures the ease of compliance with the regulatory framework and the effective use of public services directly relevant to businesses.
The World Bank said that next year, the project will include more than 100 economies, and by 2026 coverage will expand to about 180 economies.
With each iteration, the report’s design and methods will be refined to reflect lessons learned from implementation.
Why not wait for the methods to be refined before publishing the data? Because the world does not enjoy the luxury of time (development delayed is development denied) and because it speeds up the process of getting feedback from the intended beneficiaries of an evaluation, which is critical to getting the evaluation right.
In any case, in a dynamic global economy, accuracy will always be a moving target.
Doing Business
The data and methods used here are more rigorous and transparent than those of Doing Business. They consolidate the opinions of more than 2,500 business climate experts and survey responses from more than 29,000 companies.
The World Bank suspended the Doing Business ranking three years ago. This ranking was widely followed. However, an independent investigation changed everything. This investigation revealed that senior leaders at the bank put pressure on staff. The goal was to alter the data to boost China‘s ranking.