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UPSC Prelims 2019 Q77: Indian Economy – International Institutions & Reports

UPSC Prelims 2019, General Studies Paper I · Indian Economy

Which one of the following is not a sub - index of the World Bank’s ‘Ease of Doing Business Index’?
  1. (a) Maintenance of law and order
  2. (b) Paying taxes
  3. (c) Registering property
  4. (d) Dealing with construction permits

Answer: (a) Maintenance of law and order

Explanation

Ease of Doing Business (EoDB) Index - Sub-indices

OptionEoDB Sub-index?
(a) Maintenance of law and orderNO - Not an EoDB sub-index. Governance/rule of law tracked by other indices (WGI).
(b) Paying taxesYES - EoDB sub-index tracking tax payment burden.
(c) Registering propertyYES - EoDB sub-index.
(d) Dealing with construction permitsYES - EoDB sub-index.

Ten EoDB sub-indices (before discontinuation): Starting a business, Construction permits, Getting electricity, Registering property, Getting credit, Protecting minority investors, Paying taxes, Trading across borders, Enforcing contracts, Resolving insolvency.

Answer: (a) Maintenance of law and order.

Why each option is right or wrong

Key point

EoDB 10 sub-indices: Start business, Construction permits, Electricity, Register property, Get credit, Protect investors, Pay taxes, Cross-border trade, Enforce contracts, Resolve insolvency. Law and order NOT included.

Remember

'Maintenance of law and order' is NOT a sub-index of the World Bank's Ease of Doing Business Index. The 10 EoDB sub-indices are: Starting a business, Dealing with construction permits, Getting electricity, Registering property, Getting credit, Protecting minority investors, Paying taxes, Trading across borders, Enforcing contracts, and Resolving insolvency.

Common mistakes

Exam tip

World Bank indices to distinguish: EoDB (Doing Business, discontinued 2021 -> Business Ready coming). Human Capital Index. Logistics Performance Index. Worldwide Governance Indicators (rule of law, corruption). Global Findex (financial inclusion). Each has different focus.

Sources

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