UPSC Prelims 2019 Q77: Indian Economy – International Institutions & Reports
- (a) Maintenance of law and order
- (b) Paying taxes
- (c) Registering property
- (d) Dealing with construction permits
Answer: (a) Maintenance of law and order
Explanation
Ease of Doing Business (EoDB) Index - Sub-indices
| Option | EoDB Sub-index? |
|---|---|
| (a) Maintenance of law and order | NO - Not an EoDB sub-index. Governance/rule of law tracked by other indices (WGI). |
| (b) Paying taxes | YES - EoDB sub-index tracking tax payment burden. |
| (c) Registering property | YES - EoDB sub-index. |
| (d) Dealing with construction permits | YES - 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
- (a) CORRECT. 'Maintenance of law and order' is NOT an EoDB sub-index. Law and order is tracked by other governance indices, not EoDB.
- (b) Incorrect. 'Paying taxes' IS an EoDB sub-index.
- (c) Incorrect. 'Registering property' IS an EoDB sub-index.
- (d) Incorrect. 'Dealing with construction permits' IS an EoDB sub-index.
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
- Confusing EoDB (business regulation) with Governance Indicators (WGI - rule of law, corruption).
- Assuming law and order is business-related enough to be in EoDB - it is a governance parameter, not a business regulation parameter.
- Not knowing EoDB rankings were DISCONTINUED by World Bank in 2021 following data manipulation controversies.
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
- World Bank - Doing Business Report methodology (pre-2021)
- DPIIT - India's EoDB rankings and business reforms