UPSC IAS - 2019

Which one of the following is not a sub-index of the World Bank’s ‘Ease of Doing Business Index’?

Year Asked: 2019

A
Maintenance of law and order
B
Paying taxes
C
Registering property
D
Dealing with construction permits

Correct Answer

A. Maintenance of law and order

Detailed Explanation

The correct answer is A. Maintenance of law and order is not one of the Ease of Doing Business index's sub-indicators. The World Bank published the index annually from 2004 until it discontinued it in September 2021 after data irregularities came to light.

The index ranks economies on ten regulatory areas that affect a business over its life cycle: 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. Each area is measured through procedures, time and cost, so it captures regulatory efficiency rather than governance quality as a whole.

Options B, C and D are all among these ten areas. Paying taxes, registering property and dealing with construction permits are each a separate indicator. Maintenance of law and order is a broad governance concept the index does not measure directly, although the enforcing contracts indicator touches the judicial side.

Mains connection: the index shaped India's reform agenda, including the Insolvency and Bankruptcy Code 2016, single-window clearances and state-level business reform action plans. It also invited debate on whether such rankings drive genuine regulatory change or merely chase scores.

Trap: aspirants pick law and order because it sounds like a governance parameter. Check each option against the list of ten indicators rather than judging by feel.

This question appeared in UPSC Prelims 2019 GS Paper-1.

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