Completely outrageous.
@WorldBank admits to @WSJ its economist manipulated methodology of Doing Business to make Chile fall, from 25th to 57th, during @mbachelet's two terms "probably for political reasons," thus influencing two elections. /1
latercera.com/noticia/banco-…
@WorldBank admits to @WSJ its economist manipulated methodology of Doing Business to make Chile fall, from 25th to 57th, during @mbachelet's two terms "probably for political reasons," thus influencing two elections. /1
latercera.com/noticia/banco-…
For context, Bachelet's policies (a gradual 4% rise in corp tax) barely dented Chile's status as an ultra-liberal market economy.
Chile's economy minister calls the manipulation "grossly immoral." @kennethbunker: a "sophisticated, unacceptable hacking" latercera.com/noticia/gobier… /2
Chile's economy minister calls the manipulation "grossly immoral." @kennethbunker: a "sophisticated, unacceptable hacking" latercera.com/noticia/gobier… /2
DB report & @WorldBank in general are massively influential in setting tone for local & international media, dis/encouraging investment. Their rankings can and do change the "facts on the ground." It is possible they have delivered two @sebastianpinera victories (2009, 2017) /3
I reflected here on why @mbachelet's gradualist reforms generated such hysteria, & role of analysts/foreign corros in creating feedback loop:
Clearer than ever: such seemingly-rigorous rankings CANNOT be trusted. Flawed worldview, biased methodology /4
Clearer than ever: such seemingly-rigorous rankings CANNOT be trusted. Flawed worldview, biased methodology /4
.@WorldBank, to their credit, promise to rectify failings & apologise for manipulation by economist Augusto Lopez-Claro"in Chile and in any other country." (!!!)
But I don't see how anyone can confidently use DB again, nor should they be forgiven for such a serious mistake. /5
But I don't see how anyone can confidently use DB again, nor should they be forgiven for such a serious mistake. /5
I will not refer to @WorldBank's Doing Business Report in my work from now on, and I call on all journalists/analysts/commentators with an interest in the truth to do likewise.
I suggest using qual/quant analysis from non-biased, local sources instead. /ends
I suggest using qual/quant analysis from non-biased, local sources instead. /ends
A chart of how the changing methodology played out, via @business.
Romer of WB: Deterioration due to “methodological changes that could have been politically motivated, and that it wasn’t driven by an actual deterioration in the business environment.”
bloomberg.com/news/articles/…
Romer of WB: Deterioration due to “methodological changes that could have been politically motivated, and that it wasn’t driven by an actual deterioration in the business environment.”
bloomberg.com/news/articles/…
