Paul Romer Explains the “Doing Business” Ranking FUBAR

I don’t want to spend forever on the controversy over the World Bank’s “Doing Business” rankings, but Paul Romer put up a post today that shows what kind of effect the new ranking methodology had on Chile. Here it is:

The new rankings (light orange) started in 2013 and showed Chile improving under its conservative president. Then Chile’s ranking fell substantially starting in 2014, when socialist Michelle Bachelet took office.

If the old ranking methodology (dark orange) had been used throughout this period, Chile’s rank would have fallen substantially under the conservative president and then stayed pretty much flat under Bachelet.

I have no idea how much difference this made to anything. As for how it happened, Romer says, “the fundamental failure can be traced back to a lack of clarity in our communication.” Stay tuned.

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is the first thing despots go after. An unwavering commitment to it is probably what draws you to Mother Jones' journalism. And as we're seeing in the US and the world around, authoritarians seek to poison the discourse and the way we relate to each other because they can't stand people coming together around a shared sense of the truth—it's a huge threat to them.

Which is also a pretty great way to describe Mother Jones' mission: People coming together around the truth to hold power accountable.

And right now, we need to raise about $400,000 from our online readers over the next two months to hit our annual goal and make good on that mission. Read more about the information war we find ourselves in and how people-powered, independent reporting can and must rise to the challenge—and please support our team's truth-telling journalism with a donation if you can right now.

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