Chile slams World Bank for bias in competitiveness rankings

0
27
© Reuters. Chile's President Michelle Bachelet speaks during the opening of a business forum in Havana© Reuters. Chile’s President Michelle Bachelet speaks during the opening of a business forum in Havana

SANTIAGO (Reuters) – Chilean officials on Saturday criticized the World Bank, saying treated the South American country unfairly in its closely watched annual “Doing Business” competitiveness rankings.

“What happened with the World Bank’s competitiveness rankings is very concerning,” socialist President Michelle Bachelet, whose four-year term ends in March, wrote on Twitter after the World Bank’s chief economist apologized for Chile’s slippage in the rankings under her tenure.

“Rankings that international institutions conduct should be trustworthy, since they impact investment and countries’ development,” Bachelet wrote, adding that the government would formally request a complete investigation from the World Bank.

In an interview with The Journal published on Friday, World Bank Chief Economist Paul Romer apologized to Chile for changes to the report’s methodology that he said “conveyed the wrong impression” about the business environment under Bachelet.

Article continues below Advertisement...

Chile currently ranks 55th out of 190 countries on the list, down from 34th in 2014, the year Bachelet took office. Its ranking declined to 41st in 2015, 48th in 2016, and 57th in 2017, the World Bank’s reports show.

Romer told the newspaper the decline resulted from methodological changes, rather than a deterioration of Chile’s business environment, and may have been the result of the World Bank staff’s political motivations. He told the newspaper he would revise the reports.

Chile is one of ’s wealthiest and most stable countries. While Bachelet introduced progressive tax and labor reforms that the country’s business community said crimped investment, she has not fundamentally altered the country’s longstanding free-market model.

decelerated under her watch in large part due to low prices for , the country’s main export.

In presidential elections last month, conservative billionaire and former President Sebastian Pinera trounced Bachelet’s preferred candidate, Alejandro Guillier, in part on promises to slash red tape and boost investment.

Pinera presided over a booming economy from 2010-2014 amid high copper prices. He had succeeded Bachelet, who served her first term from 2006-2010. Chile’s constitution prohibits consecutive re-election.

The World Bank’s Doing Business ranking weighs factors such as the ease of starting a business, obtaining credit, paying taxes and getting construction permits.

“It is rare to see an action this immoral,” Economy Minister Jorge Rodriguez Grossi said in a statement. “We hope it is corrected quickly, but the damage is done.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the , it is one of the riskiest investment forms possible.

Source: Investing.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here