CPIA business regulatory environment rating (1=low to 6=high) - Country Ranking

Definition: Business regulatory environment assesses the extent to which the legal, regulatory, and policy environments help or hinder private businesses in investing, creating jobs, and becoming more productive.

Source: World Bank Group, CPIA database (http://www.worldbank.org/ida).

See also: Thematic map, Time series comparison

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Rank Country Value Year
1 Georgia 5.50 2013
2 Rwanda 4.50 2018
2 Armenia 4.50 2013
4 Azerbaijan 4.00 2010
4 St. Vincent and the Grenadines 4.00 2018
4 St. Lucia 4.00 2018
4 Moldova 4.00 2018
4 Sri Lanka 4.00 2015
4 Zambia 4.00 2018
10 Albania 3.50 2006
10 Niger 3.50 2018
10 Côte d'Ivoire 3.50 2018
10 Ghana 3.50 2018
10 Nepal 3.50 2018
10 Uganda 3.50 2018
10 Lesotho 3.50 2018
10 Vietnam 3.50 2015
10 Mongolia 3.50 2018
10 Togo 3.50 2018
10 Burkina Faso 3.50 2018
10 Bhutan 3.50 2018
10 Cabo Verde 3.50 2018
10 Dominica 3.50 2018
10 Uzbekistan 3.50 2018
10 Bosnia and Herzegovina 3.50 2013
10 Mali 3.50 2018
10 Benin 3.50 2018
10 Kenya 3.50 2018
10 Kyrgyz Republic 3.50 2018
10 Pakistan 3.50 2018
10 Samoa 3.50 2018
32 Grenada 3.00 2018
32 Malawi 3.00 2018
32 São Tomé and Principe 3.00 2018
32 Tajikistan 3.00 2018
32 Nicaragua 3.00 2018
32 Dem. Rep. Congo 3.00 2018
32 Indonesia 3.00 2006
32 Papua New Guinea 3.00 2018
32 Sierra Leone 3.00 2018
32 Vanuatu 3.00 2018
32 Guinea 3.00 2018
32 Mozambique 3.00 2018
32 Mauritania 3.00 2018
32 India 3.00 2013
32 Bangladesh 3.00 2018
32 Djibouti 3.00 2018
32 Nigeria 3.00 2018
32 Tanzania 3.00 2018
32 Madagascar 3.00 2018
32 Sudan 3.00 2018
32 Tonga 3.00 2018
32 Ethiopia 3.00 2018
32 Comoros 3.00 2018
32 The Gambia 3.00 2018
32 Senegal 3.00 2018
32 Burundi 3.00 2018
32 Cameroon 3.00 2018
32 Lao PDR 3.00 2018
32 Solomon Islands 3.00 2018
61 Guyana 2.50 2018
61 Honduras 2.50 2018
61 Cambodia 2.50 2018
61 Serbia 2.50 2006
61 Myanmar 2.50 2018
61 Chad 2.50 2018
61 Yemen 2.50 2018
61 Bolivia 2.50 2015
61 Liberia 2.50 2018
61 Guinea-Bissau 2.50 2018
61 Kiribati 2.50 2018
61 Tuvalu 2.50 2018
61 Zimbabwe 2.50 2018
74 Angola 2.00 2013
74 Timor-Leste 2.00 2018
74 Afghanistan 2.00 2018
74 Central African Republic 2.00 2018
74 Congo 2.00 2018
79 Haiti 1.50 2018
79 Somalia 1.50 2017
81 Eritrea 1.00 2018

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Development Relevance: The International Development Association (IDA) is the part of the World Bank Group that helps the poorest countries reduce poverty by providing concessional loans and grants for programs aimed at boosting economic growth and improving living conditions. IDA funding helps these countries deal with the complex challenges they face in meeting the Millennium Development Goals. The World Bank's IDA Resource Allocation Index (IRAI) is based on the results of the annual Country Policy and Institutional Assessment (CPIA) exercise, which covers the IDA-eligible countries. Country assessments have been carried out annually since the mid-1970s by World Bank staff. Over time the criteria have been revised from a largely macroeconomic focus to include governance aspects and a broader coverage of social and structural dimensions. Country performance is assessed against a set of 16 criteria grouped into four clusters: economic management, structural policies, policies for social inclusion and equity, and public sector management and institutions. IDA resources are allocated to a country on per capita terms based on its IDA country performance rating and, to a limited extent, based on its per capita gross national income. This ensures that good performers receive a higher IDA allocation in per capita terms. The IRAI is a key element in the country performance rating.

Limitations and Exceptions: The CPIA exercise is intended to capture the quality of a country's policies and institutional arrangements, focusing on key elements that are within the country's control, rather than on outcomes (such as economic growth rates) that are influenced by events beyond the country's control. More specifically, the CPIA measures the extent to which a country's policy and institutional framework supports sustainable growth and poverty reduction and, consequently, the effective use of development assistance.

Statistical Concept and Methodology: All criteria within each cluster receive equal weight, and each cluster has a 25 percent weight in the overall score, which is obtained by averaging the average scores of the four clusters. For each of the 16 criteria countries are rated on a scale of 1 (low) to 6 (high). The scores depend on the level of performance in a given year assessed against the criteria, rather than on changes in performance compared with the previous year. All 16 CPIA criteria contain a detailed description of each rating level. In assessing country performance, World Bank staff evaluate the country's performance on each of the criteria and assign a rating. The ratings reflect a variety of indicators, observations, and judgments based on country knowledge and on relevant publicly available indicators. In interpreting the assessment scores, it should be noted that the criteria are designed in a developmentally neutral manner. Accordingly, higher scores can be attained by a country that, given its stage of development, has a policy and institutional framework that more strongly fosters growth and poverty reduction. The country teams that prepare the ratings are very familiar with the country, and their assessments are based on country diagnostic studies prepared by the World Bank or other development organizations and on their own professional judgment. An early consultation is conducted with country authorities to make sure that the assessments are informed by up-to-date information. To ensure that scores are consistent across countries, the process involves two key phases. In the benchmarking phase a small representative sample of countries drawn from all regions is rated. Country teams prepare proposals that are reviewed first at the regional level and then in a Bankwide review process. A similar process is followed to assess the performance of the remaining countries, using the benchmark countries' scores as guideposts. The final ratings are determined following a Bankwide review. The overall numerical IRAI score and the separate criteria scores were first publicly disclosed in June 2006.

Aggregation method: Unweighted average

Periodicity: Annual