World Bank not to blame for Chile’s investment collapse

The admission by World Bank Chief Economist Paul Romer that the drop in Chile’s ranking in its annual Doing Business survey in recent years is due almost entirely to changes in how the survey is constructed, rather than a fundamental deterioration in the country’s business environment, has triggered a strong backlash from policymakers. The economy minister has linked the fall in the country’s ranking to the collapse in investment in recent years, but we think that other factors have played a greater role.