For Fiscal Year (FY) 2022, MCC is using data from the World Bank’s Enterprise Surveys to construct the Business Start-Up indicator on MCC’s country scorecards. Previously, MCC relied on data from the World Bank’s Doing Business Report, but MCC no longer does so. MCC took this action in response to the World Bank’s September 16, 2021 release of serious and troubling findings from an investigation into irregularities in Doing Business data.
While Enterprise Survey data are high quality and cover similar concepts to the Doing Business data previously used, there is much greater variability in the age of Enterprise Survey data across countries than MCC typically prefers. As a matter of practice during the country selection process each year, MCC provides information from supplemental sources to help its Board of Directors understand nuance or broader factors that may not be captured by the scorecards. For FY 2022, MCC will provide its Board with extensive supplementary information on the business environment in any country that passes or fails the scorecard solely due to passing or failing the Business Start-Up indicator. MCC will review alternative data sources for the Business Start-Up indicator for future fiscal years over the coming year.
MCC also used data from the Doing Business Report for two other scorecard indicators in the past but had already determined to revise those indicators for FY 2022 prior to the World Bank’s release of these findings. Learn more about those revisions in this blog post: Strengthening Financial Inclusion on MCC’s Scorecard.