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July 2008

July 09, 2008

Moliere’s take on the ‘Doing Business’ Methodology

The Doing Business Indicators make a point of measuring how business laws are written  – the de jure situation – which of course isn’t always what happens in practice.

Moliere’s classic 1673 comedy The Imaginary Invalid (now playing at the Shakespeare Theatre in Washington) shows that it pays to know the difference between the de jure and the de facto :   

The old hypochondriac Argan is furious when a notary tells him of a supposed law preventing him from leaving his money to his gold-digger second wife.   Argan thunders:  “I should like to consult my lawyer to see what can be done.”

The notary replies:  “ It’s no use running to lawyers, because they’re typically strict about these things.  They figure it’s a huge crime to break the law.  There are other people to consult who are much more understanding and who have ways to quietly get around the law, and make possible what’s not allowed – who know how to smooth out the snags and find ways to bypass the usual channels by indirect means.   Without that, where we would be on a daily basis ?   There needs to be some flexibility in things – otherwise we’d never get anything done... “

Moliere's notary is describing exactly what the evaluation meant -- but expressed less vividly -- by:  " In the enforcing contracts indicator, the gap between law and practice is particularly wide.   It measures only contract enforcement through the court system, and not other formal and non-formal resolution methods commonly used in many countries." 

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  • This is the first of a series of IEG blogs that are being launched to provide a forum for exchange on major IEG evaluations. In addition to the Doing Business Indicators evaluation, blogs are under construction for the Public Sector Reform and upcoming Environmental sector evaluations. Please refer to the "About" page for additional information.

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