Insolvency Resolution and Doing Business Reforms in BRICS Nations

Abstract This paper analyzes the factors responsible for the efficacy of resolving insolvency issues influencing the ease of doing business (EoDB) ranking in the BRICS (Brazil-Russia-India-China-South Africa) nations' context, with particular reference to India. Based on published data from the World Bank's EoDB reports, the paper analyzes the impact of EoDB parameters, particularly resolving insolvency issues, on its ranking. Besides, the study examines the legal framework of insolvency resolution that boosts stakeholders' confidence and improves the business environment. The research also investigates the legal framework of insolvency resolution vis-a-vis judicial pronouncement to understand government strategies, stakeholders' trust and the business environment aiding EoDB ranking. Descriptive statistics and analytical hierarchy process (AHP) were applied to analyze and interpret the findings and results. The key findings show that insolvency resolution has been one of the priorities of the governments in Brazil, Russia, and China almost during the last decade; India's importance came after the Insolvency and Bankruptcy Code (IBC), 2016 enactment. Resolving insolvency is the prime factor responsible for India's rank improvement, whereas it is not a priority for South Africa. The AHP in the Indian context proves that the government's importance to insolvency resolution moves in lockstep with expert opinions. The findings add value to the body of knowledge on insolvency resolution, contributing to the EoDB ranking vis-a-vis the business environment, and provide a broader implication for further research.