Monday, 10 December, 2018

India ranks 62nd in WEF Inclusive Development Index

WEF 2018 What is World Economic Forum why it's important for India India ranks 62nd in WEF Inclusive Development Index
Nellie Chapman | 23 January, 2018, 06:45

The World Economic Forum (WEF) published the latest edition of Inclusive Development Index and it has put Nepal in the first position among South Asian countries.

The Inclusive Development Index (IDI) is an annual assessment of 103 countries' economic performance that measures how countries perform on eleven dimensions of economic progress in addition to GDP. This is significant because only two advanced economies have shown "advancing" trend.The top five advanced economies, in terms of inclusive development, are Ireland, Luxembourg, Switzerland and Denmark apart from Norway. Globally, income inequality has risen or remained stagnant in 20 of the 29 advanced economies, and poverty has increased in 17. The index is prepared keeping in mind the living standards, environmental stability, and protection of future generations. Norway tops the chart heavily dominated by European countries.

In comparison, globally 82 per cent of the wealth generated last year went to the 1 per cent.Last year's survey had showed that India's richest 1 per cent held 58 per cent of the country's total wealth.

The WEF ranked India at 62nd position in the list of emerging economies, while China and Pakistan were ranked at 26th and 47th position respectively. Both labor productivity and GDP per capita posted strong growth rates over the past five years, while employment growth has slowed. Other small countries which ranked over India include Mali, Uganda, Rwanda, Burundi, Ghana, Ukraine, Serbia, Philippines, Indonesia, Iran, Macedonia, Mexico, Thailand and Malaysia. Of the 30 emerging economies with the highest GDP per capita growth over the past five years, only six have scored similarly well on a majority of the Inclusion indicators, while 13 have been no better than mediocre and 11 have registered outright poor performance. When measured by adjusted net savings, carbon intensity of GDP, public debt and the dependency ratio (the so-called Intergenerational Equity and Sustainability pillar), 22 out of 29 recorded either a mediocre or outright poor performance. Overall, it reiterated that growth is a necessary but not sufficient condition for robustly rising median living standards. This message is particularly relevant at a time when global economic growth is returning to a more robust level and policy-makers could do more to future-proof their economies and make them more equitable. Policy-makers need a new dashboard focused more specifically on this objective.