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India at 62nd place on WEF’s Inclusive Development Index

23 Jan 2018 Evaluate

The World Economic Forum (WEF) has ranked India at 62nd position among the emerging economies on an Inclusive Development Index, much below China’s 26th position and even Pakistan’s 47th. It highlighted that Norway remains the world's most inclusive advanced economy, while Lithuania again tops the list of emerging economies. Besides, it noted that last year, India had been ranked 60th among 79 developing economies, while China and Pakistan occupied the 15th rank and 52nd position, respectively.

As per the WEF, the index takes into account the living standards, environmental sustainability and protection of future generations from further indebtedness. It also urged the leaders to urgently move to a new model of inclusive growth and development, saying reliance on GDP as a measure of economic achievement is fuelling short-termism and inequality. The 2018 index, which measures progress of 103 economies on three individual pillars -- growth and development; inclusion; and inter-generational equity -- has been divided into two parts. The first part covers 29 advanced economies and the second 74 emerging economies. The index has also classified the countries into five sub-categories in terms of the five-year trend of their overall Inclusive Development Growth score -- receding, slowly receding, stable, slowly advancing and advancing.

The WEF pointed out that despite its low overall score, India is among the ten emerging economies with ‘advancing’ trend and noted that only two advanced economies have shown ‘advancing’ trend. Among advanced economies, Norway is followed by Ireland, Luxembourg, Switzerland and Denmark in the top five. Adding further, it found that decades of prioritising economic growth over social equity has led to historically high levels of wealth and income inequality and caused governments to miss out on a virtuous circle in which growth is strengthened by being shared more widely and generated without unduly straining the environment or burdening future generations. It added that excessive reliance by economists and policy-makers on Gross Domestic Product as the primary metric of national economic performance is part of the problem.


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