India ranks below Bangladesh, Nepal in inclusive development index

With a score of only 3.38, India ranks 60th despite the fact that its growth in GDP per capita is among the top 10

GN Bureau | January 17, 2017


#development   #IDI   #India   #world economic forum   #GDP   #inclusive development index  


India has fared worse than its neighbours: Nepal, Bangladesh, Pakistan and China, in an inclusive development index.

World Economic Forum’s Inclusive Growth and Development Report 2017 said that India, with a score of only 3.38, ranks 60th among the 79 developing economies on the IDI (inclusive development index), despite the fact that its growth in GDP per capita is among the top 10 and labour productivity growth has been strong. 
 
China is placed 15th; Nepal is 27th, Bangladesh 36th while Pakistan is at 52nd place on the index.
 
The report said that poverty has also been falling, albeit from a high level. On the other hand, its debt-to-GDP ratio is high, raising some questions about the sustainability of government spending. With regard to framework indicators, educational enrollment rates are relatively low across all levels, and quality varies greatly, leading to notable differences in performance among students from different socioeconomic backgrounds.
 
It added that while unemployment is not as high as in some other countries, the labor force participation rate is low, the informal economy is large, and many workers are in vulnerable employment situations with little room for social mobility.
 
A more progressive tax system would help raise capital for expenditure on infrastructure, healthcare, basic services, and education. India scores well in terms of access to finance for business development and real economy investment.
 
However, new business creation continues to be held back by corruption, underdeveloped infrastructure, and the large administrative burden involved in starting and running companies.
 
Efficient markets and macroeconomic stability are essential for economic growth. But how well growth benefits society as a whole depends on the framework of rules, incentives, and institutional capacities that shape the quality and equity of human capital formation; level and patience of real-economy investment; pace and breadth of innovation; effectiveness and flexibility of worker protections; coverage and adequacy of social insurance systems; quality and breadth of access to infrastructure and basic services; probity of business and political ethics; and breadth and depth of household asset-building.
 
The report goes on to say that this recognition and the rebalancing of policy priorities it implies is what is required for governments to respond more effectively to decelerating growth and rising inequality – to take seriously the social frustrations increasingly being expressed through the ballot box and on the street. Such frustrations have an essential validity. The implicit income distribution system within many countries is in fact severely underperforming or relatively underdeveloped, but this is due to a lack of attention rather than an iron law of capitalism. Inequality is largely an endogenous rather than exogenous challenge for policymakers and needs to be recognized and prioritized as such in order to sustain public confidence in the capacity of technological progress and international economic integration to support rising living standards for all.
 
A coordinated global initiative along these lines is what is required to transform inclusive growth from aspiration into action – into a new global growth agenda that places people and living standards at the center of national economic policy and international economic integration.
 
The report adds that after generating the majority of global growth since the financial crisis, the BRICS countries and other major emerging market economies are experiencing a marked slowdown, with the possible exception of India.
 
 
 
 
 
 
 

Comments

 

Other News

BEL stake sale gets overwhelming response

 State-run aerospace and defence company Bharat Electronics (BEL), a Navratna enterprise, on the first day of its stake sale by the government aimed to raise Rs 1,650 crore received an overwhelming response. Besides, quota of non-retail investors was subscribed by over 2.34 times. The govern

Suppress ego to write biography: Ramachandra Guha

Noted historian Ramachandra Guha has listed reasons on why historical biographies never took off in a big way in India. Delivering the annual lecture at Sahitya Akademi’s Festival of Letters in New Delhi on Thursday, Guha said that historical biography is that part of history which is more

AAI unveils e-billing solution for navigation service providers, air operators

 State-run Airports Authority of India, a miniratna PSU, in association with international air transport association (IATA) has unveiled a comprehensive e-billing solution—SKYREV360 to help air navigation service provider (ANSP) and airport operators. The system would help the users to

A golden touch

I dreaded a bit as I stepped inside the Thrissur district general hospital in Kerala. I have walked in and out of government hospitals almost half of my life as a health and science writer for various newspapers. But I was never the patient. Going to a government hospital carried with it&nbs

Should students` unions be banned?

Should students` unions be banned?

Take action, NSUI tells police over varsity clash

The National Students Union of India (NSUI) on Thursday sought action against those who had assaulted students and teachers of Delhi university at a protest march on Wednesday.` “Our sole motive is to compel the police to take some strict actions against the lawbreakers who brutally manhand

Video

Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter