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

Maharashtra set to get first Shiv Sainik CM

The conundrum in Maharashtra is moving towards resolution, as the Shiv Sena has secured the support of the ideological opponents, the Congress and the NCP, to form the government, after the BJP, the party with the most seats, failed to muster the numbers. NCP chief Sharad Pawar has taken the

Vanni: In struggle of memory, pictures complement words

Gotabaya Rajapaksa, the new president of Sri Lanka, won the November elections that were held amid continued polarization in the island nation. As defence secretary, he had led the government’s decisive fight against the LTTE rebels in 2009, in which most of the guerrilla leaders were killed. Thus en

How Sahitya Akademi promotes India lit abroad

Sahitya Akademi, the autonomous organization under the ministry of culture, has been silently promoting Indian literature abroad through a host of activities, including promotion of translations. The Akademi has helped translate much-talked about Bangla novel ‘Herbert’ by Nabarun

Hotel responsible for vehicle in valet parking: supreme court

Once a guest hands over the car keys to the valet, the vehicle is under the hotel’s responsibility, and it will have to compensate any damage to it, the supreme court has ruled. In a judgment under the contract law, a bench of justices Mohan M Shantanagoudar and Ajay Rastogi has upheld

Homebuyers have filed 1,821 cases against builders

Amid oversupply, slackening demand and financial troubles, many builders have not been able to deliver homes to buyers, leaving the latter in the lurch. The buyers in turn have taken recourse to filing cases against builders: a total of 1,821 cases under the Insolvency and Bankruptcy Code (IBC) 2016 were p

Rajya Sabha looks back and forward on historic occasion

The beginning of its historic 250th session gave the upper house of parliament an opportunity to take stock of its past and its future, the challenges ahead and the ways to meet them. The house on Monday took up a discussion on ‘The Role of Rajya Sabha in Indian Polity and the Way Forw



Archives

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter