India has a lot to catch up with China and even Pakistan in terms of inclusive development, according to a new report by the World Economic Forum.
The Inclusive Development Index, released on Monday, has ranked India at the 62nd place among emerging economies, much lower than China’s 26th position and Pakistan’s 47th. Sri Lanka (40), Bangladesh (34) and Nepal (22) have also been ranked better than India.
Last year, India was ranked at 60th place among 79 developing economies against China’s 15th and Pakistan’s 52nd position.
This year, Lithuania is ranked the world’s most inclusive emerging economy, while Norway tops the advanced economy list.
The 2018 index takes into account the “living standards, environmental sustainability and protection of future generations from further indebtedness”. The index measures progress of economies on growth and development, inclusion, and inter-generational equity.
According to the WEF, excessive reliance on GDP as the primary metric of national economic performance is part of the problem. It said there’s a need to urgently move to a new model of inclusive growth and development, as reliance on GDP as a measure of economic achievement fuels short-termism and inequality.
Notably, India is among the 10 emerging economies with ‘advancing’ trend. 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. The top five emerging economies are Lithuania, Hungary, Azerbaijan, Latvia and Poland.
The WEF also noted that the rich and poor countries alike are struggling to protect future generations, as it cautioned political and business leaders against expecting higher growth to be a panacea for the social frustrations, including those of younger generations who have shaken the politics of many countries in recent years.
Inequality rises: Survey
Meanwhile, a survey released by the international rights group Oxfam said the richest 1 per cent in India cornered 73 per cent of the wealth generated in the country last year. The report titled ‘Reward Work, Not Wealth also noted that 67 crore Indians comprising the population’s poorest half saw their wealth rise by just one per cent.
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.
New growth model
There’s a need to move to a new model of inclusive growth and development, as reliance on GDP as a measure of economic achievement fuels inequality, says WEF