Among emerging economies in the Inclusive Development Index, India ranks 62 which is far behind China’s 26th position and Pakistan’s 47th.
Lithuania remains as tops the list of emerging economies, as Norway also remains in the top lists. The World Economic Forum (WEF) said while releasing the yearly index here before the start of its annual meeting, to be attended by several world leaders including Prime Minister Narendra Modi and US President Donald Trump.
The WEF stated, “living standards, environmental sustainability and protection of future generations from further indebtedness.” It urged the countries to take up new initiatives to of inclusiveness and growth and not to relay on GDP as it only sees short term goals and inequality.
In developing economies last year India was ranked 60th among 79 , as against China’s 15th and Pakistan’s 52nd position.
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. 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.
Despite of such low rank India is among the ten emerging economies with ‘advancing’ trend. Only two advanced economies have shown ‘advancing’ trend.
The top-five most inclusive emerging economies are Lithuania, Hungary, Azerbaijan, Latvia and Poland and the small European economies dominate the top of the index, with Australia (9) the only non-European economy in the top 10. Of the G7 economies, Germany (12) ranks the highest. It is followed by Canada (17), France (18), the UK (21), the US (23), Japan (24) and Italy (27).
Of the three pillars that make up the index, India ranks 72nd for inclusion, 66th for growth and development and 44th for inter-generational equity. The neighbouring countries ranked above India include Sri Lanka (40), Bangladesh (34) and Nepal (22). The countries ranked better than India also include Mali, Uganda, Rwanda, Burundi, Ghana, Ukraine, Serbia, Philippines, Indonesia, Iran, Macedonia, Mexico, Thailand and Malaysia.
The WEF says, Excessive reliance by economists and policy-makers on GDP is the primary metric of national economic performance is part of the problem. GDP currently measures economic aspects rather than socio-economic progress as manifested in median household income, employment opportunity, economic security and quality of life. It also added that, 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.