The latest report published by World Economic Forum (WEF) ranks India 60th out of 79 developing countries in the inclusive development index (IDI).
On Monday, WEF released its ‘Inclusive Growth and Development Report 2017’ in which India stands below its neighbours China and Pakistan. The report said that most countries are missing significant opportunities to raise economic growth and decrease inequalities at the same time because the growth model and measurement tools that are used by policymakers today are decades old and require significant readjustment.
The index has been designed by keeping 12 performance indicators as parameters. To provide a complete measure of economic development than GDP growth alone, the index has been based on three pillars — Growth and Development, Inclusion and Intergenerational Equity, and Sustainability.
The list of 79 developing economies has been topped by Lithuania, followed by Azerbaijan and Hungary at second and third positions, respectively. The top ten countries include Poland (4), Romania (5), Uruguay (6), Latvia (7), Panama (8), Costa Rica (9) and Chile (10).
India at 60th position ranks below many of its neighbouring countries — China (15), Nepal (27), Bangladesh (36) and Pakistan (52).
The other two BRICS nation who were on the list include Russia at 13th position and Brazil at the 30th position.
Despite the fact that India’s GDP growth per capita is among the top ten countries in the world and a strong labour productivity growth, India scores only 3.38 out of 7 in the IDI.
The report said that though the country’s poverty is decreasing, it will take a longer time as the poverty levels were high, to begin with.
The countries mentioned above came from the list of developing countries. Norway topped the list of advanced countries, followed by Luxembourg, Switzerland, Iceland and Denmark in 2nd, 3rd, 4th and 5th positions, respectively. Other countries in this list include Sweden (6), Netherland (7), Australia (8), New Zealand (9) and Austria (10).
The scores given in the IDI are based on a scale of 1-7. Advanced and developing economy IDI scores are not strictly comparable due to different definitions of poverty.
What is IDI?
The Inclusive Development Index is based on a set of Key Performance Indicators that provide a multidimensional assessment of living standards. The index ranks 109 countries according to their current level of inclusive development, and also provides a view on recent performance over 5 years. Together, these features allow users to understand both the state and direction of inclusive growth around the world.