Wednesday, 28 July 2021

Emerging economies: Pakistan ranked ahead of India in WEF

WEF world economic forum

LONDON: Pakistan ranked at 47th-15 points ahead to India – in the Inclusive Development Index (IDI) 2018 of the World Economic Forum.

Norway again holds the best performing advanced economy in 2018, with a consistently strong performance. Indian Prime Minister Narendra Modi will inaugurate the 48th WEF annual meeting today (Tuesday) in Davos-Klosters, Switzerland under the theme ‘Creating a Shared Future in a Fractured World’ and it will continue to Friday (January 26) and US President Donald Trump will address the closing ceremony on Friday with his “America First” message.

The WEF, every year prepares a report based on IDI. This year, it made assessment of 103 countries’ economic performance with growth and development; inclusion and intergenerational equity and sustainability pillars.

These three pillars further have eleven dimensions. The eleven dimensions are GDP (per capita), labor productivity, employment healthy life, health life expectancy, median household income, income gini, poverty rate wealth, wealth gini, adjusted net savings, dependency ratio, public debt (as a share of gdp) and carbon intensity of GDP.

In 2018 report, Pakistan was declared the 47th emerging economy of the world. The overall IDI score of Pakistan is 3.55, on the other hand, the IDI project that the country will upward 7.56 in overall five years trend.

The neighbouring country India ranked 62nd emerging economy in the IDI 2018 ranking. The overall score of India is 3.09 and the overall five year IDI trend depicts that it will go forward with 2.29 score.

In the ranking of emerging economies, six European economies are among the top 10: Lithuania (1), Hungary (2), Latvia (4), Poland (5), Croatia (7), and Romania (10). These economies perform particularly well on Growth and Development, benefiting from EU membership, and Inclusion, with rising median living standards and declining wealth inequality. Latin America accounts for three top 10 economies: Panama (6), Uruguay (8), and Chile (9).

Performance is mixed among BRICS economies: the Russian Federation (19) is ahead of China (26), Brazil (37), India (62), and South Africa (69). Although China has ranked first among emerging economies in GDP per capita growth (6.8%) and labor productivity growth (6.7%) since 2012, its overall score is brought down by lackluster performance on Inclusion. Turkey (16), Mexico (24), Indonesia (36), and the Philippines (38) are among economies which show potential on Intergenerational Equity and Sustainability, but lack progress on Inclusion indicators such as income and wealth inequality.

It is pertinent to mention here that the IDI is a project of the World Economic Forum’s System Initiative on the Future of Economic Progress, which aims to inform and enable sustained and inclusive economic progress through deepened public-private cooperation through thought leadership and analysis, strategic dialogue and concrete cooperation, including by accelerating social impact through corporate action.

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