The Inclusive Development Index 2018

A World Economic Forum Report

Despite several indicators reflecting satisfactory performance from economies around the world; we hear experts say, ‘‘the rich are getting richer, the poor even poorer.’’ Slow progress in living standards and widening inequality call for a more inclusive and sustainable model of development that promotes high living standards for all. To help bridge the gap between ‘what was’ and ‘what is being done’ the World Economic Forum System Initiative on Shaping the Future of Economic Progress in 2017 came up with a framework identifying 15 areas of structural economic policy and institutional strength which can contribute to the development of the bigger picture.

What gets measured gets managed. Majority of the countries chart their policies and allot investments according to growth statistics of Gross Domestic Product (GDP). This is a top-line measure which shies away from including factors that set off the pattern of economic activity and breadth of social participation - skill development, labor markets, competition and rents, investor and corporate governance, social protection, infrastructure and basic services among others. As a results, governments often fail to realize the opportunity of policy establishment and their possible contribution to growth in demand-constrained and low-productivity contexts. The World Economic Forum System Initiative on Shaping the Future of Economic Progress, in 2017, published a framework which can serve as a complementary bottom-line metric to evaluate shared socioeconomic progress.

Norway is the best performing advanced economy in 2018, with consistent strong performance. Small European economies are seen to dominate the Index. Of the G7 economies, Germany (12) is ranked highest, followed by Canada (17) and France (18). Performance is mixed among BRICS economies. 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.