Laxmi Capital News
Nepal jumps 5 notches to 22nd position in inclusive development index

Nepal has inchedup five notches to 22nd position in the 2018 Inclusive Development Index (IDI)of World Economic Forum (WEF) among 74 emerging economies.

Nepal, which wasranked 27th in last year's report, showed a remarkable improvement over thelast five years in the index which is an annual assessment of economicperformance of 103 countries -- 29 advanced and 74 emerging economies. Theindex measures how countries perform on eleven dimensions of economic progressin addition to GDP. 

According to theIDI, Nepal scored 4.15 out of 7 in the IDI 2018. Higher the value in theranking, the better is the performance. There was 8.53 percent jump in thescore in 2018 ranking if compared to the five-year trend of IDI, according tothe WEO report.

Nepal tops theranking in South Asia. Among South Asian countries, included in the Index,Bangladesh, Sri Lanka and Pakistan are ranked 34th, 40th, and 47th, while Indiais at the 62nd position. Even China -- the rising superpower - is ranked 26th.

Luthinia is at thetop of the list of emerging economies in the ranking, while Mozambique remainedat the bottom, according to the report. Norway is the best performing advancedeconomy in 2018. 

The ranking of theWEF in the IDI are based on three pillars -- growth and development, inclusion,and intergenerational equity. The report also shows that Nepal is rapidlyadvancing in the ranking. Ranking in GDP per capita and labor productivitytoward growth, and development indicator is toward the bottom, while healthylife expectancy score is at the middle and employment is at the top. 

Nepal seemed to befaring not so well toward inclusion indicator as net income Gini, poverty rate,wealth Gini and median income remained somewhere in the middle of the ranking.

IntergenerationalEquity and Sustainability is the indicator where Nepal performed very well withranking remained at top 20 percent. Adjusted net savings, carbon intensity,public debt and dependency ratio are the sub-indicators lumped underintergenerational equity and sustainability.  

The five-yeartrend shows that Nepal has been making a remarkable improvement in net incomeGini (-3.8), poverty rate (declining to 24.6 percent), and adjusted net savings(up by 7.2 percent). Similarly, public debt ratio has gone down by 6.7 percent,dependency ratio has fallen to 8.1 percent, both showing impressive progressover the five-year period. 

However,employment rate is falling at a very slow pace (0.8 percent) in five years,shows the report. The five-year trend shows that GDP per capita grew by mere2.4 percent and health life expectancy inched up only 1 percent. 

Labor productivitygrowth of Nepal is up by 0.9 percent while wealth Gini index is up by 2.4 in fiveyears, according to the report. 

Source: MyRepublica, 23rd January 2018

Click here to download...!