…Ranks 63rd in economic performance among emerging markets
MON, JANUARY 22 2018-theG&BJournal- Geopolitical instability due to ethnic and religious factions will impede the government’s efforts to translate investments in infrastructure into inclusive growth, says the World Economic Forum (WEF) in its latest Inclusive Development Index report, a new economic policy framework and performance metric, published on the eve of the opening of its 2018 annual meeting.
The Index report which ranks countries’ economic performance using the new metric introduced in its Inclusive Growth and Development Report, ranked Nigeria 63rd among Emerging economies while doubting Nigeria’s ability to achieve inclusive growth and development. The report reinforced support for a more pro-active response to the Fulani herdsmen killings which is stoking the ethnic and religious crisis that has potential to implode the country.
The report said that despite the steadily improving economic growth in previous years and in spite of the receding oil production, such growth has not benefitted Nigerians, as poverty rate stands at 77.6% and the daily median income levels still at $1.80.
‘’Moreover, addressing high informal employment is critical for Africa’s most populous country,’’ WEF said in the report.
The report acknowledged the potential of the country’s entrepreneurial environment and noted that harnessing the entrepreneurial environment could provide major opportunities for sustainable growth.
The new framework identifies 15 areas of structural economic policy and institutional strength that have the potential to contribute simultaneously to higher growth and wider social participation in the process and benefits of such growth.
It was developed following a worldwide consensus on the need for a more inclusive and sustainable model of growth and development that promotes high living standards for all, according to WEF.
Norway was ranked highest among advanced economies. It ranks second on one of the Index’s three pillars (Intergenerational Equity and Sustainability) and third on each of the other two (Growth and Development, and Inclusion).
According to the report, small European economies dominate the Index, with Australia (9) the only non-European economy in the top 10.
Germany (12) is ranked highest among the G7 economies, followed by Canada (17), France (18), United Kingdom (21), United States (23), Japan (24), and Italy (27). WEF noted that in many countries, there is a stark difference between individual pillars: ‘’for example, the US ranks 10th out of the 29 advanced economies on Growth and Development, but 26th on Intergenerational Equity and Sustainability and 28th on Inclusion; France, meanwhile, ranks 12th on Inclusion, 21st on Growth and Development, and 24th on Intergenerational Equity and Sustainability. Low scores on the latter pillars suggest an economy may be storing up problems for the future.’’
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, according to the report: 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.
