India ranks 70 on world prosperity index

October 22, 2008: The Indian Express

India has ranked 70th among 104 nations on the World Prosperity Index (WPI) 2008 and quality of secondary education, cost of starting a business and the lack of Government effectiveness are among the reasons why India is so low on the index.

¶India has a relatively entrepreneurial culture. It requires government effectiveness and tackling corruption,¶ Alan McCormick, Managing Director of Legatum Institute, that brought out the Index, said.

Increase in capital and education contribute directly to the value of physical and human capital and thus directly increase economic output. Poor governance and excessive bureaucracy impose costs on business and thus restrain growth, the report released last week said.

The Institute also ranks India at 10th place on its ‘Who’s Going Places’ list, with China on number six. “These countries have the best context right now within which to create wealth,¶ McCormick said. Both economies have recently grown faster than almost any country in the rich world. Because these two giant nations are home to more than two billion people, these improvements in competitiveness are bringing about a dramatic lessening of the global wealth gap and are very good news for global prosperity, the report said.

India outstrips many South Asian nations in various aspects of wealth creation. It ranks stronger with reference to other Asian countries in terms of avoiding dependence on commodity exports and foreign aid,¶ McCormick said.

This is the second year that the Institute has come up with the Prosperity Index. In 2007, only 50 countries were analysed as compared to 104 this year. “India was featured in last years Index and was ranked 46 th of 50 countries analysed. Although comparisons between 2007 and 2008 rankings are nor valid due to changes in methodology of survey, but the drivers and restrainers of India’s prosperity are quite similar to last year,¶ Legatum Corporate Communications Hamish Banks said.

http://www.indianexpress.com/news/india-ranks-70-on-world-prosperity-index/376210

/