After rising up in the Ease of Doing Business Index, India has upgraded its ranks in ‘The Legatum Prosperity Index 2017’ as well. At present, the rising trend in India’s prosperity is significant in view of the fact that India registered lower economic growth following demonetisation and implementation of the goods and services tax (GST) reform in 2017.
The index, which offers an insight into how prosperity is forming and changing across the world, ranks India 100th on the list of prosperous countries among 149 countries.
It is relevant to mention here that the gap between China and India’s prosperity has narrowed by four ranks since 2016 and to a quarter of what it was in 2012, according to the latest Legatum Prosperity Index, an annual ranking developed by the London-based Legatum Institute.
Global prosperity at a record high: World prosperity increased in 2017 and now sits at its highest level in the last decade. It is now 2.6% higher than in 2007. Furthermore, prosperity growth has been faster from 2012 to 2017 than it was from 2007 to 2012. However, the gap between the highest and lowest scores in the Index has increased for five straight years and the spread between nations is growing, indicating that while prosperity as a whole may be increasing, not all countries are yet benefiting from the increase.
Asia-Pacific makes the greatest gains: While prosperity improved around the world in 2017, no region grew as fast as Asia-Pacific. Gains came through a fast-improving Business Environment, especially in the population centres of India (100th), China (90th), Pakistan (137th) and Indonesia (59th). It is now easier to access credit, and intellectual property rights have improved.
Improved government accountability: Every region in the world improved in Governance in 2017, with Asia and Sub-Saharan Africa rising fastest. Across the world, judiciaries became more independent from state interference and the process of challenging governmental regulation became easier. People also became more confident in the outcome of elections.
Decreasing Safety and Security in the MENA region: Despite gains in Social Capital and a strengthening Business Environment, overall prosperity in the Middle East and North Africa (MENA) has suffered in recent years through worsening Safety and Security. Casualties from both war and terrorism have increased, along with a rise in state-sponsored violence.