Skip to main content

World Economic Form ranks India 112th in labour market. Reason? "Failure" to deregulate protected workers

By Our Representative
The World Economic Forum’s (WEF’s) latest report may have found that India has “climbed” its score to the 39th position in Global Competitiveness Index (GCI) among 138 countries, a whopping 16-place improvement in a year, thanks to what it calls “goods market efficiency, business sophistication, and innovation.”
The “Global Competitiveness Report 2016–2017” also talks of other factors which contributed to this “improvement”, including “lower oil prices” and “recent reform efforts”, which concentrated on “improving public institutions, opening the economy to foreign investors and international trade, and increasing transparency in the financial system.”
However, it admits, without mincing words, “Still, a lot needs to be done”. Especially wanting the Government of India to deregulate the labour market in the manufacturing sector, it says, in this segment, because workers are highly protected by “rigid regulations and centralized wage determination”, on this score India ranks one of the worst of 138 countries, 112th.
Pointing out that the high protection provided to industry workers continues at a time when there are “millions of unprotected and informal workers”, the report suggests, this is telling on “the efficiency of the domestic market”, in which India ranks 81st.
Another retrograde factor, WEF says, is the “large, publicly owned enterprises”, which “further reduce the overall efficiency of the economy, especially in the utilities sector and the financial market, where there is growing concern about the incidence of non-performing loans.”
Coming to other “bottlenecks”, the report says, thanks to lack of infrastructure, India ranks 68th, and, worse, in information and communication technology (ICT) use, it ranks 120th. In fact, it regrets “India’s stagnating performance on technological readiness, a pillar on which it scores one full point lower than any other.” It adds, “Higher education and training has also shown no improvement.”
Even as admitting that India’s GDP per capita “almost doubled” between 2007 and 2016, from US$3,587 to US$6,599, and the deterioration in 2012–13 “triggered India to rethink its policies and engage more firmly in the reforms necessary to improve its competitiveness”, the report suggests, much requires to be done in the social sector.
No doubt, the report states, “The two most significant improvements are in infrastructure and in health and primary education: for example, India almost halved its rate of infant mortality (62 per 1,000 in the 2007–2008 edition of the GCI versus 37.9 today).
It adds, “Life expectancy increased to 68, up from 62 10 years ago, while primary education has become almost universal (up to 93.1 percent from 88.8 percent).”
However, the report underlines, there is nothing to cheer about this. “Although life expectancy has increased, for example, it is still low by global standards, with India ranking only 106th in the world; and while India almost halved infant mortality, other countries did even better, so it drops nine places this year to 115th.”
Based on data collected from International Monetary Fund (IMF), World Bank, and various United Nations’ specialized agencies, including the International Telecommunication Union, UNESCO, and the World Health Organization, the WEF’s GCI is based on 12 “pillars”.
These are: Institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.”
These pillars are in turn organized into three subindexes: basic requirements, efficiency enhancers, and innovation and sophistication factors. The three subindexes are given different weights in the calculation of the overall Index, depending on each economy’s stage of development, as proxied by its GDP per capita and the share of exports represented by raw materials.

Comments

TRENDING

ISKCON UK 'clarifies' after virus infects devotees, 5 die due to big temple meet

By Rajiv Shah
The International Society for Krishna Consciousness (ISKCON), United Kingdom (UK), has admitted that at least 21 of its devotees were infected because of the spread of the coronavirus amongst the UK devotee community following the March 12 funeral and March 15 memorial of the Bhaktivedanta Manor temple president, in which about 1,000 people participated. Regretting that five of the devotees have passed away, the top Hindu religious in Britain body does not deny more may have been infected.

As corona virus 'travels' to rural areas, NGO begins training tribals, marginalised women

By Souparno Chatterjee*
The World Health Organization (WHO) has declared corona virus a pandemic. Originating from Wuhan in China, it has traversed the entire globe, almost, and claimed more than 16,000 lives already. That’s largely the urban population. In India, despite all the preparedness and war-like promptness to safeguard against the pandemic, several lives have been lost , and hundreds of individuals have tested positive.

COVID-19: Dalit rights bodies regret, no relief plan yet for SCs, STs, marginalized

By Our Representative
In a letter to Prime Minister Narendra Modi, the National Dalit Watch-National Campaign on Dalit Human Rights, endorsed* by several other Dalit rights organizations, have insisted, the Government of India should particular care of the scheduled castes and tribes, trans folks, persons with disabilities and the women and children from these communities, while fighting against COVID-19 pandemic.

Idea of fair, tall, customized baby "rooted" in Nazi Germany, RSS' Golwalkar wanted crossbreeding with Brahmins

By Our Representative
Facts have come to light suggesting that the RSS’ experiment to have “fair”, “tall” and “customized” baby has an interesting Gujarat connection: It was first reportedly floated by its topmost ideologue Guru Golwalkar way back in 1960 while giving a lecture in Gujarat University.

Coronavirus scare ‘pushing’ people from Northeast India into more hardship

By Rishiraj Sinha, Biswanath Sinha*
“No one is born hating another person because of the colour of his skin, or his background or his religion. People learn to hate, and if they can learn to hate, they can be taught to love, for love comes more naturally to the human heart than its opposite.” – Nelson Mandela
***

Gujarat govt plan to 'banish' Gandhian activist anti-democratic, unconstitutional

By Rohit Prajapati*
The current Central and Gujarat governments, and their bureaucracy, have been and are still unable to answer and address the concerns raised, with facts, figures, and constitutional provisions, regarding the terror of tourism in the name of the Statue of Unity and tourism projects surrounding it.

Mallika Sarabhai releases speech she was 'not allowed' to give at NID Convocation on Feb 7

Counterview Desk
The National Institute of Design (NID) in Ahmedabad, a Ministry of Commerce and Industry body, landed itself in controversy following its decision to put off its 40th convocation ceremony, where noted danseuse Mallika Sarabhai was invited as chief guest. The ceremony was scheduled to be held on February 7.

Rani Laxmi Bai, Tatya Tope 'martyred' by East India Company, Scindia's forefathers

By Our Representative
In an email alert to Counterview, well-known political scientist Shamsul Islam has said that was “shameful for any political party in democratic India to keep children of Sindhias in their flock” given their role during the First War of Indian Independence (1857). In a direct commentary on Madhya Pradesh Congress leader Jyotiraditya Scindia moving over to BJP, Prof Islam has quote from a British gazetteer to prove his point.

Gujarat construction workers walk home as Rs 2,900 crore welfare fund lies unused

By Our Representative
Situated behind the Gujarat University, some of the families of the migrant construction workers from Dahod and Panchmahals districts of Gujarat, and a few from Rajasthan and Madhya Pradesh, who had stayed put in make-shift shanties in Ahmedabad’s sprawling GMDC Ground, have begun a long journey, by foot, back to their home villages in the eastern tribal belt of Gujarat.