Statsguru: Inequality to disease burden, words of caution for world economy

The World Economic Forum’s (WEF’s) Global Risk Report 2024 struck a rather sombre note, warning of limited growth and conflict-related uncertainties.

A country-wise assessment, based on executive opinions, highlighted the major risks for individual nations over the next two years. Risks for India included disinformation, disease, illicit economic activity, inequality, and labour issues. 

Business Standard assessed these risks with other key emerging markets and the top five large economies.
 

Issues related to disinformation are exacerbated by low trust in news organisations. This is lower in India than in most emerging markets.

Inequality, as measured by the share of income going to the top 1 per cent, was higher in India than in all its emerging market peers barring Russia. It was also higher in India than in other nations in the top five largest economies by size.

Deaths due to communicable diseases as well as maternal, prenatal, and nutrition conditions were relatively high.

The WEF report pointed out that labour shortages are a likely problem in many key economies. India has suffered due to the lack of skilled labour. This is said to have resulted in a shortage of required manpower even as unemployment remains high. Economic hardships, such as due to unemployment, are said to be one of the key drivers of illicit economic activity. A divide exists between emerging and developed markets on the availability of working-age people. The report warned that rapid technological advances may incentivise the usage of machines, affecting labour mobility.

Another WEF report also measured the quality of growth.  India scores high on sustainability but low on innovation and inclusion.

This may have a bearing on the resilience of its economy. Only South Africa, among key emerging markets and large-economy peers, ranks lower.