Question : LEGATUM PROSPERITY INDEX



(a) whether as per the Legatum Prosperity Index 2009, India is 45th prosperous country in the world, beating China which stood at 75th;

(b) if so, the details thereof; and

(c) the plan of the Government to capitalize on such positive report and move ahead on some of the indicators like health, education, etc. which show that India is still behind China?

Answer given by the minister


MINISTER OF THE STATE (INDEPENDENT CHARGE), IN THE MINISTRY OF COAL STATISTICS & PROGRAMME IMPLEMENTATION (SHRI SRIPRAKASH JAISWAL)

(a) Yes, Sir.

(b) The London based Legatum Institute constructed the “Legatum Prosperity Index” using 79 different variables organized into 9 sub-indices. These sub-indices relate to economic fundamentals; entrepreneurship and innovation; democratic institutions; education; health; safety and security; governance; personal freedom and social capital. All the sub-indices have equal weightage and the overall index has been worked out by averaging the 9 sub-indices scores. The overall index and its sub-indices have been worked out for 104 countries of the world. Based on the scores of the overall index, the countries have been ranked. However, ranking of the countries has also been made with respect to 9 sub-indices. The table below gives the comparative rankings of India and China with respect to these 9 sub-indices:

Sub-Indices	Country Ranking	India	China	Economic Fundamentals	43	29
Entrepreneurship and Innovation	55	38
Democratic Institutions	36	100
Education	86	64
Health	88	53
Safety and Security	87	65
Governance	41	93
Personal Freedom	47	91
Social Capital	5	70
Overall Ranking	45	75

(c) The Government of India do take into account the findings of reports on socio-economic, economic and human development aspects produced by national and international agencies of proven credentials and makes assessment of the country’s development as compared with other countries in the world for the purpose of development planning and policy measures . These exercises are carried out to identify those sectors or areas of development planning which are not progressing well and require special interventions. As is evident from the rank of India in the table given in the answer to part (b) of the question above, India is behind China in economic fundamentals, entrepreneurship and innovation, education, health, safety and security. A number of flagship programmes are being implemented by the Government of India to take targeted measures for improving the conditions in these sectors which include Mahatma Gandhi National Rural Employment Guarantee Scheme, the Sarva Shiksha Abhiyan, National Rural Health Mission etc.