The Index ranks 157 countries on their policies on social spending, tax, and labor rights – three areas the organizations say are critical to reducing inequality. It found a clear divergence between governments such as the Republic of Korea, Indonesia, and Georgia that are taking positive steps to reduce the gap between rich and poor, and governments that are making it worse. However, all countries, even those at the top, could be doing much more.
This second edition of the Commitment to Reducing Inequality (CRI) Index finds that countries such as South Korea, Namibia and Uruguay are taking strong steps to reduce inequality. Sadly, countries such as India and Nigeria do very badly overall, as does the USA among rich countries, showing a lack of commitment to closing the inequality gap.
The Index comes ahead this week’s meeting of finance ministers, central bank governors, and other economic leaders at the World Bank and International Monetary Fund Annual Meeting in Bali, Indonesia.
The Index shows:
* India is ranked 147th of the 157 countries. In terms of its ranking across specific pillars this year, India placed 151st on the index for public spending for healthcare, education and social protection, 141st for labour rights and wages, and 50th on taxation policies.
* Regionally, India ranks 6th among the eight South Asian nations. On public spending and on labour rights it ranks 6th but India is 1st on the progressiveness of tax policy. The ranking reflects that a majority of the workforce are employed in the agricultural and unorganized manufacturing sector where collective bargaining is constrained and with little to no enforcement of gender rights for women workers.
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