In 2015 Crony-Capitalism Index India Ranks at Ninth Position [ Current Affairs ]
In 2015 Crony-Capitalism Index India is ranked at ninth position with companion sector prosperity accounting for 3.4 per cent of the gross domestic product (GDP). The Economist has studied this index which had recycled data from a list of the world’s billionaires and their worth published by Forbes.
- Each individual is labelled as crony or not based on the source of their wealth in this study.
- The non-crony sector wealth amounts to 8.3 per cent of the GDP according to the index in India.
- India also stood at the ninth place in 2014 rankings too.
- Top countries in the list:
- Russia at 1st position
- Malaysia at 2nd position
- Philippines at 3rd position
- Singapore at 4th position
- Top ranking in the list shows countries are involved more in crony capitalism.
- Russia ranks worst in the index, wealth from the country’s crony sectors amounts to 18 per cent of its GDP.
- Germany was ranked lowermost and was initiated as cleanest country, where just few of the country’s tycoons originate their prosperity from crony sectors.
About Crony-Capitalism Index:
- The Economist newspaper has designed the crony-capitalism index is a new size of crony capitalism based on the “work by Ruchir Sharma of Morgan Stanley Investment Management, Aditi Gandhi and Michael Walton of New Delhi’s Centre for Policy Research, and others”.
- It seeks to show whether the living of the people from certain country or city with capitalist economy are simply pretentious by crony capitalism.
- Due to its limitations it is not a transitionally recognized index, some of the limitations are:
- Concealing Fortunes
- Rough Categorization
- Limited Data of Crony
- “Good Governance” Factor
- In 2014 Hong Kong has topped the list and Russia has secured second place.
- Published on: May 10, 2016