According to the World Economic Forum's 2017 report, the Grand Duchy ranks second in the IDI (Inclusive Growth and Development Index), a new index developed to provide more, and fine-tuned information on countries' economic development level, compared with other models that are based solely on the ratio of GDP to inhabitant.
Promoting inclusive growth to reduce inequalities
To make a country's growth more sustainable and more robust, and to ensure a virtuous circle of social inclusion, it is necessary: for each country to place the population and the standard of living at the heart of national and international economic policy.
The World Economic Forum's Inclusive Growth and Development Index (IDI) ranks the developed countries on the basis of their performance indicators in a number of key areas, including poverty, inequalities in the face of public debt, and the environment.
The Grand Duchy ranks 2nd in a Top 10 dominated by northern Europe , out of 30 countries with a similar level of resources. This position is the result of growth and robust employment, a high median standard of living, good management of the environment, and a low level of public debt.
The Grand Duchy is very well placed for the three main national indicators of the production of wealth (defined by seven political and institutional indicators - see image alongside) in the report: with a score of 6.11 out of 7 for growth and development, 5.47 for inclusion, and 6 for intergenerational equity, producing a total of 5.86 out of a maximum score of 7.
Find out more about the methodology behind the IDI
Overall, the report covers 109 economies worldwide. It aims to achieve a better understanding of the mechanisms (both political and institutional) each country may use in order to make its economic growth more inclusive, while at the same time encouraging the population to work, save, and invest.
To make comparisons meaningful, and to better illustrate the countries' situation in relation to those nations with similar resources, the countries included in the study are divided into four groups, according to their per capita GDP: advanced economies, upper-income economies, lower-income economies and low income economies. The Grand Duchy is in the first group - the group of advanced countries.
The IDI is directly in line with one of the European Union's priority objectives for 2020 – that of promoting inclusive growth.
What does inclusive growth involve?
At EU level, it mainly has the following aims:
- raising the level of quality employment,
- investing in human skills and training,
- modernising the labour market and social protection,
- ensuring that the whole of the European Union reaps the benefits of growth.
(article written by the editorial team of the portal luxembourg.lu)