India ranks Ninth in Crony-Capitalism Index
The index aims to indicate whether the livelihood of the people from certain country or city with capitalist economy is easily affected by crony capitalism.
India is ranked at ninth position in crony-capitalism index that was released by the Economist in the first week of May 2016. India has a crony sector wealth accounting for 3.4 percent of the gross domestic product (GDP).
Highlights of the Index
• As per the latest crony-capitalism index the non-crony sector wealth in India amounts to 8.3 per cent of the GDP
• India stood at the same ninth place in the previous 2014 rankings.
• Russia topped the list and followed by Malaysia, the Philippines and Singapore.
• Russia fares worst in the index, wealth from the country's crony sectors amounts to 18 per cent of its GDP.
• Crony wealth has fallen by 116 billion US dollars since 2014 among the 22 economies in the index.
• The worth of billionaires in crony industries Worldwide is soared by 385 per cent between 2004 and 2014 to 2 US dollars trillion.
About crony-capitalism index
• The Economist newspaper designed this new measurement of crony capitalism.
• It was based on the work by Ruchir Sharma of Morgan Stanley Investment Management, Aditi Gandhi and Michael Walton of Centre for Policy Research of New Delhi, and others in 2014.
• The index aims to indicate whether the livelihood of the people from certain country or city with capitalist economy is easily affected by crony capitalism.
• Due to its limitations the index was not recognized internationally.
• It also aims to measure the increase trend in the number of economic rent-seekers.
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