The World Economic Forum (WEF) released its inaugural Global Social Mobility Report, assessing countries on access to opportunity and social mobility. The report develops a new Global Social Mobility Index across five key dimensions related to health, education, technology, work and protections.
Global Social Mobility Index
The index measures absolute social mobility (ability to experience a better life than one’s parents) and relative mobility (socio-economic background’s impact on life outcomes). It examines 82 economies on 10 pillars across health, education, technology, work and protection.
Top and Bottom Performers
The Nordic countries lead the index, with Denmark topping the list with a score of 85. Germany ranks highest among G7 countries (11th), while India languishes at 76th of 82 nations. Though China ranks higher at 45th, India is among countries forecast to gain the most from improved social mobility.
India’s Performance
India’s overall rank is a poor 76, but it’s identified among five countries along with China and the US that stand to gain the most by increasing social mobility. India needs significant improvement across pillars like equitable education, social protections and inclusive institutions that impact mobility.
Key Findings and Recommendations
The report estimates global GDP would gain $5 trillion by 2030 if social mobility improves by 10% across countries. More stakeholder-driven economies tend to enable greater mobility than shareholder-maximizing systems. Key suggestions include making tax systems more progressive, addressing wealth concentration and rebalancing social spending.
Discussion of Capitalism Models
The report argues that stakeholder capitalist systems, where companies balance interests of all stakeholders, perform better for social mobility than shareholder-focused models or state capitalism. Hence business and growth must serve society, not just shareholders or state.
Financing Social Mobility
Governments need to emphasize social mobility in public spending and policies by enhancing tax progressivity, tackling wealth gaps and boosting factors enabling mobility like health and equitable quality education.