The World Economic Forum (WEF), recently published its inaugural Global Social Mobility Report, marking a significant milestone in the measurement and understanding of social mobility across the globe. According to the report, only a small number of countries are creating the necessary conditions for social mobility, thus painting a grim picture when it comes to global socio-economic landscapes.
Understanding Social Mobility
Social mobility refers to the ability of an individual or family to move up or down the social and economic ladder within a society. This mobility can be absolute or relative. Absolute social mobility is the capacity of a child to experience a better life than their parents did. On the other hand, relative social mobility examines how socio-economic backgrounds influence a person’s outcomes in life. It’s crucial to understand that social mobility extends beyond merely measuring income inequality.
For instance, in rapidly developing economies like India and China, economic growth has resulted in overall increases in absolute income. However, this does not change an individual’s societal status compared to others.
The WEF’s Global Social Mobility Index
In this unique index, the WEF evaluated 82 economies based on ’10 pillars’ that cover five main aspects of social mobility: Health; Education (access, quality, equity, and lifelong learning); Technology; Work (opportunities, wages, conditions); and Protection and Institutions (inclusive institutions and social protection).
When it comes to top performers, the Nordic countries outshine the rest with Denmark leading with 85 points. Norway, Finland, Sweden, and Iceland follow close behind. Among the G7 economies, Germany and France hold the 11th and 12th positions respectively in terms of social mobility. But among BRICS nations, Russia leads the pack, followed by China, Brazil, India, and South Africa.
India’s Position in the Global Social Mobility Index
India has not fared very well on this ranking and finds itself a lowly 76th out of the 82 nations assessed in the report. However, it is one of the five countries predicted to benefit most from an improved social mobility score.
Key Findings from the Report
| Social Mobility Findings | Implication |
|---|---|
| Countries that stand to gain the most from improved social mobility | China followed by the United States, India, Japan, Germany, and Russia. |
| Growth Potential | Mobilizing social mobility by 10% could boost global economies by approximately 5% by 2030. |
| Role of Stakeholder Capitalism | The report highlights the necessity of stakeholder capitalism over ‘shareholder value maximization’ or ‘state capitalism’ for better performance |
Need for a New Financial Model
According to the WEF’s report, there’s a pressing need to bring about changes in the current financing model for enhancing social mobility. It advocates improving tax progressivity on personal income, implementing policies that address wealth concentration, and rebalancing the sources of taxation. The emphasis should be on increasing social spending through a mix of public spending and policy incentives.
The World Economic Forum
Established in 1971, the World Economic Forum is a not-for-profit foundation headquartered in Geneva, Switzerland. It serves as an international organization for public-private cooperation, demonstrating entrepreneurship in the global public interest while maintaining high governance standards. Apart from the Global Social Mobility Report, WEF also publishes other significant reports such as The Global Risks Report, The Global Gender Gap Report, The Global Competitiveness Report, and The Travel & Tourism Competitiveness Report.
Aakash Sharma
November 25, 2024 at 1:54 pmThis report highlights urgent issues in social mobility—how can we create better opportunities for everyone, especially in countries like India? What steps should be prioritized for change?