Global Liveability Index, an assessment of required infrastructure

Category
Economy
Published
13th Jul, 2022

Overview

Global Liveability Index
Parameters of the Index
Key findings
Major driving factors
Way forward

Context

The European Intelligence Unit (EUI) recently released the Global Liveability Index 2022.

Background

Since last year, the average liveability index has significantly improved, reflecting improvements in healthcare, education, and culture across most cities as a result of the removal of COVID-related restrictions.
The score, however, is still below pre-pandemic levels as a result of the deterioration of stability in several eastern European towns as a result of Russia's invasion of Ukraine.
As scores for culture and environment, education, and healthcare increase globally, the average index has recovered to 73.6 (out of 100), up from 69.1 a year ago.
The index, nevertheless, is still below the pre-pandemic average of 75.9, which was recorded.

Analysis

Parameters of the Index

It ranked 173 cities on the basis of their liveability or living conditions.
When ranking, out of the five factors, the EUI attaches the highest weightage to stability and culture and environment. Summing all accounts for 25% each.
It is followed by Healthcare and infrastructure with 20% each and Education with 10%.
The list, for the first time, included five Indian cities; Delhi, Mumbai, Chennai, Ahmedabad, and Bangalore.
Rank of Indian Cities: All five scored poorly, ranked between 140 and 146.
- Delhi: 140
- Mumbai: 141
- Chennai: 142
- Ahmedabad: 143
- Bangalore: 146

Key findings

Bangalore received a score of 46.4, out of 100, in infrastructure.
Pakistan’s largest city Karachi was one of the five least livable cities in the world in the index, but it has still scored better than Bangalore in terms of infrastructure.
The infrastructure score is based on the quality of roads, public transportation system, international links, energy provision, telecommunications, water, and availability of good quality housing.
The most livable city according to the index is Vienna.
The Syrian capital, Damascus is the least livable city in the world.
Kiev (Ukraine) had to be left out of the poll, and Moscow and St. Petersburg (Russia) suffered a decline in rankings.

What are the reasons for India’s weak performance?

According to the index, the major reason evaluated is Lack of proper Infrastructure in major cities.
- Road Connectivity
- Public transportation system
- Energy provision
- Telecommunications
- Water and Sanitation
- Availability of Housing Infrastructure

Challenges associated

Revenue Shortfall: Slippage in revenue estimates may not be ruled out on account of the realization of lower than anticipated increases in nominal GDP growth, direct tax buoyancy, and disinvestment targets.
Lesser Funds with States: The Union government has accepted the 15th Finance Commission report recommendation, according to which vertical share of tax devolution from the center to states has been reduced 42% to 41%.
- Moreover, the central government increasingly resort to the imposition of cesses which are almost permanent have reduced the shareable pool.
Issues Associated With Burgeoning Fiscal Deficit: Infrastructure development in India will be funded by fiscal stimulus.
- However, the rising fiscal deficit can cause macro-economic stability issues like high inflation, crowding out, a downgrade of international ratings, etc.
Issues Associated With Bad Bank: Finding buyers for bad assets in a pandemic hit economy will be a challenge, especially when governments are facing the issue of containing the fiscal deficit.
- Also, the bad bank idea is like shifting loans from one government pocket (the public sector banks) to another (the bad bank).
Structural Problems: Due to land acquisition delays and litigation issues, the rate of implementation of projects is very slow on global standards.
- Further, getting approvals are very difficult in terms of land access, environmental clearances; impending litigation in court delays the infrastructure projects.