Global Liveability Index, an assessment of required infrastructure

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

• 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.
  

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.

What more can be done?

• Road infrastructure and connectivity needs to be improved.
• Technological integrated traffic management system.
• Waste management system should improve.
• Waste water system must be improved to secure safe drinking water.
• Housing infrastructure with and urban planning needs focus upon.
• Urban planning and disaster resilient infrastructure model for urbanization.