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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.

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.

Important Government Initiatives focusing on infrastructure

  • PM Gati Shakti Yojana
  • PM Awas Yojana
  • Smart City Mission (RURBAN)
  • Swacch Bharat Mission
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