CRI Index 2022: India Climbs Six Places for Reducing Inequality, Ranks 123 Globally 

According to the Commitment to Reducing Inequality Index 2022 (CRI Index) (4th Edition), India has climbed six places to rank 123 out of 161 countries for reducing inequality but continues to perform low in health spending.

• The CRI Index is a collaboration between Development Finance International (DFI) and Oxfam International.
• The CRI Index 2022 is topped by Norway, followed by Germany and Australia.

Commitment to Reducing Inequality (CRI) Index 2022 – 4th Edition of CRI Index

i.The CRI Index 2022, the 4th edition of the CRI Index, is the first comprehensive analysis made by reviewing policies and actions of 161 governments to combat inequality during 2020 and 2022, the first two years of the COVID-19 pandemic.

ii.The Index evaluates government policies and actions in 3 areas: public services (health, education, and social protection); taxation; and workers’ rights.

• The three areas have been shown to have a significant impact on reducing inequality.

CRI 2022 Country  Ranking

CRI Index 2022: Performance of India  

i.According to the CRI index 2022, India’s overall ranking increased by six points from 129 in 2020 to 123 in 2022.

ii.India has moved 12 places (+12) to 129th in terms of reducing inequality through public spending. 

iii.The progressive taxation ranking for India has increased by 3 places (+3) to 16.

iv.India has dropped 73 places (-73) in the minimum wage ranking after being reclassified as not having a national minimum wage.

v.India has climbed 27 spots (+27) in the “Impact of public spending on reducing inequality indicator.”

vi.India has climbed 33 spots (+33) in the “Impact of tax on reducing inequality indicator.”

vii.India is once again among the lowest performers in terms of health spending, having lost 2 places (-2) in the rankings to 157th (or 5th lowest in the world).

viii.Of the BRICS (Brazil, Russia, India, China & South Africa) and neighbouring countries, India has the lowest health spending at 3.64 % of total spending.

• While China and Russia each contribute 10% to health spending, Brazil contributes 7.7% and South Africa contributes 12.9% (the highest).
• The health spending done by neighbouring countries: Pakistan spends 4.3%, Bangladesh spends 5.19%, Sri Lanka spends 5.88%, and Nepal spends 7.8%.

Other Highlights of the Index  

i.According to the 2022 CRI Index, despite the worst health crisis in a century, half of the low- and lower-middle-income countries in the Index reduced the share of health spending in their budgets.

• 70% of countries cut the share going to education, while 50% of all countries (77) cut the share going to social protection.

ii.During the COVID -19 pandemic, two-thirds of countries failed to raise their minimum wages in accordance with economic growth, resulting in record poverty levels and employees struggling with decades-high prices.

iii.The twelve nations in the Index that do not have a national minimum wage: Bahrain, Oman, Cambodia, Singapore, Ethiopia, South Sudan, India, St. Lucia, Jordan, Tonga, Lebanon, and Tuvalu are. Since 2020, India has been included in this list.

iv.Despite extensive pressure on public finances, 143 of 161 countries froze the tax rates on their richest citizens, and 11 countries even lowered them.

Recent Related News:

In May 2022, Dr. Bibek Debroy, Chairman, EAC-PM, released the State of Inequality in India Report, which was written by the Institute for Competitiveness. It provides a comprehensive analysis of the depth and nature of inequality in India. The report compiles data on inequality in the health, education, household characteristics, and labour market sectors. It’s an assessment of both inclusion and exclusion.

About Oxfam International:

Oxfam is a global movement of people who are fighting inequality to end poverty and injustice.

CEO of Oxfam India – Amitabh Behar
Formed in – 1995
Headquarters – Nairobi, Kenya