How is the Inclusive Development Index (IDI) calculated?

The Inclusive Development Index (IDI) is calculated by taking into account various economic and social indicators to measure the inclusiveness of a country's economic development. The IDI is based on three pillars: growth and development, inclusion, and intergenerational equity.

Firstly, the growth and development pillar considers the country's GDP per capita growth rate over a five-year period, adjusted for inflation and purchasing power parity. It also takes into account the country's labor productivity growth rate, which reflects the efficiency of the workforce in generating economic output.

Secondly, the inclusion pillar focuses on measuring the extent to which economic development benefits all segments of society. It considers indicators such as poverty rate, income inequality, and access to basic services like education, healthcare, and infrastructure. The IDI also takes into account social protection measures and the level of financial inclusion within the country.

Lastly, the intergenerational equity pillar assesses the sustainability of economic development by considering factors such as environmental sustainability, natural resource depletion, and carbon intensity. It also evaluates the country's investment in human capital development, including education and healthcare, to ensure future generations can benefit from economic progress.

To calculate the IDI, each pillar is assigned a weightage based on its importance, and the country's performance on each indicator within the pillars is measured. The indicators are then aggregated to provide an overall score for the country's inclusive development. This score allows for comparisons between countries and provides insights into the effectiveness of policies and strategies in promoting inclusive economic development.