India has been ranked low among countries across the world in terms of being an ‘influencer’ in the global system while legacy power players such as the US, the UK and Japan continue to dominate, says a report.
The Credit Suisse Research Institute on Friday published its report ‘Getting over Globalization’, which outlines how the global economy is moving into a more multi-polar form.
India was given a lowly 2 on a scale of 5 as an influencer or pole based on five broad criteria — economic size, hard power, soft and diplomatic power, and governance quality and distinctiveness.
While the legacy power players such as the US, the UK and Japan continue to dominate, scoring higher on most indicators, the performance of the small developed countries group is note-worthy, plausibly offering competition to larger powers.
On a score of 1-5, with 5 being the highest and 1 being the lowest, the US and the small developing countries (Luxembourg, Hong Kong, Singapore, Switzerland, Belgium, Ireland, Denmark, Iceland) got 5 while the UK, euro area (Germany, France, Italy and Spain) and Japan secured 4.
“Larger growing emerging markets (Russia, India, Brazil, Chile and South Africa) are identified as poles that are significant, but yet to realise their full potential,” the report said.
China let the emerging nation pack with 3 while India, Brazil and Russia scored 2. South Africa received the lowest - 1.
“Globalisation has been the most powerful economic force throughout the past decades. In 2016, we observed changes to globalisation as we have come to know it. Especially from the point of view of international businesses, the changing pace of global trade and political regionalisation will be challenging,” Urs Rohner, chairman of Credit Suisse, said.
The report further noted that if 2016 is the year that ‘broke’ globalisation, then 2017 will see the makings of a more multi-polar world.