Government Criticises “Oxfam Inequality index”

What is the news?

The Oxfam’s Commitment to Reducing Inequality (CRI) Index, 2020 ranked India at 129 overall out of 158 countries. However, the Minister of Labour and Employment has said that the index lacked clarity. Further, he also mentions that the report did not take into account various initiatives taken by the government.

About Oxfam inequality index or Commitment to Reducing Inequality (CRI) Index

• Released by: Oxfam International.
• Parameters: The index ranks 158 countries. The Index measures the policies and actions in three areas directly related to reducing inequality. The three areas are:
  1. Public services(health, education and social protection)
  2. Taxation and
  3. Worker’s rights

Commitment to Reducing Inequality Index Findings Related to India:

• Overall: India has been ranked 129 overall in the index out of 158 countries.
• Ranking based on Parameters:
  • Public Services: India has ranked 141 in terms of its public services such as health, education and social protection.
  • Taxation: India has ranked 19th in the index, in terms of taxation.
  • Workers Rights: India has fared poorly in protecting labour rights and has slipped to rank 151.

Other Key Findings of Commitment to Reducing Inequality Index:

• Topped by: Norway followed by Denmark and Germany has topped the index.

What were the objections raised by the Indian Government?

• Firstly, the rank assigned to India and the methodology adopted is not clear. The index does not take into account the provisions of the four new labour codes which protects labour rights.
• Secondly, India is not a signatory to two International Labour Organisation (ILO) conventions. But the principles of the conventions were available to Indian workers. The Index does not take account of this. The two conventions are,
  1. Freedom of association and protection of the right to organise convention(C87).
  2. The right to organise and collective bargaining(C98).

Source: The Hindu

Oxfam Report Findings – Rising inequality in India