Wednesday, June 20, 2012

Calculating vulnerability indices - Significance Magazine

Robert Woods
Published in Significance Magazine: Jun 20, 2012

One story dominates international news this week, with another trailing. The trailer is the 20th anniversary of the Rio Earth Summit, which is being marked by a United Nations Conference on Sustainable Development conference – they are calling it Rio Plus 20 - in the same city. Hilary Clinton is attending, British Prime Minister David Cameron is not but is sending his deputy Nick Clegg instead. The big story, though, remains Greece, Spain, and the troubles of the Eurozone. 

Note: Index based on estimated productivity, employment rate, high education rate
and low education rate in 2020.

Potential regional effects

Globalisation brings ever faster change to which people and firms need to respond. There is a risk that globalisation will encourage further consolidation of path dependency at regional level. The high productivity growth rates seen in a number of regions will help consolidate their economies in a more favourable competitive situation. In contrast, as the comparative advantages of low-cost, low-wage production methods continue to shift to emerging economies, regions lacking the capacity to develop a knowledge-based economy are likely to become more exposed. A well educated workforce provides the necessary flexibility and mobility to actively counter negative effects of globalisation. Low employment rates and educational levels may increase the risk of growing social polarisation within regions.

Yet, there are many regions in the Union which are competitive and innovative, and which benefit from globalisation. This has been achieved by investing in advanced sectors with high productivity, by building up new skills and/or attracting new reservoirs of talent, and by promoting innovation potential through clusters, networks and through the strategic use of ICT. It is by better analysing and building on these development strategies that regions will be able to mobilise their potential and place their economy on a high-growth, sustainable development path.

By Priyantha Wijayatunga

As the name suggests any vulnerability index should give a measure, preferably an objective one, about the vulnerability of an entity to a certain situation or condition. There are many vulnerability indices being used today and the Economic Vulnerability Index is just one used by the United Nations...
Read more....

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