Economic Advisory Council to the PM

The Economic Advisory Council to the Prime Minister (EAC-PM) has recently issued a working paper that says that the decline in India’s rankings on a number of global opinion-based indices are due to the “serious problems” with the methodology used in these perception-based indices.

Details –

• The Paper has analysed three perception-based indices — Freedom in the World Index, V-DEM indices, and EIU Democracy Index.
• The paper says that these indices are primarily based on the opinions of a tiny group of unknown experts.
• It also says, the questions that are used are subjective and are worded in a way that is impossible to answer objectively.
• The Working paper also said that certain questions used by these indices are not an appropriate measure of democracy across all countries.
• It noted that since these indices are inputs into the World Governance Indicators, the World Bank should ensure greater transparency and accountability from these institutions.

About Prime Minister’s Economic Advisory Council (EAC-PM) –

• PMEAC is a non-constitutional and non-statutory, non-permanent and independent body.
• It is constituted with the prime and sole aim to analyse all critical issues, economic or otherwise, referred to it by the Prime Minister and advising him thereon.
• It is mandated to give advice to the Prime Minister on economic matters such as inflation, GDP changes, export-import changes, creating supporting environment for increased trade and commerce.
• Functions –
  • • Submit periodic reports to PM related to macroeconomic developments and issues which will have implications of the economic policy.
    • Analyse any topics, issues assigned by the PM and provide advice to them.
    • Analyse macroeconomic issues having high importance and present the views to PM and any other task which is assigned by Prime Minister.