Michael E Porter's presentation on Social Progress Index at India's National Competitiveness Form 2017.

1. Social Progress Imperative #socialprogress
Professor Michael E. Porter
NEW DELHI, INDIA
MAY 25, 2017
SOCIAL PROGRESS – THE AGENDA FOR
BUSINESS AND GOVERNMENT

2. Social Progress Imperative #socialprogress2
HOW DO WE ADVANCE SOCIETY?
Economic
Development
• GDP per capita
• Prosperity that
is widely shared

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Social
Progress
• The factors which
lead to a better life
for individuals, and
a healthy society
Economic
Development
• GDP per capita
• Prosperity that
is widely shared
HOW DO WE ADVANCE SOCIETY?

4. Social Progress Imperative #socialprogress4
Economic
Development
• GDP per capita
• Prosperity that
is widely shared
Social
Progress
• The factors which
lead to a better life
for individuals, and
a healthy society
HOW DO WE ADVANCE SOCIETY?

5. Social Progress Imperative #socialprogress5
Economic
Development
• GDP per capita
• Prosperity that
is widely shared
Social
Progress
• The factors which
lead to a better life
for individuals, and
a healthy society
HOW DO WE ADVANCE SOCIETY?

6. Social Progress Imperative #socialprogress
WHAT IS SOCIAL PROGRESS?
A holistic framework is needed
6
Social progress is the capacity of a society to
meet the basic human needs of its citizens,
establish the building blocks that allow citizens
and communities to enhance and sustain the
quality of their lives, and create the conditions
for all individuals to reach their full potential.

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SOCIAL PROGRESS INDEX: DESIGN PRINCIPLES
Outcomes – not inputs
Actionability
Relevant to all countries
Exclusively social and
environmental indicators
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8. Social Progress Imperative #socialprogress
Nutrition and Basic
Medical Care
Water and Sanitation
Shelter
Personal Safety
Personal Rights
Personal Freedom
and Choice
Inclusion
Access to Advanced
Education
Basic Human Needs Foundations of Wellbeing Opportunity
Social Progress Index
SOCIAL PROGRESS INDEX FRAMEWORK
8
Access to Basic
Knowledge
Access to Information
and Communications
Health and Wellness
Environmental Quality

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SOCIAL PROGRESS INDEX FRAMEWORK: INDICATORS
2016
Nutrition and Basic Medical Care
▪ Undernourishment
▪ Depth of food deficit
▪ Maternal mortality rate
▪ Child mortality rate
▪ Deaths from infectious diseases
Water and Sanitation
▪ Access to piped water
▪ Rural access to improved water source
▪ Access to improved sanitation facilities
Shelter
▪ Availability of affordable housing
▪ Access to electricity
▪ Quality of electricity supply
▪ Household air pollution attributable
deaths
Personal Safety
▪ Homicide rate
▪ Level of violent crime
▪ Perceived criminality
▪ Political terror
▪ Traffic deaths
Access to Basic Knowledge
▪ Adult literacy rate
▪ Primary school enrollment
▪ Lower secondary school enrollment
▪ Upper secondary school enrollment
▪ Gender parity in secondary enrollment
Access to Information and
Communications
▪ Mobile telephone subscriptions
▪ Internet users
▪ Press Freedom Index
Health and Wellness
▪ Life expectancy at 60
▪ Premature deaths from non-
communicable diseases
▪ Obesity rate
▪ Suicide rate
Environmental Quality
▪ Outdoor air pollution attributable deaths
▪ Wastewater treatment
▪ Greenhouse gas emissions
▪ Biodiversity and habitat
Personal Rights
▪ Political rights
▪ Freedom of speech
▪ Freedom of assembly/association
▪ Freedom of movement
▪ Private property rights
Personal Freedom and Choice
▪ Freedom over life choices
▪ Freedom of religion
▪ Early marriage
▪ Satisfied demand for contraception
▪ Corruption
Inclusion
▪ Inclusion of immigrants
▪ Inclusion of homosexuals
▪ Discrimination and violence against
minorities
▪ Religious inclusion
▪ Community safety net
Access to Advanced Education
▪ Years of tertiary schooling
▪ Women’s average years in school
▪ Inequality in the attainment of education
▪ Globally ranked universities
▪ Percentage of tertiary students enrolled in
globally ranked universities
Social Progress Index
Basic Human Needs OpportunityFoundations of Wellbeing

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0
20
40
60
80
100
SOCIAL PROGRESS: WORLD PERFORMANCE
2016
Basic Human Needs Foundations of
Wellbeing
Opportunity
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SocialProgressIndex
WaterandSanitation
Shelter
AccesstoBasicKnowledge
AccesstoInfo.andComms.
HealthandWellness
EnvironmentalQuality
PersonalFreedomandChoice
AccesstoAdvancedEdu.
Inclusion
PersonalRights
PersonalSafety
World Average
SPI Score
NutritionandBasicMedicalCare

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0
20
40
60
80
100
SocialProgressIndex
WaterandSanitation
Shelter
AccesstoBasicKnowledge
AccesstoInfo.andComms.
HealthandWellness
EnvironmentalQuality
PersonalFreedomandChoice
AccesstoAdvancedEdu.
Inclusion
PersonalRights
U.N. Millennium Development Goals
Basic Human Needs Foundations of
Wellbeing
Opportunity
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SOCIAL PROGRESS: WORLD PERFORMANCE
2016
PersonalSafety
World Average
SPI Score
NutritionandBasicMedicalCare

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0
20
40
60
80
100
SocialProgressIndex
WaterandSanitation
Shelter
PersonalSafety
AccesstoBasicKnowledge
AccesstoInfo.andComms.
HealthandWellness
EnvironmentalQuality
PersonalFreedomandChoice
AccesstoAdvancedEdu.
Inclusion
PersonalRights
Basic Human Needs Foundations of
Wellbeing
Opportunity
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SOCIAL PROGRESS: WORLD PERFORMANCE
2016
World Average
SPI Score
NutritionandBasicMedicalCare

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WHAT DOES THE GLOBAL SOCIAL PROGRESS INDEX
TELL US ABOUT INDIA?
Rank Country Score
1 Finland 90.09
2 Canada 89.49
3 Denmark 89.39
4 Australia 89.13
5 Switzerland 88.87
6 Sweden 88.80
7 Norway 88.70
8 Netherlands 88.65
9 United Kingdom 88.58
10 Iceland 88.45
10 New Zealand 88.45
12 Ireland 87.94
13 Austria 86.60
14 Japan 86.54
15 Germany 86.42
16 Belgium 86.19
17 Spain 85.88
18 France 84.79
19 United States 84.62
20 Slovenia 84.27
21 Portugal 83.88
22 Czech Republic 82.80
23 Estonia 82.62
24 Italy 82.49
25 Chile 82.12
26 South Korea 80.92
27 Cyprus 80.75
28 Costa Rica 80.12
29 Uruguay 80.12
30 Poland 79.76
31 Slovakia 78.96
32 Greece 78.27
33 Croatia 77.68
Rank Country Score
34 Lithuania 76.94
35 Hungary 76.88
36 Latvia 76.19
37 Israel 75.32
38 Argentina 75.20
39 United Arab Emirates 73.69
40 Mauritius 73.24
41 Panama 73.02
42 Romania 72.23
43 Bulgaria 72.14
44 Jamaica 71.94
45 Kuwait 71.84
46 Brazil 71.70
47 Serbia 71.55
48 Colombia 70.84
49 Peru 70.09
50 Malaysia 70.08
51 Mexico 70.02
52 Albania 69.78
53 Ecuador 69.56
54 Georgia 69.17
55 Montenegro 68.17
56 Tunisia 68.00
57 Macedonia 67.88
58 Turkey 67.82
59 South Africa 67.60
60 Paraguay 67.44
61 Thailand 67.43
62 Botswana 67.03
63 Ukraine 66.43
64 El Salvador 66.36
65 Saudi Arabia 66.30
66 Belarus 66.18
Rank Country Score
67 Armenia 66.05
68 Philippines 65.92
69 Bosnia and Herzegovina 65.84
70 Dominican Republic 65.65
71 Jordan 65.43
72 Bolivia 64.73
72 Moldova 64.73
74 Lebanon 64.42
75 Russia 64.19
76 Kazakhstan 63.86
77 Azerbaijan 63.75
78 Nicaragua 63.03
79 Kyrgyzstan 62.91
80 Mongolia 62.80
81 Venezuela 62.60
82 Indonesia 62.27
83 Sri Lanka 62.21
84 China 62.10
85 Namibia 62.01
86 Morocco 61.92
87 Guatemala 61.68
88 Algeria 61.18
89 Egypt 60.74
90 Honduras 60.64
91 Uzbekistan 60.49
92 Ghana 60.37
93 Iran 59.45
94 Tajikistan 58.78
95 Nepal 57.40
96 Senegal 55.64
97 Cambodia 54.28
98 India 53.92
99 Kenya 53.72
100 Malawi 53.44

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SOCIAL PROGRESS INDEX VS. GDP PER CAPITA
2016
14
India

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SOCIAL PROGRESS INDEX VS. GDP PER CAPITA
2016
15
India
Russia
Brazil
South Africa
China

16. Social Progress Imperative #socialprogress
Economic development alone is not sufficient to explain social
progress outcomes
• There is a non-linear relationship between Social Progress Index
scores and GDP per capita.
• Social Progress Index scores display significant deviation from
the GDP per capita regression line.
- In how well economic growth translates into social improvement.
• GDP per capita is an incomplete measure of a country's overall
performance.
• Social Progress is a critical enabler of long-term economic
performance.
SOCIAL PROGRESS AND ECONOMIC DEVELOPMENT
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INDIA’S
PERFORMANCE RELATIVE
TO ITS ECONOMIC PEERS

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DEFINING PEER COUNTRIES
• We define a country’s economic peers as the 15 countries
closest in GDP PPP per capita.
• India’s economic peers include: Uzbekistan, Laos, Nigeria,
Honduras, Nicaragua, Pakistan, Moldova, Republic of
Congo, Bolivia, Philippines, Ghana, Yemen, Mauritania,
Georgia, Guatemala.
• A country’s performance relative to the median performance
of its peers defines strengths and weaknesses.

19. Social Progress Imperative #socialprogress
0
20
40
60
80
100
INDIA’S OVERALL SOCIAL PROGRESS BENCHMARK
SocialProgressIndex
WaterandSanitation
Shelter
PersonalSafety
HealthandWellness
EnvironmentalQuality
FreedomandChoice
AdvancedEdu.
Inclusion
PersonalRights
Basic Human Needs Foundations of Wellbeing Opportunity
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India’s Score
NutritionandBasicMedicalCare
AccesstoBasicKnowledge
AccesstoInfo.andComms.

20. Social Progress Imperative #socialprogress
CREATING A STRATEGY FOR SOCIAL DEVELOPMENT
• The Social Progress Index objectively benchmarks a country’s
social performance holistically, breaking down the silos between
social issues.
• It also motivates change: If peer countries perform significantly
better, 'why not us?’
• SPI enables an overall strategic perspective on social reform.
• We are launching a state-level index for India to understand
regional performance and the effects of local policies on progress.
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< 50
50 - 60
> 60
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INDIA’S SOCIAL PROGRESS SCORES BY STATE

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INDIAN STATE SOCIAL PROGRESS INDEX
Nutrition and Basic Medical Care
▪ Infant mortality rate
▪ Children under 5 years who are
underweight
▪ Maternal mortality rate
▪ Children under 5 years with anemia
Water and Sanitation
▪ Typhoid
▪ Diarrhea
▪ Improved water source
▪ Drinking water covered habitations
▪ Rural Sanitation
Shelter
▪ Power Deficit
▪ Electricity
▪ Pucca Houses
▪ Housing shortages
Personal Safety
▪ Road deaths
▪ Murder crimes
▪ Crimes against women
▪ Violent crimes
Access to Basic Knowledge
▪ Net primary enrollment
▪ Gross secondary enrollment
▪ Literacy
▪ Gender parity
▪ Drop out rate
Access to Information and
Communications
▪ Television
▪ Internet
▪ Phone
▪ News
Health and Wellness
▪ Obesity (male)
▪ Obesity (female)
▪ Suicides
▪ Respiratory infections
▪ HIV
▪ Life expectancy at 60
▪ Leprosy
Environmental Quality
▪ Renewable energy
▪ Forest cover
▪ Water withdrawals
▪ Land degradation
Personal Rights
▪ Political rights
▪ Human trafficking
▪ Judiciary
Personal Freedom and Choice
▪ Family planning
▪ Child labor
▪ Corruption
▪ Early marriage
Inclusion
▪ Child sex ratio
▪ Financial inclusion- bank branches
▪ Financial inclusion- women
▪ Women in Panchayati Raj Institutions
▪ Insurance
▪ Scheduled tribe enrollment- higher
education
Access to Advanced Education
▪ Gross enrollment ration- higher education
▪ Female graduates
▪ Technical institutions
▪ Colleges (UGC)
India State-Level Social Progress Index
Basic Human Needs OpportunityFoundations of Wellbeing

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SOCIAL PROGRESS 2005-2016
2005 2016
SPI Score
State

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SPI: INFORMS AND MOTIVATES CORPORATE SOCIAL
RESPONSIBILITY (CSR) AND CREATING SHARED VALUE (CSV)