The UN Economic and Social Commission for Western Asia (ESCWA) issued a report introducing a new global index that measures shortfalls in achievements in three areas: quality-adjusted human development; environmental sustainability; and good governance. The Development Challenges Index (DCI) adapts the Human Development Index (HDI), and shifts “from quantitative development achievements to qualitative outcomes, reflecting advances in development thinking over the past three decades.”

The publication titled, ‘World Development Challenges Report: Development from a Broader Lens,’ assesses development challenges by foregrounding countries that are most challenged in terms of achieving the SDGs.

The report finds that a significant share of the world’s population still lives in difficult and in some cases deteriorating development conditions, with more than 70% residing in countries where income inequality has increased. It warns that there is still much to be achieved in terms of the quality of human development, even in the richest regions, and that environmental sustainability is a major concern for both developed and developing countries. The report identifies governance as the world’s most pressing development challenge.

The report also finds that the Fourth Industrial Revolution presents challenges and opportunities to countries worldwide, with major implications for all aspects of development. However, the vast majority of highly and very highly challenged countries are not equipped to reap its benefits and are vulnerable to its negative impacts due to, in part, a significant knowledge deficit.

To address these challenges, it proposes a four-pronged action plan, which includes strengthening environmental and health systems to improve healthy life outcomes, building knowledge-based economies with integrated education and labor market systems, forging strong links between government effectiveness and democratic governance, and prioritizing the most challenged countries and ensuring human security in conflict-stricken countries.

“The case for integrating new indicators of development is strong,” said the report’s lead author Khalid Abu-Ismail, ESCWA, at its launch. Highlighting increasing environmental threats that pose barriers to social and economic well-being, he noted that “with advances in human capabilities, it has become more important to emphasize agency, which requires good governance, notably the rule of law, enhanced civic political participation, and accountable and efficient institutions.”

The report was launched on 26 October 2022, at the Centre for Development Policy and Research (CDPR) of the School of Oriental and African Studies (SOAS), University of London. [Publication: World Development Challenges Report: Development from a Broader Lens] [Executive Summary] [Policy Brief] [Publication Landing Page] [ESCWA Press Release]