For three decades, globalization taught that efficiency (lowest cost) was the ultimate virtue. The COVID-19 pandemic, the Suez Canal blockage, and geopolitical sanctions have proven that resilience is the new efficiency.
Here is why the Swades index is replacing older metrics in policy think tanks: swades index of
The distinguishing feature of the Swades Index is its obsession with the "last mile." A port that moves 10 million containers is useless if the road 50 miles inland is a dirt track. It is important to note that a "perfect"
It is important to note that a "perfect" Swades Index score (100%) is rarely the goal in a modern economy. Total autarky (economic self-sufficiency) often leads to inefficiency and higher costs. A score of 70% suggests a healthy mix
The goal of the Swades Index is not to stop trade, but to increase value capture. A score of 70% suggests a healthy mix of domestic innovation bolstered by necessary global imports. A score of 10% suggests an economy that is merely a consumer market for foreign goods, with little internal wealth generation.
No index is perfect. Critics of the Swades framework point to three inherent flaws: