The world needs a new idea of responsibility in an age of unstable capitalism

Today, as the world is standing at a critical point with growing economic instability, trade wars, climate crisis and social inequality, the release of the Responsible Nations Index (RNI) is not just another global ranking stamp but a serious intellectual warning for the system.

In this index where India has been ranked 16th among 154 countries, a development model based on responsibility still seems relevant and deeply needed with persistent instability. The index has been prepared by the World Intellectual Foundation (WIF) with academic support from Jawaharlal Nehru University (JNU) and IIM Mumbai to help the world rethink the concept of development during a challenging time.

At this moment, it is necessary to seriously reflect on what kind of development model the world wants and plans to achieve. For instance, a model that is environment-friendly, inclusive and capable of ensuring sustainable development & growth is most vital, for all.

Limits of the Present Capitalist Model

Over the past few decades, the world has largely followed a capitalist model driven by profit, consumption and competition. Today, this model is increasingly being questioned. One of the major reasons is the rise of one-sided tariff policies, protectionism and economic pressure tactics, particularly by powerful countries such as the United States.

Unfortunately, the negative impact of such policies is not limited to developing countries alone; ordinary citizens across the world are also affected through inflation, job losses - amongst other things.

In this situation, the RNI clearly shows that a country's strength cannot be measured only by GDP, military power or market dominance and the rooted strength lies in how responsibly a nation treats its citizens, protects the environment and contributes to the global habitat. This is why major economic powers like the United States (ranked 66th) and China (ranked 68th) are placed far behind in this index, while countries such as Singapore (1st), Switzerland (2nd) and Denmark (3rd) are at the top.

Ranking That Measures Responsibility, Not Power

The most important feature of the Responsible Nations Index is that it does not judge countries only on economic size or power. Instead, it evaluates: n How well a country improves the quality of life of its people

• How seriously it works for environmental protection
• How much it contributes to global peace and cooperation

The index was developed over three years, using data from respected institutions such as the World Bank, UN agencies, and the World Justice Project. A total of 58 indicators are used to calculate the final score. This makes the index not just a numerical ranking, but also a policy-oriented and ethical assessment.

The US, Tariff Wars and Global Instability

One of the major reasons behind today's global economic turbulence is unilateral economic decision-making. Repeated tariff hikes, protectionist policies and the ‘America First’ approach have weakened the global trade system. When the world's largest economy starts breaking rules and imposing its own, the balance of global capitalism is disturbed. This explains why the United States, despite its economic power, ranks 66th in a responsibility-based index. It highlights the growing gap between power and responsibility.

India's Rank and an Alternative Development Path

India's 16th position is not just an achievement but a strong message. It shows that India's development model offers an alternative vision in global discussions. Along with economic growth, India has given importance to:

• Social inclusion
• Democratic values
• International cooperation

The idea of ‘Vasudhaiva Kutumbakam’ (the world is one family) is not just a slogan, but a guiding principle of India's global outlook. From its G20 leadership to climate action, India has shown that development and responsibility can go together.

Towards Responsible Capitalism

Today, the world does not need to reject capitalism, but to reform it. What is required is Responsible Capitalism — where profit is important, but not at the cost of humanity, the environment and peace.

If the global system continues to run on unilateral decisions, economic pressure and narrow national interests, instability and conflict will only increase. Ultimately, the Responsible Nations Index forces us to ask an important question: Do we want to be only powerful nations, or truly responsible nations? In this age of economic uncertainty, only this new thinking can guide the world towards a stable, fair and sustainable future.

The writer is Director, Indian Institute of Management Mumbai, and Professor of Industrial and Systems Engineering, Indian Institute of Technology, Kharagpur; views are personal