# SEDA Framework
To understand relative effectiveness of conversion of wealth to well-being, a measure wealth to well-being coefficient is tabulated. The score gives a comparison compared to the actual scores computed using GNI (gross nation income) indicator. GNI includes economic wealth created by citizens both within and outside the country in comparison to GDP which focuses on income creation within the country. Usually countries which have high foreign direct investment or aid have GNI higher than GDP. Remarkably the US has GNI and GDP comparable since its out bound investment equals inbound investment. According to BCG model, a coefficient of 1 indicates well being in line with expected outcome based on income levels, a figure greater than 1 out performs and a figure less than 1 under performs.
# Key Insights
# Well-being, Innovation and Financial Inclusion
Innovation, although not calculated as a separate dimension in the SEDA framework for well-being, performs well in explaining an increase in well-being. Innovation is the critical enabler in promoting productivity, income and employment growth, and social inclusion. Take, e.g., Global Innovation Index 2019, which ranked Switzerland, Sweden, and the US as the most innovative countries, all top quartile powerhouses on SEDA. India has shot up to 52 and on track to figuring among the top 30 soon under the excellent leadership of Mr. Narendra Modi. Today India leads in ICT services and creative good exports, quality technology professionals backed by a few world-class institutes. Further, few African countries performed good on well-being also lead in innovation relative to their level of development esp. Rwanda.
Pic right: https://www.globalinnovationindex.org/Home
One of the key driving factors behind a rapid rise in selected Asian and some African countries on well-being attribute has been their ability to leverage technology in promoting financial inclusion among the less privileged people in the society. Digital payments is one of the enablers in this space.
Sweden is a global leader in adopting innovation and emerging technologies. It plans to be a cashless economy by 2023 and its world defining project Swish; a mobile payment platform is a global role model in electronic payments. Today cash accounts for less than 1% of total transactions in Sweden. Left side pic: BCG
Today, Sweden is one of the most accomplished economies around the world in integrating financial inclusion within society. It has helped in effectively fighting money laundering, crime, etc. An excellent read on Sweden’s inventiveness here.
SEDA framework highlights the importance of social equality as a critical variable in measuring well-being. Further, innovation and its comprehensive application acts as a considerable leveler in making society more inclusive and therefore improving social equality and well-being among all.
To be continued.
Coming up articles on other vital insights and limitations of SEDA model.
How to embrace technology.