Economic Advisory Council to the Prime Minister (EAC-PM)

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Overview:

The Economic Advisory Council to the Prime Minister (EAC-PM) has recently issued a working paper that says that the decline in India’s rankings on a number of global opinion-based indices are due to the “serious problems" with the methodology used in these perception-based indices.

About Economic Advisory Council to the Prime Minister (EAC-PM):

  • The Paper has analysed three perception-based indices- Freedom in the World Index, V-DEM indices, and EIU Democracy Index.
  • The paper says that these indices are primarily based on the opinions of a tiny group of unknown experts.
  • It also says, the questions that are used are subjective and are worded in a way that is impossible to answer objectively.
  • The Working paper also said that certain questions used by these indices are not an appropriate measure of democracy across all countries.
  • It noted that since these indices are inputs into the World Governance Indicators, the World Bank should ensure greater transparency and accountability from these institutions.

PM’s Economic Advisory Council (PMEAC):

  • Economic Advisory Council to the Prime Minister (PMEAC] is a non-constitutional, non-permanent and independent body constituted to give economic advice to the Government of India, specifically the Prime Minister.
  • The Council was set up with a view to provide a sounding board for inculcating awareness in government on the different point of view on key economic issues.
  • It is common for the Council to be reconstituted time and again with different organizational structures headed by various economists who are of recognized international eminence.
  • It was set up in September 2017 with a term of two years, replacing the erstwhile PMEAC, which was headed by former RBI governor C Rangarajan during the terms of former Prime Minister Manmohan Singh.

Organization:

  • The PMEAC is chaired by a Chairperson and consists of eminent economists as members.
  • After the latest reconstitution, it now has a Chairperson, Member Secretary and two part-time members.
  • It is supported in its functions by a team of officials and administrators.
  • There is no fixed definition on the exact number of members and staff of the PMEAC.
  • For administrative, logistic, planning and budgeting purposes, the NITI Aayog replaced erstwhile Planning Commission to serves as the Nodal Agency for the PMEAC.

 


Source : All India Radio