The state of Hong Kong is once again the most economically free jurisdiction in the world, according to the Fraser Institute’s latest Economic Freedom of the World annual report.
The 2015 report measures economic freedom—levels of personal choice, ability to enter markets, security of privately owned property, rule of law, etc.—by analyzing the policies and institutions of 157 countries and territories.
“Economic freedom breeds prosperity, and the most economically free countries offer the highest quality of life while the lowest-ranked countries are usually burdened by oppressive regimes that limit the freedom and opportunity of their citizens,” said Fred McMahon, Dr. Michael A. Walker Research Chair in Economic Freedom with the Fraser Institute.
The top 10 most economically free jurisdictions are Hong Kong (which continues its streak of number one rankings), Singapore, New Zealand, Switzerland, United Arab Emirates, Mauritius, Jordan, Ireland, and Canada, with the United Kingdom and Chile tied for 10th, according to the report, based on 2013 statistics (the most recent year of available data).
“Hong Kong’s still number one but because democracy is the best safeguard of freedom, if China, which ranks low in economic freedom, encroaches on Hong Kong, we can expect Hong Kong’s ranking to fall,” McMahon said.
The United States, once considered a bastion of economic freedom, now ranks 16th in the world, a steep fall from second place in the world rankings in 2000.
“A weakened rule of law, the so-called wars on terrorism and drugs, and a confused regulatory environment have helped erode economic freedom in the United States, which has now fallen behind more economically free countries such as Qatar, Jordan and the U.A.E.,” McMahon said.
Other notable rankings include Japan (26), Germany (29), Russia (99), China (111), and India (114).
Aside from Singapore, the other members of the Association of Southeast Asian Nations (ASEAN) fared as follows: Cambodia comes in at no. 52, Malaysia at no. 58, Brunei Darussalam at no. 62, the Philippines at no. 67, Indonesia at no. 76, Thailand at no. 103, Vietnam at no. 109, and Myanmar at no. 146.
The 10 lowest-ranked countries are Angola, Central African Republic, Zimbabwe, Algeria, Argentina, Syria, Chad, Libya, Republic of Congo, and Venezuela.
Globally, the average economic freedom score rose slightly to 6.86 out of 10 from 6.84 last year.
According to research in top peer-reviewed journals, people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer lives.
The Fraser Institute produces the annual Economic Freedom of the World report in cooperation with the Economic Freedom Network. It ranks countries based on economic freedom, which is measured in five areas: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulation of credit, labor, and business.
The new “ICC Open Markets Index 2015” released earlier this month by the International Chamber of Commerce also ranks Singapore and Hong Kong as the first and second most open economies.
Photo: chensiyuan – chensiyuan
