Countries with the Most Economic Freedom
Many nations have put emphasis on growth and development of their economies to sustain their populations. Economic growth is experienced if there is liberty in the society or country for citizens to undertake any economic activity. Every citizen has a right to own, control, and to manage its labor while investing, working, consuming, and producing goods and services in a way that they feel protected and unconstrained by the state. According to the 2016 index of the economic freedom, countries are ranked by the impact of economic liberty to the economic progress. For 20 years, the index has been used as an economic indicator of friendly policies, and economic prosperity of different countries. Countries with a higher index of economic freedom have better institutions that protect the liberty of people to pursue their economic interests, and the outcome is greater prosperity for the whole country.Some of the countries with the most economic freedom include;
The economy of Hong Kong has significantly integrated with that of the mainland China through tourism, trade, and financial links. The corruption in the country remains low with a score of 74 because of the enforced law against the vice. The judiciary has remained impartial and independent while protecting the property rights with the country scoring 90. The government spending on the share of GDP amounts to 17.6% with a score of 90.7 while the fiscal freedom remains high at 92.6. The country’s entrepreneurial environment is one of the most transparent in the world with a score of 97.4. The 0% average trade tariffs have opened up the economy for international trade with a score of 90. The country has an overall score 88.6 in the spheres of economic freedom.
Singapore is one of the most prosperous countries in the world with service and manufacturing industries dominating its economic sector. Corruption in the country is one of the least in the world with a score of 84. The country’s intellectual property rights regime is one of the best in Asia, and commercial courts function very well. The country scored 90.0 in property rights. Government spending is only 18.2% of the GDP translating to an index score of 90.1. The government debt is manageable because of the several enterprises contributing to the budget. The country had a fiscal freedom score of 91.2. The regulatory environment is one of the best in the world with the business freedom score of 95.0 and labor freedom score of 90.7. The overall score index for the country was 87.6 in the sphere of economic freedom.
New Zealand had economic freedom score of 81.6 in 2016 ranking third after Hong Kong and Singapore. The country has been able to keep its debt under control and transformed the economy of the country. New Zealand is the second most transparent country in the world with severe penalties for corrupt cases, scoring 91.0 in freedom from corruption. Property rights are protected with a score of 95.0. The government spending remains high accounting for 42.4% of GDP accounting for 46.0 points. The ease and flexibility to start a business had a score of 91.4 while labor freedom score was 85.9.
The economic freedom index focuses mainly on property rights, government spending, fiscal freedom, business freedom, freedom from corruption, monetary freedom, trade freedom, labor freedom, investment freedom and financial freedom when ranking countries. Other high-ranking countries include Switzerland, Australia, Canada, Chile, Ireland, and the UK.