Tuesday, September 25, 2018

Nepal climbs five spots in economic freedom index

Nepal climbed five spots and ranked 102 – out of 162 countries and territories – in the 'Economic Freedom of the World: 2018 Annual Report', released today by Samriddhi Foundation in conjunction with Canada’s Fraser Institute.
With an overall score of 6.53 – in a scale of 1 to 10 where a higher value indicates a higher level of economic freedom – Nepal ranked 102 out of 162 jurisdictions in this year’s index, whereas last year, Nepal was ranked 107 out of 159 jurisdictions with a score of 6.50. The year before, Nepal had ranked 108 out of 157 jurisdictions with a score of 6.45.
Nepal’s scores in key components of economic freedom are improved but others dropped. Like, score in size of government dropped to 7.9 from 8.1 in the last year’s report, score in legal system and property rights climbed to 4.6 from 4.5, scores in access to sound money remained as it was last year, on 6.4, score in freedom to trade internationally slid to 6.6 from 6.8, and Regulation of credit, labour and business climbed to 7.1 from 6.7, according to the report.
Of the 24 sub-indicators within these five indicators studied in the report, Nepal climbed up in seven, slid below in five and maintained its last year’s position on 12.
According to research in top peer-reviewed academic journals, people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer lives. For example, countries in the top quartile (25 per cent) of economic freedom (such as the UK, Japan and Ireland) had an average per-capita income of $40,376 in 2016 compared to $5,649 for the bottom quartile countries like Venezuela, Iran and Zimbabwe. And life expectancy is also 79.5 years in the top quartile of countries compared to 64.4 years in the bottom quartile.
"Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives,” according to the Fraser Institute.
Hong Kong and Singapore again top the index, continuing their streak as first and second respectively. New Zealand, Switzerland, Ireland, the United States, Georgia, Mauritius, the United Kingdom, Australia and Canada (tied for 10th) round out the top 10.
The 10 lowest-ranked countries are Sudan, Guinea-Bissau, Angola, Central African Republic, Republic of Congo, Syria, Algeria, Argentina, Libya and last-place Venezuela. Some despotic countries like North Korea and Cuba can’t be ranked due to lack of data.
Other notable countries include Germany (20th), Japan (41st), France (57th), Russia (87th), India (96th) and China (108th).
The Fraser Institute produces the annual Economic Freedom of the World report in cooperation with the Economic Freedom Network, a group of independent research and educational institutes in nearly 100 nations and territories. Samriddhi Foundation is member of the Economic Freedom Network and is a co-publisher of the report in Nepal. The Economic Freedom of the World Report is world’s premier measurement of economic freedom, measuring and ranking countries 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, labour and business.
Economic Freedom of the World measures the degree to which the policies and institutions of countries support economic freedom. This year’s publication ranks 162 countries and territories. The report also updates data in earlier reports in instances where data has been revised.

No comments: