Asia Times: Global Economy


	June 28, 2002	atimes.com

Global Economy

Hong Kong, Singapore economies freest

WASHINGTON - The Cato Institute, a US think tank, has ranked Hong Kong and Singapore as the freest economies in the world.

The Economic Freedom of the World Report is an annual project started with the help of Nobel laureate Milton Friedman. The report uses 37 criteria to produce an economic-freedom index of the world, published by the Cato Institute, Canada's Fraser Institute and institutes from 54 other countries. Criteria include the degree to which economics are determined by markets and personal choice rather than by government; property rights; freedom to trade with foreigners; sound money; and regulation of credit, labor and business.

The 2002 report was compiled by Cato researchers James Gwartney and Robert Lawson. Of the 123 countries and areas analyzed according to 2000 data, the world's 10 freest economies are Hong Kong, Singapore, the United States, Britain, New Zealand, Switzerland, Ireland, Australia, Canada and the Netherlands, in that order.

Among Asian nations, Japan ranked 24th overall, Taiwan came 30th, India 73rd and mainland China 101st. Taiwan's showing was its lowest since the report was established; the first report in 1970 ranked the Taiwan economy 16th-freest.

South Korea tied with six other nations, including France and Botswana, for 38th place. Botswana has the best record of any African nation, according to the report.

Most of the lowest-ranking nations are in Africa and Latin America, but the bottom 10 include three former communist economies in Europe: Russia (116th place), Ukraine (119th), and Romania (114th). North Korea and Cuba were not included in the survey because of a lack of data.

"Economic freedom advances economic growth, reduces poverty and promotes other civil and political freedoms," said Friedman. "It is also a tonic against terrorism because of the opportunity it creates. All of the nations behind global terrorism lack economic freedom."

(Asia Times Online/Asia Pulse/CNA)