JEDDAH – Bahrain and the UAE occupy the top two positions in this year's Economic Freedom of the Arab World Report published by the Fraser Institute, Canada's leading public policy think-tank, in partnership with the Friedrich Naumann Foundation for Liberty (FNF) and the International Research Foundation (IRF) of Oman. The Economic Freedom of the Arab World Report compares and ranks Arab nations in five areas of economic freedom: size of government, including expenditures, taxes and enterprises; commercial and economic law and security of property rights; access to sound money; freedom to trade internationally; and regulation of credit, labor and business. “We're pleased to see Oman ranked joint 5th in the 2012 Economic Freedom World Report, this reflects the hard work and progress we're making as a nation with regard creating an attractive and competitive business environment,” said Dr. Salem ben Nasser Al Ismaily, Chairman, The Public Authority for Investment Promotion and Export Development (PAIPED). “Increases in economic freedom that are, in effect, a return to the classical Arab model of free trade and open markets would help generate the economic dynamism needed to create the jobs and prosperity the region requires for a successful future,” he added. The Economic Freedom of the World: 2012 Annual Report” marked Hong Kong on top of the list as it offers the highest level of economic freedom worldwide, with a score of 8.90 out of 10, followed by Singapore (8.69), New Zealand (8.36), Switzerland (8.24), Australia and Canada (each 7.97), Bahrain (7.94), Mauritius (7.90), Finland (7.88), Chile (7.84). The rankings and scores of other large economies include: United States (18th), Japan (20th), Germany (31st), South Korea (37th), France (47th), Italy (83rd), Mexico (91st), Russia (95th), Brazil (105th), China (107th), and India (111th). Venezuela has the lowest level of economic freedom among the 144 jurisdictions measured. Myanmar, Zimbabwe, Republic of Congo, and Angola round out the bottom five nations. The US, long considered a champion of economic freedom among large industrial nations, dropped to its lowest position ever in to the Fraser Institute's annual Economic Freedom of the World report. This year, the US plunged to 18th, a sharp decline from the second overall position it held in 2000. Much of this decline is a result of high spending on the part of the US government. Hong Kong again topped the rankings, followed by Singapore, New Zealand, and Switzerland. Australia and Canada tied for fifth overall among the144 countries and territories in the report. “The United States, like many nations, embraced heavy-handed regulation and extensive over-spending in response to the global recession and debt crises. Consequently, its level of economic freedom has dropped,” said Fred McMahon, Fraser Institute vice-president of international policy research. Research shows that people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer life spans. Global levels of economic freedom reached their lowest level in nearly three decades with a score of 6.79 in 2009. “Sadly, citizens living in the bottom-ranked countries face a significantly lower quality of life since they lose the benefits that come from growth spurred on by economic freedom and suffer reduced prosperity,” McMahon said. When the rankings are adjusted to account for changes over the years, it shows that over the past decade, some African and formerly Communist nations have shown the largest increases in economic freedom worldwide: Rwanda (44th this year, compared to 106th in 2000), Malawi (84th, up from 114th), Ghana (53rd, up from 101st), Romania (42nd, up from 110th), Bulgaria (47th, up from 108th), and Albania (32nd, up from 77th). Countries showing the biggest declines since 2000 in the adjusted rankings include Venezuela (123rd this year, down from 94th), Argentina (110th, down from 34th), Iceland (59th, down from 11th), and the US (19th, down from second overall). — SG
