Hong Kong once again tops international rankings for economic freedom, with Singapore a close second and New Zealand in third spot, according to the Economic Freedom of the World: 2007 Annual Report, released by the Fraser Institute in conjunction with the Institute of Economic Affairs.
The United Kingdom ranked joint 5th with the USA and Canada, after ranking 6th in last years report. However, the higher rank results from declining economic freedom in the USA and Canada rather than an improvement in the UKs score.
Zimbabwe and Myanmar had the lowest economic freedom ratings of the 141 countries measured.
The annual peer-reviewed report uses 42 different measures to create an index ranking countries around the world based on policies that encourage economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete and security of private property.
Research shows that individuals living in countries with high levels of economic freedom enjoy higher levels of prosperity, greater individual freedoms and longer life spans.
"This index measures policies that are part of a fundamental base needed to build a free and prosperous nation. A quick glance at the names of countries scoring lowest on the index quickly shows that without protection of property rights and judicial independence, there is little individual freedom and little in the way of prosperity," said Professor Philip Booth, Editorial and Programme Director at the IEA.
The full report is available at
The UK scores in key components of economic freedom (from 1 to 10 where a higher value indicates a higher level of economic freedom):
- Size of government: remained at 6.7, as in last years report
- Legal structures and security of property rights: declined to 8.7 from 8.9
- Access to sound money: remained at 9.4
- Freedom to trade internationally: declined to 7.7 from 7.9
- Regulation of credit, labour and business: increased to 7.9 fro