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Startpage»  Property in Bulgaria - Articles |
Policy Group Assesses Economic Freedom in Four Balkan Countries |
| Svetla Dimitrova for Southeast European Times in Sofia - 08/09/04 |
Albania, Bulgaria, Croatia and Romania still need to do more to join the group of countries with high economic freedom, according to the Fraser Institute`s Economic Freedom of the World report for 2004.
The annual report rates and ranks 123 nations in the Economic Freedom of the World (EFW) index, focusing on five major areas: size of government, including expenditure, taxes and enterprises; legal structure and protection of property rights; access to sound money; international exchange; and regulation. The index uses 38 different variables, rating the countries` degree of economic freedom for each component on a scale of 0-10, with 10 being the highest.
With the highest rating of 8.7 out of 10 in the EFW index, Hong Kong ranks first for economic freedom, followed by Singapore at 8.6. New Zealand, Switzerland, the United Kingdom, and the United States share third place with 8.2.
Bulgaria is given a score of 6.0 out of 10 and ranks 78th together with Fiji, Haiti, Iran and Sri Lanka. With a rating of 5.9, Croatia shares 83rd place with Bangladesh and Morocco. At 5.7, Albania ranks 90th alongside China, Nigeria and Pakistan, while Romania -- at 5.4 out of 10 -- shares 103rd place with Benin, Chad and Syria.
The four Balkan countries have better scores in some specific areas, and worse ones in others.
For example, the highest scores given to Bulgaria, Croatia and Albania -- 8.3, 7.7 and 7.3, respectively -- are for "access to sound money". The lowest ratings for Bulgaria, Romania and Croatia -- at 4.6, 4.5 and 4.1, respectively -- are for "size of government: expenditures, taxes and enterprises". Albania`s worst score of 4.6 is for "freedom to trade internationally". Romania`s highest rating of 7.2 is for "credit market regulations", but the country is given only 4.5 for "legal structures and security of property rights".
In countries with more economic freedom, the estimated size of the shadow economy is lower. Opportunities for corruption on the part of public officials are reduced where there are fewer regulations, taxes, and tariffs, say the authors of the report.
They argue that economic freedom affects other aspects of life and is related to greater human development as measured by the UN. As economic freedom increases, the authors say, adult literacy also increases, while the incidence of child labour declines. Infant mortality is also much lower in countries with high economic freedom.
The Fraser Institute, a Canada-based independent public policy organisation established in 1974, published its first Economic Freedom of the World Report in 1996. This year`s report is the 8th of the series
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| Published: 2004-09-16 |
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