Economic Freedom of the World 2013 & Nepal -Surath Giri www.surathgiri.com
May 13, 2015
Economic Freedom of the World 2013&
Nepal
-Surath Giriwww.surathgiri.com
What is Economic Freedom?A situation where general people are free to:
• Own things privately and securely. ( Private Property Rights)• To trade with others (Free trade)• Compete in markets (Easy entry, competition, easy exit, lack of cartels,
syndicates and special privileges)• Buy what they want (Both local and foreign goods)• Earn a living in a job they choose or run business they want• Keep what they earn• To enter into contracts and have them enforced
Economic Freedom is the measure of the degree of
free market economy a nation has.
Economic Freedom and Income
Economic Freedom and Growth
Economic Freedom and share of the poorest 10%
Economic Freedom and income of the poorest 10%
Economic Freedom and life expectancy
Economic Freedom of the World Report• Compiled by three prominent economists James Gwartney, Robert
Lawson & Joshua Hall for Fraser Institute, a think tank based in Canada
• Uses objective components and secondary data only• Major Components:
• 1 Size of Government; 2 Legal System and Property Rights; 3 Sound Money; 4 Freedom to Trade Internationally; 5 Regulation.
• Data sources: • International Monetary Fund, World Bank, and World Economic Forum and
Government provided data wherever available
• Prepared annually using data of two years back• Samriddhi, The Prosperity Foundation is the official partner from
Nepal
Economic Freedom of the World 2013• Nine new countries have been added to the
index (Brunei Darusala, Cape Verde, The Gambia, Suriname, Swaziland, Tajikistan,
Timor-leste, Lebanon, Yemen, )
• Overall economic freedom of the world has increased (6.87 from 6.83 in 2010)
World’s Freest Economies: 2013Position Country/Economy Score Remarks
1st Hong Kong 8.97 ------
2nd Singapore 8.73 ------
3rd New Zealand 8.49 ------
4th Switzerland 8.30 ------
5th United Arab Emirates 8.07 Increased
6th Mauritius 8.01 Increased
7th Finland 7.98 Increased
8th Bahrain 7.93 Decreased
9th Canada 7.93 Decreased
10th Australia 7.88 Decreased
World’s Least Free Economies: 2013Position Country/Economy Score Remarks
143rd Algeria 5.32 Slightly improved
144th Congo, Dem. Republic 5.28 Slightly improved
145th Burundi 5.26 Worsened
145th Central African Republic
5.26 Worsened
147th Angola 5.17 Slightly improved
148th Chad 4.98 Worsened
149th Zimbabwe 4.59 Slightly improved
150th Congo, Republic 4.57 Worsened
151st Myanmar 4.08 Worsened
152nd Venezuela 3.93 Worsened
Nepal’s Economic Freedom• Unadjusted
– 125th out of 152 countries with a score of 6.19 out of 10– Was 110th out of 144 countries last year with a score of 6.33 out of 10
• Chain-Linked– 105th out of 152 countries studied with a score of 5.92 out of 10– Was 105th out of 144 countries last year with a score of 5.90 out of 10
• Overall score and rank has decreased• Nepal is still among the Least Free Category of Economic
Freedom Index
Nepal’s Economic Freedom• Size of government:
• Worsened from 8.34 to 7.6 (31st in the world)
• Legal structures and security of property rights: • Improved from 3.85 to 4.2 (126th in the world)
• Access to sound money: • Slightly improved from 6.26 to 6.3 (136th in the world)
• Freedom to trade internationally: • Worsened from 6.74 to 6.4 (118th in the world)
• Regulation of credit, labor and business: • Slightly improved from 6.47 to 6.5 (109th in the world)
Economic Freedom of South Asia and ChinaCountry Score Rank Remarks
Sri Lanka 6.66 92nd Increased
India 6.34 111th Same as before
Pakistan 6.34 111th Same as before
Bangladesh 6.33 114th Decreased
China 6.22 123rd Decreased
Nepal 6.19 125th Decreased
Maldives N/A N/A N/A
Bhutan N/A N/A N/A
Thank you!