Nepal improves its position in freedom index

Kathmandu, Sept. 10

Nepal has registered a modest improvement in its economic freedom index and climbed a step up to 109^th position.

Nepal is ranked 109^th out of 162 countries and territories included in the Economic Freedom of the World: 2020 annual report published by Fraser Institute, Canada and released in Nepal on Thursday by Samriddhi Foundation. It was in 110^th position last year and 102^nd in 2018.

Among the five key indices used to measure the economic freedom of the country, Nepal has performed the worst in access to sound money in which it ranks at 137.

The size of government has dropped slightly to 6.92 from 7.2 taking the country's position to 63. The indices are measured on a scale of 1 to 10 where a higher value indicates a higher level of economic freedom.

Likewise, Nepal is ranked at 104 in terms of legal system and property rights, 111 in freedom to trade internationally, and 71 in regulation of credit, labour and business index.

Hong Kong and Singapore again top the index, continuing their streak as 1^st and 2^nd respectively. New Zealand, Switzerland, the United States, Australia, Mauritius, Georgia, Canada and Ireland round out the top 10.

The report, based on 2018 data (the most recent comparable data), warns that recent events in Hong Kong will likely cause its score to fall as data become available for 2019 and 2020.

The 10 lowest-rated countries are African Republic, Democratic Republic of Congo, Zimbabwe, Republic of Congo, Algeria, Iran, Angola, Libya, Sudan and Venezuela. Despotic countries such as North Korea and Cuba can’t be ranked due to lack of data.

Major economies Japan, Germany and France rank 20, 21 and 58. Similarly, Italy ranks at 51, Mexico 68, Russia 89, India 105, Brazil 105 and China 124.

According to research in top peer-reviewed academic journals, people living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer lives.

The Fraser Institute produces the annual Economic Freedom of the World report in cooperation with the Economic Freedom Network, a group of independent research and educational institutes in nearly 100 countries and territories.

Published in The Rising Nepal daily on 11 September 2020.