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DAWN.COM | Business | Economic freedom shrinks in Pakistan
LAHORE: The level of economic freedom in Pakistan has squeezed further during the last one year, says the Economic Freedom of the World Report 2009, which ranks the country 110th on the Economic Freedom Index.
The report, which measures degree to which policies and institutions of countries are supportive of economic freedom, ranks 141 nations representing 95 per cent of the worlds population for 2007, the most recent year for which data is available. Pakistans ranking has been lowered from 104 from a year earlier due to decline in its overall performance in the areas of legal structure and security of property rights, access to sound money and freedom to trade internationally.
Pakistan lags far behind Indias ranking at 86 on the index and Sri Lankas 105th.
The report released here on Monday by the Alternate Solutions Institute, the countrys first free market think tank, says Pakistans overall score this year fell to 6.01 on a scale of one to 10, representing a decline of 0.04 points the previous year.
But at the same time, the report points out that the countrys performance improved a little in areas relating to the size of government and regulation of credit, labour, and business.
The report ranks Hong Kong on top of the list followed by Singapore and New Zealand. Zimbabwe once again has the lowest level of economic freedom, followed by Myanmar and Angola.
The Economic Freedom of the World report uses 42 different indicators to create an index ranking countries around the world on the basis of policies that encourage economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete and security of private property.
Economic freedom is measured in five different areas: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulation of credit, labour and business.
Economic freedom is vital to prosperity and poverty reduction. Therefore, the finding that it may increase in the long run is good news, says Dr Khalil Ahmad, executive director of the Alternate Solutions Institute.
Research shows that individuals living in countries with higher levels of economic freedom enjoy higher level of prosperity, greater individual freedom, and longer life spans.
This years report also includes new research that examines the likely impact of the global recession on the levels of economic freedom. It suggests that economic freedom may decline in the short term in response to the crisis.
But, over a longer run, economic freedom has a tendency to increase after a banking crisis, the report says.
Norway and Sweden faced banking crises in the 1990s but these did not deter them from continuing with the market-based reforms policies.
LAHORE: The level of economic freedom in Pakistan has squeezed further during the last one year, says the Economic Freedom of the World Report 2009, which ranks the country 110th on the Economic Freedom Index.
The report, which measures degree to which policies and institutions of countries are supportive of economic freedom, ranks 141 nations representing 95 per cent of the worlds population for 2007, the most recent year for which data is available. Pakistans ranking has been lowered from 104 from a year earlier due to decline in its overall performance in the areas of legal structure and security of property rights, access to sound money and freedom to trade internationally.
Pakistan lags far behind Indias ranking at 86 on the index and Sri Lankas 105th.
The report released here on Monday by the Alternate Solutions Institute, the countrys first free market think tank, says Pakistans overall score this year fell to 6.01 on a scale of one to 10, representing a decline of 0.04 points the previous year.
But at the same time, the report points out that the countrys performance improved a little in areas relating to the size of government and regulation of credit, labour, and business.
The report ranks Hong Kong on top of the list followed by Singapore and New Zealand. Zimbabwe once again has the lowest level of economic freedom, followed by Myanmar and Angola.
The Economic Freedom of the World report uses 42 different indicators to create an index ranking countries around the world on the basis of policies that encourage economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to compete and security of private property.
Economic freedom is measured in five different areas: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulation of credit, labour and business.
Economic freedom is vital to prosperity and poverty reduction. Therefore, the finding that it may increase in the long run is good news, says Dr Khalil Ahmad, executive director of the Alternate Solutions Institute.
Research shows that individuals living in countries with higher levels of economic freedom enjoy higher level of prosperity, greater individual freedom, and longer life spans.
This years report also includes new research that examines the likely impact of the global recession on the levels of economic freedom. It suggests that economic freedom may decline in the short term in response to the crisis.
But, over a longer run, economic freedom has a tendency to increase after a banking crisis, the report says.
Norway and Sweden faced banking crises in the 1990s but these did not deter them from continuing with the market-based reforms policies.
