Nepal has ranked 110th out of 162 countries and territories included in the Economic Freedom of the World: 2019 Annual Report, released today by Samriddhi Foundation in conjunction with Canada’s Fraser Institute. Last year, Nepal ranked 102nd. Samriddhi Foundation is releasing the report in Nepal for the twelfth consecutive year.
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. For example, countries in the top quartile (25 per cent) of economic freedom (such as the U.K., Australia and Ireland) had an average per-capita income of US$ 36,770 in 2017 compared to US$ 6,140 for the bottom quartile countries (such as Venezuela, Sudan and Libya).
And life expectancy is 79.4 years in the top quartile of countries compared to 65.2 years in the bottom quartile.
“Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives,” said Fred McMahon, Dr. Michael A. Walker Research Chair in Economic Freedom with the Fraser Institute.
With an overall score of 6.49 (in a scale of 1 to 10 where a higher value indicates a higher level of economic freedom), Nepal ranked 110th out of 162 jurisdictions in this year’s index. With this, Nepal has dropped eight notches down in the global ranking. Last year, Nepal ranked 102nd out of 162 jurisdictions with a score of 6.53.
Nepal’s scores in key components of economic freedom are:
- Size of government: dropped to 7.2 from 7.9
- Legal system and property rights: slid from 4.6 to 4.5
- Access to sound money: increased from 6.4 to 6.8
- Freedom to trade internationally: remained as it is, at 6.6
- Regulation of credit, labor and business: climbed to 7.2 from 7.1
Hong Kong and Singapore, as usual, occupy the top two positions. The next highest scoring nations are New Zealand, Switzerland, United States, Ireland, United Kingdom, Canada, Australia, and Mauritius.
The 10 lowest-rated countries are: Iraq, Republic of Congo, Egypt, Syria, Democratic Republic of Congo, Angola, Algeria, Sudan, Libya, and, lastly, Venezuela.
Other notable countries include Japan (17th), Germany (20th), Italy (46th), France (50th), Mexico (76th), India (79th), Russia (85th), China (113th), and Brazil (120th).
About the Economic Freedom Index
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 nations and territories. Samriddhi Foundation is member of the Economic Freedom Network and is a co-publisher of the report in Nepal. The Economic Freedom of the World Report is world’s premier measurement of economic freedom, measuring and ranking countries in five areas: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulation of credit, labor and business.
Economic Freedom of the World measures the degree to which the policies and institutions of countries support economic freedom. This year’s publication ranks 162 countries and territories. The report also updates data in earlier reports in instances where data has been revised.
It is based on data from 2017 (the most recent year of available comparable data) and measures the economic freedom by analyzing the policies and institutions of 162 countries and territories.
See the full report at www.freetheworld.com
Check out our Economic Freedom of the World video here.