The newly released Economic Freedom Index 2014 paints ambivalent picture of India placing it at 120th place out of 178 countries in the ranking. On one hand we are ahead of all the BRICS nation barring South Africa (75), while on the other we slipped a place down from 119 which we had secured last time round.
Key Points:
- The index ranks countries by the economic freedom they provide their citizens.
- Hong Kong has topped the list for second straight year followed by Singapore and Australia.
- North Korea, not to anyone surprise, is the worst country in the world followed by Cuba and Zimbabwe as per the index.
India in focus:
- The report, published by 'Heritage Foundation' -a US based think tank- and the Wall Street Journal, gives India a score of 55.7 (highest ever).
- India has been categorised "mostly unfree economy" thanks to its underperformance.
- The country has managed to gain 11 points over last 20 years.
- The index takes into account, among other things, countrie's rule of law, regulatory efficiency, limited government and open markets.
Report Suggestions:
- The report blames extensive and intrusive presence of Indian government in economy through state-owned enterprises together with wasteful subsidy programs amounting to high budget deficits as spoiler.
- Economic freedom is achieved by minimum government intervention in labor, capital and goods in the market, according to the report.
Top 5 countries
- Hong Kong
- Singapore
- Australia
- Switzerland
- New Zealand
Bottom 5 countries
- North Korea: Worst at 178th place
- Cuba: 177
- Zimbabwe: 176
- Venezuela: 175
- Eritrea: 174
Major Powers
- US: 12th
- UK: 14th
- Germany: 18th
- Japan: 25th
- South Korea: 31st
- France: 70th
BRICS performance:
- Brazil: 114
- China: 137
- Russia: 140
- India: 120
- South Africa: 75
The Neighbourhood:
- Sri Lanka: 90
- Bhutan: 116
- Pakistan: 126
- Bangladesh: 131
- Nepal: 149
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