Skip to main content

India's economic freedom rank, at 112, better than China, Brazil: Fraser Institute report based on 2014 data

By Our Representative
Well-known Canada-based Fraser Institute's "Economic Freedom of the World (EFW) 2016 Annual Report" has ranked India No 112 among 159 countries and territories in its latest EFW ranking, better than two major peer countries, China (No 113) and Brazil (No 124).
The report uses 2014 data, when the Narendra Modi government came to power.
The other two peer countries of the BRICS nations – South Africa and Russia – are found to perform better than India, 105th and 102nd, respectively. BRICS stands for Brazil, Russia, India, China and South Africa.
The 320 page report, released last week, says insists that if low-income countries “adopt policies more consistent with economic freedom, convergence will occur and the income gap decline.” It believes, “The gap in economic freedom between the rich and poor nations of the world narrowed and so too did the income gap.”
“After two centuries of expanding income inequality, the trend has reversed. Worldwide, income inequality is now declining”, it claims, adding, “Xavier Sala-i-Martin of Columbia University and Maxim Pinkovskiy of the Federal Reserve Bank of New York examined the data on this issue in great detail.”
The report insists, “To a large degree, these trends were driven by the rapid growth of populous countries, particularly China and India. While the ranking of both is still low, the EFW rating of China has increased substantially since 1980 (and India’s rating since 1990).”
Pointing out that “conceptually, economic freedom is present when economic activity is coordinated by personal choice, voluntary exchange, open markets, and clearly defined and enforced property rights”, the report measures its EFW rating on the basis of five major areas: size of government, legal system and security of property rights, sound money, freedom to trade internationally, and regulation.
Interesting, in the size of government, India ranks quite high, 8th, in legal system and property rights it ranks 86th, in sound money it ranks 130th, in freedom to trade internationally it ranks 144th, and in regulation it ranks 132nd.
Providing a few more rankings, the report finds that in credit market regulations it ranks 139th, in labour market regulations it ranks 99th, and in business regulations it ranks 73rd.
Hong Kong and Singapore occupy the top two positions, the report says. The other nations in the top 10 are New Zealand, Switzerland, Canada, Georgia, Ireland, Mauritius, the United Arab Emirates, and Australia and the United Kingdom, tied for 10th, it adds.,
Other major countries’ rankings are the United States (16th), Germany (30th), Japan (40th), South Korea (42nd), France (57th), Italy (69th), Mexico (88th).
The report believes, “Nations that are economically free out-perform non-free nations in indicators of well-being nations in the top quartile of economic freedom had an average per-capita GDP of $41,228 in 2014, compared to $5,471 for bottom quartile nations (PPP constant 2011 US$).”
“In the top quartile, the average income of the poorest 10% was $11,283, compared to $1,080 in the bottom quartile in 2014 (PPP constant 2011 US$)”, the report says, adding, “Interestingly, the average income of the poorest 10% in the most economically free nations is twice the average per-capita income in the least free nations.”
Taking the same logic forward, the report says, “Life expectancy is 80.4 years in the top quartile compared to 64.0 years in the bottom quartile. Political and civil liberties are considerably higher in economically free nations than in unfree nations.”
---
Click HERE to download report

Comments

TRENDING

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam*
RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

India under Modi among top 10 autocratizing nations, on verge of 'losing' democracy status

By Rajiv Shah
A new report, prepared by a top Swedish institute studying liberal democracy, has observed that there has been a sharp “dive in press freedom along with increasing repression of civil society in India associated with the current Hindu-nationalist regime of Prime Minister Narendra Modi.” The report places India among the top 10 countries that “have autocratized the most”. Other countries that have been identified for rolling towards autocracy are -- Hungary, Turkey, Poland, Serbia, Brazil, Mali, Thailand, Nicaragua and Zambia.

RSS supremo Deoras 'supported' Emergency, but Indira, Sanjay Gandhi 'didn't respond'

By Shamsul Islam*
National Emergency was imposed on the country by then Prime Minister Indira Gandhi on June 25-26, 1975, and it lasted for 19 months. This period is considered as ''dark times' for Indian democratic polity. Indira Gandhi claimed that due to Jaiprakash Narayan's call to the armed forces to disobey the 'illegal' orders of Congress rulers had created a situation of anarchy and there was danger to the existence of Indian Republic so there was no alternative but to impose Emergency under article 352 of the Constitution.

Letter to friends, mentors: Coming together of class, communal, corona viruses 'scary'

By Prof (Dr) Mansee Bal Bhargava*
COVID greetings from Ahmedabad to dear mentors and friends from around the world…
I hope you are keeping well and taking care of yourself besides caring for the people around you. I’m writing to learn how is the science and the society coping with the prevention and cure of the pandemic. I’m also writing to share the state of the corona virus that is further complicated with the long-standing class and communal viruses.

Hurried nod to Western Ghat projects: 16 lakh Goans' water security 'jeopardised'

Counterview Desk
Taking strong exception to "virtual clearances" to eco-sensitive projects in the Western Ghats, the National Alliance of People’s Movements (NAPM) in a statement has said urged for a review of the four-lane highway, 400 KV transmission line and double tracking of the railway line through the Bhagwan Mahavir Wildlife Sanctuary and Mollem National Park in Goa.

Disturbing signal? Reliance 'shifting focus' away from Indian petrochemical sector

By NS Venkataraman*
Reliance Industries Ltd (RIL), a large Indian company, has expanded and grown in a spectacular manner during the last few decades, like of which no industrial group in India has performed before. RIL is now involved in multi various activities relating to petroleum refineries, petrochemicals, oil and gas exploration, coal bed methane, life sciences, retail business, communication network, (Jio platform) media/entertainment etc.

Case for nationalising India's healthcare system amidst 'strong' private control

Counterview Desk
A draft discussion note, prepared by Dr Maya Valecha, a Gujarat-based gynecologist and activist, sent to the People's Union for Civil Liberties (PUCL) as also a large number of activists, academics and professionals as an email alert, is all set to create a flutter among policy experts for its strong insistence on nationalizing India’s healthcare system.

Oxfam on WB project: ICT 'ineffective', privatised learning to worsen gender divide

By Rajiv Shah 
A top multinational NGO, with presence in several developed and developing countries, has taken strong exception to the World Bank part-funding Strengthening Teaching-Learning and Results for States (STARS) project in six Indian states – Himachal Pradesh, Kerala, Rajasthan, Madhya Pradesh, Maharashtra and Odisha – for its emphasis on information and communication technology (ICT)-enabled approaches for teacher development, student assessment and digital platform for early childhood education.

Coal blocks for tycoons: Rinchi village tribals may be declared forest land encroachers

By Gladson Dungdung*
On June 18, 2020, the Government of India initiated the process for auctioning 41 coal blocks for commercialisation. These coal blocks are located in different states within India and most of them fall under Fifth Schedule areas. The Indian government claims that their decision to auction these coal areas is a big step towards making the country Atmanirbhar Bharat (self-reliant) in the energy sector.