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

It's now official: Developed Gujarat's regular, casual workers earn less than 19 top states

By Rajiv Shah
Though not as low as state chief minister Vijay Rupani claims it to be (0.9%), Gujarat’s unemployment rate, at least as reflected in a recent report released by the Government of India, is 4.8%, lower than the national average, 6%. Yet, ironically, the same report, released soon after the Lok Sabha polls came to an end in May 2019, brings to light an even grimmer reality: Lower wages in "model" and "developed" Gujarat compared to virtually the whole of India, including the so-called Bimaru states.

Amaravati: World Bank refusing to share public grievances on Land Pooling Scheme

By Our Representative
A new report, prepared by the advocacy group Centre for Financial Accountability (CFA), New Delhi, has taken strong exception to the World Bank refusing to share its independent assessment of the Land Pooling Scheme (LPS), floated by the Andhra Pradesh government in order to build the new capital.

Why crib? 4.5% is far better than pre-1980 'Hindu rate of growth': Subramanian replies

By Rajiv Shah
Even as sticking to his original argument that India's gross domestic product (GDP) since 2011-12 has been overestimated by 2.5%, renowned economist Arvind Subramanian has said in a fresh paper that his estimate of post-2011-12 growth rate at around 4.5% is surely not "implausibly low", as some of his critics have been arguing following his controversial June paper.

UP's Sonbhadra killing of 10 tribals highlights 'failure' to implement Forest Rights Act

Counterview Desk
On July 17, as many as 10 people, including three women, were killed and 28 injured when a village head and his supporters opened fire on a group of tribal farmers in Ubha village of Sonbhadra district in Uttar Pradesh. While the firing took place following a clash between over a land ownership dispute, it reportedly highlights failure of officials enforce Forest Rights Acts (FRA) and Survey Settlement in favour of tribals.

Govt of India 'lying': MGNREGA budget reduced by Rs 1,084 crore in 2019-20

Counterview Desk
NREGA Sangharsh Morcha, a well-known advocacy group for the rural jobs guarantee scheme, under implementation since 2005, has said that the statement by the Rural Development Minister has a made a mockery of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on the floor of Parliament, revealing the ruling BJP’s “anti-worker and anti-poor bias”.

Govt of India seeks to 'subvert' autonomy of adjudicating authorities: RTI amendment

Counterview Desk
India's independent Right to Information watchdog, The National Campaign for Peoples’ Right to Information (NCPRI), in a statement, has said that the Government of India’s proposed amendments to the RTI Act to empower the Centre to unilaterally decide the tenure, salary, allowances and other terms of service of Information Commissioners at the Centre and States “seriously undermine” the law.

None of India's ministries, departments have mining children on the radar: MPs told

By Our Representative
A delegation of two civil rights groups, Samata and mines, minerals and People (mm&P), has impressed upon several of India's members of Parliament (MPs) to discuss and raise issues relating to illegal mining, the Samata judgment, children in the mining areas and the District Mineral Foundation (DMF) in Parliament, adding, the issue of involvement of gram sabhas in decision making ought to be central for allowing any new projects in forest areas.

Demand to withdraw sedition charge against 30,000 unnamed Adivasis, activists

Counterview Desk
Every 10th Adivasi of Jharkhand’s Pathalgadi area is charged with sedition, Jharkhand Janadhikar Mahasabha (JMM), a network of activists and people’s organisations, which organised a protest in Ranchi in front of the Governor's house, has said. In a statement following the protest on Monday, JMM has called for larger support to stand up against violations of Constitutional rights of Adivasis and use of sedition law as tool for repression.

Introduced in Lok Sabha, amendment proposals a 'blow' to RTI's federal scheme

By Venkatesh Nayak*
In less than two months of returning to power, the National Democratic Alliance (NDA-III) government has revived its 2018 proposal to curtail the autonomy of the Information Commissions established under the Right to Information Act, 2005 (RTI Act). A similar attempt was made exactly one year ago but the Bill to assume power to regulate the tenure, salaries and allowances of Information Commissioners across the country was not tabled in Parliament.

Satellite images may be used to support verdict to 'evict' lakhs of India's forest dwellers

By Our Representative
Ahead of a crucial Supreme Court hearing on July 24, indications have emerged suggesting India's top officialdom is preparing grounds to support the controversial petition by hardcore conservationists, which led the apex court to order on February 13 a time-bound eviction of millions of forest dwellers, whose claims for forest land under the Forest Rights Act (FRA) was rejected by authorities across India.