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UAE amongst the top 10 Economically Free nations

September 2016

September 18, 2016 | 12:50 | Dubai

Fraser Institute released its 2016 annual report on the Economic Freedom of the World. The tracking index, within measures the degree to which the policies and institutions of countries are supportive of economic freedom. The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to enter markets and compete, and security of the person and privately owned property. Forty-two data points are used to construct a summary index and to measure the degree of economic freedom in five broad areas:

1 size of government: expenditures, taxes, and enterprises;

2 legal structure and security of property rights;

3 access to sound money;

4 freedom to trade internationally; and

5 regulation of credit, labor, and business.

The EFW index now ranks 159 countries and territories. Data are available for approximately 100 nations and territories back to 1980, and many back to 1970.

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 $1,080 in the bottom quartile in 2014 (PPP constant 2011 US$). 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.
  • 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

Hong Kong and Singapore, once again, occupy the top two positions. Next comes New Zealand and Switzerland, two countries almost always in the top five. Five countries—Canada, Georgia, Ireland, Mauritius, and United Arab Emirates—are tied for fifth place. Australia and United Kingdom conclude the top ten with a tie.

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The 10 lowest-rated countries are: Iran, Algeria, Chad, Guinea, Angola, the Central African Republic, Argentina, the Republic of the Congo, Libya and, lastly, Venezuela.

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