Economic Freedom of the World 2013&

Nepal

-Surath Giriwww.surathgiri.com

What is Economic Freedom?A situation where general people are free to:

• Own things privately and securely. ( Private Property Rights)• To trade with others (Free trade)• Compete in markets (Easy entry, competition, easy exit, lack of cartels,

syndicates and special privileges)• Buy what they want (Both local and foreign goods)• Earn a living in a job they choose or run business they want• Keep what they earn• To enter into contracts and have them enforced

Economic Freedom is the measure of the degree of

free market economy a nation has.

Economic Freedom and Income

Economic Freedom and Growth

Economic Freedom and share of the poorest 10%

Economic Freedom and income of the poorest 10%

Economic Freedom and life expectancy

Economic Freedom of the World Report• Compiled by three prominent economists James Gwartney, Robert

Lawson & Joshua Hall for Fraser Institute, a think tank based in Canada

• Uses objective components and secondary data only• Major Components:

• 1 Size of Government; 2 Legal System and Property Rights; 3 Sound Money; 4 Freedom to Trade Internationally; 5 Regulation.

• Data sources: • International Monetary Fund, World Bank, and World Economic Forum and

Government provided data wherever available

• Prepared annually using data of two years back• Samriddhi, The Prosperity Foundation is the official partner from

Nepal

Economic Freedom of the World 2013• Nine new countries have been added to the

index (Brunei Darusala, Cape Verde, The Gambia, Suriname, Swaziland, Tajikistan,

Timor-leste, Lebanon, Yemen, )

• Overall economic freedom of the world has increased (6.87 from 6.83 in 2010)

World’s Freest Economies: 2013Position Country/Economy Score Remarks

1st Hong Kong 8.97 ------

2nd Singapore 8.73 ------

3rd New Zealand 8.49 ------

4th Switzerland 8.30 ------

5th United Arab Emirates 8.07 Increased

6th Mauritius 8.01 Increased

7th Finland 7.98 Increased

8th Bahrain 7.93 Decreased

9th Canada 7.93 Decreased

10th Australia 7.88 Decreased

World’s Least Free Economies: 2013Position Country/Economy Score Remarks

143rd Algeria 5.32 Slightly improved

144th Congo, Dem. Republic 5.28 Slightly improved

145th Burundi 5.26 Worsened

145th Central African Republic

5.26 Worsened

147th Angola 5.17 Slightly improved

148th Chad 4.98 Worsened

149th Zimbabwe 4.59 Slightly improved

150th Congo, Republic 4.57 Worsened

151st Myanmar 4.08 Worsened

152nd Venezuela 3.93 Worsened

Nepal’s Economic Freedom• Unadjusted

– 125th out of 152 countries with a score of 6.19 out of 10– Was 110th out of 144 countries last year with a score of 6.33 out of 10

• Chain-Linked– 105th out of 152 countries studied with a score of 5.92 out of 10– Was 105th out of 144 countries last year with a score of 5.90 out of 10

• Overall score and rank has decreased• Nepal is still among the Least Free Category of Economic

Freedom Index

Nepal’s Economic Freedom• Size of government:

• Worsened from 8.34 to 7.6 (31st in the world)

• Legal structures and security of property rights: • Improved from 3.85 to 4.2 (126th in the world)

• Access to sound money: • Slightly improved from 6.26 to 6.3 (136th in the world)

• Freedom to trade internationally: • Worsened from 6.74 to 6.4 (118th in the world)

• Regulation of credit, labor and business: • Slightly improved from 6.47 to 6.5 (109th in the world)

Economic Freedom of South Asia and ChinaCountry Score Rank Remarks

Sri Lanka 6.66 92nd Increased

India 6.34 111th Same as before

Pakistan 6.34 111th Same as before

Bangladesh 6.33 114th Decreased

China 6.22 123rd Decreased

Nepal 6.19 125th Decreased

Maldives N/A N/A N/A

Bhutan N/A N/A N/A

Thank you!