Bahrain has emerged as one of the top-40 economically-free countries in the world, beating regional peers like the UAE to top the Middle East in the 2022 Economic Freedom of the World report.
The study, released by Fraser Institute, ranked Bahrain 39th among 165 countries, as compared to the 67th position in the previous report.
Ranking 39 among 165 countries in the 2022 Economic Freedom of the World report, the kingdom has seen a massive jump of 17 places from 56th in the previous report.
Bahrain is also the only country in the top quartile of 42 nations to have improved its ranking and has notched up its highest-ever score of 7.47 out of 10 points.
The report is the world's premier measurement of economic freedom - the ability of individuals to make their own economic decisions - ranking countries based on five areas - size of government, legal structure and property rights, government spending and taxation, freedom to trade internationally, regulation of credit, labour and business.
According to the Fraser Institute report, Bahrain has been ranked high for its stable rates of inflation, low tariffs, easy clearance and efficient administration of customs, a freely convertible currency, and few controls on the movement of physical and human capital, rule of law, security of property rights, an independent and unbiased judiciary, and impartial and effective enforcement of the law.
Once again, Hong Kong topped the list followed by Singapore, Switzerland, New Zealand, Denmark, Australia, the US, Estonia, Mauritius and Ireland.
The 10 lowest-rated countries are DR Congo, Algeria, the Republic of Congo, Iran, Libya, Argentina, Syria, Zimbabwe, Sudan, and Venezuela.
“Hong Kong remains the most economically-free jurisdiction in the world, but this ranking is based on 2020 data and more recent interference from China threatens to undermine Hong Kong’s rule of law, which helps ensure equal freedom for all,” said Fred McMahon, Dr Michael A Walker Research Chair in Economic Freedom at the Fraser Institute.
People living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties, and longer lives.
For example, countries in the top quartile of economic freedom had an average per capita GDP of $48,251 in 2020 compared to $6,542 for bottom quartile countries.
In the top quartile, 2.02 per cent of the population experienced extreme poverty ($1.90 a day) compared to 31.45pc in the lowest quartile.
The report pointed out that life expectancy is 80.4 years in the top quartile of countries compared to 66 in the bottom quartile.
“Where people are free to pursue their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives,” McMahon said.
The Fraser Institute produces the annual Economic Freedom of the World report in co-operation with the Economic Freedom Network, a group of independent research and educational institutes in nearly 100 countries and territories.-TradeArabia News Service
