- Canada’s Fraser Institute has published the Economic Freedom of the World: 2020 Annual Report in conjunction with New Delhi based think tank Centre for Civil Society. This is the 24th edition of the report. Global Economic Freedom 2020 report has covered 162 countries; however, the latest data available is from 2018. So, the report has been prepared on the basis of 2018 data. The Global Economic Freedom report is prepared to know how countries are supportive of economic freedom.
- The degree of economic freedom of the countries is measured on the basis of 5 broad areas-
- Area 1- Size of Government
- Area 2- Legal System and Property Rights
- Area 3- Sound Money
- Area 4- Freedom to Trade Internationally
- Area 5- Regulation
Key Findings
- As per the Global Economic Freedom Index 2020, Hong Kong is the most economically free country and is on the top spot on the index. Hong Kong has performed better on the “Legal System and Property Rights” area.
- Singapore has been ranked second on the index.
- Singapore is followed by New Zealand, Switzerland and USA to rank 3rd, 4th and 5th on the index respectively.
- As per the index, economically free countries have out-performed non-free nations in the indicators of well-being.
- Japan has been ranked 20th on the index while Germany is at 21st position.
- Rank of Italy on the index is 51st while that of France is 58th.
- Mexico has been placed at 68th; Russia at 89th; Brazil and India at 105th and China at 124th position.
- Venezuela has been ranked on the bottom of the index i.e. at 162nd position.
Top 10 Countries
| Rank | Country |
|---|---|
| 1 | Hong Kong |
| 2 | Singapore |
| 3 | New Zealand |
| 4 | Switzerland |
| 5 | United States of America |
| 6 | Australia |
| 7 | Mauritius |
| 8 | Georgia |
| 9 | Canada |
| 10 | Ireland |
Bottom 10 Countries
| Rank | Country |
|---|---|
| 153 | Central African Republic |
| 154 | Democratic Republic of Congo |
| 155 | Zimbabwe |
| 156 | Republic of Congo |
| 157 | Algeria |
| 158 | Iran |
| 159 | Angola |
| 160 | Libya |
| 161 | Sudan |
| 162 | Venezuela |
India related findings
- India has been ranked on 105th position on the Global Economic Freedom Index 2020.
- India has lost 26 places from the last year index in which it was ranked 79th.
- India has been ranked above China on the 2020 index.
Questions
Ques: 1. What is the rank of India on Global Economic Freedom Index 2020?1. 79th
2. 105th
3. 124th
4. 89th
5. None of these
Answer- (2)
Explanation- India has been ranked at 105th position on the Global Economic Freedom Index 2020. India has fallen by 26 places on the index in comparison to the last year rankings.
Ques: 2. How many countries have been included in the Global Economic Freedom Index 2020?
1. 131
2. 133
3. 105
4. 162
5. 123
Answer- (4)
Explanation- Global Economic Freedom Index 2020 included 162 countries to prepare the rankings. However, the rankings have been prepared on the basis of 2018 data. Hong Kong is the most economically free country as per the index.
