For more than twenty years, the American Strategic Research Institute Heritage Foundation and the Wall Street Journal have calculated World Economic Freedom Index... The list covers 12 freedoms - from property rights to financial freedom - in 186 countries. The better things are with this or that freedom, the higher its indicator (maximum - 100 points, and 0, respectively, minimum).
The ideas of economic freedom are closely related to the well-being of society, cleaner environmental conditions, higher per capita income, human development, democracy and the elimination of poverty.
This is what the top ten most economically free countries in the world look like in the 2018 ranking.
10. United Arab Emirates
The UAE has a well-developed economy with high per capita income and a significant annual trade surplus. Economic diversification has reduced the share of the oil and gas sector in GDP to 30 percent.
In terms of economic freedom, the UAE ranks first among the 14 countries in the Middle East region, and the country's overall score (77.6) is significantly higher than the average for the region and the world.
However, the state's openness to foreign investment in the UAE is below average (40 points).
9. Canada
Although Canada ranked only ninth in the ranking of economic freedom, it surpassed 32 countries in the Americas for an overall score of 77.7.
Canada's economic competitiveness is based on a strong rule of law and strong institutional foundations of an open market system. And government support for the fossil fuel industries is critical to the health of the Canadian economy.
Canada is very similar to the United States in its market system and high standard of living. Leading sectors of the economy include the automotive industry, manufacturing of manufactured goods, and mining and oil extraction.
8.UK
The UK's overall score rose 1.6 in 2018, driven by higher fiscal and government spending figures. The UK is ranked 4th among 44 countries in the European region with an overall score of 78.
The Brexit process provided the British government with an opportunity to correct any remaining structural deficiencies that could affect the efficiency of the economy. The UK has shown a rapid recovery from the financial crisis, fueled by factors such as the rule of law, an open trade regime and a well-developed financial sector.
7. Estonia
This small country ranks third among 44 countries in the European region, with an overall score of 78.8.
The prudent financial policy of the Estonian government has resulted in a balanced budget, low public debt, and significant economic freedom.
And a simplified taxation system with fixed rates and low indirect taxation, openness to foreign investment and a liberal trade regime provide strong support for a stable and well-functioning Estonian economy.
6. Ireland
In 2018, Ireland's overall score increased by 3.7 to 80.4, driven by significantly higher health and government spending, as well as higher tax burdens and higher labor freedom scores. Ireland is ranked 2nd among 44 countries in the European region.
Although Ireland's public debt remains high, measures to reduce the deficit and refinance the banking sector's debt have spurred the country's economic recovery.
Ireland's strong economic base is backed by robust property rights protections and an independent judiciary that guarantees the rule of law.
5. Australia
In fifth place in the top 10 most economically free countries is one of the best countries in the world in terms of living standards... Australia's economic freedom score is 80.9.
Australia is one of the richest countries in the Asia-Pacific region. Mineral resources and agricultural products are important sources of its export.
Australia's regulatory environment is one of the most transparent and efficient in the world and is very conducive to entrepreneurship In 2016, it took less than three days to register a business in the country.
4. Switzerland
A prosperous and wealthy Switzerland, with 81.7 points, boasts a transparent legal system, economic and political stability, a highly skilled workforce, and an exceptionally developed infrastructure.
Well-enforced property rights, including intellectual property rights, encourage entrepreneurship. Flexible labor standards and the absence of corruption in Switzerland also contribute to a better business environment.
3. New Zealand
Australia's Neighbor scored 84.2, making it the third largest economy in the 2018 Index. The former British colony is now a country with an efficient and competitive business environment. Transparent, well-enforced labor laws contribute to a better labor market. New Zealand has the lowest subsidies in the OECD, eliminated all subsidies to farmers more than three decades ago and is driving the development of a dynamic and diversified agriculture sector.
And the country's bipartisan, market-oriented policies contribute to economic resilience and growth.
2. Singapore
Singapore's overall score in 2018 increased by 0.2 points (to 88.8), thanks to improvements in freedom of labor and property rights.
The highly developed economy in Singapore owes its success to a surprisingly open and non-corrupt business environment, sound monetary and fiscal policies, and a transparent legal framework.
The government has shown commendable prudence in pursuing active industrial policies to foster economic development and diversification, and address business concerns through significant public investment and targeted financial incentives. Well-secured property rights contribute to the development of entrepreneurship in the country.
1. Hong Kong
The Special Administrative Region of China has become the leader in terms of economic freedom. His overall score is 90.2.
Long the financial and business center of Asia, Hong Kong boasts one of the most resilient economies in the world. Hong Kong businesses operate within an efficient and transparent regulatory environment. In 2016, the business registration fee was reduced. Openness to global trade fosters a conducive business climate. At the same time, Hong Kong is increasingly integrated with the mainland through trade, tourism and financial ties.
However, Hong Kong's reliance on foreign trade and investment makes this special economic zone vulnerable to global financial market volatility or a slowdown in the global economy.
Russia's place in the ranking of economic freedom
As for economic freedom in Russia, our country is on the 107th line of the rating, gaining 58.2 points. Its overall score has increased by 1.1 points compared to 2017. According to the compilers of the rating, the Russian economy is dominated by large state institutions and an inefficient public sector. The judicial system creates favorable conditions for corruption. Property rights are poorly protected. All this worsens the long-term prospects for economic development.
In addition, the situation with Crimea and eastern Ukraine has led to continued Western economic sanctions and capital flight from the country.
Russia was bypassed by such countries of the former USSR as Lithuania, Azerbaijan, Kazakhstan, Armenia and Tajikistan. However, in Belarus (108th place) and Ukraine (150th place), the situation with economic freedom is even worse.