However,
the report revealed that economic freedom has declined worldwide in 2011 as
many countries attempted — without success — to spend their way out of
recession. “The global average economic freedom score for the 2012 Index stands
at 59.5 — on a scale in which 100 represents the ideal — down two-tenths of a
point from 2011.”
The
Index that covers 10 freedoms — from property rights to entrepreneurship in 184
economies across the world — ranked Nepal 32nd out of 41 countries
in the Asia–Pacific region, though its score remains far below world and
regional averages.
Overall,
the economy lacks the entrepreneurial dynamism for broad-based economic growth
and sustainable long-term development, the report said. Its scores for
investment freedom and financial freedom are among the worst in the world.
State interference continues to hurt regulatory efficiency, and there has been
little effort to open the economy or engage in world markets. Lingering
political instability undermines the government’s ability and willingness to
implement necessary economic reforms, according to the annual report that
ranked Hong Kong and Singapore the first and second freest economies for the 18th
straight year. Australia
and New Zealand
ranked third and fourth, and Switzerland
fifth followed by Canada ,
Chile , Mauritius ,
Ireland and the
US under the
top 10 free economies.
According
to the Index, the scores of 75 countries improved while 90 countries lost
economic freedom. Fourteen countries showed no change.
Of
the 75 showing improvement, 73 are considered emerging or developing countries,
with many situated in the Sub-Saharan Africa, the Asia-Pacific, and South and
Central America/Caribbean regions.
Economic
freedom is not only a crucial component of liberty but it also reveals level of
poverty and economic growth as it empowers people to work, produce, consume,
own, trade, and invest according to their personal choices. Economic freedom
matters the most as only an economically free nation can compete in the global
market.