World Economic Freedom Index Current Affairs
India has been ranked 112th out of 159 countries in the 2016 World Economic Freedom Index (WEFI). The index was release as part of the 2016 annual report of the Economic Freedom.
The report measures the economic freedom by analyzing the policies and institutions of all 159 countries and territories and was based on data from the year 2014.
- The economic freedom index of a country is directly proportional to the freedom and opportunities available to its citizens.
- People living in countries with high levels of economic freedom enjoy greater prosperity, more political and civil liberties and longer lives.
- On the contrary, countries with lower levels of freedom index tend to suppress its citizens’ freedom and rights.
- Top 10 Countries in 2016 WEFI: Hong Kong (1st), Singapore (2nd), New Zealand (3rd), Switzerland (4th), Canada (5th), Georgia (6th), Ireland (7th), Mauritius (8th), UAE (9th) and Australia (10th).
- 10 lowest-ranked countries: Iran (150th), Algeria (151st), Chad (152nd), Guinea (153rd), Angola (154th), Central African Republic (155th), Argentina (156th), Congo (157th), Libya (158th) and Venezuela (159th).
- Other notable countries: United States (16th), Germany (30th), Japan (40th), France (57th) and Russia (102nd).
- India’s Neighbours: Bhutan (78th), Nepal (108th) and Sri Lanka (111th), China (113th), Bangladesh (121st) and Pakistan (133rd).
- The report was published by the Centre for Civil Society, a public policy think tank along with Canada’s Fraser Institute.
- World Economic Freedom Index measures the degree of economic freedom in countries in five broad areas based on 2014 data. They are
- (i) Size of government: expenditure, taxes and enterprises (ii) legal structure and security of property rights; (iii) access to sound money; (iv) freedom to trade internationally and (v) regulation of credit, labour, and business.