Barbados tops ‘economically free’ countries in the region – Economic analysis


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Barbados’ economy is now classified as “mostly free” with an overall score of 71.3 out of 100 and ranked 28th freest out of 177 countries in the latest Index of Economic Freedom.

This is a massive improvement from the “moderately free” ranking with an overall score of 61.4 out of 100 and a position of 92nd out of 180 countries, in the 2020 report.

In the 2019 index, Barbados was also rated “moderately free” with a position of 67th out of 180 countries.

Released earlier this year by the Heritage Foundation, the Index of Economic Freedom, which is based on data from the previous year, is based on four major sets of indicators – rule of law, limited government, which refers to fiscal freedom and public spending; regulatory efficiency, which includes business freedom, labor freedom and monetary freedom; and open markets, which refer to commercial freedom, investment freedom and financial freedom.

Bridgetown’s ranking puts it first in the Caribbean for economic freedom and second in Latin America and the Caribbean combined, behind Chile, which is ranked 20th with an overall score of 74.4.

Other Caribbean and Latin American countries are categorized as “moderately free” or “mostly unfree”.

According to the report, the seven economies considered free in ascending order are Singapore, Switzerland, Ireland, New Zealand, Luxembourg, Taiwan and Estonia, all of which scored 80 and above.

The five countries with the most repressed economies would be North Korea, Venezuela, Cuba, Sudan and Zimbabwe.

Barbados was assessed and scored in 12 out of 100 areas, including property rights (72.6), integrity of government (68.7), judicial efficiency (88.2), tax burden ( 80.6), public spending (70.8), fiscal health (79.7), business freedom (63.4), labor freedom (63.4), monetary freedom (58.4), freedom investment (70) and financial freedom (60).

Economic freedom is defined by the Heritage Foundation as the fundamental right of every human being to control their own labor and property.

“In a society without an economy, individuals are free to work, produce, consume and invest as they see fit. In economically free societies, governments allow labor, capital, and goods to flow freely and refrain from any coercion or constraint of freedom beyond the extent necessary to protect and maintain freedom itself. he added.

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