By Conrad Onyango – Bird Newsroom.
Small African countries grow faster than their larger counterparts when it comes to being more economically free, according to a new report.
âWorld Economic Freedom: 2021,â a report released by the Free Market Foundation, a think tank, in collaboration with the Fraser Institute of Canada, lists the continent’s small nations among the best countries in the world when it comes to acts to grant their citizens higher levels of personal choice, better market access and clearly defined and enforced property rights.
Mauritius (11), Seychelles (43) and Botswana (45) are the main African countries in the report, offering the strongest policies and institutions in support for economic freedom.
âWhen people are free to take their own opportunities and make their own choices, they lead more prosperous, happier and healthier lives,â says Fred McMahon, Research Chair in Economic Freedom at the Institute. Fraser.
Uganda (58), Rwanda (64), Zambia (80) and The Gambia (82) were also ranked among the most economically free jurisdictions in the world.
Mauritius topped the scores in all key indicators, from size of government (7.9) to legal system to property rights (6.9). Access to healthy money (9.5), international free trade (8.5) and credit, labor and business regulation (8.0) all ranked top of the country’s scorecard.
The majority of the small countries mentioned also scored high when it comes to providing people with access to healthy currency – aided by self-correction mechanisms to cushion consumers’ purchasing power against sudden currency appreciation and depreciation.
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Mauritius, Uganda and The Gambia were tied for access to sound currency at 9.5, with Zambia closes the group with a score of 9.1.
The continent’s economic âgiantsâ Nigeria and South Africa were in the middle of the rankings, at 84th position, while Kenya finished 86th out of 165 countries and territories worldwide.
Nigeria (3.7) and Kenya (5.0) suffered from low scores on legal systems and property rights. In North Africa, Morocco (102), Egypt (149) and Algeria (162) ranked lower in the global list, scoring equally low on key indicators.
Egypt scored low in legal systems and property rights (3.6), size of government (5.4), and credit, labor and business regulations (5.4). Algeria scored the least (2.5) on give its citizens the freedom to trade internationally.
âEconomic freedom increases upward mobility of income and, among the ten pillars of social mobility, economic freedom is closely linked to four: the quality of education, lifelong learning, access to inclusive technology and institutions, âaccording to the report’s researchers.
Over the decade to 2019, the report shows that the global average economic freedom score fell from 6.61 to 7.04 for the 123 countries, highlighting a trend of countries striving to make their jurisdictions freer.
bird story agency.