How does Nepal perform in the Economic Freedom of the World Index 2013 published by Fraser Institute of Canada? Also, how do South Asian countries perform with regards to economic freedom?

1. Economic Freedom of the World 2013
&
Nepal
-Surath Giri
www.surathgiri.com

2. What is Economic Freedom?
A situation where general people are free to:
• Own things privately and securely. ( Private Property Rights)
• To trade with others (Free trade)
• Compete in markets (Easy entry, competition, easy exit, lack of cartels,
syndicates and special privileges)
• Buy what they want (Both local and foreign goods)
• Earn a living in a job they choose or run business they want
• Keep what they earn
• To enter into contracts and have them enforced
Economic Freedom is the measure of the degree of
free market economy a nation has.

3. Economic Freedom and Income

4. Economic Freedom and Growth

5. Economic Freedom and share of the
poorest 10%

6. Economic Freedom and income of the
poorest 10%

7. Economic Freedom and life expectancy

8. Economic Freedom of the World Report
• Compiled by three prominent economists James Gwartney, Robert
Lawson & Joshua Hall for Fraser Institute, a think tank based in
Canada
• Uses objective components and secondary data only
• Major Components:
• 1 Size of Government; 2 Legal System and Property Rights; 3 Sound Money; 4 Freedom
to Trade Internationally; 5 Regulation.
• Data sources:
• International Monetary Fund, World Bank, and World Economic Forum and
Government provided data wherever available
• Prepared annually using data of two years back
• Samriddhi, The Prosperity Foundation is the official partner from
Nepal

9. Economic Freedom of the World 2013
• Nine new countries have been added to the
index (Brunei Darusala, Cape Verde, The
Gambia, Suriname, Swaziland, Tajikistan,
Timor-leste, Lebanon, Yemen, )
• Overall economic freedom of the world has
increased (6.87 from 6.83 in 2010)

10. World’s Freest Economies: 2013
Position Country/Economy Score Remarks
1st
Hong Kong 8.97 ------
2nd
Singapore 8.73 ------
3rd
New Zealand 8.49 ------
4th
Switzerland 8.30 ------
5th
United Arab Emirates 8.07 Increased
6th
Mauritius 8.01 Increased
7th
Finland 7.98 Increased
8th
Bahrain 7.93 Decreased
9th
Canada 7.93 Decreased
10th
Australia 7.88 Decreased

11. World’s Least Free Economies: 2013
Position Country/Economy Score Remarks
143rd
Algeria 5.32 Slightly improved
144th
Congo, Dem. Republic 5.28 Slightly improved
145th
Burundi 5.26 Worsened
145th
Central African
Republic
5.26 Worsened
147th
Angola 5.17 Slightly improved
148th
Chad 4.98 Worsened
149th
Zimbabwe 4.59 Slightly improved
150th
Congo, Republic 4.57 Worsened
151st
Myanmar 4.08 Worsened
152nd
Venezuela 3.93 Worsened

12. Nepal’s Economic Freedom
• Unadjusted
– 125th
out of 152 countries with a score of 6.19 out of 10
– Was 110th
out of 144 countries last year with a score of 6.33 out of 10
• Chain-Linked
– 105th
out of 152 countries studied with a score of 5.92 out of 10
– Was 105th
out of 144 countries last year with a score of 5.90 out of 10
• Overall score and rank has decreased
• Nepal is still among the Least Free Category of Economic
Freedom Index

13. Nepal’s Economic Freedom
• Size of government:
• Worsened from 8.34 to 7.6 (31st
in the world)
• Legal structures and security of property rights:
• Improved from 3.85 to 4.2 (126th
in the world)
• Access to sound money:
• Slightly improved from 6.26 to 6.3 (136th
in the world)
• Freedom to trade internationally:
• Worsened from 6.74 to 6.4 (118th
in the world)
• Regulation of credit, labor and business:
• Slightly improved from 6.47 to 6.5 (109th
in the world)

14. Economic Freedom of South Asia and China
Country Score Rank Remarks
Sri Lanka 6.66 92nd
Increased
India 6.34 111th
Same as before
Pakistan 6.34 111th
Same as before
Bangladesh 6.33 114th
Decreased
China 6.22 123rd
Decreased
Nepal 6.19 125th
Decreased
Maldives N/A N/A N/A
Bhutan N/A N/A N/A

15. Thank you!