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2021 Index of Economic Freedom: Ukraine on a par with impoverished African countries

Author : 112.ua News Agency

Source : 112 Ukraine

The Heritage Foundation has published an annual ranking of economic freedoms
09:00, 9 March 2021

Heritage Foundation

Among the countries of Europe, Ukraine turned out to be the only economically unfree country. Even Russia and Belarus turned out to be freer.

Related: Would Ukraine's business have better life after launching Bureau of Economic Security?

There are 178 positions in the rating. Ukraine ranks 127th, it is located among the poor countries such as Djibouti, Nicaragua, Niger, Bangladesh, Guinea, Burkina Faso, and others. They belong to the "orange" level of freedom - mostly not free.

Heritage Foundation
The index is compiled on the basis of 12 factors that are the basis of the economic freedom of the countries of the world, grouped into 4 categories:

  • rule of law (property rights, judicial efficiency, and government integrity);
  • the level of government intervention (tax burden, government spending, and fiscal health);
  • efficiency of the regulation (freedom of business, freedom of labor, and monetary freedom);
  • market openness (freedom of trade, freedom of investment, and financial freedom).

It is worth noting that our country has risen by 7 positions in comparison with the last year's rating.

Singapore tops the list. Next to him are New Zealand, Australia, Switzerland, and Ireland.

In countries with freer economies, the level of well-being of the population is much higher, and economic freedom brings relatively quick and tangible results, in contrast to state regulation of the economy. Research data show that "free" countries have on average twice as much per capita income as "predominantly free" countries, and the per capita income of "predominantly free" countries is more than three times the per capita income of "predominantly free" and "not free" countries.

The researchers explain this ratio by the fact that the reduction of the economic functions of the state and the transfer of responsibility for making economic decisions to entrepreneurs, as a rule, leads to a significant increase in social welfare. Countries with economic freedom policies create favorable conditions for trade and entrepreneurship, which in turn generate economic growth.

Related: How to deploy economic tools against Putin’s aggression

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