The Republic ranks sixth among economically free jurisdictions globally, according to the Economic Freedom of the World: 2001 Annual Report, released by right-wing think tank the Open Republic Institute.
The report, which places Hong Kong first, is complied in conjunction with Canada's Fraser Institute and the US-based Cato Institute, as well as 48 independent institutes from around the world.
They define economic freedom in terms of personal choice, protection of private property and freedom of exchange.
Following Hong Kong in the top 10 are Singapore, New Zealand, Britain, the US, Australia, Ireland, Switzerland, Luxembourg, and the Netherlands. Myanmar, Algeria, the Democratic Republic of Congo, Guinea-Bissau and Sierra Leone ranked lowest among the 123 countries for which data were available. European states generally ranked high in all areas, except size of government and labour market regulation. However, a big government does not always mean hostility toward business. Hong Kong, Singapore and the United States had regulatory environments that were favourable for business competition and market allocation, but so did countries such as Finland, the Netherlands, Denmark and Sweden.
"Modern economic growth is primarily about discovery, innovation and brain power. Thus, the strong relationship between economic freedom and strong growth should not be surprising," said Prof Moore McDowell, a director of the Open Republic Institute.
The study also found that free economies had higher per capita incomes and grew more rapidly. They also had less poverty and political corruption, achieve higher scores on the United Nations Human Development Index, and citizens live 21 years longer, according to the study. The institute has set up a website, www.openrepublic.org.
