The 2007 Index of Economic Freedom is out. The annual publication of The Wall Street Journal and The Heritage Foundation is an indicator of individuals’ freedom to control their economic affairs.
The 2007 report authors refer to economic freedom as the ability of individuals to produce, consume, and distribute goods and services without interference from the state or any other entity. Economic freedom calls on governments to restrain themselves to the provision of entrepreneurial-friendly environments. That includes (1) providing proper legal and law enforcement systems (2) enhancing contract laws and (3) facilitating access to sound money.
How well a government performs the above roles determines a country’s economic freedom, which is measured in percentage points. A country with higher degrees of freedom, say 90%, means that the government is performing its roles efficiently and it rarely interferes with people’s economic endeavors. On the other hand, a country experiencing low degrees of freedom, say 30%, means that the government is spending more time encroaching on individuals’ economic lives other than performing its designated roles. Government interference can happen in 10 indifferent ways.
As the above chart shows, Ugandan economy is the most-free in
Economic freedom is not to be taken lightly; it is directly related to prosperity, thus a better weapon to fight poverty. The report observes that countries experiencing higher degrees of economic freedom were more productive and had better living standards.
That fact holds true for
That simple example from
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KE, i'd say the first two are the ones that are crippling the economy. One, that legal contracts in any business arena are difficult to enforced-impacts banks and other lenders; the enforcing bodies are toothless-CMA; judicial process is non-existent to the extent that it takes forever and judgements are routinely nobbled.
Kenyanomics, that is a quite useful information. I always maintain that the only way Kenyans can move into better economic situations is by freeing up the economy. The graph is a good indicator of the situation on the ground.
It's sad that these areas never get politicians' attention. Reason being that economic prosperity does not yield electoral votes in the short run.
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