WASHINGTON, JAN. 16, 2007-Economic freedom
broadly declined last year in Sub-Saharan Africa, an area that
remains home to more "repressed" economies than any other region,
according to the 2007 "Index of Economic Freedom."
Published annually by The Wall Street Journal and The
Heritage Foundation, the new index uses a revised methodology that
provides an even more precise snapshot of economic freedom than its
predecessors. The new index incorporates the best and latest
economic information, including World Bank Data previously
unavailable to outside researchers. It also uses a new rating
system in which economies are ranked on a 100-point scale, with a
higher score representing greater freedom.
The report pegs the Sub-Saharan region's overall level of
economic freedom at only 54.7. That's well below the 60.6 world
average and identifies the Sub-Saharan region the world's least
economically free region.
Mauritius leads all nation's in the region with a score
of 69.0, good for a 34th place ranking worldwide. This
score classifies Mauritius' economy as "moderately free." Its
closest regional competitor is Botswana, 38th in the world
and also "moderately free." There are no "free" or "mostly
free" economies in the region
The region's lack of economic freedom is a source of poverty,
the Index editors note. "Average GDP per capita is only $1,984 --
the lowest of any region and barely one-tenth of the average
incomes in Europe and the Americas," write Tim Kane, Kim Holmes and
Mary Anastasia O'Grady.
A majority of nations in Sub-Saharan Africa are ranked "mostly
unfree," with the balance split evenly between "moderately free"
and "repressed." Eight Sub-Saharan economies were classified as
"repressed," the Index's lowest category.
Compared to the previous year, scores improved for 15 countries
in the region and declined in 25 others. Botswana,
Kenya and Cape Verde all dropped a category. The
first slipped from "mostly free" to "moderately free," while the
others fell from "moderately free" to "mostly unfree." One economy
advanced: Nigeriamoved from "repressed" to "mostly
unfree."
As in previous years, the Index ratings reflect an analysis of
dozens of economic variables, grouped into 10 categories, although
this year those categories were revised. The 10 freedoms measured
are: business freedom, trade freedom, fiscal freedom, freedom from
government, monetary freedom, investment freedom, financial
freedom, property rights, freedom from corruption and labor
freedom. Ratings in each category are averaged to produce the
overall Index score.
Worldwide, the average rating for economic freedom held
essentially steady, "but there is much room for improvement" the
Index editors write. Of the 157 countries ranked, only seven are
classified as "free" (a score of 80 or higher). Another 23 are
"mostly free" (70-79.9). The bulk of countries-107 economies-are
either "moderately free" (60-69.9) or "mostly unfree" (50-59.9).
Some 20 countries have "repressed" economies, with total freedom
scores below 50 percent.
The Heritage Foundation and The Wall Street Journal have
published the Index for 13 consecutive years. It's edited by Tim
Kane, director of Heritage's Center for International Trade and
Economics, Kim Holmes, Heritage's vice president for foreign
affairs, and Mary Anastasia O'Grady, a member of the Journal's
editorial board and editor of the "Americas" column.
Print versions of the 2007 Index of Economic Freedom (408 pp.,
US$24.95) can be ordered by calling 1-800-975-8625. Additionally
the full text, along with all charts and graphs, is available free
on the Internet at www.heritage.org/index. A
Spanish language version of the Index will be available online in
March.
About The Wall Street
Journal
The Wall Street Journal, the flagship publication of Dow Jones
& Company (NYSE: DJ; www.dowjones.com), is the world's leading
business publication. Founded in 1889, The Wall Street Journal has
a print and online circulation of nearly 2.1 million, reaching the
nation's top business and political leaders, as well as investors
across the country. Holding 31 Pulitzer Prizes for outstanding
journalism, The Wall Street Journal provides readers with trusted
information and knowledge to make better decisions. The Wall
Street Journal print franchise has more than 600 journalists
world-wide, part of the Dow Jones network of nearly 1,800 business
and financial news staff. Other publications that are part of The
Wall Street Journal franchise, with total circulation of 2.7
million, include The Wall Street Journal Asia, The Wall Street
Journal Europe and The Wall Street Journal Online at WSJ.com, the
largest paid subscription news site on the Web. In 2006, the
Journal was ranked No. 1 in BtoB's Media Power 50 for the seventh
consecutive year.