WASHINGTON, JAN. 13, 2009--Sub-Saharan Africa
finished last in eight of the 10 components of economic freedom
measured in the 2009 "Index of Economic Freedom," published
annually by The Wall Street Journal and The Heritage
Foundation.
The new report pegs the region's overall level of economic
freedom at 53.1 (on 100-point scale in which a higher score
represents greater freedom). That's significantly below the world
average of 59.5, making Sub-Saharan Africa the world's
lowest-scoring region for economic freedom. This matters because
the Index shows a direct correlation between economic freedom and
prosperity. Countries with higher levels of freedom tend to have
higher GDP per capita.
The Index rated most nations in the region either "mostly
unfree" or "repressed." "In Sub-Saharan Africa there are only
distinctions among less free economies," the editors wrote.
Still, there are positive signs. Mauritius
(18th globally) remains among the world's 20 freest
economies, finishing 10 points or more above the global average in
eight of the economic freedoms measured by the index.
Botswana remains the region's second freest economy,
followed by South Africa and Uganda.
At the other end of the spectrum is Zimbabwe. Under the
misrule of Robert Mugabe, it suffered the world's greatest loss of
economic freedom. The Index now rates that nation below the
world average on each of its 10 components of economic freedom.
Fifteen other economies in the region are also rated as
"repressed," leaving Sub-Saharan Africa's "overall level of
economic freedom weaker than that of any other region," the editors
wrote.
The 2009 Index has expanded its country coverage significantly
to 183 economies, although four of these could not be graded
because of insufficient data. Levels of economic freedom in 10
areas were rated on a scale of zero to 100. The higher the
score, the lower the level of government interference in the
marketplace.
The 10 freedoms measured were: business freedom, trade freedom,
fiscal freedom, government size, monetary freedom, investment
freedom, financial freedom, property rights, freedom from
corruption and labor freedom. Ratings in each category were
averaged, then totaled to produce the overall Index score.
Worldwide, the average rating for economic freedom held
essentially steady this year. However, "there is a real possibility
that the economic freedom scores in this edition might represent
the historical high point for economic freedom in the world," the
authors warned. As governments attempt to stave off a global
recession, their meddling could well threaten economic freedom and
long-term economic prosperity.
Of the 179 countries ranked (the most ever), only seven were
classified as "free" (a score of 80 or higher). Another 23 were
"mostly free" (70-79.9). The bulk of countries--120 economies--are
either "moderately free" (60-60.9) or "mostly unfree" (50-50.9).
Another 29 countries had "repressed" economies, with total freedom
scores below 50.
The 2009 Index was edited by Ambassador Terry Miller, director
of Heritage's Center for International Trade and Economics, and Dr.
Kim Holmes, Heritage's vice president for foreign affairs. Copies
of the 2009 Index (455 pp., US $24.95) can be ordered at
heritage.org/index or by calling 1-800-975-8625 and are
available in English and Spanish. Additionally the full text,
charts and graphs are available at www.heritage.org/index.
About The Wall Street Journal
The Wall Street Journal, the flagship publication of Dow Jones
& Company is the world's leading business publication. Founded
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About The Heritage
Foundation
The Heritage Foundation is the nation's most broadly supported
public policy research institute, with more than 390,000
individual, foundation and corporate donors. Founded in 1973,
Heritage now has a staff of 244 and an expense budget of $61
million.