Top 10 Freest Economies in the World 2010

Top 10 Freest Economies in the World 2010

by Roman on April 6, 2010

Each year the Heritage Foundation and the Wall Street Journal compile a list of the top 10 countries with the freest economies in the world.

This year over 10 different categories of freedom were measured. Things like trade freedom, business freedom, investment freedom, property rights and so on.

The freer the economy the easier and better it is to do business in the corresponding country. It is no coincidence that the same countries in the top of the freest economies in the world list also serve on the top of charts like richest countries in the world and happiest countries.

To find the freest economy in the world 10 different categories were measured within each country. The maximum score was 100 points, meaning that a country with that score would be absolutely free all aspects. No one got the maximum score, but a few countries came close.

10. Chile – 77.2 points (from 100 maximum)

When hearing the name Chile, most people think it is a poor third world country. Not anymore it is!

Among with the rest of Latin American countries Chile used to be a place of poverty but thanks to the reforms in the last 3 decades it has transformed itself to be the freest economy in South America.

The cornerstone of Chile is its sound financial policy allowing for foreign investments to pour into the country. Chile has been keen to sign free trade agreements with countries all over the world.

In addition to its strong financial sector Chile is also the largest exporter of copper in the world.

9. Denmark – 77.9 points

In addition to being the happiest country in the world Denmark is a country with an extraordinarily strong financial sector. The banking crisis of 2008 and 2009 left the country unharmed, mainly because the government’s oversight of the banking industry is working exceptionally well. If the US had a financial oversight body working half as good, we wouldn’t have had the housing bubble that burst in 2008.

Denmark would be even higher in the list of the world’s freest economies if the government would pull back on its spending. The taxes are exceptionally high – some people have to give away 73% of everything they make! If that ain’t crazy, nothing is!

8. USA – 78,0 points

Compared to the year before, the US has lost quite a bit in the freeness of its economy. Because of the economic crisis that started in 2008 the government has decided to accept a number of financial and monetary regulations that have undermined the countries economic freedom.

The government has helped bail out a number of large banks, car manufacturers and other large companies but is itself allowing  its budget to get more and more into deficit.

Some experts seem to agree that the US is heading into bankrupcy.

7. Canada – 80.4 points

Thanks to the declinel of USA, Canada is now the freest North-American economy. Its strengths include lack of corruption, financial freedom and property rights. Unlike the USA, Canada has a budget surplus.

It looks that instead of following the lead of USA, Canada is more closely following its European friends. Just like many countries in Europe, Canada has a great welfare program and many social programs intended to make the lives of their people better.

6. Switzerland – 81.1 points

Switzerland has earned its high place in the freest countries in the world list because of its legendary neutrality. The Swiss never pick sides – this has helped them to stay out of trouble and make the country a fortune.

During the World War 2, Switzerland was the only place where many people could deposit their gold and money. Because of the neutrality they could be sure that the money would be safe and they could withdraw it after the war ends. Capitalizing on the image of neutrality has made Switzerland one of the largest financial centers in the world.

5. Ireland – 81.3 ponts

Ireland is the freest economy in Europe. Although the financial sector got hit when the housing bubble burst in 2008, the overall business climate is excellent.

Throughout the 1990s and the early 2000s Ireland benefited greatly from its flexibility and openness. In recent years one could say that the same openness is also to be partly blamed for the financial crisis currently in Ireland. The government is planning to buy up all the non-performing loans the banks have amassed throughout the last 2 decades.

4. New Zealand – 82.1 points

While most people know New Zealand as a place where the movie Lord of the Ring was filmed, it is also a country with one of the lowest unemployment rates in the freest economies of the world.

The successful regulatory environment supports people starting their own companies. The government has even decided to cut the corporate tax rate to help make the companies of New Zealand more profit. Business freedom in the country is the highest in the world – scoring 99.9 points out of 100.

3. Australia – 82.6 points

Canada is another country that ranks high in financial freedom, property rights, and freedom from corruption. The country is facing its 18th year of uninterrupted economic growth. Internationally Australia is a competitive producer of services, technologies, and high-value-added manufactured goods. Its export sector remains heavily focused on mining and agriculture.

Lately there has been some turmoil about Australia’s government using internet filtering to stop people seeing certain website. It is believed that if such actions continue, Australia will most probably fall in the list of the freest economies of the world.

2. Singapore – 86.1 points

This city state is the most advanced country in Asia. As a financial center Singapore was already used to growing its economy 6-8% per year until the financial crisis of 2008 hit the country. The country is so well run that instead of going into recession Singapore still managed to pull out from 2008 with a 1% economic growth.

Some other good things about Singapore is non existent corruption, extremely low taxes and one of the worlds most effective labor markets.

1. Hong Kong – 89.7 points

Hong Kong has held the position of the freest economy in the world for 15 years straight. Just like Singapore, this little island is one of the world’s largest financial centers. For those not knowing, Hong Kong is actually not a separate country but a part of the People’s Republic of China.

The reason Hong Kong can triumph the list of the freest economies in the world is because it is a separate region in China and therefore goes untouched by the Chinese communism. Hong Kong governs its own affairs and even has his own mini constitution.

Other notable countries

  • United Kingdom – 11th place
  • Luxembourg – 14th place
  • Estonia – 16th place
  • Japan – 19th
  • Germany – 23rd
  • France – 64th
  • Italy – 74rd
  • India – 124th
  • Russia – 143rd

For a complete list of the Top 10 freest economies in the world see the world heritage website.

Enter your email to subscribe to our future posts:

 

How to subscribe and why subscribe?


{ 14 comments }

Car Insurance Phi April 7, 2010 at 3:03 pm

Too bad the USA dropped but at least Canada made its way up the list!

Roman April 8, 2010 at 5:02 pm

Yeah… you can always move to Canada!

SingaporeBoi April 9, 2010 at 4:13 am

I hate Hong Kong

Roman April 9, 2010 at 7:09 am

I hate people who hate things

GS July 18, 2011 at 8:03 pm

Roman,

Do you hate yourself?

SingaporeBoi April 9, 2010 at 7:29 pm

I think you should have a look at this : http://www.youtube.com/watch?v=euq5W6lv-j8

Smack MacDougal April 25, 2010 at 1:56 pm

Any country where politicians impose income tax (theft of time, hence life, hence slavery) or VAT (piecemeal theft of time, hence life, hence slavery) is not a free country.

Your list is bogus.

seo web service June 17, 2010 at 12:06 am

I agreed Some other good things about Singapore is non existent corruption, extremely low taxes and one of the worlds most effective labor markets.

rajesh salunkhe November 6, 2010 at 2:15 pm

I luv Singapore . Its partly because it is run similiar to a private sector enterprise rather then typical governmental bureaucracy

HARSH KESHRI November 22, 2010 at 8:48 am

INDIA HAS GREAT ECONOMY THAN ANY OTHER COUNTRY WE COMPARE . THE USA’S PRESIDENT OBAMA SAID THAT INDIA IS IN VERY GOOD CONDITION AND IT IS IN THE STAGE TO BECOME A WORLD POWER. WE ALSO HAD SAW IN THE TIME OF RECCESION WHEN THE COUNTRIES FACING IT INDIA IS IN VERY GOOD CONDITION .

Rahul K. February 13, 2011 at 5:03 pm

You don’t get it do you? It’s not about “condition of the economy…” in question. It’s about corruption, bureaucracy, health of it’s people, labor, poverty, property rights, taxes, etc. Just because India’s economy is growing 8-10% each year doesn’t mean it’s “Greatest”. Indian government and people are lost. They’re too busy following US and what China is doing instead of standing on it’s two feet independently. It’s no where close to becoming a super power or leader in the world. US will say anything to trick India into anything. Keep dreaming buddy!

Danish January 3, 2011 at 10:57 am

The danish taxsystem is a little more complicated than just pointing at some toptax figure in a progressive system.
First of all, Denmark doesn’t have a 73% tax.
I’ve noticed some rather strange claims about Denmark and its taxes on the internet, and your 73% isn’t even close to being in the top ten.
Fact is you pay:
8% tax of your total income before tax deduction
Initial tax 3,67% of your income after tax deduction
Top tax 14,63% of your income above $65.000 after tax deduction
Health tax 8,00% of your income after tax deduction
Municipality tax 25,20% of your income after tax deduction

An average dane is paying 8% before tax deduction and 38-40% taxes after tax deduction.

Last year I made $80.000 and payed:
$6.300 in taxes before deduction
$24.000 in taxes after deduction
Thats roughly 30% in total taxes of my income. And I made a $6.000 deposit on a taxfree private pension.

dk January 12, 2011 at 7:13 pm

sounds like you got screwed ….I am a Fire Fighter in the US and I made 99,000 and only paid 7,000 in real taxes after all deductions

Andrew September 7, 2011 at 12:48 pm

For freedom and liberty I know the Czech Republic is hard to beat. Period. Why… let me show you. Check this out.
After 40 years of communisum, they have swung the otheR way.
> Have a hand gun on you, leave the country and then come back in with papers. No problem !
> Carry drugs on you, coke, pot, heroin or any other substance no problem. You have the right to carry it on your person and the police do not have the right to search!
That is just the start…

Comments on this entry are closed.

Previous post:

Next post:


Get Adobe Flash playerPlugin by wpburn.com wordpress themes