Index of world economic freedom: the best and worst positioned countries and the two Latin American countries located among the most worrying cases

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The Institute FRASER elaborated the Index of economic freedom in the world. The report published in Economic Freedom of the World measures the extent to which the policies and institutions of countries support economic freedom.

The cornerstones of economic freedom are personal choice, voluntary exchange, freedom to enter markets and compete, and security of person and private property. Forty-two points were used to construct a summary index, along with a gender legal rights adjustment to measure the extent to which women have the same level of economic freedom as men.

The degree of economic freedom was measured in five broad areas: size of government, legal system and property rights, money, freedom of international trade and regulation.

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government size: Increased public spending, taxes, and government-controlled companies were taken into account. Individual choice is replaced by government decision making and economic freedom is curtailed.

Legal system and the right to property: the protection of people and their legitimately acquired property is a central element, both of economic freedom and of civil society. In fact, it is the most important function of government.

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Money: Inflation erodes the value of legitimately earned wages and savings. Sound money is therefore essential to protect property rights. When inflation is not only high but also volatile, it becomes difficult for people to plan ahead and thus use economic freedom effectively.

Freedom of international trade: the freedom of exchange, in its broadest sense, purchase, sale, conclusion of contracts, etc., is essential for economic freedom, which is reduced when the freedom of exchange does not include companies and individuals in other nations.

Regulation: Governments not only use a number of tools to limit the right to trade internationally, they can also impose onerous regulations that limit the right to trade, obtain credit, hire or work for whomever you wish, or freely operate your business.

Economic freedom in the world in 2020

Hong Kong remains in the first positionthough his rating fell an additional 0.28 points. Singapore, once again, ranks second. The following nations with the highest scores are Switzerland, New Zealand, Denmark, Australia, the United States, Estonia, Mauritius and Ireland.

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Regarding the countries of the region, there are two that are among the 10 worst in the ranking: Argentina is ranked 161 out of 165 Y Last Venezuela (165). Those who complete the last places in the table are Democratic Republic of the Congo, Algeria, Republic of the Congo, Iran, Libya, Syria, Zimbabwe and Sudan.

Rankings of some other major countries are as follows: Japan (12th), Canada (14th), Germany (25th), Italy (44th), France (54th), Mexico (64th), India (89th), Russia (94th ), Brazil (114) and China (116).

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As to South American countriesthe best positioned is Chili, which is ranked 33rd in the world. The second in the region is Peru (37) and third is Uruguay (68). They follow Paraguay (78), Colombia (99), Ecuador (106), Brazil (114), bolivia (123), Argentina (161) and Venezuela (165). Meanwhile, regarding Central America, Nicaragua It is in the 82nd position.

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Lastly, in Asia Several of the best positioned countries in the ranking are located. The one at the top of the list Hong Kong; and also Singapore (second), New Zealand (fourth) and Australia (sixth).

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Source-www.infobae.com