In the 2022 Economic Freedom Index report, released on September 18th, Brunei was recognized for its exceptional business regulations, with a global rank of second place. The report, published by the Fraser Institute, a Canadian conservative think tank, used data from 2020 to evaluate the economic freedom of 165 countries. The nation scored an impressive 8.8 out of 10 in business regulation, and ranked fourth globally in labor market regulation, with a score of 8.2.
Brunei’s overall global ranking was 59th, representing a drop of seven places compared to the 2019 index. The Economic Freedom Index assesses a country’s economic freedom based on factors such as government size, spending, taxation, regulations, and international trade freedom.
The report noted improvements in Brunei’s scores in areas like sound money, legal system, and property rights, compared to the 2019 index. However, the country’s lower scores in international trade freedom impacted its overall economic freedom ranking. The report highlighted Hong Kong as the world’s most economically-free jurisdiction, although the ranking was based on 2020 data. Following Hong Kong, Singapore, Denmark, Switzerland, New Zealand, the United States, Australia, Mauritius, Estonia, and Ireland held the remaining top ten spots.
Compared to its Southeast Asian neighbors, Brunei’s ranking was lower than Singapore’s, which was ranked second globally. Malaysia was ranked 49th, while other regional countries such as Cambodia, the Philippines, Thailand, Vietnam, and Myanmar had lower rankings.
The report acknowledged the global economy’s struggles due to the COVID-19 pandemic, with economic freedom declining in 146 countries. Governments worldwide imposed restrictions that affected economic activity and trade. Fred McMahon, a researcher at the Fraser Institute, emphasized the importance of personal freedom in promoting prosperity, happiness, and health.
Countries with high levels of economic freedom tend to have higher levels of prosperity, political and civil liberty, and better living standards. The developed nations with economic freedom had a GDP per capita of $48,251 in 2020, compared to $6,542 in countries with lower economic freedom.
Poverty rates were also lower in countries with high economic freedom, with 2.02 percent of the population living in extreme poverty, compared to 31.45 percent in countries with lower economic freedom. Life expectancy was higher in countries with high economic freedom, at 80.4 years, compared to 66.0 years in countries with lower economic freedom. The report’s findings underscored the significance of economic freedom in fostering prosperity and well-being.
The report’s global rankings offered a snapshot of the state of economic freedom worldwide. China was ranked 116th, while major countries like Brazil, Russia, India, and Mexico had lower rankings.
The United States was ranked seventh, while European countries like Germany, France, and Italy ranked higher. The report underscored the importance of economic freedom in promoting prosperity and well-being and the need for governments to implement policies that support economic freedom. As the world recovers from the COVID-19 pandemic, the report’s findings provide a timely reminder of the importance of economic freedom in promoting economic growth and development.
The report’s findings have significant implications for policymakers and businesses worldwide. The rankings serve as a useful benchmark for evaluating the economic freedom of different countries, and the report’s findings highlight the importance of economic freedom in promoting prosperity and well-being.
The fact that Brunei was recognized for its business regulations is a positive development, and the country’s government should continue to implement policies that support economic freedom and promote economic growth and development.
