Taiwan has been ranked in the Index of Economic Freedom’s top “Free” category for the first time and was one of only seven countries to reach the top echelon, according to the 2022 index released by the Heritage Foundation on Monday.
With a score of 80.1 out of 100, up 1.5 points from its 2021 score, Taiwan made it over the threshold of 80 into the “Free” category after remaining in the “Mostly Free” category last year.
There were seven countries ranked in the “Free” category this year — Singapore, Switzerland, Ireland, New Zealand, Luxembourg, Taiwan and Estonia — up from five last year.
Estonia and Luxembourg joined Taiwan as new entries in the “Free” category this year, while Australia dropped out of the top group.
Overall, Taiwan remained sixth in economic freedom among the 184 economies surveyed, its same ranking as in 2021, and finished third among the 39 Asia-Pacific economies evaluated.
The index measures economic freedom based on 12 indicators in four broad categories — rule of law, government size, regulatory efficiency and open markets — that gauge whether individuals can control their own labor and property in a free regulatory environment.
According to the report on the 2022 index, Taiwan scored above 80 in eight of the 12 indicators, including judicial effectiveness, government spending, and trade freedom.
Taiwan still had relatively poor performances, however, in the “labor freedom” and “financial freedom” indicators, scoring 68.7 and 60 in those categories, respectively, the report said.
“Additional improvements in business freedom and financial freedom would propel economic freedom even higher,” according to the report on the index, established in 1995 to track economic freedom around the world.
Overall, the report said Taiwan is one of the few countries in the world to have experienced continuous economic growth during the past five years, and its economic freedom has increased significantly during that period.
Taiwan has recorded a 3.6-point overall rise in economic freedom since 2017, the report said, attributing the gains to increases in judicial effectiveness and labor freedom.
Elsewhere in East Asia, South Korea was ranked 19th (mostly free), Japan 35th (moderately free) and China No. 158 (repressed).
Source: Focus Taiwan News Channel