TAIPEI (Taiwan News) – The Washington D.C. based think tank, the Heritage Foundation, released their annual Index of Economic Freedom for the year of 2019, with Taiwan making its best showing since 2008.
This year’s edition of the index marks its 25 year anniversary. Out of 186 countries surveyed, Taiwan ranks as No. 10 in the world for economic freedom, up three spots from its No. 13 rank in 2018. In the Asia-Pacific region, Taiwan ranks as No. 5 on the index.
The Index measures economic freedom in four broad categories, each containing three different aspects for analysis.
- Rule of Law: property rights, government integrity, judicial effectiveness
- Government Size: government spending, tax burden, fiscal health
- Regulatory Efficiency: business freedom, labor freedom, monetary freedom
- Open Markets: trade freedom, investment freedom, financial freedom
According to the index, Taiwan’s composite score from all aspects combined equals 77.3, which represents a 0.7 percent increase over last year. Taiwan has made modest improvements in areas of “labor freedom, and monetary freedom,” with slight declines in areas of “government integrity and tax burdens.”
In its brief analysis, the Heritage Foundation offers the following observations and considerations for Taiwan.
“A relatively well-developed commercial code and open-market policies that facilitate the flow of goods and capital have made small and medium-size enterprises the backbone of Taiwan’s economic expansion. A sound legal framework protects property rights and upholds the rule of law.
To achieve its goal of reducing dependence on China by increasing commerce with other Asian countries, Taiwan will need to increase competitiveness and openness by, for example, reducing the state’s“strategic” involvement in the export sector and liberalizing regulation of the fragmented financial sector.”
According to the Index, the four countries in the region with higher levels of Economic Freedom were Hong Kong (No. 1), Singapore (No. 2), New Zealand (No. 3), and Australia (No. 5).
The United States ranked No. 12 on the Index, while China came in at No. 100.
The full index is available from the official webpage of the Heritage Foundation.
(Image from Heritage Foundation)
