For another straight year, Barbados has topped the ranks for Caribbean nations in the 2009 Index of Economic Freedom World Rankings.
The country`s economic freedom score was placed at 71.5, relatively unchanged from last year, making its economy the 22nd freest in the 2009 Index and among the top 25 group of nations billed as economically `free.`
The annual index is a collaboration of The Wall Street Journal and The Heritage Foundation, Washington’s preeminent think tank, which assign rank based on their analysis of economic freedom around the world with the influential Index of Economic Freedom. Ten components of freedom are looked at: business, trade, government size, monetary freedom, fiscal freedom, investment, financial freedom, property rights, corruption and labor.
Barbados` overall score is well above the global average, meaning according to analysts of the annual report, that `transparent policies and effective laws concerning entrepreneurial activity are reflected in high ratings in business freedom, property rights, and freedom from corruption.
Analysts also say the country`s business regulations, laid out in commercial laws and evenly applied, facilitate private-sector growth and there is relatively flexible labor policies that support overall competitiveness.
Most of all, `transparency levels the playing field for domestic and foreign businesses alike, despite certain restrictions on foreign investment and moderately high taxes (while) a strong legal system adjudicates business disputes effectively and encourages a relatively low level of corruption.`
Other Caribbean countries were not as lucky, with only two making the top forty and one the top fifty list. All others fell below the 50 mark.
The Bahamas and St. Lucia made the top forty, at 27 and 39, respectively on the ranks while Trinidad and Tobago at 41, was the lone country in the top 50. T&T`s score was 1.6 points lower than last year, reflecting worsened scores in six of the 10 economic freedoms, most notably in government size. Analysts also claim that `foreign and domestic investments are treated similarly in theory, but approval of foreign investment can be subject to lengthy delays.`
The judiciary was also slammed, with researchers claiming it is inefficient in enforcing the protection of intellectual property rights. Privatization has progressed considerably.
The Bahamas actually dropped by 0.8 point lower than last year, primarily due to lower scores in freedom from corruption, property rights, and business freedom while St. Lucia also ranked high even though its trade freedom is still limited by tariff and non-tariff barriers and government spending is pushing public debt to unsustainable levels, the report`s authors said.
Jamaica, Dominica and the Dominican Republic made the top 100 list, at 52, 70 and 88, respectively, making them only moderately free. Other Caribbean nations surveyed were `mostly unfree,` with Suriname coming in at 125 and Haiti at 147.
Guyana was deemed the worst CARICOM nation of those surveyed by the Index`s researchers, coming in lower than even Haiti at 155. With a 48.4 score overall, it was 0.4 point lower than last year because improvements in four of the 10 economic freedoms were offset by a large decline in the government size score.
Overall, Hong Kong made topped the list with a three point gain, while the U.S. was at number six, dropping three points.
Source: CaribWorldNews.com
