Saturday, October 31, 2020

Botswana economic freedom improves in global survey

While recessionary winds continue to buffet the world economy, Botswana continues to lead Africa as a result of innovative policies which have embraced economic growth and expanded economic opportunities.

The index of economic freedom, published by The Wall Street Journal and The Heritage Foundation, is described as “the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please. In economically free societies, governments allow labor, capital, and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.”

While Botswana has some serious challenges ÔÇö especially in the water and electricity sector ÔÇö our ranking on the Heritage Foundation’s 2016 Index of Economic Freedom indicates that the country has improved in economic freedom according to a significant new survey.

In a review of world economies, the Heritage Foundation, a Washington-based think tank, and the Wall Street Journal asserts that the Botswana economy has improved in relative economic freedom and now ranks 30th globally out of the 178 comparators. Botswana scored an overall score of 71.1, an increase of +1.3. 

Mauritius has been ranked 15th in the world with an overall score of 74.7, a decrease of -1.7. This makes it the best country in Africa in terms of economic freedom. 

In the BRICS economies (Brazil, Russia, India, China, and South Africa), almost all were categorized in the “mostly unfree” category due to rampant corruption and uneven reforms. Southern African power house South Africa ranks moderately free and is 80th with an overall score of 61.9, a decrease of-0.7.

 

The survey used an extensive list of comparators which effect entrepreneurship such as regulatory efficiency, rule of law, limited government and open markets.

Hong Kong still ranks top and retains the coveted number one ranking in the world with an overall score of 88.6 which is a 1.0 decrease from last year’s rankings.

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