Hong Kong remains the world's freest economy, for the 12th year in a row, according to the findings of the Fraser Institute of Canada's "Economic Freedom of the World: 2008 Annual Report".
The report ranks 141 economies on policies that support economic freedom. Hong Kong has held top place since the annual survey was started, and it pays tribute to the city's commitment to free trade and open markets, and the elimination of barriers to trade and investment.
The findings take into account the size of government; legal structure and security of property rights; access to sound money; freedom to trade internationally; and regulation of credit, labour and business. The city scored 8.94 out of 10, overall and was ranked first for freedom of international trade, scored 9.5 and size of government, scored 9.13.
All these factors make Hong Kong very attractive to companies around the world that invest in or trade with the SAR.
Speaking at a dinner in Hong Kong organised by the Fraser Institute, Hong Kong's Chief Executive Donald Tsang said that the city and the institute shared a passion of "unswerving commitment to free trade and open markets, and the elimination of barriers to trade and investment".
Mr Tsang highlighted a number of reasons for Hong Kong being an attractive proposition of inward investment. "Low and simple tax, a trusted legal system, clean and efficient government, a level playing field for business, a freely convertible currency, and the free and unfettered flow of information, goods and capital are all vital ingredients," he noted. "Our principle is 'Big Market, Small Government'. We aim to contain public spending at below 20 percent of GDP as far as possible. This fiscal year we expect it to come down to 19 percent of GDP. The less government contributes to GDP, the more that is left for the private sector to do."
The Fraser Institute is an independent economics and public policy think-tank; it first published the report in 1996. The current report ranked Singapore and New Zealand in second and third places, respectively. The institute's findings reflect those of the Washington-based Heritage Foundation and The Wall Street Journal, which compile the Index of Economic Freedom, which Hong Kong has topped for 15 consecutive years.
Source:
1. Economic Freedom of the World: 2008 Annual Report, Fraser Institute, Canada
2. 2008 Index of Economic Freedom, The Heritage Foundation, Washington and The Wall Street Journal