Ed Feulner: Why Hong Kong Might Lose Its No. 1 Spot on the Index of Economic Freedom

Screen-shot-2015-02-19-at-10.44.52-PM

Hong Kong in many ways continues to act as a fine example for other countries who aspire to be economically free, its foothold on the No. 1 spot is slipping…

Ed Feulner writes: It’s good to be No. 1. But as any former champ will tell you, you have to avoid becoming complacent if you want to stay ahead of the pack. First-place finishes aren’t guaranteed, just ask Hong Kong.

Every year since 1995, the Heritage Foundation and The Wall Street Journal have measured the state of economic freedom in the world. We go country by country, poring over the details of who’s up, who’s down, and who’s treading water. Through all the changes we’ve charted, one thing hasn’t changed: Hong Kong takes the top slot.

“To see what Hong Kong does right, consider business licenses. Obtaining one there requires filling out a single form, and the process can be completed in a few hours. In many other countries, it’s more complicated and can take much longer. Bureaucracy, inefficiency and even corruption abound.”

“As the economic and financial gateway to China, and with an efficient regulatory framework, low and simple taxation, and sophisticated capital markets, the territory continues to offer the most convenient platform for international companies doing business on the mainland,” write the editors of the 2015 Index of Economic Freedom.

To see what Hong Kong does right, consider business licenses. Obtaining one there requires filling out a single form, and the process can be completed in a few hours. In many other countries, it’s more complicated and can take much longer. Bureaucracy, inefficiency and even corruption abound.

“As the economic and financial gateway to China, and with an efficient regulatory framework, low and simple taxation, and sophisticated capital markets, the territory continues to offer the most convenient platform for international companies doing business on the mainland.”

But while Hong Kong in many ways continues to act as a fine example for other countries who aspire to be economically free, its foothold on the No. 1 spot is slipping. Singapore, the perennial No. 2 finisher, has seen the gap between it and Hong Kong steadily narrow in recent years. Only two-tenths of a point (on a scale of 1-100) separate its Index score from Hong Kong’s.

In short, they’re virtually tied. And it’s worth noting that Singapore’s Index score is unchanged this year, which means Hong Kong has only itself to blame for coming within a hair’s breadth of losing the top slot. The question is, why?

Yes, Hong Kong, a special administrative region of China’s since 1997, enjoys a large degree of autonomy. It has small government, low taxes and light regulation. But as the Index notes, “economic decision-making has become somewhat more bureaucratic and politicized, and the government’s administrative scope and reach have expanded.”

It wasn’t supposed to….(read more)

The Daily Signal

Originally appeared in the Washington Times.

 


2 Comments on “Ed Feulner: Why Hong Kong Might Lose Its No. 1 Spot on the Index of Economic Freedom”

  1. […] Ed Feulner: Why Hong Kong Might Lose Its No. 1 Spot on the Index of Economic Freedom […]

  2. […] Ed Feulner: Why Hong Kong Might Lose Its No. 1 Spot on the Index of Economic Freedom (punditfromanotherplanet.com) […]


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.