21/02/2012
http://prensa.fundacionfaes.org/2012/FEBRERO/F2-PRESENTACI%C3%93N+%C3%8DNDICE+DE+LIBERTAD+ECON%C3%93MICA+21-2-12.JPG! Spain has lost five positions and is now 36th in the world ranking of economically-free countries Roberts noted that Spain achieved good results in market openness and worse in fiscal freedom and government spending Schwartz warned of the economic future awaiting 'Arab Spring' countries due to the lack of Jobs, economic intervention and corruption Cabrillo said Spain achieved better results in variables determined by belonging to the EU Trigo: Governments should not substitute society; the less it directs, the freer society will be; the freer it is, the richer it will become Madrid, 21.02.12.- FAES Foundation has launched the Spanish edition of the _Index of Economic Freedom_, analysing the evolution of economic policies in 184 countries worldwide, between July 2010 and June 2011. The report concludes that, in this period, world economic freedom has declined due to the heightened tension between government control and the free market. The Index, published by The Heritage Foundation and _The Wall Street Journal_ every year, further states that the mounting burden of government spending in many cases has overwhelmed gains in economic freedom achieved in other policy areas. The global average 'score' of analysed countries is 59.5, a 0.2 point decline from last year. The Index notes that Renewed economic uncertainty and stagnation caused by the sovereign debt turmoil in some key developed economies have battered world economic progress. With regard to Spain, the Index shows that, between July 2010 and June 2011, it has lost five positions in the world ranking of economically-free countries, dropping from the 31st, to the 36th place. It has also lost positions in quantitative terms, from 70.2 points to 69.1. Countries like Jordan, Botswana, Georgia and Arab Emirates score better than Spain, which is ranked among the 'moderately free' economies. The countries at the top of the chart are Hong Kong, Singapore and Australia. The _Index of Economic Freedom_ is published annually since 1995. Its aim is to measure the degree of economic freedom in the world's nations. The index scores nations on 10 broad factors encompassing four groups: Rule of Law, limited government, regulatory efficiency and open markets. GDP CONNECTION The index has emerged as a benchmark on the countries' degree of economic freedom and its positive relationship with per capita GDP as it concludes that, everywhere, greater economic freedom results in greater human development. James Roberts, Research Fellow in Freedom and Growth at the Heritage Foundation's Center for International Trade and Economics, stressed this idea during his presentation. Roberts observed that Spain's score loss is due to the fact that the government's level of spending increased greatly in the analysed period. Good results relate to open-market areas, while bad ones relate to fiscal freedom and public spending, he stated. The launch and presentation of the Spanish Edition of the Index was introduced by Miguel Mar?n, Director of FAES' Department of Economy and Public Policies, with the participation of Pedro Schwartz, Chairman of the Consejo Econ?mico y Social of the Madrid Autonomous Community; Francisco Cabrillo, Professor of Economics; and Joaqu?n Trigo, Director General of the Institute of Economic Studies. GLOBAL INCREASE OF DEBT Pedro Schwartz, in turn, referred to the global increase of public debt shown by the index. Most countries of the world, especially those that have suffered the crisis, have an excessive debt ratio to GDP, the Chairman of the Consejo Econ?mico y Social of the Madrid Autonomous Community stated on the document's conclusions. Schwartz particularly warned about the economic situation of those countries undergoing the so-called 'Arab Springs'. He said we should feel worried about their future. Schwartz said this is the result of the combination of lack of jobs, economic intervention and high corruption levels. BELONGING TO THE EU Francisco Cabrillo, for his part, referred to the variables in which Spain scores better and worse. Among the former he stressed trade freedom, monetary freedom, business freedom and investment and finance freedom. Cabrillo noted that a large part of these matters are the result of belonging to the EU. They're not the consequence of decisions taken by Spanish governments On the other hand, Cabrillo stated that the variables where Spain scores worst refer mainly to public spending, tax burdens and labour market regulations. Cabrillo, in this context, stressed as positive the global behaviour of international trade, a key issue distinguishing the current crisis from the one back in the 30s. MORE PROSPERITY The Director General of the Institute of Economic Studies, Joaqu?n Trigo, declared that governments should not substitute society; the less it directs, the freer society will be; the freer it is, the richer it will become. He stressed that the freest countries are more prosperous as well. Trigo pointed out that government spending and labour freedom are the variables that make Spain lag behind in the final score of the _Index of Economic Freedom_. If we improved those two things we would fare better, he said. Trigo denounced that the Spanish public sector is effective but not efficient and that it has grown wildly and has called to end bad practices in labour matters and apply professional ethics fitting to the current situation. Index of Economic Freedom (in Spanish)