Botswana and Mauritius beat SA in economic freedom stakes

CLIVE EMDON AN ECONOMIC freedom index has named Mauritius and Botswana as Africa’s ‘most free’ countries. Globally they are ranked 34 and 38 out of 157 countries, with South Africa placed third on the continent and 52nd in the world. Published annually by The Wall Street Journal and The Heritage Foundation, the 2007 index incorporates the best and latest economic information, including World Bank Data previously unavailable to outside researchers. It also uses a new rating system in which economies are ranked on a 100-point scale, with a higher score representing greater freedom. Despite South Africa being identified as 3rd most economically free of 40 countries in the sub-Sahara region, there is no further mention of its bourgeoning economy or its political role on the continent. The report pegs the Sub-Sahara region’s overall level of economic freedom at only 54.7. That’s well below the 60.6 world average and identifies the sub- Saharan region as the world’s “least economically free”. The index ratings reflect an analysis of dozens of economic variables grouped into 10 categories: business freedom, trade freedom, fiscal freedom, freedom from government, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom. Ratings in each category are averaged to produce the overall index score. Within the region, Botswana is freest in the most absolute categories, although Mauritius is freest over-all. Namibia scores highest in business and trade freedom, showing a strong commitment to free trade and pro-business regulations. Angola, as an oil-exporting nation, scores highest in fiscal freedom because of its low tax burden. Uganda has the highest labour freedom The Heritage Foundation is a conservative US think tank that publishes research on domestic, economic, foreign and defence policy.