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| Hong Kong Chief Executive Donald Tsang welcomed the results of the latest report of the Heritage Foundation which ranks Hong Kong as the freest economy in the world for the 14th consecutive year since the Index was first published in 1995. Mr Tsang is pictured being presented with a copy of the foundation's 2008 Index of Economic Freedom from its President, Dr Edwin Feulner, at Government House on January 14. |
Hong Kong has been ranked as the world's freest economy for the 14th consecutive year in the 2008 Index of Economic Freedom, jointly published by The Heritage Foundation and The Wall Street Journal.
The 2008 Index of Economic Freedom measures the degree of economic freedom of 157 economies across 10 specific factors: business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labor freedom.
Within the ranking, Hong Kong is followed by Singapore, Ireland, Australia and the United States.
Commenting on the index's findings, Hong Kong Commissioner to the United States Margaret Fong remarked: “I am delighted to hear that Hong Kong’s staunch commitment to the rule of law and free-market principles has once again been affirmed by The Heritage Foundation and The Wall Street Journal.
“Hong Kong’s ‘poster economy’ of the world status is an accolade that Hong Kong people cherish, but do not take lightly. We understand the increasingly competitive nature of the global economy and remain vigilant in bolstering our economic fundamentals in the tradition of the free-market philosophy.”
According to the index, Hong Kong scores exceptionally well in almost all areas of economic freedom.
Among the 10 factors assessed, Hong Kong ranks first in trade freedom, investment freedom, financial freedom and property rights. Hong Kong ranks in the top 10 in fiscal freedom, government size, monetary freedom and labor freedom.
The index notes that Hong Kong’s income and corporate tax rates are very competitive, and overall taxation is relatively small as a percentage of GDP. In addition, business regulation is simple, the labor market is highly flexible, and there are virtually no restrictions on foreign capital.
The index acknowledges that Hong Kong is one of the world’s leading financial centers and that the regulation of banking and financial services is both non-intrusive and transparent.
The index also finds that property rights are protected by an independent and virtually corruption-free judiciary.
Welcoming the index, Financial Secretary John C. Tsang said: “We are determined to uphold Hong Kong’s position as the freest economy in the world.
“We see the role of the government as that of a facilitator. We provide a business-friendly environment where all firms can compete on a level playing field, and establish an appropriate regulatory regime to ensure the integrity and smooth functioning of a free market.”
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