Venezuela ranks 165th in the 2024 Economic Freedom Index prepared by the Fraser Institute of Canada in alliance with Cedice Libertad. It obtained a score of 3.02/10, with international trade freedom being the best evaluated (5.03/10) and a healthy currency being the aspect that presents the most challenges for economic freedom (0.74/10).
«Venezuela presents important challenges to achieve economic freedom. On this occasion, the country obtained a score of 3.02/10, with freedom of international trade being the variable in which it was best evaluated (5.03/10) and the healthy currency the aspect that presents the most challenges for freedom. economic (0.74/10). Occupying position 165 in the index, the last in the ranking,” warns the Economic Freedom Index 2024 prepared by the Fraser Institute of Canada in alliance with Cedice Libertad.
Among the variables that the study takes into consideration are the size of the State, sound currency, property rights and freedom of trade, which demonstrate how economically free countries are.
“It is essential to replace the populism of short-term solutions with the existence of rules of the game clear and solid economic and political institutions.” This is a recommendation given by the Fraser Institute of Canada that should be applied to all of Latin America, judging by the results of the Economic Freedom World Index 2024 (EFW).
Each year, this study evaluates 165 countries in the world based on five components associated with economic freedom: healthy currency; size of government; legal system and property rights; freedom of international trade and credit, labor and business regulations.
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“After decades of slow but steady increases, global economic freedom peaked in 2019, but has declined in each of the three years since then, which has not happened since we started measuring economic freedom more ago. 25 years,” said Matthew Mitchell, senior researcher at the Fraser Institute and contributor to the report.
On this occasion, Venezuela obtained a score of 3.02/10, with freedom of international trade being the variable in which it was best evaluated (5.03/10) and the healthy currency being the aspect that presents the most challenges for economic freedom. (0.74/10). Occupying position 165 in the index, the last in the ranking, according to a press release released this Wednesday, October 16.
At the regional level, the highest score was obtained this year by Panama (7.62/10), while the most economically free territory in the world is Hong Kong, followed by Singapore and Switzerland.
The raw data used for the study, as well as an application in which the results of EFW 2024 can be seen and compared, can be consulted and downloaded for free on the website: www.freetheworld.org.
Pensions and the freedom to choose
In addition to the Argentine case, analyzed by EFW 2024 due to its novelty and notoriety, the study puts the spotlight on an issue that is more associated with economic freedom than one might think: pension systems.
In a world like today’s, in which demographic growth diminishes pension systems based on mandatory contributions from the active population, their days seem to be numbered economically. Therefore, The EFW presents the different existing options and reiterates the importance of a vision of pensions from the freedom economical.
“If the goal is to maximize the economic freedom of individuals, there should not be any type of mandatory retirement system. Individuals should have the freedom to decide how much to work, how much to save, and what to do with their savings,” the study authors maintain.
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