Barbados’ economic freedom score declines

BARBADOS has slipped three notches in the global Index of Economic Freedom. This country’s rating declined by just over five per cent to end 2020 with a score of 61.40 and a ranking of 92, according to the Fraser Institute.

In 2019 Barbados had a rating of 64.70 after its index expanded 13 per cent above the 2018 position of 57.00. It was pointed out that the 2018 position represented an almost five per cent increase that reversed the 20 per cent fall in 2017.

Barbados’ highest rating is 71.50 and that was achieved in 2009, according to the stats.

An index of economic freedom measures jurisdictions in terms of trade, tax burden, and judicial effectiveness, among other factors.

The top countries in the 2020 index are Singapore, Hong Kong, New Zealand, Australia and Switzerland. Completing the top 10 ranking countries are Ireland, UK, Denmark, Canada and Estonia.

For the Caribbean, Jamaica emerged the highest-ranking country, coming in at position 49 with a score of 68.4.

Following Jamaica are St. Lucia positioned at number 50, St. Vincent and the Grenadines 59th, The Bahamas 69th, Barbados 92nd, Dominica 97th, Trinidad and Tobago 109th, Belize 111th, Guyana 124th, Haiti 153rd and Suriname 163rd. North Korea is at the bottom of the ranking.

The index has been used as a barometer in some circles to suggest sound economic and social progress and to indicate good economic policies being pursued by states with high ranking.

However, this has not received global acceptance. Leading international economist, Jeffrey Sachs, has challenged the index, stating that there is no correlation between a country’s rating and its economic progress.

China is not among the countries ranked, but it continues to record high and sustained growth compared to those in the high positions of the index.