20-9-2023 (SINGAPORE) Hong Kong’s 50-year reign as the world’s freest economy has come to an end, with Singapore surpassing it, according to the Economic Freedom of the World Index compiled by the Canadian think tank, The Fraser Institute. This marks the first time Hong Kong has fallen from the top position since the index’s inception in 1970. The report cited eroding judicial independence as a contributing factor to Hong Kong’s decline.
The Economic Freedom of the World Index measures the extent to which a country’s policies and institutions support economic freedom, including personal choice, voluntary exchange, market entry, competition, and property rights. Singapore claimed the top spot with a score of 8.56, narrowly beating Hong Kong’s score of 8.55. Switzerland, New Zealand, and the United States rounded out the top five.
Hong Kong’s drop in the rankings is seen as a reflection of its struggle to maintain its status as a global financial center, exacerbated by years of pandemic-related isolation and political instability. One key aspect of its appeal to international businesses has been its independent judiciary, which sets it apart from China’s opaque and Party-controlled courts.
However, concerns about judicial independence have grown since China imposed a national security law on Hong Kong in June 2020. Last month, Chief Executive John Lee’s comments about a controversial protest song further fueled concerns when he suggested judges should have banned it from the internet for national security reasons.
The United Kingdom withdrew top judges from Hong Kong’s highest appeals court in response to concerns that China was using the national security law to undermine rights and freedoms in the former British colony. In 2021, the United States also warned investors about the risks of doing business in Hong Kong, citing threats to the rule of law, employee safety, and data security due to China’s increased control over the city.
