PHL economic freedom is moderate – Heritage, WSJ index

Despite landing on the 89th spot out of 178 countries surveyed by Washington-based The Heritage Foundation and The Wall Street Journal for the 2014 Index of Economic Freedom, the Philippine was labeled as having moderate economic freedom. 

 

The Philippines has climbed eight notches as its score has improved by 1.9 points to 60.1.

 

In profiling the Philippines, The Heritage Foundation said the country saw improvements in seven of the 10 economic freedoms, including gains in freedom to trade, freedom to invest, and freedom from corruption. 

 

But the gains were "partially offset by a deterioration in property rights," the foundation said. 

 

Heritage observed that the Philippines has improved its overall score in three consecutive years, allowing it to rise back to countries that are "moderately free" in terms of economic access.   

 

It noted a high degree of economic resilience. "The Philippine economy has recorded average annual growth of around 5 percent over the past five years," the country profile read. 

 

The Philippine government also pursued reforms improving the overall business environment, but the foundation cited it still needs to address institutional challenges. 

 

"Although the perceived level of corruption has declined, more effective anti-corruption measures need to be firmly institutionalized," the foundation said. 

 

Hong Kong, which scored 90.1 points, topped the rankings. Singapore with 89.4 points ranked second, and Australia with 82.0 points ranked third. 

 

Switzerland and New Zealand rounded out the top five, scoring 81.6 points and 81.2 points, respectively. 

 

North Korea was at the bottom with 1 point. Cuba ranked 177th with 28.7 points, Zimbabwe was 176th with 35.5 points. 

 

Venezuela scored 36.3 to rank 175th, while Eritrea ranked 174th with 38.5 points. 

 

Heritage described economically free societies as places where governments allow "labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself."

 

The Index covers 10 freedoms – from property rights to entrepreneurship, and has been measured by Heritage for 20 years now. – Siegfrid Alegado/VS, GMA News