Hong Kong No Longer World's Freest Economy

The mighty has fallen -- HK loses its freest economy title

Hong Kong is no longer the city with the freest economy of 165 in the world -- it is now Singapore. 

That's according to the Fraser Institute, a public policy research organisation based in Vancouver. It had ranked Hong Kong as the freest economy "since the first time comprehensive data became available in 1970", but now it has been demoted.

Singapore gains top spot in institute's ranking

The Fraser Institute cites China and its interference in the city's affairs as the reason for Hong Kong's second spot, though the government denies this.

It went on the defensive, rejecting several of the institute's conclusions, and insisted it had been "fully, faithfully and resolutely implementing the principles of the 'one country, two systems'," with "Hong Kong people administering Hong Kong" and a high level of autonomy based on the Basic Law.

But the institute warned the city's ranking could deteriorate even more.

"This is the first year Hong Kong has not ranked number one on the index since its inception, and the expectation is that its score will only fall further as the Chinese Communist Party continues to suppress freedom of all sorts," said Fred McMahon, the holder of a research chair in economic freedom and a resident fellow with the Fraser Institute.

The report examined regulation, openness to international trade, the size of government, the legal system, and property rights of the 165 places.

Implementation of NSL caused HK ranking drop

Other criteria the institute looked at were new regulatory barriers to entry, limits on the employment of foreign labour and rising business costs as reasons to lower the scores for Hong Kong in its regulatory freedom component.

The survey also claimed the city allowed "increased military interference" in its rule of law and diminished confidence in its courts and judicial system, which had caused a decline in its legal system and erosion of property rights.

However, a government spokesman says the think tank's judgment of the regulatory environment are "factually wrong", and that Hong Kong continued to strive as an international financial hub.

He also said the city's judicial system was robust, as it is enshrined in the Basic Law. 

"Equality before the law is a fundamental principle observed in Hong Kong. The allegation against the independence and impartiality of our judiciary is totally groundless and unsupported by objective evidence," he insisted.

Survey says HK's legal system has declined

The spokesman also said the institute was biased in its opinion about the implementation of the national security law...

In case you were wondering, Switzerland ranked third, followed by New Zealand, and the United States in fifth place. Venezuela was in last place.