TANZANIA has been ranked 82 in World Economic Freedom in 2015. Last year’s ranking showed that the country has moved ten positions as compared to the previous year ranking (2014), which was 92. Launching a report in Dar es Salaam recently, Uhuru Initiative for Policy and Education (UIPE) Executive Director Mr Isack Danford said that Tanzania has been among 100 nations that has economic freedom at position 82.
“The report measures economic freedom through rates of personal choice, ability to enter into market, secured private property rights, rules of law, among others by analyzing policies and institutions from 152 countries and authorities worldwide,” he said.
He reported that among issues that draws back our country in economic freedom is extra payment, bribes and favouritism, bureaucracy costs, administrative requirements, centralized collective bargaining, hiring and firing regulations and hiring contracts and minimum wages and added that on international trade the issue that affects economic freedom is investment restriction, non-tariff barriers and standard deviation of tariff rates.
He pointed out that in the form of law and ownership of private property, other factors affecting economic freedom is business costs of crime, reliability of police, legal enforcement of contracts, protection of property rights, impartial courts and judicial independence.
“All above issues put back our country in economic freedom compared to Rwanda, Uganda and Kenya,” he said, adding the report focuses more on statistics collected in 2013.
Countries and authorities that are in top ten includes Hong Kong, Singapore, New Zealand, Switzerland, United Arab Emirates, Mauritius, Jordan, Ireland and Canada. According to the report, people living in the nations having high rates of economic freedom enjoy high socio welfare, political and social freedom and they exist for a long time.
The report measures economic freedom in various countries by using five restrictions, including size of government, legal structure, property rights, sound money, freedom to trade internationally and regulation of credit, labour and business.
Fraser Institution has prepared Economic Freedom of the world report every year in collaboration with Economic Freedom Network and other private institutions dealing with research and educating people over ninety countries and authorities in the world.