New report sees SA drop one place for economic freedom

New report sees SA drop one place for economic freedom

The Free Market Foundation (FMF) launched the Economic Freedom of the World (EFW) annual report on Tuesday.

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Free Market Foundation CEO David Ansara, together with FMF Associate Neil Emerick, unpacked the methodology as well as findings of the report, looking as to what has contributed to the underlying software of the EFW annual report.

Emerick said the FMF could not pinpoint what countries invited to join the BRICS block of nations will bring to the table in terms of economic benefits, as some of them rank lower than 100th.

"Last month, we had the BRICS Conference and the expansion of the BRICS  which is now the BRICS Plus. Of the original BRICS countries,  India is the best ranking 87th, Brazil is 90th, Russia is 104th, China is 111th, and South Africa is ranking at 94, a place lower than last year in terms of economic freedom.

"We are very much aligned with India, Brazil and Russia in the pack. Looking at the new countries that have been offered membership in BRICS, the best one there is United Arab Emirates as they are currently 50th in rankings, but the rest of the countries that have been invited are Saudi Arabia is 83rd, Egypt is 144th,  Ethiopia is 145th, Argentina is 158th, and Iran is 160th.  

"The countries that are joining aren't exactly economically free countries, I am not quite sure what economic benefit that is going to bring through to us."

President Cyril Ramaphosa announced in August that the BRICS Club of emerging nations will admit six new members, including Saudi Arabia, UAE and Iran, at the start of next year.

The report measured 165 countries.

Emerick added that South Africa is not a failed state as yet but merely a failing state.

"It's very distressing to think that SA had that free economy and the productive economy is now falling behind the economic freedom into the other younger countries in Africa, younger in demographics. if we count Mauritius, it is the most economically free country in our geography, and there are 15 on the scale. They are building a very strong capital investment place.

"People ask if we are a failed state. The answer to that is no, we are not there yet, but ranking 94 we are merely a failing state, but we have not failed yet. However, the debt crisis is really now becoming a problem.

"This can has been kicked on the road for far too long, and now we have run out of tar, and we are stuck in a pothole. We actually have to address this thing. The government has run out of money, and it has to make some really hard choices now."

South Africa’s ranking on the EFW is expected to remain in the bottom half of the Index, as it has done consistently since 2010.


Economic Freedom of the World 2023 by Mmangaliso Khumalo on Scribd

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