The Bahamas is ranked 40th in the Economic Freedom of the World: 2011 Annual Report released by The Nassau Institute, showing arise in the country’s rank from 45th last year.
The improvement is somewhat deceptive, however, as it is partly due to the relative decline of freedom in the other 140 countries.
Joan Thompson, President of the Nassau Institute, a local think-tank, said that the country ranked 7th in 1978.
Ms. Thompson was quoted in the Nassau Guardian: “So over time, our economic freedom has diminished. As Bahamians, we need to free up the country. We need fewer barriers to development and growth. We need to reexamine immigration policies, which keep out entrepreneurs and investors because they are foreigners – we need them here.”
The report this year shows a decline in the average economic freedom score to 6.64 in 2009, the lowest in nearly three decades, from 6.67 in 2008.
“In response to the American and European debt crises, governments around the world are embracing perverse regulations and this has huge, negative implications for economic freedom and financial recovery,” said Ms. Thompson.
The United States experienced one of the largest drops in economic freedom, falling to 10th place overall from sixth in 2010. Much of this decline is a result of higher spending and borrowing on the part of the U.S. government, and lower scores for legal structure and property rights.
In talking with the Nassau Guardian Ms. Thompson made reference to the Baha Mar development, which has welcomed billions of dollars in Chinese investment and thousands of foreign workers, she felt it was now “saving our bacon”, and more of that kind of international involvement was necessary.
Ms. Thompson also pointed to the size of government as another roadblock to economic freedom.
The report notes that among the highest-ranked countries, the average income of the poorest 10 per cent of people was $8,735 (in constant 2005 international dollars), compared to a meagre $1,061 for those living in the least economically free countries. On average, the poorest 10 per cent of people in the most economically free countries are nearly twice as rich as the average population of the least economically free nations.
