Hong Kong remains freest economy in the world
Hong Kong maintains its position as the freest economy in the world, according to the 1996 Index of Economic Freedom released by the Heritage Foundation today (Monday).
The Government welcomes the results of the study and agrees with the observation that economic freedom was a crucial factor contributory to economic prosperity.
The report, which was presented to the Governor, the Rt Hon Christopher Patten, this morning, recognises that in Hong Kong, the Government does not interfere in the marketplace and that taxes are low and predictable.
A government spokesman said it was encouraging to see that Hong Kong attained top score in most of the key areas under assessment.
"The Government will continue to make every effort, as in the past, to maintain freedom and enhance further the competitive edge of the Hong Kong economy," he said.
He agreed with the study that the more a government interfered in the free market, the more it hampered economic growth and lowered the living standard of its citizens.
It is noted that the study recognises that foreign trade is free in Hong Kong where regulations are transparent and applied uniformly and consistently and that government spending increases are closely linked to economic growth.
Moreover, the study also acknowledges that in Hong Kong, there are virtually no barriers to foreign investment and very high protection of private property rights.
The Index of Economic Freedom aims to measure the degree of freedom an economy enjoys in such key areas as trade, tax, monetary, banking policies and capital flows, foreign investment and property rights.
It has been compiled by the Heritage Foundation, an influential think-tank in Washington DC, USA, for the second consecutive year.
End/Monday, November 27, 1995