Taiwan Finishes 17th in the 2014 Index of Economic Freedom

The Washington-based Heritage Foundation published 2014 Index of Economic Freedom, in which Taiwan comes in 17th worldwide among the 185 economies assessed, moving up three notches from last year’s ranking and achieving its best ranking ever.  Taiwan is also the 5th in the Asia-Pacific region, behind Hong Kong (No. 1), Singapore (No. 2), Australia (No. 3), and New Zealand (No. 5), but ahead of Japan (No. 25) and South Korea (No. 31).

The Index evaluates the 185 economies in terms of 10 specific categories: property rights, freedom from corruption, fiscal freedom, government spending, business freedom, labor freedom, monetary freedom, trade freedom, investment freedom, and financial freedom. Scores in these categories are averaged to create an overall score.  Based on an aggregate score, each of 185 countries is graded and classified as free (i.e. combined scores 80 or higher) or “mostly free” (70-79.9), etc..  With an overall score of 73.9 this year, up 1.2 points from last year (72.7), Taiwan is rated as a mostly free country, and the rise in the overall score is attributable to the biggest improvement in categories of financial freedom and investment freedom. 

The Index also praises Taiwan for the uninterrupted advancements in market openness for the past 20 years, especially in financial freedom with a 10-point rise in 2014 Index.  Taiwan also sees noticeable improvements in the government’s control and interference in financial industry.  In addition to competitive corporate tax rates, Taiwan’s efforts to maintain a good investment environment and its fulfillment of legal reforms and opening of the investment market are also singled out for praise.  Taiwan has been making a good showing in the index of economic freedom since 2009, and therefore, makes itself hold on to the position in the top 20 ranking.  (January 2014)
/CCS