Editorial | Hong Kong’s flawed ranking calls for extra effort to tell city’s true story
- The Fraser Institute, a Canadian think tank, has demoted the city to No 2 in its global economic freedom league, but rather than just complain the government should spread the word about a competitive, open economy, with a free flow of information and the rule of law under an independent judiciary
Hong Kong prides itself on recognition of economic freedom because it is fundamental to the city’s international competitiveness. If it gets knocked off its perch at the top of global freedom rankings the government takes it very seriously and can be quick to hit back.
The Fraser Institute, a Canadian think tank, is finding that out after relegating the city from first to second, behind regional rival Singapore, in its annual global economic freedom league, and blaming meddling by China in the city’s affairs for the demotion.
The institute warned last year, when confirming Hong Kong in the No 1 position, that it was losing ranking points due to interference by Beijing in the rule of law, a claim the government dismissed as unfair.
Nonetheless, the demotion this time, and a warning the ranking could slip further, is still confounding. The Hong Kong government disputes every one of the institute’s reasons.
The report examined regulation, openness to international trade, the size of government, the legal system and property rights of 165 jurisdictions. The result is based on the ability of people to make their own economic decisions.
The institute cited increased interference in the city’s affairs for what it said were new regulatory barriers to entry, limits on foreign labour and rising business costs as reasons to lower scores for regulatory freedom.