Vancouver-based think tank Fraser Institute called insecurity of property rights and weakening rule of law in Hong Kong as key drivers that could dethrone Hong Kong as the world’s freest economy.
Hong Kong retained the top spot as the world’s freest economy in 2019 – the 24th consecutive year the city has done so – according to the «2020 Economic Freedom of the World» report.
In fact, Hong Kong scored 8.94 points in Fraser’s latest ratings – the highest since the financial crisis in 2008 – and ahead of Singapore (8.65) in second place and New Zealand (8.53) in third.
«Between 1997 and 2018, there was no evidence of significant policy changes in Hong Kong as the result of the 1997 establishment of Hong Kong as a Special Administrative Region within China,» the report said. «Our data indicate that there have not been any major changes in tax and spending policy, monetary stability, or regulatory policy.»
2019: A New Chapter
According to Fraser, the latest ratings and rankings only represent 2018 data and do not reflect the effects of «the protest and sometimes brutal suppression» or «new security law imposed in 2020 by the Chinese government».
«However, it will be surprising if the apparent increase in the insecurity of property rights and the weakening of the rule of law caused by the interventions of the Chinese government in 2019 and 2020 do not result in lower scores, especially [for its legal system and property rights], for Hong Kong in future reports.»
Government Not Happy
The government responded to the report earlier today and expressed its discontent with the comments about potential futures scores.
«It is with regret that Fraser Institute preempts lower future scores in this area with biased comments and unfair speculations based on selective ungrounded views,» the government said in a statement.
Fraser Institute is not alone in lowering the rating of Hong Kong’s prestigious free economy status with the Heritage Foundation’s «2020 Index of Economic Freedom» also bumping the city down from first to second place. And economics is not the only area where Hong Kong’s leading global status is faltering with press freedom ranking plunging from seventh to 80th in the Reporters Without Borders’ latest 2020 index.
