The week began with very encouraging news for Colombia's economic climate, as the country moved from 62nd to 84th. Ranking of the Economic Freedom Index (IEF), carried out every year by the Heritage Foundation and The Wall Street Journal, guarantees the healthiest economies in the world.
In this report, the country scored a total of 59.2 points That leaves countries like Kosovo, Paraguay, Italy, Montenegro and Mexico below. To understand a little better how bad this score is, let's say that the top places reached 83.5 (Singapore); 83 (Switzerland); Ireland (82.6); Taiwan (82.2) and Luxembourg (79.2)
(Also read: Why Colombia Has Fallen in World Rankings of Economic Freedom)
This indicator, according to its developers, measures features such as Legal certainty, size of government, regulatory effectiveness and market openness; All of these assess property rights, market and financial freedom, tax burden and government fairness through 12 variables.
According to the Libertarian think tank, this should be a warning to everyone in the country, as with a score of 59.2, it has gone from a territory of 'moderate freedom' to a nation of 'mostly unfree'. Not viewed favorably in the international context.
“This backlash is due to a series of statist policies implemented by the current government, which have created uncertainty and weakened the foundations of our economic freedom. The government's growing intervention in the economy, under the false promise of prosperity, has brought with it a different reality: more regulation, more regulation and an increasingly hostile environment for corporations. environment.Explain.
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On the other hand, they maintain it “The vulnerability of our judiciary to political interference and widespread corruption has exacerbated the problem, undermining trust in our institutions and limiting the ability of entrepreneurs to innovate and grow.”
This is confirmed by separating each of the 12 variables And the worst rated points: property rights (45), government integrity (38.1), fiscal health (19.5), fiscal independence (50) and judicial efficiency (58.3).
With this in mind, Libertank highlights that aspects of urgent progress are related to declarations of peace sent from national governments. At this time.
“How did we get here? Through a fatalistic anti-market and anti-business narrative, it ignores the lessons of history and sees the state as the only actor that can guarantee well-being. The result of these policies is clear: a 'largely unfree' economy that limits our chances for progress.”They added.
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The Colombian Economy iStock
(See: Economic variable Colombia outperforms US, Canada, Mexico and Brazil)
A nival region, Colombia is ranked 19th. St. Vincent and the Grenadines (59.8), behind Paraguay (60.1) and Trinidad and Tobago (60.4). Last in this ranking are North Korea (2.9); Cuba (25.7), Venezuela (28.1), Sudan (33.9) and Zimbabwe (38.2).
For Jose Manuel Restrepo, former finance minister and rector of EIA University, all this “Government interventions with complex regulations are prevalent in free market and business development, problems of institutional trust and limits to innovation and growth of business and regulatory violations.”
“The path to reform is towards economic freedom, not to promote the country's growth dynamics. And it is time to review the curriculum so that we do not continue towards nationalisation, bureaucratisation, deregulation and a difficult environment for the private sector.”He explained.
Likewise, for Andy's boss, Bruce MacMaster, we shouldn't overlook this “It is a conceptual index that serves as a guide for entrepreneurs and investors. We need to objectively understand the dimensions and causes of this backlash.”He was sorry.
These analysts and union spokesmen agreed that this type of situation requires a service “Warning bell“For Prevent further weakening of the right path and its image to the world.
(Also read: Private sector in recession, says Anif)
Daniel Hernandez Naranjo
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