According to the Fraser institute’s 2021 World Economic Freedom Report, Georgia ranks 5th place, which means a three-points promotion compared to the previous year. What does this report say and what expectations can we have in the future?
The rating is compiled according to such important components as: “Government size”; “Legal system and protection of property rights”, “Freedom of international trade”; Transfers and subsidies; Independence of the Judiciary; Protection of property rights; Tariffs, etc. In the first three points, compared to the previous year, the score has noticeably increased. Therefore, this report indicates the right vector of reforms in Georgia, which is aimed at promoting and simplifying economic activities in the country.
It is noteworthy that Georgia has the highest rating, 10 points, in the following areas: marginal tax rate; regulatory restrictions on the sale of real estate; freedom to hold a bank account in a foreign currency; lack of exchange rates on the black market; financial openness; freedom of ownership of commercial banks; freedom of entry of foreign visitors; control over interest rates on loans.
Based on the above principles, Georgia was awarded the 5th place in the ranking of economic freedom.
In the context of globalization, when business / partnership relations between countries are accelerating at a much faster pace, economic freedom is an even more valuable indicator on the world map. Since then, the components that determine a country’s rating are a measure of the political course and the quality of institutions. Thus, the rating is a kind of guide in the direction of international economic relations, whether it is a free trade market or investment circulation.
It is clear that among the 165 countries presented in the report, Georgia’s presence in the top ten world leaders creates a solid foundation for sustainable economic development.
At the same time, facilitating business and promoting free trade increases the chances of economic success at the domestic or international level, which is a prerequisite for general, universal well-being.