When Strangers Judge Paradise

The Heritage Foundation released its annual Index of Economic Freedom last week; Hong Kong and Singapore, as usual, take the top slots. Writing in the International Herald Tribune, Philip Bowring finds this "baffling" and argues that Singapore's freedoms look significantly freer from the outside:

It is clear is that the rankings of Hong Kong and Singapore are based to a significant degree on ignorance of their domestic economies. In its 10-point assessment, the Heritage Foundation puts a high premium on freedoms for foreigners to trade and invest and enjoy low taxes, and remarkably little on the freedoms of the local inhabitants….

In Singapore, it is the government itself that stands in the way of the unfettered private enterprise that the Heritage Foundation's criteria are supposed to favor. The major real estate, banking, transport, manufacturing and utility companies listed on the stock market are all government-controlled entities. They may be efficient, but is this an economy free of government intervention? The index also claims that "the market sets almost all wages." But actually "wages are based on annual recommendations made by the tripartite National Wages Council."

Whole thing here.