Georgia performed well in 2007

The Fraser Institute, an internationally acknowledged research and educational institution, has published its summary economic freedom ratings for 2007. This puts Georgia in 42nd place, level with Guatemala. The rating is compiled by assessing a country’s performance against different criteria such as: size of Government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulation of credit, labour and business.

It is significant that Sweden is 40th in this rating, Spain 39th and Hungary 38th. First is Hong Kong, followed by Singapore, New Zealand, Switzerland, Chile, the United States, Ireland, Canada, Australia, the United Kingdom and so on. Of the former Soviet republics Estonia is in 11th place and Lithuania 35th, leaving Georgia in third place among ex-Soviet states. Georgia is rated higher than Israel (78th), China (82nd), Russia (83rd), Ukraine (128th) and Turkey (88th). Azerbaijan is 85th in the rating and Armenia 48th. Georgia is also ahead of Portugal (45th) and Belgium (47th). In terms of size of Government Georgia comes 36th, legal systems and property rights 85th, sound money 67th, freedom to trade internationally 20th, regulation 18th, credit market regulation 38th, labour market regulation 40th and business regulation 10th.

This news are very pleasant, but the rating refers to the situation in 2007. Since then Georgia has witnessed the Russian invasion, domestic problems and protest rallies which have negatively affected the economy, as has the general world crisis. Let us wait for the 2008 results, which will presumably be published next year, to give us a more relevant picture.