Zimbabwe among world’s least economically free countries, Report
Zimbabwe’s economy has been ranked as one of the least free in the world, according to the Fraser Institute’s latest Economic Freedom of the World report.
The report, released by the Canadian policy think tank, places Zimbabwe 172nd globally and 46th in sub-Saharan Africa with an economic freedom score of 38.2.
The Fraser Institute’s Economic Freedom Country Audit for Zimbabwe (EFCAZ) cited high inflation, unpredictable policies, restrictive licensing, and an inefficient judicial system as key economic challenges.
Speaking at the report’s launch in Harare, Fred McMahon, the Fraser Institute’s director for economic freedom studies, said that countries with more economic freedom tend to see higher economic growth.
“When people have the freedom to innovate, trade and invest, the entire economy benefits,” McMahon said. “Economic freedom is simply the ability of individuals and families to make their own economic decisions free of interference from government.”
McMahon said countries with higher levels of economic freedom not only grow faster but also experience sharp declines in poverty. He explained that as countries adopt market-friendly policies and ease regulatory restrictions, they create a better environment for job creation and wealth building.
“Zimbabwe has clearly had problems with inflation in the past,” he noted. “It’s interesting to come to any country and see the American dollar being used. I was just in Ecuador, where the American dollar is a national currency.”
He also highlighted inflation and restricted trade, business and labour policies as hindering factors to the growth of the country’s economy.
“The optimal level of regulation is not zero,” he said. “But if regulation becomes overly burdensome, if it unnecessarily restricts the freedom of individuals to, for instance, get a job or businesses to hire or expand, that dramatically reduces not just economic freedom but the ability to build prosperity in the nation,” he was quoted.
