economic freedom

Bulgaria has adopted the euro. After more than 28 years under a currency board arrangement, the country is entering a new stage of its development. The bank failures and hyperinflation of 1996–1997 wiped out people’s savings and pushed Bulgaria to the bottom of Europe, below 30% of the EU average in GDP per capita in purchasing power parity by the end of the 1990s.

In public debate one can frequently find support for significant state ownership in the economy, citing the need to protect strategic national interests, including public safety and order. Politicians often argue that privatizing companies with State Treasury involvement would lead to their acquisition by entities hostile to Polish interests.

Current global developments are prompting many nations to define their political paths and select their future strategic partners. Some have already applied to join BRICS and it expanded from 5 to 11 nations, while others are in line. The European Union, recently hesitant about its enlargement, has accelerated membership discussions with nations in the Western Balkans and Eastern Europe.

Economic freedom in the world has declined to a record low, shows the Economic Freedom Index published by the Fraser Institute. The recent World Economic Freedom Index is based on data for 2020 but it shows a clear trend: as the government sector grows, it is becoming harder for citizens and businesses to breathe. The Fraser Institute analysts say this is largely due to the COVID-19 pandemic.

The Western Balkan countries already have plans for bold and deep institutional reforms that will not only liberalize and deliver a boost to their economies, but will also, most importantly, significantly improve the level of freedom enjoyed by the people in the region.

Thirty years later, public policies and political institutions of the former socialist economies do not equally support economic freedom, just as they do not observe the same level of international trade, foreign direct investment, and income.

Past week, the Economic Freedom of the World: 2018 Annual Report was released. The report is based on data from 2016 and measures the economic freedom by analyzing the policies and institutions of 162 countries and territories.

The Visio institute has just published the second issue of The Visio Journal, which offers several papers analyzing the degree to which the public policies and political institutions of former socialist economies have been supportive of economic freedom following the collapse of communism.

Global geography of economic freedom tells much about values. Economic freedom is far from being able to conduct structural reforms and downsizing bureaucracy. Values should come first and only then be followed by cooperation in the form of geopolitical alliances, which guarantee freedom from repression.

Because of the binding constraints of European treaties and EU law, there are few remaining lines of attack against the Bank of Slovenia’s independence. This article places these developments within the normative and positive contexts of free markets.