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HK 'world's freest economy'

By Joseph Li (China Daily/Agencies)
Updated: 2009-01-14 07:33

HONG KONG: This Chinese city has been named the world's freest economy for the 15th year in a row.

In the opinion of the editor of the economic freedom index - jointly compiled by the Heritage Foundation and the Wall Street Journal - "Hong Kong performed very well and is the star for the rest of the world to follow".

It has also reacted remarkably well to the financial crisis and come out in better shape than other economies.

Hong Kong scored 90 points, up 0.3 on last year, well above the world average of 59.5.

This year, 179 economies were ranked. Macao ranked 21st, Taiwan 35th and the Chinese mainland, 132nd.

Financial Secretary John Tsang pledged to uphold Hong Kong as the freest economy in the world.

"We see the government's roles as a facilitator," he said. "We provide a business-friendly environment where all firms can compete on a level-playing field."

Terry Miller, director of the Center for International Trade and Economics of the Heritage Foundation, said economic freedom is the key to prosperity, economic freedom, and higher standards of living.

As Hong Kong is an open, free and flexible economy, it is in a better position to combat the financial crisis, he said.

The index is based on data collected from July 2007 to June of last year, so is unaffected by the collapse of Lehman Brothers in September.