Sunday 16 January 2011

gulfnews : GCC Focus: Ranking of index is flawed

Reflecting continuation of earlier practices, the 2011 Index of Economic Freedom continues depicts an inaccurate picture of level of economic freedom within the six-nation Gulf Cooperation Council (GCC). Released last week, the report views Bahrain's economy as the only truly free economy within the GCC by virtue of clinching spot No. 10 worldwide.

In reality, the Heritage Foundation and the Wall Street Journal are noted for their conservative ideologies and embracing of private sector initiatives. Amongst others, the report sees governmental involvement in the economy as something negative.

Yet, the global financial crisis of 2008 revealed the need for governmental leadership in restoring confidence in local economies through rescue packages on the one hand and steady spending on the other. This was true of the US, which under a Republican-controlled White House opted to use tax-payer funds for bailing out financial institutions.

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