Economic Freedom of the World
economic-freedom-of-the-world-2016
economic-freedom-of-the-world-2016
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56 • <strong>Economic</strong> <strong>Freedom</strong> <strong>of</strong> <strong>the</strong> <strong>World</strong>: 2016 Annual Report<br />
Canada<br />
1980 1990 2000 2005 2010 2013 2014<br />
Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank)<br />
Summary Ratings (Rank) 7.77 (5) 8.17 (6) 8.36 (7) 8.12 (9) 7.94 (5) 7.92 (8) 7.98 (5)<br />
Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data) Rating (Data)<br />
Area 1. Size <strong>of</strong> Government 5.37 5.81 5.97 6.38 5.92 6.26 6.32<br />
A. Government consumption 3.29 (28.83) 3.35 (28.63) 4.54 (24.56) 4.23 (25.61) 3.73 (27.32) 3.53 (28.00) 3.68 (27.50)<br />
B. Transfers and subsidies 6.19 (14.50) 5.89 (15.60) 6.34 (13.92) 7.31 (10.38) 6.94 (11.72) 7.51 (9.63) 7.61 (9.26)<br />
C. Government enterprises and investment 10.00 (12.60) 10.00 (13.70) 10.00 (14.89) 8.00 (15.65) 7.00 (20.23) 8.00 (16.24) 8.00 (16.24)<br />
D. Top marginal tax rate 2.00 4.00 3.00 6.00 6.00 6.00 6.00<br />
(i) Top marginal income tax rate 2.00 (60-68) 4.00 (44-54) 3.00 (44-51) 6.00 (39-49) 6.00 (39-50) 6.00 (39-50) 6.00 (39-50)<br />
(ii) Top marginal income and payroll tax rate 4.00 (44-54) 3.00 (44-51) 6.00 (39-49) 6.00 (39-50) 6.00 (39-50) 6.00 (39-50)<br />
Area 2. Legal System and Property Rights 7.18 8.35 9.27 8.08 8.16 7.99 8.05<br />
A. Judicial independence 9.19 7.91 8.88 8.59 8.67<br />
B. Impartial courts 9.19 7.42 7.08 6.92 6.88<br />
C. Protection <strong>of</strong> property rights 7.98 8.16 8.32 8.32 8.34<br />
D. Military interference in rule <strong>of</strong> law and politics 10.00 10.00 10.00 10.00 10.00<br />
E. Integrity <strong>of</strong> <strong>the</strong> legal system 10.00 10.00 9.17 9.17 9.17<br />
F. Legal enforcement <strong>of</strong> contracts 4.81 4.81 4.81 4.81<br />
G. Regulatory costs <strong>of</strong> <strong>the</strong> sale <strong>of</strong> real property 9.14 9.09 8.60 8.60<br />
H. Reliability <strong>of</strong> police 7.95 8.85 8.55 8.55<br />
I. Business costs <strong>of</strong> crime 7.37 7.19 6.98 7.38<br />
Area 3. Sound Money 9.09 9.68 9.53 9.68 9.46 9.47 9.60<br />
A. Money growth 9.24 (3.78) 9.70 (1.50) 9.31 (3.46) 9.64 (1.81) 9.55 (2.27) 8.93 (5.35) 9.13 (4.35)<br />
B. Standard deviation <strong>of</strong> inflation 9.32 (1.70) 9.65 (0.88) 9.34 (1.65) 9.54 (1.15) 8.64 (3.40) 9.15 (2.13) 9.67 (0.83)<br />
C. Inflation: most recent year 7.80 (11.00) 9.38 (3.11) 9.45 (2.75) 9.56 (2.21) 9.64 (1.78) 9.81 (0.94) 9.62 (1.91)<br />
D. <strong>Freedom</strong> to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00<br />
Area 4. <strong>Freedom</strong> to Trade Internationally 8.69 8.64 8.97 7.77 7.84 7.54 7.83<br />
A. Tariffs 8.08 7.93 8.78 6.65 7.25 7.01 6.97<br />
(i) Revenue from trade taxes (% <strong>of</strong> trade sector) 8.40 (2.40) 9.20 (1.20) 9.79 (0.31) 9.77 (0.35) 9.77 (0.35) 9.77 (0.35) 9.77 (0.35)<br />
(ii) Mean tariff rate 7.76 (11.20) 8.12 (9.40) 9.79 (0.31) 9.10 (4.50) 9.26 (3.70) 9.16 (4.20) 9.16 (4.20)<br />
(iii) Standard deviation <strong>of</strong> tariff rates 6.48 (8.80) 7.32 (6.70) 1.07 (22.33) 2.73 (18.17) 2.10 (19.74) 1.97 (20.08)<br />
B. Regulatory trade barriers 8.48 7.76 7.58 7.19 8.20<br />
(i) Non-tariff trade barriers 7.45 6.63 6.26 5.50 6.50<br />
(ii) Compliance cost <strong>of</strong> importing and exporting 9.50 8.89 8.89 8.87 9.89<br />
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00<br />
D. Controls <strong>of</strong> <strong>the</strong> movement <strong>of</strong> capital and people 8.00 8.00 8.65 6.67 6.52 5.97 6.17<br />
(i) Foreign ownership/investment restrictions 8.83 7.50 7.07 6.81 7.39<br />
(ii) Capital controls 8.00 8.00 8.46 6.92 6.92 6.92 6.92<br />
(iii) <strong>Freedom</strong> <strong>of</strong> foreigners to visit 5.60 5.56 4.19 4.19<br />
Area 5. Regulation 8.53 8.39 8.06 8.66 8.31 8.32 8.11<br />
A. Credit Market regulations 9.72 9.74 10.00 10.00 9.36 10.00 9.73<br />
(i) Ownership <strong>of</strong> banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00<br />
(ii) Private sector credit 9.16 9.21 10.00 10.00 9.08 10.00 9.20<br />
(iii) Interest rate controls (negative real interest rates) 10.00 10.00 10.00 10.00 9.00 10.00 10.00<br />
B. Labor Market regulations 7.33 7.05 6.41 8.20 8.51 8.35 8.14<br />
(i) Hiring regulations and minimum wage 4.28 8.90 8.90 8.90 8.90<br />
(ii) Hiring and firing regulations 6.47 5.08 5.44 6.47 5.68 6.06<br />
(iii) Centralized collective bargaining 7.24 7.24 7.83 7.48 7.43 7.26 7.61<br />
(iv) Hours regulations 4.75 4.49 4.84 10.00 10.00 10.00 8.00<br />
(v) Mandated cost <strong>of</strong> worker dismissal 7.40 8.27 8.27 8.27<br />
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00<br />
C. Business regulations 7.77 7.79 7.06 6.60 6.47<br />
(i) Administrative requirements 7.20 3.87 4.22 4.74 4.73<br />
(ii) Bureaucracy costs 7.23 6.39 2.02 2.02 2.02<br />
(iii) Starting a business 7.55 9.89 9.84 9.84 9.95<br />
(iv) Extra payments/bribes/favoritism 9.08 8.39 8.13 7.65 6.72<br />
(v) Licensing restrictions 9.52 9.63 6.86 6.86<br />
(vi) Cost <strong>of</strong> tax compliance 8.67 8.53 8.53 8.53<br />
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