Switzerland is doing better off out

swissknife

The Heritage Foundation’s prestigious index of economic freedom for 2014 has just been published.  It states that over the 20-year history of the Index, the UK’s economic freedom ranking, at 14th, has declined by 3 points.  Worryingly, this is the most adverse movement of any European country.

By contrast, Switzerland is #1 in Europe and #5 in the world.  The Swiss have stayed out of the €uro but also stayed out of the EU.

The index of economic freedom used by the authors takes into account four components of economic freedom: the size of the state, respect for the rule of law, regulatory efficiency, and the openness of the market.

In Switzerland, the improvement was due to an increase in the freedom of trade, public finance management as well as the openness of the market measured by the freedom of trade and financial freedom. The Swiss economy with its flexibility and openness as well as an efficient regulatory framework, encourages entrepreneurship and innovation. In addition, the Swiss legal system is largely  independent with respect to concerning politics, and Switzerland has exceptionally low levels of corruption.

Switzerland’s high ranking demonstrates that a sovereign country can reach a high level of economic freedom while pursuing a policy of independent growth . According to Natasha Srdoc, President and co-founder of the Adriatic Institute for Public Policy, Switzerland won first place in Europe in terms of freedom of trade and monetary freedom: “The fact of being separate from the EU and having its own currency seems to be the best option for Swiss citizens in order to achieve a high level of economic freedom”.

The Swiss case it is another clear example of a sovereign nation achieving highest scores of economic freedom by independently pursuing pro-growth policies. Staying out of the EU and keeping its own currency was evidently the best option for the citizens of Switzerland to achieve higher levels of prosperity and economic freedom.  It’s worth noting that Switzerland’s per capita GDP (US$ 78812) is nearly double the UK ($38161), while Norway, also an independent country with its own currency, is more than double ($99170).

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9 Responses to Switzerland is doing better off out

  1. catalanbrian says:

    Why am I not surprised that a right wing think tank such as the Heritage Foundation admires the crooked bankers of Switzerland? Further, it is worth mentioning that there is no relationship between Norway’s GDP per capita and its non membership of the EU. Norway’s high GDP per capita is down to its oil revenues. You have also, interestingly, failed to mention that above the UK in the listings were two other EU countries, Ireland and Denmark, one a member of the Eurozone and the other not. Surely you were not intending to mislead. Finally I would add that the UK is also an independent country with its own currency.

    • Right wing – yes. But what is measured (and how it is measured) is carefully explained. I don’t think whether or not you are right wing matters as much as what is measured and how. The indicators are all pretty well explained, but then, of course, different people might measure different things.
      Ireland, Denmark and Estonia did do well in Europe, but not really well in the world. I notice how of the top six, for instance, only one (Switzerland) is not in the Anglo-sphere. I also notice how low down the major European countries seem to be.
      Fascinating nevertheless.

  2. Neil Craig says:

    Switzerland is also #1 in the world of ratio of scientific citations to population. They are about 50% ahead, per capita, of the UK which is turn is ahead of any other sizable country and just short of twice as good as the USA. (Showing a little Scottish chauvinism I will point out that Scotland almost equals Switzerland) http://a-place-to-stand.blogspot.co.uk/2012/08/look-ma-2nd-top-of-world-uk-in-total.html

    Apart from not being in the EU they also (1) have a legal right to popular referenda (as does UKIP) which seem stops a lot of PCness to the annoyance of the equivalent of our ruling class (2) have a strongly federal system of government which, in my opinion, allows ideas to be tried out before applying them to the entire nation (essentially the scientific method) (3) while being very strong about defence of the nation, do not go around the world “punching above our weight” against small, poor countries that do not threaten them.

    One effect of this is that even Swiss do not recognise their own Prime Minister. There is much to be said for politics being so boring & politicians so restrained by popular controls, that nobody cares about those in charge.

    If this is what the Swiss can do, surrounded by EU states, I am sure we, surrounded by open sea, could do even better.

  3. Charles Wardrop says:

    No EU nation Is independent.

  4. Thomas Fox says:

    Correct Roger keep up the good message ,UKIP must try to have all these facts repeated more often on our National Media?

  5. DICK R says:

    No amount of spurious economic argument can be allowed to overrule the case for real democracy and self determination that the EU collaborators seem to want for everyone else but their own country.

  6. smw@soundfinancial.co.uk says:

    Roger,

    I think this data is invaluable if reproduced as a ” Sales Aid” for the forthcoming Elections.

    Something along the lines of, If the EU is such a good idea why havent the Swiss and Norwegians joined? Here’s a clue.Then follow up with the data on GDP.

    Something short and snappy like that I feel would be very effective.I am in sales myself and know how powerful this type of thing can be.

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