Michael de Laine

Declining democracy, economic freedom in Russia

By Michael de Laine, Copenhagen, 25th January 2009

Democracy is on the decline in Russia, this year’s democracy rating from Freedom House indicates. At the same time, the 2009 Economic Freedom Index from the Heritage Foundation concludes that the level of economic freedom is also worsening in the country.

Russia is one of the 42 countries categorized as ‘not free’ in the latest Freedom House index. A total of 193 countries are included in the ranking. 89 counties are categorized as “free”, while 62 countries are “partly free”.

“Freedom retreated in much of the world in 2008, the third year of global decline as measured by Freedom House’s annual survey of political rights and civil liberties, which was released on 12th January,” the US-based organization said. “Sub-Saharan Africa and the former Soviet Union saw the most reversals, while South Asia showed significant improvement.”

Freedom House director of research Arch Puddington said, “The advance of freedom in South Asia was a rare bright spot in a year that was otherwise marked by setbacks and stagnation.”

He tied the start of the global downturn to the period directly following the ‘color revolutions’ in Europe: “Powerful regimes worldwide have reacted to the ‘color revolutions’ with calculated and forceful measures designed to suppress democratic reformers, international assistance to those reformers and ultimately the very idea of democracy itself.”

According to Freedom House, the worsening conditions for democracy in Russia are negatively influencing the level of freedom in the country’s neighboring states. The development of ‘petro-authoritarian’ rule in the region is a negative factor, the organisation said.

Overall, Freedom House said, 34 countries registered declines in freedom and 14 registered improvements.

Three countries saw declines that resulted in status changes: Afghanistan and Mauritania both moved from ‘partly free’ to ‘not free’ and Senegal went from ‘free’ to ‘partly free’.

Three countries, all from South Asia, moved from ‘not free’ to ‘partly free’: Pakistan, Maldives and Bhutan.

Two countries in Western Europe — Italy and Greece — experienced modest declines.

Russia’s level of economic freedom is also under increasing pressure according to this year’s index from the Heritage Foundation, which said that Russia is among the countries categorized as ‘mostly unfree’. It is number 146 of 179 countries rated.

The study includes information on the countries’ trade policies, government engagement, financial policies, property rights and more.

The Heritage Foundation said Hong Kong maintains its status as the world’s freest economy, a position it has held for 15 consecutive years. Singapore remains close, ranked as the world’s second-freest economy. Australia has climbed to third place in the 2009 Index, with New Zealand in fifth place.

“Every region continues to maintain at least one of the top 20 freest economies,” the foundation added.

Ten of the 20 freest economies are European, led by Ireland, Denmark, Switzerland, and the United Kingdom. Five are in the Asia – Pacific region, and two (the United States and Canada) are from North America.

The other regions are represented by one country each: Chile (South and Central America/Caribbean region); Mauritius (Sub-Saharan Africa region); and Bahrain (Middle East/North Africa region).

“Economic freedom is strongly related to good economic performance,” the Heritage Foundation said. “Per capita incomes are much higher in countries that are economically free. Economies rated ‘free’ or ‘mostly free’ in the 2009 Index enjoy incomes that are more than double the average levels in all other countries and more than eight times higher than the incomes of ‘repressed’ economies.”

Overall human development, political openness, and environmental sustainability thrive in an environment that is economically free, the foundation added.

“Economic freedom is about more than a business environment in which entrepreneurship and prosperity can flourish,” the Heritage Foundation said. “With its far-reaching impacts on various aspects of human development, economic freedom empowers people, unleashes powerful forces of choice and opportunity, gives nourishment to other liberties, and improves the overall quality of life.”

The foundation said that the struggle between the state and the free market continues despite the progress made over the past 15 years.

“Many governments are maintaining a strong commitment to economic freedom, but others are regressing,” the Heritage Foundation said. “Regrettably, populist attacks on the free market, fueled by the economic slowdown and the political temptation of quick interventionist remedies, have gained momentum. Even so, however, for countries included in last year’s Index, economic freedom advanced slightly.”

Freedom House calls itself “a vigorous proponent of democratic values and a steadfast opponent of dictatorships of the far left and the far right.”

The Heritage Foundation says it is committed to building an America where freedom, opportunity, prosperity and civil society flourish.

The Freedom House Freedom in the World 2009 Survey release is available here.

Click here for the Heritage Foundation index release.