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Countries with high level of ‘economic freedom’ perform better compared to those with relatively lower level of ‘economic freedom’, insolvency regulator IBBI’s Chairman MS Sahoo said.
The provision of ‘economic freedom’ unleashes and realises full potential of every person and resources available at the disposal of any economy and thereby promotes inclusive growth, Sahoo said at an insolvency conference organised by the Insolvency and Bankruptcy Board of India (IBBI) here recently.
Academicians, researchers and professionals need to build institutional capacity in the country to deal with ‘economic freedom’, he added.
‘Economic freedom’ refers to the freedom to prosper within a country without intervention from a Government or economic/financial authority. This (economic freedom) is often a reason why some societies thrive while others do not.
Miles to go
It may be recalled that India — which is developing into an open economy — was ranked 130th out of 180 economies in the recently released Index of Economic Freedom 2018 that measures the degree of economic freedom in the countries of the world.
In the index — released by US-based think-tank The Heritage Foundation — India, with a score of 54.5, scaled up 13 positions from 143rd rank in previous year (2017) with a score of 52.6.
The scores range from 0 (least free) to 100 (most free). Based on the score, countries are grouped in five different categories: Free (80-100); Mostly Free(70.0-79.9); Moderately Free (60.0-69.9); Mostly Unfree (50.0-59.9) and repressed (0-49.9).
The 12 factors for calculating the scores are property rights, Government integrity, tax burden, judicial effectiveness, government spending, fiscal health, business freedom, monetary freedom, labour freedom, trade freedom, investment freedom and financial freedom.
insolvency programme
Sahoo said the Insolvency and Bankruptcy Code (IBC) is a unique piece of law that deals with both market processes and professionals. In this context, he touched upon the proposed Graduate Insolvency Programme under conceptualisation to produce world class insolvency professionals.
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