WASHINGTON—Economic freedom has a greater impact than foreign aid in helping people in poor nations escape poverty, according to the Economic Freedom of the World: 2006 Annual Report
, released today by the Cato Institute in conjunction with the Fraser Institute
In this year's index, Hong Kong retains the highest rating for economic freedom, 8.7 out of 10, followed by Singapore at 8.5. New Zealand, Switzerland, and the United States tied for third with ratings of 8.2. The United Kingdom and Ireland are tied for the 6th place, Canada ranks 8th, and Iceland and Luxembourg are tied for 9th place. The rankings of other large economies are Germany, 17; Japan, 19; France, 24; Italy, 45; Mexico, 60; India, 53; China, 95; Brazil, 88; and Russia, 102. Chile ranks as the freest economy in Latin America (20), while Botswana ranks as the freest economy in Africa (35).