On the size of its government, where it scored 4.6 out of a possible 10, Israel was ranked 127th
Israel is rated 83 out of 114 in the Economic Freedom of the World Index, down two spots from last year, published last week by the Jerusalem Institute for Market Studies (JIMS).
Israel ranked 107 in terms of regulation, far behind countries such as Iceland, Denmark, Sweden and the Netherlands. It received particularly low scores for administrative requirements (3.5) and bureaucratic costs (4.2).
For competition from foreign banks, Israel received a score of 6 (ranking 94), while the Scandinavian countries received a score of 8 or 9. For the share of deposits in privately held banks Israel received 5 out of 10 points (ranking 97), while all Scandinavian countries received a perfect score.
Israel is ranked 121st in tariff rates. Sauer pointed out that high taxes and import barriers on automobiles in Israel mean there is little competition, and Israelis pay more and have less choice than they would in a competitive market.
On the size of its government, where it scored 4.6 out of a possible 10, Israel was ranked 127th. It finished 107th in terms of regulation, receiving low scores for administrative requirements and bureaucratic costs.
The report is based on data for 2009, and ranks Hong Kong first, ahead of Singapore, New Zealand and Switzerland. The least economically free country is Zimbabwe, followed by Myanmar, Venezuela and Angola. The United States was No. 10, down from seventh the previous year.
