The Freedom Barometer Asia 2009 Political, legal and economic freedom across Southeast and East Asia

The Freedom Barometer Asia 2009Political, legal and economic freedom across Southeast and East Asia

Contents

1. Why do we need a freedom barometer?

2. How do we measure freedom?

3. What sources do we use?

4. The Freedom Barometer 2009

1. Why do we need a freedom barometer?

Existing indizes on freedom often focus on one side of it: political or economic.

In addition, we wanted to create an index from a liberal´s point of view, focusing also on such matters as death penalty and

property rights.

Finally, we used the leading indizes and sources in creating our barometer. This makes it particularly comprehensive and

authoritative.


Political freedom(democracy)

1. Free and fair elections2. Absence of undemocratic

veto players (e.g. military)3. Press freedom

Rule of law1. Independence of the courts

and checks and balances 2. Corruption3. Human rights protection

Economic freedom

1. Security of property rights

2. Size of Government: Expenditures, Taxes and Enterprises

3. Regulation of credit, labour and business

4. Freedom to trade internationally


Free and fair elections

a) De jure: Are respective laws in place? The passive and active right to vote must be legally guaranteed. This includes the right to form parties and to campaign.

b) De facto: Does the campaign period allow a plurality of opinion? Is the actual voting process free from state interference? Is the counting of the votes free from state or other actors´ manipulation? Is a change of government possible?


Absence of undemocratic veto players

a) De jure: Do unelected actors have legal or constitutional privileges that delimit the authority of the elected political elite?

b) De facto: Are these privileges exercised? Do unlected actors have informal veto power? Do coups occur? Is the military under civilian authority?


Press freedom

a) De jure: Are respective laws in place?

b) De facto: Are these laws observed? Is there freedom of opinion? Is there plurality of opinion (e.g. through owernship). Are journalists free from persecution?


Rule of law: independence of the courts

a) De jure: Are democratic legal principles codified: equality before the law and independence of the courts?

b) De facto: Are these laws observed? Is the jurisdiction biased towards specific political actors? What is the informal influence of political actors over justices? This also implicates functioning checks and balances, e.g. an independent constitutional court.


Corruption

a) De jure: Are there anti-corruption laws?

b) De facto: What is the perceived degree of corruption? Corruption is a measure of rule of law because the former is a function of the latter.


Human rights

a) De jure: Are respective laws in place? Everyone is entitled to freedom from persecution based on race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status.

b) De facto: Are basic human rights observed by the state apparatus? Is there discrimination against certain groups or individuals? Is there forced labour? Does the government hamper the pursuit of happiness of its citizens? Is the death penalty practised?


Security of property rights*

• Judicial independence• Impartial courts• Protection of property rights• Military interference• Integrity of the legal system• Legal enforcement of contracts• Regulatory restrictions of sale of real property

*See Economic Freedom of the World Report by Fraser Institute


Size of government: expenditures, taxes and enterprises*

A General government consumption spending as a percentage of total consumptionB Transfers and subsidies as a percentage of GDPC Government enterprises and investmentD Top marginal tax rate

i Top marginal income tax rateii Top marginal income and payroll tax rates



Regulation of credit, labour and business*

A Credit market regulationsi Ownership of banksii Foreign bank competitioniii Private sector creditiv Interest rate controls / negative real interest rates

B Labor market regulationsi Minimum wage (DB)ii Hiring and firing regulations (GCR)iii Centralized collective bargaining (GCR)iv Mandated cost of hiring (DB)v Mandated cost of worker dismissal (DB)vi Conscription

C Business regulationsi Price controlsii Administrative requirements (GCR)iii Bureaucracy costs (GCR)iv Starting a business (DB)v Extra payments / bribes (GCR)vi Licensing restrictions (DB)vii Cost of tax compliance (DB)



Freedom to trade internationally*

A Taxes on international tradei Revenues from trade taxes (% of trade sector)ii Mean tarif rateiii Standard deviation of tarif rates

B Regulatory trade barriersi Non-tarif trade barriers (GCR)ii Compliance cost of importing & exporting (DB)

C Size of trade sector relative to expectedD Black-market exchange ratesE International capital market controls

i Foreign ownership / investment restrictions (GCR)ii Capital controls



For each indicator the value ranges from 0 (non-existent) to 10 (fully existent).

Free and fair elections: 10This means that free and fair elections are given in that country. Democratic election

laws are in place and dutifully observed.

Free and fair elections: 0This means that free and fair elections are not given in that country. Elections do not

occur at all or they are completely manipulated so as to fail to reflect the voters´ selection.

As there are 10 indicators, the maximum number of points is 100 (completely free) and the minimum 0 (completely unfree).

Our index consists of 6 political and 4 economic indicators, thus giving 20 % more weight to democracy.


Political freedom and rule of law

- Freedom House (2009)- Reporters Without

Borders (2008)- Transparency

International (2008)

Economic freedom- Economic Freedom of

the World by Fraser Institute (values are from 2006)


Conversion of the indizes used:

Economic freedom by Fraser Institute: 1-10 (10 best). No conversion necessary.

Freedom House: Free, partly free, not free. Conversion: Free is 7-10, partly free is 4-6, not free is 0-3.

Transparency International Corruption Perception Index: 1-10 (10 best). No conversion necessary.

Reporters Without Borders: 100-1 (1 best). Conversion: 100-60 is 0-3, 59-40 is 4-6, 39-0 is 7-10.

4. The Freedom Barometer 2009

4.1 The individual countries

4.2 Comparative table

4.1 The individual countries

4.1.1 Brunei

4.1.2 Burma

4.1.3 Cambodia

4.1.4 China

4.1.5 Indonesia

4.1.6 Japan

4.1.7 Laos

4.1.8 Malaysia

4.1.9 North Korea

4.1.10 Philippines

4.1.11 Singapore

4.1.12 South Korea

4.1.13 Taiwan

4.1.14 Thailand

4.1.15 Vietnam

4.1.1 Brunei

Political Freedom1. Free and fair elections 12. Absence of undemocratic veto players 23. Press Freedom 4

Rule of law1. Independence of the courts 35. Corruption 46. Human rights 4

Economic Freedom1. Security of property rights ?2. Size of Government: Expenditures, Taxes and Enterprises ?3. Regulation of credit, labor and business ?4. Freedom to trade internationally ?

Total 18

4.1.1 Brunei

Free and fair elections “Brunei is not an electoral democracy. The sultan wields broad powers under a long-standing state of emergency, and no direct legislative elections have been held since 1962. Citizens convey concerns to their leaders through government-vetted councils of elected village chiefs.” Status: “not free”.

Absence of undemocratic veto players „The unicameral Legislative Council has no political standing independent of the sultan.”

Press freedom “Journalists in Brunei face considerable restrictions. Legislation enacted in 2001 allows officials to shut down newspapers without cause and to fine and jail journalists for articles deemed “false and malicious.” The largest daily, the Borneo Bulletin, practices self-censorship, though it does publish letters to the editor that criticize government policies. Access to the internet is reportedly unrestricted.” Brunei is not ranked by RWB.

4.1.1 Brunei

Independence of the courts and checks and balances

„The constitution does not specifically provide for an independent judiciary; although the courts generally appear to act independently, they have yet to be tested in political cases.” “The Legislative Council appears to have assumed budget review as a regular function in recent years, meeting in 2006, 2007, and 2008 to scrutinize government expenditures. “

Corruption Brunei is not ranked by TI.

Human rights The death penalty has been suspended. „Brunei’s many “stateless” people, mostly longtime ethnic Chinese residents, are denied the full rights and benefits of citizens, while migrant workers, who comprise 30 to 40 percent of the workforce, are largely unprotected by the labor laws. Women are treated as unequal to men in areas such as divorce, in accordance with Islamic law, but an increasing number of women have entered the workforce in recent years.”

4.1.2 Burma

3. Press Freedom 0

Rule of law1. Independence of the courts 02. Corruption 1.33. Human rights 0

Economic Freedom1. Security of property rights 3.262. Size of Government: Expenditures, Taxes and Enterprises 6.333. Regulation of credit, labor and business 3.734. Freedom to trade internationally 1.12

Total ….

4.1.2 Burma

Free and fair elections Military dictatorship: no elections since 1992; Freedom House ranking is „not free“.

Absence of undemocratic veto players There are only undemocratic veto players: military

Press freedom RWB ranking is 94,38

Corruption TI ranking is 1,3.

Independence of the courts and checks and balances The military controls all executive, legislative, and judicial powers. Military officers hold most cabinet positions, and active or retired officers hold most top posts in all ministries, as well as key positions in the private sector. Tue miltary controls all judicial powers and uses them frequently against political opposition.

Human rights The military suppresses nearly all basic rights and commits massive human rights abuses with impunity. The death penalty is in full effect.

4.1.3 Cambodia


Rule of law1. Independence of the courts 32. Corruption 1,33. Human rights 4


Total 22,3

4.1.3 Cambodia

Free and fair elections Freedom House ranking is „not free“. „Prime Minister Hun Sen and the CPP dominate national and local politics through their control of the security forces, officials at all levels of government, and the state-owned media.”

Absence of undemocratic veto players The security forces play a political role.

Press freedom RWB ranking is 35,50.

Corruption TI ranking is 1,8. „The judiciary is not independent and is marred by inefficiency and corruption. There is a severe shortage of lawyers, and judges are poorly trained and subject to political pressure from the CPP.”

Indepdence of the courts and checks and balances Hun Sen and his ruling party dominate all branches of government.

Human rights There is no death penalty. Discrimation against women and ethnic Cham Muslims is a problem. Security forces often act with impunity and are involved in organised crime.

4.1.4 China



Economic Freedom1. Security of property rights 5,162. Size of Government: Expenditures, Taxes and Enterprises 53. Regulation of credit, labor and business 4,954. Freedom to trade internationally 7,47

Total 42,18

4.1.4 China

Free and fair elections Freedom House ranking is „not free“. „The CCP possesses a monopoly on political power, and the party’s nine-member Politburo Standing Committee makes most important political decisions and sets government policy.”

Absence of undemocratic veto players The CCP is unelected.

Press freedom RWB ranking is 85,5. „Freedom of the press remains extremely restricted, despite constitutional free speech guarantees and comparative freedom in private discussion.”


Independence of the courts and checks and balances “Party members hold almost all top posts in government, the military, and the internal security services, as well as in many economic entities and social organizations. The 3,000-member National People’s Congress (NPC) is China’s largely symbolic parliament.” „The CCP controls the judiciary and directs verdicts and sentences, particularly in politically sensitive cases.”

Human rights Though constitutionally recognized, religious freedom is sharply restricted. Minorities are discrimated against. The death penalty is in full effect.

4.1.5 Indonesia



Economic Freedom1. Security of property rights 4,152. Size of Government: Expenditures, Taxes and Enterprises 6,363. Regulation of credit, labor and business 6,074. Freedom to trade internationally 7,29

Total 63,47

4.1.5 Indonesia

Free and fair elections Freedom House ranking is „free“. Indonesia is an electoral democracy. Elections in 2009 for the national parliament and the president were free and fair.

Absence of undemocratic veto players The military still largely enjoys impunity and wields political power.

Press freedom RWB ranking is 27. „The country has a large independent media presence. The foreign press has been banned from the restive province of Papua since 2003. Libel laws influence how journalists frame their stories.“

Corruption TI ranking is 3,6. „The KPK has been criticized for failing to convict prosecutors and police. Nevertheless, a string of high-profile cases and convictions in 2008 improved the commission’s image.”

Independence of the courts and checks and balances The Constitution provides for checks and balances. The Constitutional Court is independent. Without parliament´s consent laws cannot be passed.

Human rights “Members of unrecognized religions have difficulty obtaining national identity cards. Atheism is not accepted. Independence activists in Papua and in the Moluccas, and labor and political activists in Java and Sulawesi, remain targets for human rights abuses. Discrimination against women persists, particularly in the workplace.” The death penalty is practiced.

4.1.6 Japan




Total 83,23

4.1.6 Japan

Free and fair elections Freedom House rating is „free“. Several political parties compete for power.

Absence of undemocratic veto players The military does not wield political veto power.

Press freedom RWB rating is 6,5. „Japan’s press is private and independent, but the presence of press clubs, or kisha kurabu, is an obstacle to press freedom.”

Corruption TI ranking is 7,3. Corruption results from the iron triangle system between the government and big business.

Independence of the courts and checks and balances Japan’s judiciary is independent. Emperor Akihito serves as the ceremonial head of state, parliament is vested with legislative powers.

Human rights Capital punishment is legal in Japan.

4.1.7 Laos




Total 12

4.1.7 Laos

Free and fair elections Freedom House rating is „ not free“. „The 1991 constitution makes the LPRP the sole legal political party and grants it a leading role at all levels of government. The LPRP vets all candidates for election to the rubber-stamp National Assembly, whose 115 members elect the president.”

Absence of undemocratic veto players The LPRP controls all government.

Press freedom RWB rating is 70. „Freedom of the press is severely restricted. Any journalist who criticizes the government or discusses controversial political topics faces legal punishment. The state owns all media.”

Corruption TI ranking is 2. „Corruption and abuses by government officials are widespread. Official announcements and new laws aimed at curbing corruption are rarely enforced.”

Indepdence of the courts and checks and balances The LPRP controls all government. „The courts are corrupt and controlled by the LPRP.”

Human rights Capital punishment is legal in Laos. Religious freedom is tightly restricted. Discrimination against members of minority tribes is common at many levels.

4.1.8 Malaysia




Total 56,54

4.1.8 Malaysia

Free and fair elections Freedom House rating is „partly free“. Elections are generally considered free but not fair, e.g. March 2008 elections.

Absence of undemocratic veto players The security forces play a political role, if subdued.

Press Freedom RWB rating is 39,5. Freedom of expression is constitutionally guaranteed but restricted in practice, encouraging self-censorship and limiting investigative journalism.

Corruption TI ranking is 5,1. Corruption is rife among government.

Indepedence of the courts and checks and balances The BN controls national government. Arbitrary or politically motivated verdicts are not uncommon, with the most prominent case being that of Anwar Ibrahim.

Human rights Capital punishment is legal in Malaysia. Discrimination against women and non-Malays (affirmative action) is a problem. The police is known for its heavy-handed actions and the authoritarian Internal Security Law is applied on a regular basis.

4.1.9 North Korea




Total 0

4.1.9 North Korea

Free and fair elections Freedom House rating is „not free“. Elections take place but are not free and fair.

Absence of undemocratic veto players The regime is a military one.

Press Freedom RWB rating is 96,50. Only Eritrea is worse.

Corruption No TI ranking available.

Independence of the courts and checks and balances The courts are not independent from political influence.

Human rights Human rights are practically unkown in North Korea.

4.1.10 Philippines




Total 55.86

4.1.10 Philippines

Free and fair elections Freedom House ranking is „partly free“.

Absence of undemocratic veto players Political violence is widespread. Casualties of such terror are often members of the left-wing parties, especially in the Autonomous Region in Muslim Mindanao (ARMM).

Press Freedom RWB ranking is 45.


Independence of the courts and checks and balances Judicial independence is strong, as for example the results of the trials against the state administration demonstrate.

Human rights The Muslim separatist conflict have created many human rights violations on both sides.

4.1.11 Singapore4.1.11 Singapore




Total 61,96

4.1.11 Singapore

Free and fair elections Singapore is not an electoral democracy, although it has a parliamentary system. The PAP (People’s Action Party) controls the country.

Absence of undemocratic veto players The PAP uses different instruments to repress the opposition.

Press Freedom Foreign press can be banned for reporting about domestic issues. Moreover, there exists strict internet regulations.

Corruption Out of 180 nations Singapore is listed as number 4 (source: Transparency International).

Independence of the courts and checks and balances The overall positive results of the trials, concerning the government, have created suspicion about the objectivity of the courts.

Human rights In relation to the number of citizens in Singapore, there is no other country in the world, where there are so many executions. Apart from that, physical punishments are common.

4.1.12 South Korea




Total 76.65

4.1.12 South Korea

Free and fair elections South Korea depicts an electoral democracy: there are free and fair elections.

Absence of undemocratic veto players Pluralistic political system: the two largest parties are the UNDP (United New Democratic Party, before: Uri Party) and the GNP (Great National Party).

Press freedom Press is free to criticize the government. Although the South Koreans are told not to listen to North Korean radio, there is no direct censorship.

Corruption South Korea is number 40 (out of 180) on the 2008 Corruption Perceptions Index.

Independence of the courts and checks and balances The judicial sector is sovereign.

Human rights Human rights are guaranteed. However, ethnic minorities are often socially and legally discriminated against.

4.1.13 Taiwan




Total 77.16

4.1.13 Taiwan

Free and fair elections Generally, the elections are free and fair.

Absence of undemocratic players There are two major parties: pro-independence DPP (Democratic Progressive Party) and the nationalist KMT (translated: Chinese Nationalist Party).

Press freedom Nowadays, every branch of the media is able to publish freely. In the past, the internet and TV stations were regulated.

Corruption Taiwan achieves 5.7 out of 10 points in the 2008 Corruption Perceptions Index.

Independence of the courts and checks and balances The judicial branch is independent.

Human rights Human rights are assured. Despite huge progresses, women are not treated equally in today’s Taiwan.

4.1.14 Thailand




Total 57.83

4.1.14 Thailand

Free and fair elections Thailand is not an electoral democracy. Constitutional Court rulings in September and December 2008 forced the resignations of two PPP prime ministers and the disbandment of the party itself, leaving a new government led by the rival DP in power at year’s end.

Absence of undemocratic players The military continues to wield political power. Self-styled supporters of the monarchy often exert undue influence.

Press freedom There is censorship of Thaksin Shinawatras’ supporters and lese majeste laws limit the freedom of the press.

Corruption Corruption is a well-known and widespread phenomenon in Thailand.

Independence of the courts and checks and balances The judiciary makes or breaks the government and does not seem inpartial in doing so. Lese majeste cases seriously threaten judicial integrity and press freedom.

Human rights The death penalty has been carried out. Minorities, especially in the South, have been subdued violently.

4.1.15 Vietnam




Total 42.73

4.1.15 Vietnam

Free and fair elections Vietnam is a communist country, which does not allow free and fair polls.

Absence of undemocratic players The CPV (Communist Party of Vietnam) is the only party allowed. Political opponents have been persecuted and convicted because of: “Spreading Anti-Vietnamese Propaganda”.

Press freedom There is no freedom of the press in Vietnam. For example, the last censorship laws of 2006 prohibit: “denying revolutionary achievements”, spreading “harmful” data or showing ‘reactionary ideology”.

Corruption Vietnam could just reach 2.7 points on the 2008 Corruption Perceptions Index.

Independence of the courts and checks and balances The courts submit to the CPV. Lawyers, who have clients with delicate cases (e.g. human rights issues) are in danger of harassments by the state.

Human rights Capital punishment has been carried out in Vietnam. Minorities (e.g. Buddhists and Catholics) have been severely discriminated against and have often been victims of abuse by state officials.

The Freedom Barometer

Political Freedom NKR LA MYR BRU CAM CH VN PH ML TH IND SIN SKR TA JAP

1. Free and fair elections 0.00 0.00 0.00 1.00 3.00 3.00 3.00 6.00 5.00 6.00 10.00 5.00 9.00 8.00 10.002. Absence of undemocratic veto players 0.00 3.00 0.00 2.00 5.00 3.00 1.00 6.00 5.00 5.00 5.00 5.00 9.00 8.00 10.003. Press freedom 0.00 3.00 0.00 4.00 6.00 3.00 1.00 6.00 6.00 6.00 8.00 5.00 9.00 9.00 10.00

Rule of law1. Independence of the courts 0.00 1.00 0.00 3.00 3.00 3.00 5.00 5.00 3.00 5.00 7.00 4.00 8.00 9.00 10.002. Corruption 0.00 2.00 1.30 4.00 1.30 3.60 2.70 2.30 5.10 3.50 2.60 9.20 5.60 5.70 7.303. Human rights 0.00 3.00 0.00 4.00 4.00 4.00 4.00 6.00 5.00 5.00 7.00 3.00 9.00 9.00 9.00

Sources: Freedom House, Bertelsmann, Transformation Index, Human Rights Watch, Reporters Without Borders, Transperency International

Economic Freedom1. Security of property rights 0.00 0.00 2.60 0.00 0.00 5.16 5.34 4.47 7.05 5.71 4.15 8.19 6.66 6.32 7.662. Size of Government: Expenditures, Taxes and Enterprises 0.00 0.00 5.77 0.00 0.00 5.00 6.87 7.12 5.50 7.15 6.36 7.96 6.61 7.21 6.233. Regulation of credit, labor and business 0.00 0.00 6.22 0.00 0.00 4.95 6.87 5.80 7.34 6.81 6.07 8.22 6.63 7.02 7.174. Freedom to trade internationally 0.00 0.00 1.93 0.00 0.00 7.47 6.95 7.17 7.55 7.66 7.29 9.39 7.15 7.91 5.87

Sources: Economic Freedom of the World by Fraser Institute, Index of Economic Freedom by Heritage Foundation

Values: 10 best, 0 worstTotal freedom value (political and economic): 100 best, 0 worst

Total 0.00 12.00 17.82 18.00 22.30 42.18 42.73 55.86 56.54 57.83 63.47 64.96 76.65 77.16 83.23

BRU Brunei JAP Japan SIN SingaporeMYR Myanmar LA Laos SKR South KoreaCAM Cambodia ML Malaysia TA TaiwanCH China NKR North Korea TH ThailandIND Indonesia PH Philippines VN Vietnam

Documents

The Freedom Barometer Asia 2009 Political, legal and economic freedom across Southeast and East Asia