Annex II Methodology and Data Sources A. Methodology The Freedom Barometer Asia 2012 is based on highly regarded sources. The dimensions Political Freedom and Rule of Law are drawn from four main sources, namely Freedom House (2012), Transparency International (2011), the Fraser Institute (2012) and Maplecroft (2012). With regards to the economic dimension, we use the data provided by the 2012 Economic Freedom of the World Report (data values of 2010), supported by the Heritage Foundation’s 2012 Index of Economic Freedom, the 2012 Bertelsmann Transformation Index and the World Bank’s Doing Business 2012 report. We acknowledge a lack of synchronicity within our data. However, as the overlap of indicators is rather limited, we expect those irregularities from time differences to be levelled out. Although we are aware of the problems inherent in this approach, our aim is to use the latest data available, even when asynchronous.
DIMENSION I - POLITICAL FREEDOM 1. Free and Fair Elections The score of this component is based on Freedom House’s Freedom in the Word Index 2012, with checklist questions relating to: (A) the electoral process, and (B) political pluralism and participation. Freedom House assigns a maximum of 12 points to checklist question (A) and a maximum of 16 points to checklist question (B), so the maximum total score is 28 points. We convert this score into our pattern of 0-10 points, with 10 points being the best possible score. For example: Country A scores 16 out of 28 possible points in Freedom House’s evaluation, which corresponds to a percentage of 57.14%. This will then translate into a Freedom Barometer score of 5.71 on the 0-10 scale. 2. Absence of Unconstitutional Veto Players This component is based on checklist question (C) of Freedom House’s Freedom in the World Index 2012: the functioning of government. Freedom House assigns a maximum of 12 points to this checklist question. The pattern described above is used in calculating the score of this component in the Freedom Barometer. 3. Press Freedom This variable is based on the Freedom of the Press Index 2012 published by Freedom House. Freedom House evaluates press freedom using 23 methodology questions and 109 indicators in three categories, namely, the legal, political and economic environments. For each question, a lower number of points is given for a free environment, whereas a high number indicates little press freedom. Every country is rated in the above-mentioned categories, with the final score being based on the total number: A score of 0 to 30 places a country in the “free” group, a score of 31 to 60 in the “partly free” group, and a
score of 61 to 100 in the “not free” group. We will then convert the Freedom House score into our 0-10 scale. For the detailed conversion table, please refer to Annex III.
DIMENSION II - RULE OF LAW 1. Independence of the Judiciary Our score is based on sub-question (A), judicial independence in terms of legal structure and security of property rights, of the Economic Freedom of the World Report published by the Fraser Institute. Since the report follows the same scoring pattern as our Freedom Barometer, no conversion is needed.
3. Human Rights Our score is based on Maplecroft‘s Human Rights Risk Atlas. It evaluates human rights risks in 197 countries worldwide, across a range of 23 indicators, totalling 31 indices and 7 composite indices. For the purpose of our report, we have taken the data from the following 20 indices of the Human Rights Risk Atlas: Arbitrary Arrest and Detention Index; Extrajudicial or Unlawful Killings Index; Disappearances Index; Torture and Other Ill-Treatment Index; Internal Displacement and Refugees Index; Child Soldiers Index; Security Forces and Human Rights Index; Discrimination in the Workplace Index; Child Labour Index; Forced or Involuntary Labour Index; Trafficking Index; Freedom of Association and Collective Bargaining Index; Working Conditions Index; Discrimination in Society Index; Freedom of Thought, Conscience and Religion Index; Freedom of Opinion and Expression Index; Human Rights Defenders Index; Women’s and Girl’s Rights Index; Indigenous Peoples’ Rights Index and Minority Rights Index. Maplecroft’s Human Rights Risk Atlas adheres to the same scoring system as the Freedom Barometer. A score of 0 indicates a high risk in the pertinent area, whereas a score of 10 indicates a low risk. No conversion is therefore needed. The Freedom Barometer‘s human rights evaluation is derived from the average score of the above-mentioned indices.
DIMENSION III - ECONOMIC FREEDOM 1. Security of Property Rights The source of this score is the Fraser Institute’s Economic Freedom of the World Report, (Area 2 Legal Structure & Security of Property Rights). Since the report and the Freedom Barometer follow the same scoring pattern, no conversion is necessary. Additional data and information are obtained from the Heritage Foundation’s Index of Economic Freedom, the World Bank’s Doing Business report and the Bertelsmann Transformation Index.
Freedom Barometer Asia 2012
2. Corruption This component is based on the Corruption Perceptions Index by Transparency International. No conversion of the score is necessary, since the index adopts the same scoring pattern as the Freedom Barometer.
2. Size of Government: Expenditures, Taxes and Enterprises This score is based on the Fraser Institute’s Economic Freedom of the World Report (Area 1 - Size of Government). Since the report and the Freedom Barometer follow the same scoring pattern, no conversion is necessary. Additional data and information are obtained from the Heritage Foundation’s Index of Economic Freedom, the World Bank’s Doing Business report and the Bertelsmann Transformation Index. 3. Regulation of Credit, Labour and Business This indicator is based on the Fraser Institute’s Economic Freedom of the World Report (Area 5 Regulation of Credit, Labour and Business). Since the report and the Freedom Barometer follow the same scoring pattern, no conversion is needed. Additional data and information are drawn from the Heritage Foundation’s Index of Economic Freedom, the World Bank’s Doing Business report and the Bertelsmann Transformation Index. 4. Freedom to Trade Internationally The source of this score is the Fraser Institute’s Economic Freedom of the World Report (Area 4 Freedom to Trade Internationally). Since the report and the Freedom Barometer follow the same scoring pattern, no conversion is needed. Additional data and information are drawn from the Heritage Foundation’s Index of Economic Freedom, the World Bank’s Doing Business report and the Bertelsmann Transformation Index.
B. Main Data Sources 1. Freedom House a) Freedom of the World Index: Freedom House assesses the degree of political rights and civil liberties. It uses a checklist of 25 questions, 10 of which are related to political circumstances, while the other 15 concern civil liberties. The ten political questions consist of three questions on the electoral process, four on political pluralism and participation and three on the functioning of government. The civil liberty questions comprise four questions about freedom of expression and belief, three on associational and organisational rights, four on the rule of law and the other four on personal autonomy and individual rights. A team of analysts evaluates the results and creates the scores and ratings. About one-third of the analysts are Freedom House staff, whereas the rest are experts from academia, media, think tanks and human rights communities. b) Freedom of the Press Index: Freedom House provides analytical reports and numerical ratings regarding the freedom of the press in 197 countries worldwide. Countries are given a total score of 0 (best) to 100 (worst) based on 23 methodology questions and 109 indicators in three categories: legal environment, political environment and economic environment. A score of 0 to 30 will place a country in the “free” press group, a score 0f 31 to 60 in the “partly free” press group, and a score of 61 to 100 in the “not free” press group.
The results of the survey are derived from a multi-layered process of analysis and evaluation by a team of regional experts. In addition to its core research team headquartered in New York, Freedom House relies on data provided by members of the International Freedom of Expression Exchange, a network of organisations that advocate free expression, and employs a number of outside consultants. 2. Transparency International The Corruption Perceptions Index aims at measuring corruption based on the perceived levels of corruption. It contains 13 different opinion polls and studies of 11 independent institutions. To guarantee the quality of the index, the methodology adopted is supervised by a board of experts, the Index Advisory Committee. 3. Maplecroft Maplecroft, a global risk and strategic consulting firm, provides monitoring and analysis of political, economic, social and environmental risks. Its Human Rights Risk Atlas surveys 197 countries worldwide in five human and labour rights risk areas: complicity and lack of the rule of law; human security; labour rights and protection; civil and political rights; and access to remedy. A total of 31 indices and 7 composite indices determine human rights risks in the above-mentioned areas. However, as we want to avoid an overlap with other variables of the Freedom Barometer (e.g. Independence of the Judiciary), we use the data of only 20 of the 31 indices of the Human Rights Risk Atlas (see Annex II – Methodology - DIMENSION II - RULE OF LAW - Human Rights).
1. Size of Government: Expenditures, Taxes and Enterprises 2. Legal Structure and Security of Property Rights 3. Access to Sound Money 4. Freedom to Trade Internationally 5. Regulation of Credit, Labour and Business These variables are sub-divided further. For the purpose of our index, we do not include the third component: Access to Sound Money. 5. The Heritage Foundation The Heritage Foundation, an American think tank and proponent of the principles of free enterprise, limited government and individual freedom, annually publishes the Index of Economic Freedom. To measure the degree of economic freedom in selected countries, ten components in four categories (rule of law, limited government, regulatory efficiency and open markets) are evaluated and rated on a 0-100 scale (with 100 being the best). The combined average score determines the overall economic freedom score. 6. The Word Bank’s Doing Business Report The World Bank’s annual Doing Business report analyses regulations affecting business activities in 183 countries. The areas covered by the report include, but are not limited to the following topics:
Freedom Barometer Asia 2012
4. Economic Freedom of the World The Fraser Institute, a liberal Canadian think tank, together with its various partners worldwide, (including the Liberal Institute of the FNF), publishes the Economic Freedom of the World Report annually. The report contains the following five components:
starting a business; dealing with construction permits; registering property; obtaining credit; protecting investors; paying taxes; trading across borders; enforcing contracts; closing a business and employing workers. 7. Bertelsmann Transformation Index The Bertelsmann Foundation, a German think tank, bi-annually releases the Transformation Index, a ranking of 128 countries that depicts each country’s transformational success to democracy and market economy. In respect of democracy, market economy and political management, the Bertelsmann Transformation Index assesses 17 criteria that are divided into 52 questions. The data collected are then presented in two sub-indices: the Status Index and the Management Index.
Annex III Freedom House - Freedom of the Press Index Conversion Table FH
FB
FH
FB
FH
FB
FH
FB
FH
FB
0
10,00
20
8,00
40
6,00
60
4,00
80
2,00
1
9,90
21
7,90
41
5,90
61
3,90
81
1,90
2
9,80
22
7,80
42
5,80
62
3,80
82
1,80
3
9,70
23
7,70
43
5,70
63
3,70
83
1,70
4
9,60
24
7,60
44
5,60
64
3,60
84
1,60
5
9,50
25
7,50
45
5,50
65
3,50
85
1,50
6
9,40
26
7,40
46
5,40
66
3,40
86
1,40
7
9,30
27
7,30
47
5,30
67
3,30
87
1,30
8
9,20
28
7,20
48
5,20
68
3,20
88
1,20
9
9,10
29
7,10
49
5,10
69
3,10
89
1,10
10
9,00
30
7,00
50
5,00
70
3,00
90
1,00
11
8,90
31
6,90
51
4,90
71
2,90
91
0,90
12
8,80
32
6,80
52
4,80
72
2,80
92
0,80
13
8,70
33
6,70
53
4,70
73
2,70
93
0,70
14
8,60
34
6,60
54
4,60
74
2,60
94
0,60
15
8,50
35
6,50
55
4,50
75
2,50
95
0,50
16
8,40
36
6,40
56
4,40
76
2,40
96
0,40
17
8,30
37
6,30
57
4,30
77
2,30
97
0,30
18
8,20
38
6,20
58
4,20
78
2,20
98
0,20
19
8,10
39
6,10
59
4,10
79
2,10
99
0,10
100
0,00
Freedom Barometer Asia 2012