U.S. editorial excerpts

Asian Economic News, Jan 12, 2004

NEW YORK, Jan. 9 Kyodo

Selected editorial excerpts from the U.S. press:

HONG KONG AS NUMBER ONE? (The Wall Street Journal, New York)

Today marks the release of our world-wide ''Index of Economic Freedom,'' which we co-publish annually with the Heritage Foundation. For the 10th year in a row, Hong Kong ranks at the top of the list of the 155 economies surveyed.

The Index, however, does not measure political freedom. If it did, Hong Kong's score would have taken a plunge this week on the news that Beijing has decided to slow the pace of democratic reform in Hong Kong and perhaps abandon it altogether. This is a clear violation of the terms by which Britain agreed to return its then-colony to China in 1997.

One of the lessons of the ''Index of Economic Freedom'' is that economic and political liberty go hand in hand.

China's leaders understand this, which is why they view the example of an emerging democracy in Hong Kong (or Taiwan) as a potential source of instability for the rest of China. Economic freedom has political consequences -- something the mandarins in Beijing want to avoid at all costs.

Curbs on political freedom likewise have a way of turning into curbs on economic freedom. We don't know how long it will take, but unless Beijing reverses course and allows Hong Kong's political system to catch up with its economy, it's hard to see how Hong Kong can retain its ranking as Number One.

(Jan. 9)