Taiwan ranks fourth in economic freedom globally

A recent visit to Taiwan highlighted its significant progress in economic freedom, despite ongoing threats from China. Taiwan ranked fourth among 184 countries in the 2025 Index of Economic Freedom, behind only Singapore, Switzerland, and Ireland. The island has transformed from an economic underperformer to a thriving economy known as the "Taiwan Miracle." Taiwan's success is largely attributed to its strong small and medium-sized businesses, often referred to as an "army of ants." These businesses have adapted well to changes in the market. The resilient and educated workforce has shown that economic freedom can lead to prosperity. Taiwan's relationship with the U.S. has also played a crucial role in its development, especially in the semiconductor industry. The U.S. relies heavily on Taiwan for semiconductor production, which keeps America ahead of China in technology. This dependence raises concerns about China's intentions regarding Taiwan. The U.S. has a commitment to help Taiwan defend itself, backed by the Taiwan Relations Act, which has been in place for 46 years. To further enhance its security, Taiwan may need to take a page from Ukraine's response to Russian aggression by arming its civilians. Building a home guard could deter any quick takeover attempts by China. The strength of Taiwan's defenses is critical not just for the island, but also for maintaining peace in the Asia-Pacific region and affirming the U.S. as a reliable security partner.