ICTlogy

Abstract:

Economic freedom is necessary for people to prosper. By reducing obstacles, it creates a framework within which people can choose how to use their time, skills, and resources: a framework in which innovation is welcomed and economic growth is enhanced. Simply put, around the world, countries with a higher degree of and strong commitment to economic freedom enjoy a higher standard of living.

The Index of Economic Freedom has documented this relationship over 12 years of research and analysis of economic policies in 161 countries. Published jointly by The Heritage Foundation and The Wall Street Journal, the Index has presented a portrait of economic freedom around the world and established a benchmark by which to gauge a country’s prospects for economic success. Tracing the path to economic prosperity, the annual Index continues to serve a wide and diverse audience of students, teachers, policymakers, business leaders, investors, and the media.

The Index identifies the strong complementarities among the 10 key ingredients of economic freedom such as low tax rates, tariffs, regulation, and government intervention, as well as strong property rights, open capital markets, and monetary stability. As previous editions have shown, increased economic freedom in one factor amplifies economic freedom in another. Likewise, a decline of freedom in one area makes it harder to take advantage of economic freedom in another.