Presentation On Economic Freedom of the World 2012

Economic Freedom of the World Project

Ø  Objective: find a way to measure economic freedom and explore the connection between it and other variables,

Ø  25 year project,

Ø  Led by the late Milton Friedman and Rose Friedman, and Michael Walker,

Ø  Involved 60 of the world’s top scholars, including three Nobel Laureates.

What is the Economic Freedom of the World Index?

Ø  An annual compilation of data representing factors which make a country economically free

Ø  Authors: James Gwartney, Robert Lawson, and Joshua Hall

Ø  A compendium of 42 government policies affecting economic freedom based on objective data or independent surveys

Ø  A ranking of  144 countries representing 95% of the world’s population according to the extent to  which they permit their citizens to be economically free

Ø  Now a collaboration of Institutes in 85 nations and territories.

What is Economic Freedom

Individuals have economic freedom when the property they acquire without the use of force, fraud, or theft is protected from physical invasions by others and they are free to use, exchange, or give their property as long as their actions do not violate the identical rights of others. An index of economic freedom should measure the extent to which rightly acquired property is protected and individuals are engaged in voluntary transactions.

            James Gwartney et al. 1996

Components of the Economic Freedom of the World Index

Ø  Size of government and taxation,

Ø  Private property and the rule of law,

Ø  Soundness of money,

Ø  Trade regulation and tariffs,

Ø  Regulation of business, labor and capital  markets.

Member Institutes of Economic Freedom of The World Network

Ø  Afghanistan Economic and Legal Studies Organization (AELSO), Afghanistan

Ø  Albanian Center for Economic Research (ACER), Albania

Ø  Fundación Libertad, Argentina

Ø  Center of Political, Legal and Economic Researches and Forecasting (PLERF), Armenia

Ø  Institute of Public Affairs, Australia

Ø  TIGRA®, Austria

Ø  Center for Economic and Political Research, Azerbaijan

Ø  The Nassau Institute, Bahamas

Ø  Making Our Economy Right (MOER), Bangladesh

Ø  Scientific Research Mises Center, Belarus

Ø  Center of the New Europe, Belgium

Ø  Politicas Publicas para la Libertad (POPULI), Bolivia

Ø  Instituto Liberal do Rio de Janeiro, Brazil

Ø  Institute for Market Economics, Bulgaria

Ø  Le Centre des Affaires Humaines (CEDAH), Burkina Faso

Ø  The Cambodia Institute of  Development Study, Cambodia

Ø  Instituto Libertad y Desarrollo, Chile

Ø  Center for China & Globalization, China

Ø  Instituto de Ciencia Politica, Colombia

Ø  Instituto para la Libertad y el Análisis de Políticas, Costa Rica

Ø  Audace Institut Afrique, Côte d’Ivoire

Ø  The Institute of Economics, Croatia

Ø  Liberální Institut, Czech Republic

Ø  Center for Politiske Studier (CEPOS), Denmark

Ø  Fundación Economía y Desarrollo Inc, Dominican Republic

Ø  Instituto Ecuatoriano de Economía Política, Ecuador

Ø  Institut Economique Molinari, France

Ø  Society for Disseminating Economic Knowledge: New Economic School, Georgia

Overall Economic Freedom Index and the Top 10

Overall Economic Freedom Index and the Bottom Ten

 World Average Economic Freedom Over Time

Why is Economic Freedom Important?

Ø  Economic rights are fundamental rights in the sense that without them there can be no political freedom or civil freedoms

Ø  They are a prerequisite for growth and development

Ø  They are a prerequisite for broader human development

Per Capita Income and Economic Freedom Quartile
Most Free ……………. Least Free

Growth in Developing Nations Per Capita and Economic Freedom Quartile
Most Free ……………. Least Free

Economic Freedom, the Poor, and Inequality

Income Share of the Poorest 10% and Economic Freedom
Most Free ……………. Least Free

Income of the Poorest 10% and Economic Freedom
Most Free ……………. Least Free

Economic Freedom, Governance, and Democracy

Economic Freedom and Political Rights.
*LOW scores indicate a high level of rights
Most Free ……………. Least Free

Economic Freedom and Civil Rights
*LOW scores indicate a high level of rights
Most Free ……………. Least Free 

Economic Freedom and Corruption
*HIGH scores indicate low corruption
Most Free ……………. Least Free

The impact of Economic Freedom on other indicators of well-being

Economic Freedom and
Life Satisfaction
Most Free ……………. Least Free

Literacy
                                        Male                                                 Female

Life  Expectancy at Birth and Economic Freedom Quartiles 
Most Free ……………. Least Free

Conclusions

Economic Freedom

Ø  Increases prosperity for all

Ø  Reduces poverty

Ø  Increases other freedoms

            Ø  Improves quality of life



Not: [All related Information and data presented here are generated from The Fraser Institute, The World Bank, World Development Indicators, 2012.]