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FREEDOM AROUND THE GLOBE (SINCE 1776): MARCH? CRAWL? RETREAT? ZIG ZAG? A. Illarionov, Cato Institute, Washington, USA Institute of Economic Analysis, Moscow,

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Presentation on theme: "FREEDOM AROUND THE GLOBE (SINCE 1776): MARCH? CRAWL? RETREAT? ZIG ZAG? A. Illarionov, Cato Institute, Washington, USA Institute of Economic Analysis, Moscow,"— Presentation transcript:

1 FREEDOM AROUND THE GLOBE (SINCE 1776): MARCH? CRAWL? RETREAT? ZIG ZAG? A. Illarionov, Cato Institute, Washington, USA Institute of Economic Analysis, Moscow, Russia Cato University, Rancho Bernardo Inn, July 21, 2008 © Cato Institute, IEA

2 © IEA Milton Friedman at the MPS meeting, 1984: Are we freer today than 50 years ago? His answer: Probably, not

3 © IEA Size of Government as % of GDP in the USA, Source: IEA calculations.

4 © IEA Some other VI and FA Questions: 1. Which countries are more or less free? 2. Are we becoming more free? 3. What is better: to have a Free or a Non Free society? Why does one need Freedom?

5 © IEA - Freedom can be compared over time and space. - Freedom can be measured. - Measurement can be both direct and indirect. - Object of measurement – level of freedom in a society (nation). - Freedom is a very complex and very multidimensional matter. There are many freedoms – individual, civil, economic, political, etc. Freedom Index Project:

6 © IEA It is the condition in which an individual has the ability to act according to his/her own will, not inflicting harm to other individuals. Also applicable to other subjects, i.e. states. Very general definition of Freedom:

7 © IEA - Positive Freedom – self-mastery, or the capacity to determine oneself, to be in control of one's destiny; it is freedom to (act, develop ones potential). - Negative Freedom – absence of constraints on, or interference with, agents' possible action. It is freedom from (threat, coercion, oppression, violence, aggression). Isaiah Berlin, Two Concepts of Liberty, 1958:

8 © IEA 1. Subject – an individual, a group of individuals, a state. 2. Free will – based on ones wish, experience, knowledge. 3. Ability to act – physical, technical/technological, economic. 4. Absence of constraints – legal, regulatory, cultural. 5. Act – voluntary transfer of rights (exchange, charity, taxation, tribute). 6. No harm to others – secured by (rule of) law, institutions, culture. 7. Extent (share) in the society of subjects with legal rights to free action. Legal equality among subjects, especially gender equality. Components of Freedom:

9 © IEA 1. Which country is more free?

10 © IEA Economic Freedom of the World, Source: Fraser Institute.

11 © IEA Political Rights in the World, Source: Freedom House.

12 © IEA Civil Liberties in the World, Source: Freedom House.

13 © IEA 2. Are we becoming more free?

14 © IEA 2.1. Abilities.

15 © IEA Life expectancy at birth, total, , 172 countries. Source: IEA calculations based on World Development Indicators 2007.

16 © IEA Immunization, measles (% of children ages months), , 180 countries. Source: IEA calculations based on World Development Indicators 2007.

17 © IEA Improved sanitation facilities (% of population with access), 127 countries. Source: IEA calculations based on World Development Indicators 2007.

18 © IEA Death rate per 1000 population, , 175 countries. Source: IEA calculations based on World Development Indicators 2007.

19 © IEA 2.2. Education and Knowledge.

20 © IEA Literacy rate, adult total (% of people ages 15 and above), , 91 countries. Source: IEA calculations based on World Development Indicators 2007.

21 © IEA 2.3. Technical/Technological Opportunity.

22 © IEA Electric power consumption (kWh per capita), , 129 countries. Source: IEA calculations based on World Development Indicators 2007.

23 © IEA Motor-vehicle rate (per 1000 people), , 110 countries. Source: IEA calculations.

24 © IEA Air passengers carried per 1000 population, , 88 countries. Source: IEA calculations based on World Development Indicators 2007.

25 © IEA Fixed line and mobile phone subscribers (per 1000 population), , 94 countries. Fixed line and mobile phone subscribers (per 1000 population), , 94 countries. Source: IEA calculations based on World Development Indicators 2007.

26 © IEA International voice traffic (minutes per person), , 95 countries. Source: IEA calculations based on World Development Indicators 2007.

27 © IEA Personal computers (per 1000 population), , 41 countries. Source: IEA calculations based on World Development Indicators 2007.

28 © IEA Internet users (per 1000 population), , 153 countries. Source: IEA calculations based on World Development Indicators 2007.

29 © IEA 2.4. Economic Opportunity.

30 © IEA GDP per capita in the World, Source: IEA calculations based on A. Maddisons data.

31 © IEA A Real Hockey Stick: GDP per capita in the World, Source: IEA calculations based on A. Maddisons data.

32 © IEA 2.5. Economic Freedom.

33 © IEA Highest marginal tax rate, individual rate (%), 74 countries. Source: IEA calculations based on World Development Indicators 2007.

34 © IEA Highest marginal tax rate, corporate rate (%), 81 countries. Source: IEA calculations based on World Development Indicators 2007.

35 © IEA Annual Inflation, , 173 countries. Source: IEA calculations based on IMF data.

36 © IEA Size of Government as % of GDP in the World, Source: IEA calculations.

37 © IEA Size of Private Sector in the World, Source: IEA calculations.

38 © IEA Worlds Economic Freedom Index, Source: IEA calculations from Economic Freedom Network.

39 © IEA International migration stock as % of population, , 183 countries. Source: IEA calculations based on World Development Indicators 2007.

40 © IEA 2.6. Political and Civil Freedoms.

41 © IEA Number of independent states, Source: IEA calculations.

42 © IEA Number of Democracies (nations scoring 8 or higher on the Polity IV scale), Source: Polity Data series.

43 © IEA Worlds Political Rights Index, Source: IEA calculations from Freedom House.

44 © IEA Worlds Civil Liberties Index, Source: IEA calculations from Freedom House.

45 © IEA Worlds Freedom of Press Index, Source: IEA calculations from Freedom House.

46 © IEA 2.7. Gender Equality.

47 © IEA Life expectancy at birth, female as % of male, 172 countries. Source: IEA calculations based on World Development Indicators 2007.

48 © IEA Literacy rate, adult female as % of male (15 years+), , 91 countries. Source: IEA calculations based on World Development Indicators 2007.

49 © IEA Labor force, female (% of total labor force) as % of population, , 181 countries. Source: IEA calculations based on World Development Indicators 2007.

50 © IEA Proportion of seats held by women in national parliament (%), 130 countries. Source: IEA calculations based on World Development Indicators 2007.

51 © IEA 2.8. Freedom from Crime.

52 © IEA Homicide Rates per 100,000 Population in OECD, Source: IEA calculations.

53 © IEA Homicide Rate per 100,000 population, , 54 countries. Source: IEA calculations.

54 © IEA 3. Why does one need Freedom?

55 © IEA GDP per capita in Free, Partly Free, and Non Free countries, Source: IEA calculations based on Freedom House, IMF, World Bank data.

56 © IEA GDP per capita growth in Free, Partly Free, and Non Free countries, Source: IEA calculations based on Freedom House, IMF, World Bank data.

57 © IEA Life Expectancy at birth, male, in Free, Partly Free, Non Free countries, Source: IEA calculations based on Freedom House, IMF, World Bank data.

58 © IEA GDP per capita in 3 Arab countries (Egypt, Iraq, Morocco) as % of the Western Europe, 1000–2006. Source: IEA calculations based on A. Maddisons data, 2007.


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