Presentation on theme: "Economic Freedom of the World: 2012 Annual Report"— Presentation transcript:
1 Economic Freedom of the World: 2012 Annual Report
2 Economic Freedom of the World Project Objective: find a way to measure economic freedom and explore the connection between it and other variables25 year projectLed by the late Milton Friedman and Rose Friedman, and Michael WalkerInvolved 60 of the world’s top scholars, including three Nobel Laureates
3 What is the Economic Freedom of the World Index? An annual compilation of data representing factors which make a country economically freeAuthors: James Gwartney, Robert Lawson, and Joshua HallA compendium of 42 government policies affecting economic freedom based on objective data or independent surveysA ranking of 144 countries representing 95% of the world’s population according to the extent to which they permit their citizens to be economically freeNow a collaboration of Institutes in 85 nations and terrritories
4 What is Economic Freedom Individuals have economic freedom when 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
5 Components of the Economic Freedom of the World Index Size of government and taxationPrivate property and the rule of lawSoundness of moneyTrade regulation and tariffsRegulation of business, labour and capital markets
7 Member Institutes of Economic Freedom of The World Network Afghanistan Economic and Legal Studies Organization (AELSO), AfghanistanAlbanian Center for Economic Research (ACER), AlbaniaFundación Libertad, ArgentinaCentre of Political, Legal and Economic Researches and Forecasting (PLERF), ArmeniaInstitute of Public Affairs, AustraliaTIGRA®, AustriaCenter for Economic and Political Research, AzerbaijanThe Nassau Institute, BahamasMaking Our Economy Right (MOER), BangladeshScientific Research Mises Center, BelarusCentre for the New Europe, BelgiumPoliticas Publicas para la Libertad (POPULI), BoliviaInstituto Liberal do Rio de Janeiro, BrazilInstitute for Market Economics, BulgariaLe Centre des Affaires Humaines (CEDAH), Burkina FasoThe Cambodia Institute of Development Study, CambodiaInstituto Libertad y Desarrollo, ChileCenter for China & Globalization, ChinaInstituto de Ciencia Politica, ColombiaInstituto para la Libertad y el Análisis de Políticas, Costa RicaAudace Institut Afrique, Côte d’IvoireThe Institute of Economics, CroatiaLiberální Institut, Czech RepublicCenter for Politiske Studier (CEPOS), DenmarkFundación Economía y Desarrollo Inc, Dominican RepublicInstituto Ecuatoriano de Economía Política, EcuadorInstitut Economique Molinari, FranceSociety for Disseminating Economic Knowledge: New Economic School, GeorgiaLiberales Institut, GermanyThe Institute of Economic Affairs, GhanaCentro de Investigaciones Económicas Nacionales, GuatemalaInafEcon-Institute of African Economics, GuineaInstitut de Recherche pour la Liberté Economique et la Prospérité (IRLEP), HaitiCentro de Investigaciones Economicas y Sociales (CIES), HondurasHong Kong Centre for Economic Research, Hong KongSzazadveg Foundation, HungaryCentre for Social and Economic Research (RSE), IcelandCentre for Civil Society, IndiaThe Institute for Development of Economics and Finance, IndonesiaOpen Republic Institute, IrelandJerusalem Institute for Market Studies, IsraelCentro Einaudi, ItalyYoung Entrepreneurs Association, JordanCentral Asian Free Market Institute, KazakhstanAfrican Research Center for Public Policy and Market Process, KenyaCenter for Free Enterprise, KoreaGroup for Legal and Political Studies, KosovoEconomic Policy Institute-Bishkek Consensus, Kyrgyz RepublicLithuanian Free Market Institute, LithuaniaD'Letzeburger Land, LuxembourgInstitute for Democracy and Economic Affairs (IDEAS), MalaysiaCentro de Investigación para el Desarrollo A.C., MexicoOpen Society Forum, MongoliaThe Center for Entrepreneurship and Economic Development, MontenegroThe Prosperity Foundation, NepalThe New Zealand Business Roundtable, New ZealandInitiative for Public Policy Analysis, NigeriaCenter for Business and Society Incorporated (Civita), NorwayInternational Research Foundation (IRF), OmanAlternate Solutions Institute, PakistanPal-Think for Strategic Studies, PalestineFundación Libertad, PanamaCentro de Investigación y Estudios Legales (CITEL), PeruThe Center for Research and Communication, PhilippinesCentrum im. Adama Smitha, PolandCausa Liberal, PortugalRomania Think Tank, RomaniaInstitute of Economic Analysis, RussiaFree Market Center (FMC), SerbiaThe F.A. Hayek Foundation, Slovak RepublicThe Free Market Foundation of Southern Africa, South AfricaFundacio Catalunya, SpainPathfinder Foundation, Sri LankaNile Institute of Economic Studies, SudanTimbro, SwedenLiberales Institut, SwitzerlandTajikistan Free Market Centre, TajikistanArthur Lok Jack Graduate School of Business, The University of the West Indies, Trinidad and TobagoAssociation for Liberal Thinking, TurkeyThe Ukrainian Center for Independent Political Research, UkraineThe Institute of Economic Affairs (IEA), United KingdomCATO Institute, USAThe Centre for the Dissemination of Economic Knowledge (CEDICE), VenezuelaResearch Center for Entrepreneurship Development, VietnamZambia Institute for Public Policy Analysis (ZIPPA), Zambia
8 Translations and Sub-national and Regional Indices
19 Overall Economic Freedom Index and the Top 10 Source: The Fraser Institute.
20 Overall Economic Freedom Index and the Bottom Ten Source: The Fraser Institute.
21 World Average Economic Freedom Over Time Source: The Fraser Institute.
22 Why is Economic Freedom Important? Economic rights are fundamental rights in the sense that without them there can be no political freedom or civil freedomsThey are a prerequisite for growth and developmentThey are a prerequisite for broader human development
30 Most Free ……………. Least Free Economic Freedom and Political Rights Low scores indicate high level of rightsMost Free ……………. Least FreeSources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 2011, available at
31 Most Free ……………. Least Free Economic Freedom and Civil Rights Low scores indicate high level of rightsMost Free ……………. Least FreeSources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 2011, available at31
32 Economic Freedom and Corruption High scores indicate low corruption Most Free ……………. Least FreeSources: The Fraser Institute; Transparency International, Corruption Perceptions Index, available at
33 The impact of Economic Freedom on other indicators of well-being
34 Economic Freedom and Life Satisfaction Most Free ……………. Least FreeSources: The Fraser Institute; White, A. (2007). A Global Projection of Subjective Well-being:
35 Most Free ……………. Least Free Literacy Male FemaleMost Free ……………. Least FreeSources: The Fraser Institute; World Development Indicators 2012
36 Life Expectancy at Birth and Economic Freedom Quartiles Most Free ……………. Least FreeSources: The Fraser Institute; The World Bank, World Development Indicators,
37 ConclusionsEconomic FreedomIncreases prosperity for allReduces povertyIncreases other freedomsImproves quality of life