Economic Freedom of the World 2018 Annual Report September 2018

What is the Economic Freedom of the World Index? An annual compilation of data representing factors which make a country economically free Authors: James Gwartney, Robert Lawson, Joshua Hall, and Ryan Murphy A compendium of 42 government policies affecting economic freedom based on objective data or independent surveys In addition, the survey includes a Gender Disparity Adjustment, based on 41 variables from the World Bank’s dataset on gender discrimination, to recognize that women are too often not granted the same level of freedom as men A ranking of 161 countries plus Hong Kong, representing 95% of the world’s population, according to the extent to which they permit their citizens to be economically free Now a collaboration of Institutes in nearly 100 nations and territories

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

Components of the Economic Freedom of the World Index Size of government and taxation Private property and the rule of law Sound money Trade regulation and tariffs Regulation of business, labour and capital markets

Talk about making a difference …

Member Institutes of Economic Freedom of The World Network Full Members Afghanistan Economic and Legal Studies Organization (AELSO) Albanian Center for Economic Research (ACER) Argentina: Fundación Libertad Armenia: Centre of Political, Legal and Economic Research and Forecasting (PLERF) Australia: Institute of Public Affairs Austria: TIGRA Azerbaijan: Center for Economic and Political Research Bahamas: The Nassau Institute Bangladesh: Making Our Economy Right (MOER) Belarus: Scientific Research Mises Center Belgium: The Ludwig von Mises Institute-Europe Bolivia: Política Publicas para la Libertad (POPULI) Bosnia and Herzegovina: Center for Advancement of Free Enterprise Brazil: Instituto Liberal do Rio de Janeiro Bulgaria: Institute for Market Economics Burkina Faso: Le Centre des Affaires Humaines (CEDAH) Canada: Fraser Institute Chile: Instituto Libertad y Desarrollo China: Center for China & Globalization Colombia: Instituto de Ciencia Politica Costa Rica: Instituto para la Libertad y el Análisis de Políticas Côte d’Ivoire: Audace Institut Afrique Croatia: The Institute of Economics Czech Republic: Liberální Institut Denmark: Center for Politiske Studier (CEPOS) Jordan: Young Entrepreneurs Association Kazakhstan: IDEA (Institute for Development and Economic Affairs) Kenya: Eastern Africa Policy Centre Korea, South: Center for Free Enterprise Kosovo: Group for Legal and Political Studies Kyrgyz Republic: CAFMI (Central Asian Free Market Institute) Lithuania: Lithuanian Free Market Institute Macedonia: The Institute for Research and European Studies (IRES) Malaysia: Institute for Democracy and Economic Affairs (IDEAS) Mali: The Centre Kassoum Coulibaly Mexico: Caminos de la Libertad Mongolia: Open Society Forum Montenegro: The Institute for Entrepreneurship and Economic Development (IPER) Nambia: The Chevauchee Foundation Nepal: Samriddi, The Prosperity Foundation New Zealand: The New Zealand Initiative Nicaragua: Nicaraguan Foundation for Economic and Social Development (FUNIDES) Nigeria: Initiative of Public Policy Analysis Norway: Center for Business and Society Incorporated (Civita) Oman: International Research Foundation (IRF) Pakistan: Alternate Solutions Institute Palestine: Pal-Think for Strategic Studies Panama: Fundación Libertad Paraguay: The Fundacion Issos para la Libertad y el Desarrollo Peru: Centro de Investigación y Estudios Legales (CITEL) Philippines: Center for Research and Communication Poland: Centrum IM. Adama Smitha Portugal: Causa Liberal Romania: Center for Institutional Analysis and Development Eleutheria (CADI) Russia: Institute of Economic Analysis (IEA) Serbia: Libertarian Club - Libek Slovak Republic: The F.A. Hayek Foundation Slovenia: Visio Institute South Africa: The Free Market Foundation (Southern Africa) Spain: Fundació Catalunya Oberta Sri Lanka: The Pathfinder Foundation Sudan: Nile Institute of Economic Studies Sweden: Timbro Switzerland: Liberales Institut Tajikistan: Tajikistan Free Market Centre Tanzania: Uhuru Initiative for Policy & Education Trinidad and Tobago: Arthur Lok Jack Graduate School of Business, The University of the West Indies Turkey: Association for Liberal Thinking Ukraine: Bendukidze Free Market Center United Kingdom: Institute of Economic Affairs (IEA) United States of America: Cato Institute Uruguay: Centro de Estudios para el Desarrollo Venezuela: Center for the Dissemination of Economic Knowledge (CEDICE) Zambia: Zambia Institute for Public Policy Analysis (ZIPPA)   Associate Members Albania: Foundation for Economic Freedom Argentina: Libertad y Progreso Armenia: Wide Opportunities Youth Non-Governmental Organization (WO YNGO) Brazil: Estudantes Pela Liberdade Centro Mackenzie de Liberdade Econômica Instituto Liberdade Colombia: Centro para la Libre Iniciativa Croatia: Centre for Public Policy and Economic Analysis (CEA) and Association for Individual Liberty "Iustitia” Ghana: IMANI Center for Policy & Education Institute For Liberty and Policy Innovation (ILAPI) Hong Kong: The Lion Rock Institute Indonesia: The Center for Indonesian Policy Studies (CIPS) Mongolia: Mongolian National Chamber of Commerce and Industry Montenegro: The Lucha Institute Pakistan: Policy Research Institute of Market Economy (PRIME) Sri Lanka: Advocata Institute Tanzania: Liberty Sparks Turkey: Özgürlük Ara_tirmalari Derne_i Ukraine: Easy Business Ukrainian Center for Independent Political Research Ukrainian Economic Freedoms Foundation (UEFF) United States of America: Atlas Network Independent Institute William J. O'Neil Center for Global Markets and Freedom

Why is Economic Freedom Important? Economic rights are fundamental rights in the sense that without them there can be no political freedom or civil freedoms They are a prerequisite for growth and development They are a prerequisite for broader human development

The impact on prosperity and development

Per Capita Income 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 (PPP, 2016) Most Free ……………. Least Free

Poverty headcount ratio at $3.20 a day (PPP, 2016) (% of population) Most Free ……………. Least Free

Economic Freedom, Governance, and Democracy

Economic Freedom and Political Rights Most Free ……………. Least Free

Economic Freedom and Civil Rights Most Free ……………. Least Free 16

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

UN Gender Inequality Index: Normalized 0 – 10 Most Free ……………. Least Free 18

Life expectancy at birth Most Free ……………. Least Free 19

Mortality rate, infant (per 1,000 live births) 2016 Most Free ……………. Least Free 20

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

Economic Freedom Increases prosperity for all Reduces poverty Increases other freedoms Improves quality of life

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