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ECONOMIC FREEDOM
Definition
Economic freedom is the ability of individuals and businesses to make economic choices with minimal government intervention, respecting personal choice, fair competition, and property rights.​
why is it important?
There’s a clear relationship between a country’s level of economic freedom and its overall well-being. It leads to higher standards of living, job creation, and prosperity across society. ​​​​
Here's the proof:
Index 1: Economic Freedom
Every year the Heritage Foundation, a leading U.S. nonprofit, produces the Index of Economic Freedom Report. It measures how free and open each country’s economy is, focusing on how easy it is for people and businesses to make financial choices. Each country is scored in 12 categories, like property rights, government spending, and trade freedom, which reflect different aspects of economic freedom. Based on these scores, countries are then ranked to show which economies are most and least free worldwide.
Indexes 2 & 3: United Nations
The United Nations' Human Development Index (HDI) is a report that ranks countries based on the overall well-being and quality of life of their people. It measures each country in three main areas: life expectancy, education level, and income per person, giving a snapshot of health, knowledge, and economic conditions. Countries are then scored and ranked to highlight where people enjoy the highest standards of living and development.
The United Nations' Planetary Pressures-adjusted Human Development Index (PHDI) considers the country’s environmental footprint, emphasizing sustainable human development.
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the result if you Cross the Indexes
Countries with higher economic freedom enjoy greater prosperity, growth, and quality of life. Research shows a strong correlation between economic freedom and improvements in areas like education, healthcare, income, and ability to care for the environment —making it a true foundation of prosperity.
Countries with more economic freedom are also the countries with higher GDP per capita (approximately average income)
Want to improve quality of life ?
Improve economic freedom!
"but you have to have some regulations"
Certainly, some regulations are intended to protect safety and fairness, but overregulation often stifles economic growth and limits individual opportunity. Excessive rules can make it harder for small businesses to compete, discourage innovation, and limit personal choices by adding costly barriers. When regulations become too heavy, they tend to favor large corporations that can afford compliance while leaving smaller entrepreneurs and everyday individuals struggling under bureaucratic red tape.
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True economic freedom isn’t about eliminating all rules but rather setting a minimal, effective framework that protects essential rights—like property and fair competition—while letting individuals and businesses make the best choices for themselves. In many cases, market forces, competition, and community standards can solve issues more efficiently and adaptably than centralized regulations. The goal is a system where essential protections are in place, but individuals still have the freedom to take risks, innovate, and succeed without unnecessary interference
Top 10 Countries
Certainly, some regulations are intended to protect safety and fairness, but overregulation often stifles economic growth and limits individual opportunity. Excessive rules can make it harder for small businesses to compete, discourage innovation, and limit personal choices by adding costly barriers. When regulations become too heavy, they tend to favor large corporations that can afford compliance while leaving smaller entrepreneurs and everyday individuals struggling under bureaucratic red tape.
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True economic freedom isn’t about eliminating all rules but rather setting a minimal, effective framework that protects essential rights—like property and fair competition—while letting individuals and businesses make the best choices for themselves. In many cases, market forces, competition, and community standards can solve issues more efficiently and adaptably than centralized regulations. The goal is a system where essential protections are in place, but individuals still have the freedom to take risks, innovate, and succeed without unnecessary interference
Bottom 10 countries
In the bottom 10 countries of the Economic Freedom Index, government overreach and heavy regulation have created challenging conditions, directly impacting people’s quality of life. Excessive rules and weak property rights leave small business owners and workers struggling under a system that favors political elites and large corporations. Ordinary citizens face high taxes, limited job opportunities, and restricted access to financial resources, making it difficult to improve their lives or secure a stable income.
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These burdensome policies have resulted in lower standards of living, where people are often forced to rely on informal work or limited resources just to get by. Innovation and personal success are stifled, trapping individuals in cycles of poverty and dependence. To achieve real improvement, these countries need policies that protect individual rights and allow people the freedom to work, innovate, and prosper without oppressive interference from those in power.
LATIN AMERICA
Latin America faces deep-rooted economic issues that hinder growth and progress. Government overreach, lack of financial independence, and limited market openness contribute to widespread poverty and instability. These conditions make it difficult for individuals to achieve upward mobility, leaving many unable to access opportunities that would improve their quality of life.
A Special Thanks to the Heritage Foundation
Celebrating 30 years, the Heritage Foundation’s Index of Economic Freedom is a remarkable tool that sheds light on what drives prosperity across nations. Much like a telescope revealing distant worlds, the Index offers an insightful view into economic policies that may seem foreign or complex, helping us understand why some countries flourish while others falter. This resource is invaluable for policymakers, scholars, and citizens committed to creating a world where freedom and opportunity are accessible to all. I encourage everyone to explore the Index in depth and to consider supporting Heritage in this essential work. https://www.heritage.org/index/