Societies Thrive as Economic Freedom Grows

SOCIETIES THRIVE AS ECONOMIC FREEDOM GROWS F more than two decades, the Index of Economic Freedom has documented the vital role of economic freedom in promoting human progress. People living in nations with higher degrees of economic freedom prosper because their governments rely on systems of free markets to regulate economic activity. At their best, operating without interference, free markets identify and accommodate the needs of society based on the daily decisions of its individual members to buy or sell, to invest or save, reflecting their unique desires and knowledge: No bureaucracies or “experts” required. The collective wisdom that this fundamentally democratic process generates has been shown time and again to promote dynamic growth through efficient resource allocation, value creation, and innovation. In a diverse world that, depending on where you look, may be either overregulated or underdeveloped or both, economic freedom may be experienced in a variety of settings, from an informal market lacking any form of governance to an advanced economy with carefully stipulated and enforced rules to protect integrity, promote competition, and limit the power within a market of any single participant, including the government itself. The Index strives to provide as comprehensive a view of economic freedom as possible with data that illuminate varying aspects of the rule of law, the size and scope of government, the efficiency of regulations, and the openness of the economy to global commerce. The imperative to advance economic freedom is stronger than ever. Our world has experienced—is experiencing—astounding progress. Millions of the world’s people, however, still live in poverty, and millions in countries both rich and poor are clamoring for change. Free-market capitalism, built on the principles of economic freedom, can provide that change. It pushes out the old to make way for the new so that real and true progress can take place. It leads to innovation in all realms: better jobs, better goods and services, and better societies.