Economic Freedom of Economic Freedom of the World Index: the World Index: A comparative A comparative examination examination Fred McMahon Director, Globalization Studies The Fraser institute Economic Freedom of the Arab World Meeting Marrakesh, Morocco
49
Embed
Economic Freedom of the World Index: A Comparative Examination
Presentation by Mr. Fred McMahon, Director, Globalization Studies, Fraser Institute at the 4. Economic Freedom of the Arab World Conference in Marrakech, 13.-15. November 2009
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Economic Freedom of the Economic Freedom of the World Index: World Index:
A comparative examinationA comparative examination Fred McMahon Director, Globalization
Studies The Fraser institute
Economic Freedom of the Arab World Meeting
Marrakesh, Morocco
Thanks
The Friedrich Naumann Foundation for Liberty deserves great credit for making this meeting happen and covering so many of the costs.
To my friend, Salem Al Ismaily and the IRF: Tireless champions of economic freedom in this region.
And to our local hosts, Jeunes Dirigeants d’Entreprise (CJD) of Morocco
Economic Freedom of the Economic Freedom of the World ProjectWorld Project
Objective: find a way to measure economic freedom and explore the connection between it and other variables
25 year project Led by the late Milton Friedman and Rose
Friedman and Michael Walker Involved 60 of the world’s top scholars
What is the Economic What is the Economic Freedom of the World Index?Freedom of the World Index?
An annual compilation of data representing factors which make a country economically free
Authors: James Gwartney and Robert Lawson A compendium of 42 government policies affecting
economic freedom based on objective data or independent surveys
A ranking of 141 countries 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 75 nations and territories
What is Economic FreedomWhat 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 Components of the Economic
Freedom of the World IndexFreedom 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
marketsBased entirely on objective, third party data
and independent surveys for 141 countries
Talk about making a difference …Talk about making a difference …
Albanian Center for Economic Albanian Center for Economic Research (ACER), AlbaniaResearch (ACER), AlbaniaFundación Libertad, ArgentinaFundación Libertad, ArgentinaInstitute of Public Affairs, AustraliaInstitute of Public Affairs, AustraliaTIGRA®, AustriaTIGRA®, AustriaCenter for Economic and Political Center for Economic and Political Research,AzerbaijanResearch,AzerbaijanThe Nassau Institute, BahamasThe Nassau Institute, BahamasMaking Our Economy Right (MOER), Making Our Economy Right (MOER), BangladeshBangladeshScientific Research Mises Center, Scientific Research Mises Center, BelarusBelarusCentre for the New Europe, BelgiumCentre for the New Europe, BelgiumFundacion Libertad y Democracia Fundacion Libertad y Democracia (FULIDE), Bolivia(FULIDE), BoliviaInstituto Liberal do Rio de Janeiro, Instituto Liberal do Rio de Janeiro, BrazilBrazilInstitute for Market Economics, Institute for Market Economics, BulgariaBulgariaLe Centre des Affaires Humaines Le Centre des Affaires Humaines (CEDAH),Burkina Faso(CEDAH),Burkina FasoThe Cambodia Institute of The Cambodia Institute of Development Study, Cambodia Development Study, Cambodia Instituto Libertad y Desarrollo, ChileInstituto Libertad y Desarrollo, ChileInstituto Libertad y Progreso (ILP), Instituto Libertad y Progreso (ILP), ColombiaColombiaInstituto para la Libertad y el Instituto para la Libertad y el Análisis de Políticas, Costa RicaAnálisis de Políticas, Costa RicaThe Institute of Economics, CroatiaThe Institute of Economics, CroatiaLiberální Institut, Czech RepublicLiberální Institut, Czech RepublicCenter for Politiske Studier (CEPOS), Center for Politiske Studier (CEPOS), DenmarkDenmarkFundación Economía y Desarrollo Fundación Economía y Desarrollo Inc, Dominican RepublicInc, Dominican RepublicInstituto Ecuatoriano de Economía Instituto Ecuatoriano de Economía Política,EcuadorPolítica,EcuadorInternational University Audentes, International University Audentes, EstoniaEstoniaAssociation pour la Liberté Association pour la Liberté Economique et le Progrès Social Economique et le Progrès Social (ALEPS), France(ALEPS), FranceSociety for Disseminating Economic Society for Disseminating Economic Knowledge:, New Economic School – Knowledge:, New Economic School – Georgia, GeorgiaGeorgia, Georgia
Center for Business and Society Incorporated (Civita), Center for Business and Society Incorporated (Civita), Norway Norway International Research Foundation (IRF), OmanInternational Research Foundation (IRF), OmanAlternate Solutions Institute, PakistanAlternate Solutions Institute, PakistanPal-Think for Strategic Studies, PalestinePal-Think for Strategic Studies, PalestineFundación Libertad, PanamaFundación Libertad, PanamaCentro de Investigación y Estudios Legales (CITEL), Centro de Investigación y Estudios Legales (CITEL), PeruPeruThe Center for Research and Communication, The Center for Research and Communication, PhilippinesPhilippinesCentrum im. Adama Smitha, PolandCentrum im. Adama Smitha, PolandCausa Liberal, PortugalCausa Liberal, PortugalRomania Think Tank, RomaniaRomania Think Tank, RomaniaInstitute of Economic Analysis, RussiaInstitute of Economic Analysis, RussiaFree Market Center (FMC), SerbiaFree Market Center (FMC), SerbiaThe F.A. Hayek Foundation, Slovak RepublicThe F.A. Hayek Foundation, Slovak RepublicThe Free Market Foundation of Southern Africa, South The Free Market Foundation of Southern Africa, South AfricaAfricaPathfinder Foundation, Sri LankaPathfinder Foundation, Sri LankaTimbro, SwedenTimbro, SwedenLiberales Institut, SwitzerlandLiberales Institut, SwitzerlandArthur Lok Jack Graduate School of Business, The Arthur Lok Jack Graduate School of Business, The University of the West Indies, Trinidad, W.I.University of the West Indies, Trinidad, W.I.Association for Liberal Thinking, TurkeyAssociation for Liberal Thinking, TurkeyThe Ukrainian Center for Independent Political The Ukrainian Center for Independent Political Research, UkraineResearch, UkraineThe Institute of Economic Affairs (IEA), United The Institute of Economic Affairs (IEA), United KingdomKingdomCATO Institute, USACATO Institute, USAThe Centre for the Dissemination of Economic The Centre for the Dissemination of Economic Knowledge (CEDICE), VenezuelaKnowledge (CEDICE), VenezuelaResearch Center for Entrepreneurship Development, Research Center for Entrepreneurship Development, VietnamVietnamZambia Institute for Public Policy Analysis (ZIPPA), Zambia Institute for Public Policy Analysis (ZIPPA), ZambiaZambia
Member Institutes of Economic Freedom of the World Network
Liberales Institut, GermanyLiberales Institut, GermanyThe Institute of Economic Affairs, GhanaThe Institute of Economic Affairs, GhanaCentro de Investigaciones Económicas Centro de Investigaciones Económicas Nacionales, GuatemalaNacionales, GuatemalaInstitut de Recherche pour la Liberte Institut de Recherche pour la Liberte Economique et la Prosperite (IRLEP), HaitiEconomique et la Prosperite (IRLEP), HaitiHong Kong Centre for Economic Research, Hong Kong Centre for Economic Research, Hong KongHong KongSzazadveg Foundation, HungarySzazadveg Foundation, HungaryCentre for Social and Economic Research Centre for Social and Economic Research (RSE), Iceland(RSE), IcelandCentre for Civil Society, IndiaCentre for Civil Society, IndiaThe Institute for Development of The Institute for Development of Economics and Finance, IndonesiaEconomics and Finance, IndonesiaOpen Republic Institute, IrelandOpen Republic Institute, IrelandJerusalem Institute for Market Studies, Jerusalem Institute for Market Studies, IsraelIsraelCentro Einaudi, ItalyCentro Einaudi, ItalyBureau d'Analyse d'Ingenierie et de Bureau d'Analyse d'Ingenierie et de Logiciels (BAILO), Ivory CoastLogiciels (BAILO), Ivory CoastYoung Entrepreneurs Association, JordanYoung Entrepreneurs Association, JordanAfrican Research Center for Public Policy African Research Center for Public Policy and Market Process, Kenyaand Market Process, KenyaCenter for Free Enterprise, KoreaCenter for Free Enterprise, KoreaEconomic Policy Institute-Bishkek Economic Policy Institute-Bishkek Consensus, Kyrgyz RepublicConsensus, Kyrgyz RepublicLithuanian Free Market Institute, Lithuanian Free Market Institute, LithuaniaLithuaniaD'Letzeburger Land, LuxembourgD'Letzeburger Land, LuxembourgCentro de Investigación para el Desarrollo Centro de Investigación para el Desarrollo A.C., A.C., MexicoMexicoOpen Society Forum, MongoliaOpen Society Forum, MongoliaThe Center for Entrepreneurship and The Center for Entrepreneurship and Economic Development, MontenegroEconomic Development, MontenegroThe Prosperity Foundation, NepalThe Prosperity Foundation, NepalThe New Zealand Business Roundtable, The New Zealand Business Roundtable, New ZealandNew ZealandInitiative for Public Policy Analysis, Initiative for Public Policy Analysis, NigeriaNigeria
Sample of Press Coverage forFraser Institute’ Economic Freedom of the World 2008
African Executive,KenyaAfrican Executive,KenyaAl Sabah, KuwaitAl Sabah, KuwaitAljazeera Net, Aljazeera Net, InternationalInternationalThe American The American Conservative, USAConservative, USAAmerican Spectator, USAAmerican Spectator, USAAOL Money & Finance, AOL Money & Finance, USAUSAAsia Pulse, InternationalAsia Pulse, InternationalAugusta Chronicle, USAAugusta Chronicle, USABBC, InternationalBBC, InternationalBlack Sea Press, GeorgiaBlack Sea Press, GeorgiaBoston Herald, USABoston Herald, USABudapest Sun, RomaniaBudapest Sun, RomaniaBulgarian News Agency, Bulgarian News Agency, BulgariaBulgariaBulgarian Post, BulgariaBulgarian Post, BulgariaBusiness Day, South Business Day, South AfricaAfricaBusiness Plus TV, Business Plus TV, PakistanPakistanBusiness Recorder, Business Recorder, PakistanPakistanBusiness Zone, BulgariaBusiness Zone, Bulgaria
Chinese Canadian Times, Chinese Canadian Times, CanadaCanadaChinese Paper, ChinaChinese Paper, ChinaDaily Graphic, GhanaDaily Graphic, Ghana
Daily News Sunday, USADaily News Sunday, USADar Al Hayat, LebanonDar Al Hayat, Lebanon
Darik Finance, BulgariaDarik Finance, Bulgaria
Donga Korea Daily, KoreaDonga Korea Daily, KoreaEcon Bulgaria, BulgariaEcon Bulgaria, Bulgaria
Dawn, PakistanDawn, PakistanLeader Post, CanadaLeader Post, CanadaL'Orient le Jour, LebanonL'Orient le Jour, LebanonMalaysia Paper, MalaysiaMalaysia Paper, MalaysiaMarker Israel,Marker Israel, IsraelIsraelMarketwire, CanadaMarketwire, CanadaMonburkina.com, Burkina FasoMonburkina.com, Burkina Faso
Munhwa Daily Korea, KoreaMunhwa Daily Korea, KoreaNaharnet Beirut, LebanonNaharnet Beirut, LebanonNassau Guardian, BahamasNassau Guardian, BahamasNational Post,National Post, CanadaCanadaThe New York Times, USAThe New York Times, USANoticias Lusofonas, AngolaNoticias Lusofonas, AngolaOman Tribune,OmanOman Tribune,OmanPari Newspaper, BulgariaPari Newspaper, BulgariaPortfolio Hungary, HungaryPortfolio Hungary, HungaryRadioPlovdiv, BulgariaRadioPlovdiv, BulgariaReuters, USAReuters, USARussian Paper,Russian Paper, RusiaRusiaSofia News Agency, BulgariaSofia News Agency, BulgariaSouth China morning Post, ChinaSouth China morning Post, ChinaStar Phoenix,CanadaStar Phoenix,CanadaTaiwan Economic News, TaiwanTaiwan Economic News, TaiwanTelegraph-Journal, CanadaTelegraph-Journal, CanadaTimes of India, IndiaTimes of India, IndiaVancouver Sun, CanadaVancouver Sun, CanadaVenezuelan Paper, VenezuelaVenezuelan Paper, VenezuelaXinhua, ChinaXinhua, China
Economia y Negocios, Economia y Negocios, InternationalInternationalEconomic Times India, IndiaEconomic Times India, IndiaEdmonton Journal, CanadaEdmonton Journal, CanadaEl Economista, InternationalEl Economista, InternationalEl Economista.es, SpainEl Economista.es, SpainFinancial News Korea, KoreaFinancial News Korea, KoreaFinancial Post, CanadaFinancial Post, CanadaFinanciarul, RomaniaFinanciarul, RomaniaForeign Policy, USAForeign Policy, USAGeorgian Business Week, Georgian Business Week, GeorgiaGeorgiaGlobe and Mail, CanadaGlobe and Mail, CanadaGlobe Investor, USAGlobe Investor, USAGlobes, IsraelGlobes, IsraelHankyoreh Daily Korea, KoreaHankyoreh Daily Korea, KoreaHerald (Ottawa, KS), USAHerald (Ottawa, KS), USAHong Kong Commercial Daily, Hong Kong Commercial Daily, Hong Kong Economic Times, Hong Kong Economic Times, Hong KongHong KongHungarian News Digest, Hungarian News Digest, HungaryHungaryIndian Business Insight, IndiaIndian Business Insight, IndiaInvestor's Business Daily, USAInvestor's Business Daily, USAIsrael Business Arena, IsraelIsrael Business Arena, IsraelJang Lahore, PakistanJang Lahore, PakistanKatmandu Post, NepalKatmandu Post, NepalLa Presse Canadienne, CanadaLa Presse Canadienne, CanadaLatin Business Chronicle, USALatin Business Chronicle, USALe Droit, CanadaLe Droit, CanadaLeader, IcelandLeader, IcelandZambia Post, ZambiaZambia Post, ZambiaZimbabwe Independent, ZimbabweZimbabwe Independent, Zimbabwe
Sub-national and Regional IndicesSub-national and Regional Indices
Economic Freedom of the Arab WorldEconomic Freedom of the Arab World
Marketization Index of Chinese Provinces
Economic Freedom Index of Indian States
Economic Freedom Index of German States
Economic Freedom Index of Argentinean Provinces
Economic Freedom of North AmericaEconomic Freedom of North America
Introducing the 2009 Economic Introducing the 2009 Economic Freedom of the World Index ResultsFreedom of the World Index Results
Overall Economic Freedom Index Overall Economic Freedom Index and the Top 10and the Top 10
Source: The Fraser Source: The Fraser Institute.Institute.
0 2 4 6 8 10
Score (out of 10)
Hong Kong
Singapore
New Zealand
Average of top 10
Switzerland
Chile
United States
Ireland
Canada
Australia
United Kingdom
Overall Economic Freedom Overall Economic Freedom Index and the Bottom TenIndex and the Bottom Ten
0 2 4 6 8 10
Score (out of 10)
Niger
Chad
Congo, Dem.R.
Guinea-Bissau
Central Afr. Rep.
Congo, Rep.of
Venezuela
Angola
Myanmar
Zimbabwe
Source: The Fraser Source: The Fraser Institute.Institute.
Economic Freedom Over TimeEconomic Freedom Over Time
Source: The Fraser Source: The Fraser Institute.Institute.
Why is Economic Freedom Why is Economic Freedom Important?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 economic growth The impact on economic growth and developmentand development
Per Capita Income and Economic Per Capita Income and Economic Freedom QuartileFreedom Quartile
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
GD
P P
er C
apit
a (p
pp
), 2
007
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ………………... Most FreeLeast Free ………………... Most FreeSources: The Fraser Institute; The World Bank, World Development Sources: The Fraser Institute; The World Bank, World Development Indicators, Indicators, 2009.2009.
Growth in Real GDP Per Capita Growth in Real GDP Per Capita and Economic Freedom Quartileand Economic Freedom Quartile
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
GD
P P
er
Ca
pit
a %
Gro
wth
,
19
90
-20
07
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ……………..…… Most FreeLeast Free ……………..…… Most Free
Sources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators, 2009.2009.
Foreign Direct Investment and Foreign Direct Investment and Economic Freedom QuartileEconomic Freedom Quartile
0.0%
3.2%
6.4%
9.7%
12.9%
16.1%
19.3%
Fo
reig
n d
ire
ct
inv
es
tme
nt,
ne
t in
flo
ws
(%
of
GD
P),
19
90
-20
07
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ……………...…... Most FreeLeast Free ……………...…... Most Free
Sources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators, 2009.2009.
Income Share of the Poorest 10% and Income Share of the Poorest 10% and
Economic FreedomEconomic Freedom
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Inco
me S
hare
Held
by
Lo
west
10%
, 1990-2
007
Most FreeQuartile
2ndQuartile
3rdQuartile
Least FreeQuartile
Least Free …………….. Most FreeLeast Free …………….. Most FreeSources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators,
2009.2009.
Per Capita Income of Poorest 10% Per Capita Income of Poorest 10% and Economic Freedomand Economic Freedom
$0
$2,000
$4,000
$6,000
$8,000
$10,000
Most Free Quartile2nd Quartile3rd QuartileLeast Free Quartile0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Income amount held by lowest 10% (1990-2007)Income share held by lowest 10% (1990-2007)
Least Free ……………………. Most Free Least Free ……………………. Most Free Sources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators,
2009.2009.
Economic Freedom, Other Economic Freedom, Other Freedoms and DemocracyFreedoms and Democracy
Economic Freedom and CorruptionEconomic Freedom and Corruption
0
2
4
6
8
10
Co
rru
pti
on
Ra
tin
g
(ou
t o
f 1
0)
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free …………………. Most FreeLeast Free …………………. Most Free
Sources: The Fraser Institute; Transparency International, Corruption Perceptions Index, Sources: The Fraser Institute; Transparency International, Corruption Perceptions Index, 2006/2007, available at http://www.transparency.org.2006/2007, available at http://www.transparency.org.
Economic Freedom and Political RightsEconomic Freedom and Political Rights
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Po
litic
al R
igh
ts (
ou
t o
f 7)
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free …………………. Most FreeLeast Free …………………. Most Free Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 2007, available at http://www.freedomhouse.org/.2007, available at http://www.freedomhouse.org/.
Economic Freedom and Civil LibertiesEconomic Freedom and Civil Liberties Lower ratings indicate higher level of civil liberties Lower ratings indicate higher level of civil liberties
0.0
2.0
4.0
6.0
8.0
10.0
Civ
il L
iber
ties
(o
ut
of
7)
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free …………………… Most FreeLeast Free …………………… Most Free Sources: The Fraser Institute; Freedom House, Freedom in the World Country Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 2007, available at http://www.freedomhouse.org/.Ratings, 2007, available at http://www.freedomhouse.org/.
The impact of Economic Freedom on The impact of Economic Freedom on the UN’s Human Development Index the UN’s Human Development Index and other indicators of well-beingand other indicators of well-being
Human Development Index and Economic Human Development Index and Economic Freedom QuartilesFreedom Quartiles
0.0
0.2
0.4
0.6
0.8
1.0
Un
ited
Nat
ion
s H
um
an D
evel
op
men
t In
dex
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ……………. Most FreeLeast Free ……………. Most Free
Sources: The Fraser Institute; United Nations Development Programmme, Human Sources: The Fraser Institute; United Nations Development Programmme, Human Development Indicators 2009, available at http://hdr.undp.org/.Development Indicators 2009, available at http://hdr.undp.org/.
Life Expectancy at Birth and Life Expectancy at Birth and Economic Freedom QuartilesEconomic Freedom Quartiles
0
20
40
60
80
Yea
rs
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ……………. Most FreeLeast Free ……………. Most Free
Sources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators,
2009.2009.
Infant Mortality and Economic Infant Mortality and Economic Freedom QuartileFreedom Quartile
0
20
40
60
80
Per
1,0
00 li
ve b
irth
s, 2
007
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ………..………. Most FreeLeast Free ………..………. Most Free Sources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators,
2009.2009.
% of Population Using Improved % of Population Using Improved Water SourcesWater Sources
0
20
40
60
80
100
Per
cen
tag
e
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ………………... Most FreeLeast Free ………………... Most Free Sources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators,
2009.2009.
Environmental Performance and Economic Environmental Performance and Economic Freedom QuartileFreedom Quartile
0
20
40
60
80
100
Ind
ex (
ou
t o
f 10
0)
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ………..……….. Most FreeLeast Free ………..……….. Most Free Sources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators,
2009.2009.
ConclusionsConclusions
Economic Freedom
Increases prosperity for all Reduces poverty Increases other freedoms Improves quality of life There is increasing global agreement about the
need for more economic freedom Recent deviations from some aspects of
economic freedom will be unlikely to persist in the face of the general move toward more freedom
The impact on economic growth The impact on economic growth and developmentand development
Per Capita Income and Economic Per Capita Income and Economic Freedom QuartileFreedom Quartile
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
GD
P P
er C
apit
a (p
pp
), 2
007
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ………………... Most FreeLeast Free ………………... Most FreeSources: The Fraser Institute; The World Bank, World Development Sources: The Fraser Institute; The World Bank, World Development Indicators, Indicators, 2009.2009.
Growth in Real GDP Per Capita Growth in Real GDP Per Capita and Economic Freedom Quartileand Economic Freedom Quartile
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
GD
P P
er
Ca
pit
a %
Gro
wth
,
19
90
-20
07
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ……………..…… Most FreeLeast Free ……………..…… Most Free
Sources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators, 2009.2009.
Foreign Direct Investment and Foreign Direct Investment and Economic Freedom QuartileEconomic Freedom Quartile
0.0%
3.2%
6.4%
9.7%
12.9%
16.1%
19.3%
Fo
reig
n d
ire
ct
inv
es
tme
nt,
ne
t in
flo
ws
(%
of
GD
P),
19
90
-20
07
Most FreeQuartile
2nd Quartile3rd QuartileLeast FreeQuartile
Least Free ……………...…... Most FreeLeast Free ……………...…... Most Free
Sources: The Fraser Institute; The World Bank, World Development Indicators, Sources: The Fraser Institute; The World Bank, World Development Indicators, 2009.2009.
The Global Competitiveness Report
The Global Competitiveness Index (GCI) … captures the microeconomic and macroeconomic foundations of national competitiveness.
We define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country.