Economic Freedom of the World: 2013 Report

Robert LawsonJerome M. Fullinwider Endowed Centennial Chair in Economic FreedomO’Neil Center for Global Markets and Freedom

Methodology

• 144 countries.• 42 variables grouped into 5 areas.• Time Series: 1970, 75, 80, 85, 90, 95, and 2000-2010.• 0-10 rating scale with 10 indicating more economic

freedom.• Data-driven index .

– World Bank– IMF– World Economic Forum– WTO

• Transparency throughout.

Hong Kong

Singap

ore

New Z

ealan

d

Switzerl

and

U.A.E

.

Mau

ritiu

s

Finlan

d

Bahrai

n

Canad

a …

United K

ingdom

(12th

)

United S

tates

(17th

)

Japan

(33rd

)3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

8.978.73

8.49 8.308.07 8.01 7.98 7.93 7.93 7.85 7.73

7.50

Chart Title

Source: EFW 2013, Exhibit 1.2.

Economic Freedom Ratings, 2011Top Nations plus U.K., U.S., Japan

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

7.73 7.687.38

7.06 6.85 6.836.55 6.51 6.34 6.22

3.93

Chart Title

Source: EFW 2013, Exhibit 1.2.

Economic Freedom Ratings, 2011Select Nations

The Rise and Fall of Economic Freedom in the U.S.

2000 2005 20115

6

7

8

9

10

1. Govt2. Legal3. Money4. Trade5. Regulation

Source: EFW 2012, page 166.

The Rise and Fall…Selected Components

2000 2005 20110

1

2

3

4

5

6

7

8

9

10

1A. Govertment Cons.1B. Transfers/Subsidies2A. Judicial Independence2B. Impartial Courts2C. Property Rights2D. Military Influence2E. Legal Integrity4D. Capital Controls5Aii. Private Credit5Ci Admin Requirements5Cii. Bureaucracy5Civ. Extra Payments

Source: EFW 2012, page 166.

“What counts is results, and there can be no doubt that the Soviet planning system has been a powerful engine for economic growth. But it has done so in an atmosphere of great human sacrifice…” Samuelson & Nordhaus. 1989.

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