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The Index of Economic Freedom is an annual index and ranking created by The Heritage Foundation
The Heritage Foundation
and The Wall Street Journal
The Wall Street Journal
in 1995 to measure the degree of economic freedom in the world's nations. The creators of the index took an approach similar to Adam Smith's in The Wealth of Nations, that "basic institutions that protect the liberty of individuals to pursue their own economic interests result in greater prosperity for the larger society".[1][2]

Contents

1 2018 Index[3]

1.1 Not ranked

2 2017 ranking with more attributes 3 Method

3.1 Rule of law 3.2 Government size 3.3 Regulatory efficiency 3.4 Market openness

4 Meaning 5 Ratings 6 Reception 7 Historical rankings

7.1 Historical ranks and scores 7.2 Method (old) 7.3 Historical positions (1995–2008)

8 See also 9 References 10 External links

2018 Index[3][edit] Key: ██ Free (80–100) ██ Mostly Free (70.0–79.9) ██ Moderately Free (60.0–69.9) ██ Mostly Unfree (50.0–59.9) ██ Repressed (0–49.9)

Country Rank Score Change

 Hong Kong 1 90.2 0.4

 Singapore 2 88.8 0.2

 New Zealand 3 84.2 0.5

  Switzerland 4 81.7 0.2

 Australia 5 80.9 0.1

 Ireland 6 80.4 3.7

 Estonia 7 78.8 0.3

 United Kingdom 8 78.0 1.6

 Canada 9 77.7 0.8

 United Arab Emirates 10 77.6 0.7

 Iceland 11 77.0 2.6

 Denmark 12 76.6 1.5

 Taiwan 13 76.6 0.1

 Luxembourg 14 76.4 0.5

 Sweden 15 76.3 1.4

 Georgia 16 76.2 0.2

 Netherlands 17 76.2 0.4

 United States 18 75.7 0.6

 Lithuania 19 75.3 0.5

 Chile 20 75.2 1.3

 Mauritius 21 75.1 0.4

 Malaysia 22 74.5 0.7

 Norway 23 74.3 0.3

 Czech Republic 24 74.2 0.9

 Germany 25 74.2 0.4

 Finland 26 74.1 0.1

 South Korea 27 73.8 0.5

 Latvia 28 73.6 1.2

 Qatar 29 72.6 0.5

 Japan 30 72.3 2.7

 Israel 31 72.2 2.5

 Austria 32 71.8 0.5

 Macedonia 33 70.3 0.6

 Macau 34 70.9 0.2

 Botswana 35 69.9 0.2

 Vanuatu 36 69.5 2.1

 Romania 37 69.4 0.3

 Uruguay 38 69.2 0.5

 Rwanda 39 69.1 1.5

 Jamaica 40 69.1 0.4

 Kazakhstan 41 69.1 0.1

 Colombia 42 68.9 0.8

 Peru 43 68.7 0.2

 Armenia 44 68.7 1.6

 Poland 45 68.5 0.2

 Malta 46 68.5 0.8

 Bulgaria 47 68.3 0.4

 Cyprus 48 67.8 0.1

 Saint Vincent and the Grenadines 49 67.7 2.5

 Bahrain 50 67.7 0.8

 Saint Lucia 51 67.6 2.6

 Belgium 52 67.5 0.3

 Thailand 53 67.1 0.9

 Panama 54 67.0 0.7

 Hungary 55 66.7 0.9

 Kosovo 56 66.6 1.3

 Costa Rica 57 65.6 0.6

 Turkey 58 65.4 0.2

 Slovakia 59 65.3 0.4

 Spain 60 65.1 1.5

 Philippines 61 65.0 0.6

 Jordan 62 64.9 1.8

 Mexico 63 64.8 1.2

 Slovenia 64 64.8 5.6

 Albania 65 64.5 0.1

 Dominica 66 64.5 0.8

 Azerbaijan 67 64.3 0.7

 Montenegro 68 64.3 2.3

 Indonesia 69 64.2 2.3

  Brunei
Brunei
Darussalam 70 64.2 5.6

 France 71 63.9 0.6

 Portugal 72 63.4 0.8

 Guatemala 73 63.4 0.4

 The Bahamas 74 63.3 2.2

 El Salvador 75 63.2 0.9

 Tonga 76 63.1 0.1

 South Africa 77 63.0 0.7

 Kyrgyzstan 78 62.8 1.7

 Italy 79 62.5 0.0

 Serbia 80 62.5 3.6

 Kuwait 81 62.2 2.9

 Paraguay 82 62.1 0.3

 Uganda 83 62.0 1.1

 Fiji 84 62.0 1.4

 Ivory Coast 85 62.0 1.0

 Morocco 86 61.9 0.4

 Bhutan 87 61.8 3.4

 Seychelles 88 61.6 0.2

 Dominican Republic 89 61.6 1.3

 Samoa 90 61.6 3.1

 Bosnia and Herzegovina 91 61.4 1.2

 Croatia 92 61.0 1.6

 Oman 93 61.0 1.1

 Honduras 94 60.6 1.8

 Burkina Faso 95 60.0 0.4

 Cabo Verde 96 60.0 3.1

 Tanzania 97 59.9 1.3

 Saudi Arabia 98 59.6 4.8

 Tunisia 99 58.9 3.2

 Nicaragua 100 58.9 0.3

 Cambodia 101 58.7 0.8

 Guyana 102 58.7 0.2

 Namibia 103 58.5 4.0

 Nigeria 104 58.5 1.4

 Moldova 105 58.4 0.4

 Tajikistan 106 58.3 0.1

 Russia 107 58.2 0.1

 Belarus 108 58.1 0.5

 Gabon 109 58.0 0.6

 China 110 57.8 0.4

 Sri Lanka 111 57.8 0.4

 Trinidad and Tobago 112 57.7 3.5

 Mali 113 57.6 1.0

 Solomon Islands 114 57.5 2.5

 Greece 115 57.3 2.3

 Belize 116 57.1 1.5

 Barbados 117 57.0 2.5

 Guinea-Bissau 118 56.9 0.8

 Madagascar 119 56.8 0.6

 Benin 120 56.7 2.5

 Comoros 121 56.2 0.4

 Ghana 122 56.0 0.2

 Swaziland 123 55.9 5.2

 Haiti 124 55.8 6.2

 Mongolia 125 55.7 0.9

 Senegal 126 55.7 0.2

 Papua New Guinea 127 55.7 4.8

 Bangladesh 128 55.1 0.1

 Kenya 129 54.7 1.2

 India 130 54.5 1.9

 Pakistan 131 54.4 1.6

 Zambia 132 54.3 1.5

   Nepal 133 54.1 1.0

 Mauritania 134 54.0 0.4

 Myanmar 135 53.9 1.4

 Lesotho 136 53.9 0.0

 São Tomé and Príncipe 137 53.6 1.8

 Laos 138 53.6 0.4

 Egypt 139 53.4 0.8

 Lebanon 140 53.2 0.1

 Vietnam 141 53.1 0.7

 Ethiopia 142 52.8 0.1

 Micronesia 143 52.3 1.8

 Argentina 144 52.3 1.9

 The Gambia 145 52.3 1.1

 Guinea 146 52.2 4.6

 Congo-Kinshasa 147 52.2 4.3

 Malawi 148 52.1 0.2

 Cameroon 149 52.0 0.1

 Ukraine 150 51.9 3.8

 Sierra Leone 151 51.8 0.8

 Uzbekistan 152 51.5 0.8

 Brazil 153 51.4 1.5

 Afghanistan 154 51.1 2.4

 Maldives 155 51.1 0.8

 Iran 156 50.0 0.4

 Burundi 157 50.9 2.3

 Liberia 158 50.9 1.8

 Kiribati 159 50.8 0.1

 Niger 160 49.5 1.3

 Sudan 161 49.4 0.6

 Chad 162 49.3 0.3

 Central African Republic 163 49.2 2.6

 Angola 164 48.6 0.1

 Ecuador 165 48.5 0.8

 Suriname 166 48.1 0.1

 Timor-Leste 167 48.1 1.8

 Togo 168 47.8 5.4

 Turkmenistan 169 47.1 0.3

 Mozambique 170 46.3 3.6

 Djibouti 171 45.1 1.6

 Algeria 172 44.7 1.8

 Bolivia 173 44.1 3.6

 Zimbabwe 174 44.0 0.0

 Equatorial Guinea 175 42.0 3.0

 Eritrea 176 41.7 0.5

 Congo-Brazzaville 177 38.9 1.1

 Cuba 178 31.9 2.0

 Venezuela 179 25.2 1.8

 North Korea 180 5.8 0.9

Not ranked[edit]

 Andorra  Antigua and Barbuda  Grenada  Iraq  Libya  Liechtenstein  Marshall Islands  Monaco  Nauru  Palau  Saint Kitts and Nevis  San Marino  Somalia  South Sudan  Syria  Tuvalu  Yemen

2017 ranking with more attributes[edit] The following table contains more attributes. The whole table is available in XLS format at The Heritage Foundation
The Heritage Foundation
web site.[4]

Country Name 2017 Score Property Rights Judicial Strength Gov't Integrity Tax Burden Gov't Spending Fiscal Health Business Freedom Labor Freedom Monetary Freedom Trade Freedom Investment Freedom Financial Freedom

 Afghanistan 48,9 12,6 28,4 27,5 91,6 79,9 97,3 54,2 59,9 69,3 66,0 0 0

 Albania 64,4 54,0 28,5 39,7 86,9 72,5 51,5 79,3 50,7 81,4 87,7 70 70

 Algeria 46,5 38,2 29,6 31,7 81,1 51,0 19,8 62,1 49,5 67,0 63,3 35 30

 Angola 48,5 36,4 19,8 12,8 87,7 58,6 70,7 58,5 40,4 70,6 56,7 30 40

 Argentina 50,4 32,4 39,6 38,2 62,6 54,6 56,4 57,3 46,1 50,9 66,7 50 50

 Armenia 70,3 55,5 42,5 43,4 83,7 81,7 82,9 78,5 72,4 72,8 80,2 80 70

 Australia 81,0 81,7 92,9 74,8 63,2 59,0 84,6 89,3 84,1 86,4 86,2 80 90

 Austria 72,3 86,0 81,8 75,2 50,3 19,3 79,7 76,9 67,6 83,4 87,0 90 70

 Azerbaijan 63,6 50,5 33,0 37,6 87,7 57,5 97,4 71,5 75,0 73,6 74,4 55 50

 Bahamas 61,1 45,3 48,7 38,2 97,1 83,8 42,3 68,5 71,5 77,0 50,6 50 60

 Bahrain 68,5 64,2 53,7 55,5 99,9 69,8 12,0 69,4 78,7 80,7 82,8 75 80

 Bangladesh 55,0 34,9 26,0 19,1 72,8 94,0 78,7 53,4 68,7 68,6 63,6 50 30

 Barbados 54,5 55,5 33,0 34,3 74,0 39,0 0,0 69,6 67,7 83,7 62,2 75 60

 Belarus 58,6 50,9 56,3 37,6 89,8 48,7 92,8 71,3 74,6 60,4 80,6 30 10

 Belgium 67,8 83,3 69,3 71,5 44,1 9,6 66,3 82,0 61,1 84,9 87,0 85 70

 Belize 58,6 43,5 48,7 35,0 81,3 68,6 60,5 62,7 53,6 79,6 70,1 50 50

 Benin 59,2 36,0 29,4 31,3 68,6 85,9 71,3 51,9 52,4 85,4 68,7 80 50

 Bhutan 58,4 60,1 50,7 44,7 83,1 73,6 61,7 72,6 77,6 67,1 60,0 20 30

 Bolivia 47,7 25,7 15,4 32,6 86,1 49,1 81,4 58,9 35,8 66,4 76,0 5 40

 Bosnia and Herzegovina 60,2 41,2 40,0 32,7 83,5 33,7 89,3 47,4 59,3 84,0 86,6 65 60

 Botswana 70,1 58,1 54,0 57,6 77,1 61,2 99,4 68,8 68,6 77,9 83,8 65 70

 Brazil 52,9 55,0 49,7 33,4 70,1 53,1 22,8 61,3 52,3 67,0 69,4 50 50

 Bulgaria 67,9 62,5 38,9 41,8 91,0 58,4 86,4 66,7 68,3 83,3 87,0 70 60

 Burkina Faso 59,6 38,2 28,4 31,7 82,6 82,5 88,4 46,4 53,3 84,6 69,2 70 40

 Burma 52,5 23,0 12,9 29,6 86,2 81,5 89,9 50,1 77,1 65,4 74,2 20 20

 Burundi 53,2 25,7 19,8 24,6 73,8 69,5 69,6 53,5 67,4 75,2 74,2 55 30

 Cambodia 59,5 42,4 22,1 12,8 90,2 88,1 95,7 29,6 62,0 81,0 80,3 60 50

 Cameroon 51,8 43,5 29,6 17,4 75,4 84,4 60,9 44,3 47,8 80,1 53,4 35 50

 Canada 78,5 88,3 80,8 81,6 77,4 52,3 80,3 81,9 73,1 77,8 88,4 80 80

 Cabo Verde 56,9 42,6 50,2 41,8 78,3 70,7 1,2 65,5 43,2 86,7 68,2 75 60

 Central African Republic 51,8 12,6 33,0 28,7 65,8 94,1 84,1 27,2 42,7 68,2 55,2 80 30

 Chad 49,0 30,6 24,1 24,6 46,0 87,2 74,6 27,5 44,9 74,3 54,7 60 40

 Chile 76,5 68,2 63,7 70,5 77,6 82,2 96,1 72,3 64,3 82,2 86,4 85 70

 China 57,4 48,3 60,7 41,6 70,0 73,0 92,5 53,9 63,4 71,8 73,6 20 20

 Colombia 69,7 63,8 25,2 39,6 80,1 74,2 89,8 77,1 77,9 77,0 81,6 80 70

 Comoros 55,8 37,3 22,6 30,0 64,6 81,2 98,6 58,5 50,6 81,5 70,2 45 30

 Democratic Republic of the Congo 56,4 40,6 48,7 28,6 73,4 94,7 99,3 59,9 38,4 78,6 64,6 30 20

 Congo, Republic of 40,0 34,8 22,6 30,5 66,8 36,2 11,6 32,1 37,5 76,1 52,2 50 30

 Costa Rica 65,0 51,6 55,6 55,4 79,4 88,5 42,4 68,1 53,9 80,8 84,7 70 50

 Côte d'Ivoire 63,0 42,6 45,8 34,3 78,4 84,6 87,0 62,1 50,6 73,2 72,3 75 50

 Croatia 59,4 65,5 56,8 43,4 66,8 31,3 44,7 58,2 43,3 80,3 87,4 75 60

 Cuba 33,9 32,4 10,0 41,8 51,3 0,0 81,2 20,0 20,0 66,0 64,5 10 10

 Cyprus 67,9 75,4 60,7 53,6 73,0 48,8 72,9 75,8 58,6 83,3 87,0 75 50

 Czech Republic 73,3 70,3 55,9 55,9 82,9 45,3 92,0 67,2 77,7 85,8 87,0 80 80

 Denmark 75,1 86,7 68,5 84,9 37,2 5,7 95,4 93,9 85,8 85,5 87,0 90 80

 Djibouti 46,7 12,3 10,3 32,6 80,9 39,5 13,8 51,6 59,0 75,3 54,9 80 50

 Dominica 63,7 43,8 67,7 40,9 73,2 67,5 72,6 72,1 59,0 89,5 72,6 75 30

 Dominican Republic 62,9 56,1 25,3 30,9 84,6 90,2 90,1 52,8 56,2 76,7 77,0 75 40

 Ecuador 49,3 38,7 22,3 33,9 79,1 46,1 56,4 55,4 47,3 67,7 69,7 35 40

 Egypt 52,6 35,4 56,3 32,7 86,1 63,0 4,6 66,8 51,3 69,6 70,2 55 40

 El Salvador 64,1 45,3 35,4 31,7 79,0 85,9 74,7 57,3 54,5 79,2 86,5 80 60

 Equatorial Guinea 45,0 35,4 13,1 24,6 75,4 53,6 46,4 50,9 38,5 78,3 53,8 40 30

 Eritrea 42,2 36,4 10,3 27,5 81,3 74,7 0,0 56,7 69,7 61,0 69,2 0 20

 Estonia 79,1 82,6 82,8 69,9 81,2 55,8 99,8 77,0 56,9 85,7 87,0 90 80

 Ethiopia 52,7 32,6 29,6 37,6 77,1 90,3 86,5 50,0 57,2 65,7 65,1 20 20

 Fiji 63,4 67,7 41,9 32,7 80,7 72,5 84,1 61,3 70,5 75,5 68,8 55 50

 Finland 74,0 90,6 82,7 90,0 66,6 0,0 77,3 90,2 53,4 85,1 87,0 85 80

 France 63,3 85,0 72,7 69,7 47,6 2,0 57,0 78,0 44,1 81,6 82,0 70 70

 Gabon 58,6 35,9 26,7 37,6 77,0 81,0 96,1 50,6 58,4 83,0 61,8 55 40

 Gambia 53,4 39,1 38,8 38,2 74,9 74,3 3,2 52,8 65,6 63,8 65,0 75 50

 Georgia 76,0 55,1 66,5 65,0 87,3 74,4 93,5 87,2 75,9 78,2 88,6 80 60

 Germany 73,8 82,9 79,5 77,7 61,9 41,4 89,9 86,6 42,8 85,9 87,0 80 70

 Ghana 56,2 51,6 40,9 35,5 84,5 76,3 9,2 59,6 57,4 64,5 65,1 70 60

 Greece 55,0 52,5 56,1 41,3 61,1 5,4 58,1 74,3 51,0 78,2 82,0 60 40

 Guatemala 63,0 45,0 27,8 27,5 79,2 94,8 93,5 58,7 48,2 79,4 87,0 65 50

 Guinea 47,6 15,6 13,1 27,5 69,1 78,4 34,2 55,8 54,8 71,1 61,2 50 40

 Guinea-Bissau 56,1 33,8 48,7 28,7 89,0 87,5 75,3 46,7 60,9 77,7 65,2 30 30

 Guyana 58,5 37,7 34,1 33,9 68,0 72,8 80,9 63,2 70,9 79,8 70,7 60 30

 Haiti 49,6 12,6 25,1 19,1 80,3 81,0 51,8 49,4 62,1 73,8 70,6 40 30

 Honduras 58,8 45,0 38,2 32,2 83,3 74,7 64,1 56,9 31,2 77,3 78,4 65 60

  Hong Kong
Hong Kong
SAR 89,8 93,7 84,0 80,3 93,0 90,0 100,0 94,6 89,1 83,2 90,0 90 90

 Hungary 65,8 60,1 51,8 41,5 79,3 25,3 79,3 64,0 64,4 91,7 87,0 75 70

 Iceland 74,4 85,0 71,5 71,5 70,9 41,1 90,6 90,2 62,6 81,2 88,0 80 60

 India 52,6 55,4 44,4 44,3 77,2 77,4 11,0 52,8 41,6 75,0 72,6 40 40

 Indonesia 61,9 48,3 39,3 44,7 83,6 89,9 90,1 49,1 48,9 74,0 80,5 35 60

 Iran 50,5 32,4 36,0 29,6 81,1 92,7 94,9 64,8 54,5 55,5 54,5 0 10

 Iraq N/A 37,3 15,9 19,1 N/A 36,1 11,3 61,2 68,0 76,9 N/A N/A N/A

 Ireland 76,7 85,8 78,3 78,3 72,7 57,1 60,3 80,3 73,6 87,6 87,0 90 70

 Israel 69,7 71,9 82,0 47,6 61,0 50,5 71,8 69,9 64,3 84,9 88,0 75 70

 Italy 62,5 74,6 55,4 44,7 54,9 22,3 66,9 69,8 52,9 86,9 87,0 85 50

 Jamaica 69,5 58,0 61,5 38,2 81,0 77,5 79,9 78,9 73,7 79,5 75,3 80 50

 Japan 69,6 89,4 73,8 86,1 68,5 52,3 9,5 82,3 77,5 83,0 82,6 70 60

 Jordan 66,7 60,1 49,5 49,8 91,3 73,3 55,5 63,9 58,1 86,7 82,0 70 60

 Kazakhstan 69,0 56,1 56,5 38,0 93,3 85,7 98,9 74,5 82,5 73,9 78,5 40 50

 Kenya 53,5 45,1 42,7 24,7 78,5 77,9 14,4 50,0 62,4 73,8 67,2 55 50

 Kiribati 50,9 48,0 33,0 37,6 73,6 0,0 99,5 51,5 71,9 82,0 58,2 25 30

 Korea, North 4,9 32,4 5,0 11,6 0,0 0,0 0,0 5,0 5,0 0,0 0,0 0 0

 Korea, South 74,3 77,8 59,9 67,3 73,7 68,9 97,4 90,6 57,0 84,0 79,5 65 70

 Kuwait 65,1 55,5 56,4 41,3 97,7 40,8 99,8 61,2 61,5 73,6 78,7 55 60

 Kyrgyz Republic 61,1 50,9 17,2 30,3 93,7 55,2 78,9 73,7 79,8 68,5 75,3 60 50

 Laos 54,0 35,3 35,9 32,6 86,1 76,6 61,2 66,3 54,4 70,2 74,6 35 20

 Latvia 74,8 72,6 59,7 67,3 84,7 57,4 95,0 79,8 72,0 86,5 87,0 75 60

 Lebanon 53,3 43,8 25,3 23,3 91,8 76,1 0,0 51,5 49,5 78,4 84,4 65 50

 Lesotho 53,9 51,6 50,9 39,6 55,7 0,0 92,2 52,2 57,7 76,4 80,2 50 40

 Liberia 49,1 33,6 41,0 31,4 83,6 60,1 36,2 53,1 48,5 71,8 60,1 50 20

 Libya N/A 6,8 22,6 26,7 95 0 11,4 65,0 52,5 69,2 80,0 N/A N/A

 Liechtenstein N/A n/a n/a n/a N/A N/A N/A 92,3 85,7 N/A 90,0 85 80

 Lithuania 75,8 73,0 62,4 69,7 86,9 64,1 93,6 79,1 63,6 90,0 87,0 70 70

 Luxembourg 75,9 85,8 77,0 78,3 64,5 46,0 99,0 68,6 43,8 86,2 87,0 95 80

 Macau 70,7 60,0 60,0 37,1 72,3 92,8 100,0 60,0 50,0 70,8 90,0 85 70

 Macedonia 70,7 67,0 61,4 52,0 91,9 68,9 72,6 81,5 66,7 80,8 86,1 60 60

 Madagascar 57,4 34,8 21,4 25,0 91,0 93,2 79,8 43,3 43,8 73,3 78,0 55 50

 Malawi 52,2 36,0 44,2 31,3 79,1 69,8 33,5 45,3 56,9 54,7 70,5 55 50

 Malaysia 73,8 85,3 67,3 51,8 85,3 78,7 76,5 90,8 73,1 85,3 81,2 60 50

 Maldives 50,3 45,1 33,0 31,4 93,0 51,5 9,4 80,6 70,4 76,3 47,8 35 30

 Mali 58,6 36,7 33,8 34,3 69,4 88,0 87,8 44,2 51,1 83,0 70,1 65 40

 Malta 67,7 67,7 62,9 53,6 62,8 44,9 85,1 62,5 57,2 83,5 87,0 85 60

 Mauritania 54,4 22,5 13,8 29,2 81,2 73,2 77,1 64,4 57,4 81,9 62,3 50 40

 Mauritius 74,7 64,4 72,6 44,3 92,0 81,5 74,9 78,2 68,8 81,1 88,7 80 70

 Mexico 63,6 58,1 38,7 30,0 74,9 76,7 66,8 70,7 57,9 78,8 80,0 70 60

 Micronesia 54,1 30,0 30,0 40,7 90,7 0,0 98,6 57,8 67,7 83,6 85,6 35 30

 Moldova 58,0 49,6 23,9 28,6 86,1 54,8 90,6 65,9 38,9 72,0 80,0 55 50

 Mongolia 54,8 51,3 28,4 36,8 87,1 57,6 0,0 67,2 76,6 72,3 74,9 45 60

 Montenegro 62,0 58,0 50,4 43,4 83,1 33,1 44,3 72,0 67,4 82,5 84,7 75 50

 Morocco 61,5 55,0 41,9 37,1 71,7 69,4 55,0 67,7 33,8 82,7 84,0 70 70

 Mozambique 49,9 40,6 32,4 30,9 73,2 58,2 22,7 58,8 41,0 79,9 76,7 35 50

 Namibia 62,5 53,8 50,6 41,3 65,2 55,6 66,4 67,6 84,4 77,2 83,5 65 40

   Nepal 55,1 37,3 32,0 26,7 84,9 89,5 98,4 64,6 47,6 72,2 68,1 10 30

 Netherlands 75,8 87,4 69,9 85,7 53,2 37,0 83,0 80,2 70,5 85,8 87,0 90 80

 New Zealand 83,7 96,1 88,5 89,9 70,8 46,5 97,8 91,8 86,2 90,1 87,4 80 80

 Nicaragua 59,2 31,1 15,9 27,4 77,2 80,8 96,1 59,0 55,6 71,2 81,0 65 50

 Niger 50,8 33,8 22,6 35,0 76,3 73,4 38,5 39,1 46,1 83,3 66,4 55 40

 Nigeria 57,1 35,3 33,2 12,2 85,2 95,2 87,2 48,9 73,9 71,3 62,3 40 40

 Norway 74,0 86,7 83,3 88,3 55,6 38,5 98,4 89,5 48,8 75,8 87,7 75 60

 Oman 62,1 60,8 52,3 47,6 98,5 20,5 36,3 68,4 70,3 80,6 85,2 65 60

 Pakistan 52,8 36,4 34,1 30,5 78,9 87,3 30,8 61,2 37,8 74,8 67,2 55 40

 Panama 66,3 61,1 21,5 40,9 85,2 83,1 84,9 74,4 43,0 78,4 77,8 75 70

 Papua New Guinea 50,9 37,7 54,0 32,7 67,8 64,5 16,7 59,8 67,4 69,8 85,4 25 30

 Paraguay 62,4 38,2 23,3 32,6 96,2 83,0 95,1 62,4 28,5 78,3 76,6 75 60

 Peru 68,9 58,3 28,2 38,8 80,3 85,1 98,4 69,4 62,8 83,3 87,1 75 60

 Philippines 65,6 49,2 37,1 38,7 78,9 89,4 97,2 62,6 57,2 80,6 76,4 60 60

 Poland 68,3 60,8 58,0 55,5 76,0 46,9 76,1 67,8 61,5 84,7 87,0 75 70

 Portugal 62,6 73,3 68,9 59,0 59,8 25,1 32,1 86,4 43,4 85,9 87,0 70 60

 Qatar 73,1 74,8 63,0 59,0 99,6 71,2 97,4 68,1 65,4 80,6 83,1 55 60

 Romania 69,7 63,9 58,5 45,9 87,4 65,3 90,9 65,9 62,5 83,6 87,0 75 50

 Russia 57,1 47,6 44,5 38,2 81,8 61,5 93,4 74,8 50,8 57,3 75,2 30 30

 Rwanda 67,6 64,4 68,8 45,9 79,8 77,3 83,3 59,0 81,8 80,0 70,3 60 40

 Saint Lucia 65,0 65,5 68,8 39,6 76,4 71,6 53,8 77,2 68,7 82,3 71,6 65 40

 Saint Vincent and the Grenadines 65,2 37,3 68,8 47,6 72,8 71,7 66,7 80,3 74,5 82,9 65,2 75 40

 Samoa 58,4 51,3 22,6 37,1 80,4 51,9 66,6 77,0 73,3 84,5 70,7 55 30

 São Tomé and Príncipe 55,4 37,7 15,9 39,7 87,8 67,9 67,1 65,0 47,2 69,6 71,8 65 30

 Saudi Arabia 64,4 62,0 65,0 45,9 99,7 54,5 65,7 73,8 68,5 70,1 78,2 40 50

 Senegal 55,9 44,0 39,3 42,1 70,9 74,3 51,8 50,8 38,9 86,0 73,1 60 40

 Serbia 58,9 50,3 40,2 38,2 83,3 40,3 46,9 62,9 65,9 80,8 77,8 70 50

 Seychelles 61,8 55,2 42,6 44,3 78,8 63,9 90,7 63,4 55,9 78,3 83,4 55 30

 Sierra Leone 52,6 37,4 27,0 18,9 81,3 90,2 76,2 49,6 29,7 71,1 69,4 60 20

 Singapore 88,6 97,1 91,5 87,9 90,5 90,1 80,7 95,1 90,8 84,3 90,0 85 80

 Slovak Republic 65,7 69,0 38,0 39,6 79,7 47,2 82,9 64,9 54,4 81,1 87,0 75 70

 Slovenia 59,2 75,0 55,1 53,6 58,7 28,6 6,1 80,6 60,2 85,3 87,0 70 50

 Solomon Islands 55,0 39,3 41,9 33,9 62,8 34,4 99,8 68,5 70,5 81,0 83,0 15 30

 South Africa 62,3 67,6 59,7 47,6 70,2 68,4 70,0 62,0 58,9 75,8 77,3 40 50

 Spain 63,6 71,2 53,9 57,2 62,5 41,4 26,9 66,9 55,3 85,5 87,0 85 70

 Sri Lanka 57,4 48,0 48,3 30,0 85,3 90,2 31,2 72,8 57,5 76,0 74,5 35 40

 Sudan 48,8 31,1 19,8 18,9 86,5 95,1 85,5 53,9 49,7 59,3 50,5 15 20

 Suriname 48,0 45,1 15,4 31,7 70,1 69,6 16,2 48,6 76,1 75,1 68,4 30 30

 Swaziland 61,1 53,5 33,3 30,9 74,8 71,6 93,2 57,5 64,4 75,6 88,9 50 40

 Sweden 74,9 88,6 82,2 87,4 44,4 21,7 93,4 90,8 53,2 85,3 87,0 85 80

  Switzerland 81,5 86,9 77,6 80,3 70,9 67,5 95,8 76,8 72,2 84,4 90,0 85 90

 Syria N/A 37,3 22,6 30,0 N/A N/A 0,0 66,4 55,7 N/A 56,6 N/A N/A

 Taiwan 76,5 86,5 67,7 70,5 75,3 89,5 83,7 93,4 55,0 85,2 86,2 65 60

 Tajikistan 58,2 45,5 45,6 32,7 90,9 74,1 95,8 65,6 49,2 69,8 73,9 25 30

 Tanzania 58,6 33,8 28,8 29,2 80,3 89,5 76,6 50,1 64,3 69,6 76,0 55 50

 Thailand 66,2 51,3 41,7 40,7 81,0 85,3 96,3 69,9 62,8 72,9 82,8 50 60

 Timor-Leste 46,3 6,8 10,3 29,2 64,7 65,6 20,0 72,2 63,9 77,5 80,0 45 20

 Togo 53,2 33,8 39,9 36,8 68,2 79,8 45,1 50,3 46,2 77,5 71,3 60 30

 Tonga 63,0 65,5 19,8 47,6 86,9 74,4 79,6 76,1 86,0 80,6 79,7 40 20

 Trinidad and Tobago 61,2 54,7 48,7 36,8 81,4 57,7 51,8 67,7 71,4 75,9 78,6 60 50

 Tunisia 55,7 49,6 39,9 37,3 73,7 73,4 53,4 80,6 56,1 75,9 63,8 35 30

 Turkey 65,2 61,3 52,5 40,7 75,5 57,7 95,7 64,3 48,5 72,2 79,4 75 60

 Turkmenistan 47,4 32,4 5,0 29,6 95,3 92,3 98,9 30,0 20,0 74,8 80,0 0 10

 Uganda 60,9 39,3 34,6 28,7 73,7 91,0 78,1 42,4 84,6 80,3 78,3 60 40

 Ukraine 48,1 41,4 22,6 29,2 78,6 38,2 67,9 62,1 48,8 47,4 85,9 25 30

 United Arab Emirates 76,9 76,7 85,0 74,2 96,4 67,4 99,2 81,1 80,9 78,4 83,5 40 60

 United Kingdom 76,4 93,8 93,0 78,3 65,1 41,9 40,4 89,9 72,8 85,0 87,0 90 80

 United States 1,1 1,3 1,1 1,1 1,1 1,1 1,1 1,1 1,1 1,1 1,1 1 1

 Uruguay 69,7 70,2 66,8 70,3 77,5 69,4 77,2 74,8 62,9 71,3 80,6 85 30

 Uzbekistan 52,3 48,0 41,9 27,5 90,7 66,2 99,8 64,8 50,4 61,1 66,8 0 10

 Vanuatu 67,4 65,5 33,0 70,5 97,0 80,4 99,1 51,4 58,1 74,8 73,9 65 40

 Venezuela 27,0 6,8 10,3 11,6 72,5 51,5 15,2 39,7 28,5 16,8 60,7 0 10

 Vietnam 52,4 49,7 32,0 24,6 79,6 74,6 21,1 61,2 62,2 76,0 83,1 25 40

 Yemen N/A 37,3 22,6 17,4 N/A 77,2 10,6 51,4 54,2 59,7 N/A N/A N/A

 Zambia 55,8 49,6 39,8 35,0 73,1 81,6 21,6 66,6 48,2 70,7 78,3 55 50

 Zimbabwe 44,0 27,3 26,1 14,7 61,1 75,2 90,6 36,2 33,1 76,5 52,8 25 10

 Somalia N/A 6,8 N/A 11,6 100 N/A 0,0 92,3 91,8 N/A N/A N/A N/A

 Kosovo 67,9 70,3 58,0 45,9 93,5 77,8 88,9 68,8 65,3 80,0 70,8 65 30

  Brunei
Brunei
Darussalam 69,8 62,5 39,9 40,9 85,6 61,2 100,0 76,6 90,4 76,1 89,1 65 50

Method[edit] The 2018 ranking scores aspects of economic freedom between 0 and 100, with 0 meaning "no economic freedom" and 100 meaning "total economic freedom". There are twelve aspects divided into four categories.[5] Rule of law[edit]

Property rights

Degree of a country's legal protection of private property rights and degree of enforcement of those laws. It is divided into the following sub-factors:

physical property rights intellectual property rights strength of investor protection risk of expropriation quality of land administration

Judicial effectiveness

Degree of the judiciary's efficiency and fairness, especially dealing with property laws. It is divided into the following sub-factors:

judicial independence quality of the judicial process likelihood of obtaining favorable judicial decisions

Government integrity

Analyzes how prevalent are forms of political corruption and practices such as bribery, extortion, nepotism, cronyism, patronage, embezzlement, and graft. It is divided into the following sub-factors:

public trust in politicians irregular payments and bribes transparency of government policymaking absence of corruption perceptions of corruption governmental and civil service transparency

Government size[edit]

Tax burden

Analyzes marginal tax rates on personal and corporate income and the overall taxation level (including direct and indirect taxes imposed by all levels of government) as a percentage of the GDP. Its sub-factors are:

top marginal tax rate on individual income top marginal tax rate on corporate income total tax burden as a percentage of GDP

Government spending

Quantifies the burden of government expenditures, including consumption by the state and all transfer payments related to various entitlement programs. The ideal level varies from country to country, but zero expenditure is used as a benchmark.

Fiscal health

Analyzes how well a country manages its budget by quantifying the growing debt and deficit. It is divided into the following sub-factors:

average deficits as a percentage of GDP
GDP
for the most recent three years (80 percent of score) debt as a percentage of GDP
GDP
(20 percent of score)

Regulatory efficiency[edit]

Business freedom

Analyses the cost, time and freedom to open, operate and close a business, taking into consideration factors like electricity. It is divided into thirteen sub-factors:

starting a business—procedures (number); starting a business—time (days); starting a business—cost (% of income per capita); starting a business—minimum capital (% of income per capita); obtaining a license—procedures (number); obtaining a license—time (days); obtaining a license—cost (% of income per capita); closing a business—time (years); closing a business—cost (% of estate); closing a business—recovery rate (cents on the dollar); getting electricity—procedures (number); getting electricity—time (days); and getting electricity—cost (% of income per capita).

Labor freedom

Quantifies the intrusivness of labor rights such as minimum wage, laws inhibiting layoffs, severance requirements, and measurable regulatory restraints on hiring and hours worked, plus the labor force participation rate as an indicative measure of employment opportunities in the labor market. It is divided into the following sub-factors:

ratio of minimum wage to the average value added per worker hindrance to hiring additional workers rigidity of hours difficulty of firing redundant employees legally mandated notice period mandatory severance pay labor force participation rate

Monetary freedom

Analyses how stable are prices and how much microeconomy intervenes. It is divided into the following sub-factors:

weighted average inflation rate for the most recent three years price controls

Market openness[edit]

Trade freedom

Quantifies the extent to which tariff and nontariff barriers affect imports and exports of goods and services into and out of the country. Its sub-factors are:

trade-weighted average tariff rate nontariff barriers (NTBs)

Investment freedom

Analyses how free or constrained is the flow of investment capital of individuals and firms.

Financial freedom

Indicates banking efficiency as well as how independent from the government is the financial sector. This aspect looks at five broad areas:

extent of government regulation of financial services degree of state intervention in banks and other financial firms through direct and indirect ownership government influence on the allocation of credit extent of financial and capital market development openness to foreign competition

Meaning[edit] The Heritage Foundation
The Heritage Foundation
reports that the top 20% on the index have twice the per capita income of those in the second quintile, and five times that of the bottom 20%.[6] Carl Schramm, who wrote the first chapter of the 2008 Index, states that cities of Medieval Italy
Italy
and mid-19th century Midwestern American cities all flourished to the degree they possessed economic fluidity and institutional adaptiveness created by economic freedom.[7] According to Will Wilkinson of the libertarian think tank Cato Institute, studies show that higher economic freedom correlates strongly with higher self-reported happiness.[8] According to economists Tomi Ovaska and Ryo Takashima, economic freedom research suggests "that people unmistakably care about the degree to which the society where they live provides them opportunities and the freedom to undertake new projects, strongly with and make choices based on one's personal preferences."[9] According to the Cato Institute, higher economic freedom promotes participation and collaboration.[10] Also claimed is that higher economic freedom is extremely significant in preventing wars; according to their calculations, freedom is around 54 times more effective than democracy (as measured by Democracy Score) in diminishing violent conflict.[11] Ratings[edit] Since the index was created in 1995, the score for world economic freedom has increased, rising 2.6 points up to 2008.[12] In 2011 the score had decreased from the 2008 score of 60.2 to 59.7, which represents an increase of 2.2 points since 1995. The Economic Freedom score improved for 117 countries, the majority of countries included in the index, which were mainly developing and emerging market economies. With the exception of Europe
Europe
and North America, there were increased levels of freedom recorded in all regions, with the greatest improvement shown in Sub-Saharan Africa. The top five "free" economies identified by the 2011 index were Hong Kong, Singapore, Australia, New Zealand, and Switzerland, each scoring over 80 on the economic freedom grading scale.[13] Since the Index was created in 1995, Hong Kong
Hong Kong
has been the top performing economy.[13][14] In 2011, the United States
United States
dropped to 9th place behind such countries as Denmark, Canada, and first-place Hong Kong.[13] The Heritage Foundation has pointed to increases in government spending as the reason for the United States' decline, and according to data from the 2011 index, the growth rates of countries with the highest levels of government spending were 4.5 points lower, on average, than countries where government spending was under control.[15] In their "Executive Highlights" of index results, the Heritage Foundation stated that "high levels of government spending in response to the global economic turmoil have not resulted in higher economic growth".[13] The results from the 2012 index showed an overall decline in global economic freedom; according to The Heritage Foundation, the average score in its ranking was the second lowest of the last ten years.[16] In particular, the U.S. dropped to 10th place in the ranking, and has now fallen three places since 2008, when it was 7th.[17] A report issued by the Foundation stated that government spending was the cause of the decline, and had "not only failed to arrest the economic crisis, but also—in many countries—seems to be prolonging it".[18] According to the report, activity in the private sector is threatened by the greater government spending, which has increased public debt and led to more bureaucracy.[16] Countries that shared the same rank received a tie score. Reception[edit] According to the Freedom House, "there is a high and statistically significant correlation between the level of political freedom as measured by Freedom House
Freedom House
and economic freedom as measured by the Wall Street Journal/Heritage Foundation survey."[19] The Millennium Challenge Account, a U.S. government foreign aid program, has used the Trade freedom indicator in determining which countries will receive their performance-based compacts.[20] Critics such as Jeffrey Sachs
Jeffrey Sachs
have contested the Index's assumption that economic openness necessarily leads to better growth. In his book The End of Poverty, Sachs graphed countries' ratings on the index against GDP
GDP
per capita growth between 1995 and 2003, claiming to demonstrate no correlation between a country's rating and its rate of economic growth. Sachs pointed out, as examples, that countries with good ratings such as Switzerland
Switzerland
and Uruguay
Uruguay
had sluggish economic performances, others, like China, with poorer rating had very strong economic growth.[21] The UAE
UAE
questioned the rating of their country's economic freedom in 2008, comparing its middling rating with the high rating they had received from other indicators such as Transparency International
Transparency International
and Moody's. They also argued that the report is "unreliable", because its methodology had changed twice in the last two years.[22] Stefan Karlsson of the Ludwig von Mises Institute, challenged the usefulness of the index due to the fuzziness of many of the categories used to determine freedom.[23] John Miller roundly criticizes the "Index", writing in Dollars & Sense, "In the hands of the Wall Street Journal and the Heritage Foundation, Washington's foremost right-wing think tank, however, an economic freedom index merely measures corporate and entrepreneurial freedom from accountability. Upon examination, the index turns out to be a poor barometer of either freedom more broadly construed or of prosperity."[24] According to Left Business Observer, growth in Index accounts for 10% of the variation in the growth of GDP.[25] Historical rankings[edit] Historical ranks and scores[edit] Key: ██ Free (80–100) ██ Mostly Free (70.0–79.9) ██ Moderately Free (60.0–69.9) ██ Mostly Unfree (50.0–59.9) ██ Repressed (0–49.9)

  2017[26] 2016[27] 2015[28] 2014[29]

Country Rank Score Change in Yearly Score from 2016 Rank Score Change in Yearly Score from 2015 Rank Score Change in Yearly Score from 2014 Rank Score Change in Yearly Score from 2013

 Hong Kong 1 89.8 1.2 1 88.6 -1.0 1 89.6 -0.5 1 90.1 0.8

 Singapore 2 88.6 0.8 2 87.8 -1.6 2 89.4 0 2 89.4 1.4

 New Zealand 3 83.7 2.1 3 81.6 -0.5 3 82.1 0.9 5 81.2 -0.2

  Switzerland 4 81.5 0.5 4 81 0.5 5 80.5 -1.1 4 81.6 0.6

 Australia 5 81 0.7 5 80.3 -1.1 4 81.4 -0.6 3 82 -0.6

 Estonia 6 79.1 1.9 9 77.2 0.4 8 76.8 0.9 11 75.9 0.6

 Canada 7 78.5 0.5 6 78 -1.1 6 79.1 -1.1 6 80.2 0.8

 United Arab Emirates 8 76.9 4.5 25 72.4 1 28 71.4 0.3 28 71.1 1.8

 Ireland 9 76.7 -0.6 8 77.3 0.7 9 76.6 0.4 9 76.2 0.5

 Chile 10 76.5 -1.2 7 77.7 -0.8 7 78.5 -0.2 7 78.7 -0.3

 Taiwan 11 76.5 1.8 14 74.7 -0.4 14 75.1 1.2 17 73.9 1.2

 United Kingdom 12 76.4 0 10 76.4 0.6 13 75.8 0.9 14 74.9 0.1

 Georgia 13 76 3.0 22 73 0.4 22 72.6 0.4 21 72.2 2.8

 Luxembourg 14 75.9 2.7 21 73.2 -1 16 74.2 0 15 74.2 -0.3

 Netherlands 15 75.8 2.1 17 73.7 -0.5 15 74.2 0.7 17 73.5 0.2

 Lithuania 16 75.8 0.6 13 75.2 0.5 15 74.7 1.7 21 73 0.9

 United States 17 75.1 -0.3 11 75.4 -0.8 12 76.2 0.7 12 75.5 -0.5

 Denmark 18 75.1 -0.2 12 75.3 -1.0 11 76.3 0.2 10 76.1 0

 Sweden 19 74.9 2.2 23 72.7 -0.4 20 73.1 0.2 18 72.9 1.2

 Latvia 20 74.8 5.1 37 69.7 1 42 68.7 2.2 55 66.5 1.3

 Mauritius 21 74.7 0 15 74.7 -1.7 10 76.4 -0.1 8 76.5 -0.4

 Iceland 22 74.4 2.4 26 72 -0.4 23 72.4 0.3 23 72.1 1.2

 South Korea 23 74.3 2.8 29 71.5 0.3 31 71.2 0.9 34 70.3 0.4

 Finland 24 74.0 0.6 19 73.4 0 19 73.4 -0.6 16 74 1.7

 Norway 25 74 2.2 27 71.8 0.9 32 70.9 0.4 31 70.5 1.7

 Germany 26 73.8 0 16 73.8 0.4 18 73.4 0.6 19 72.8 1.8

 Malaysia 27 73.8 3 31 70.8 1.2 37 69.6 3.5 56 66.1 -0.3

 Czech Republic 28 73.3 0.8 24 72.5 0.3 26 72.2 1.3 29 70.9 1

 Qatar 29 73.1 2.3 32 70.8 -0.4 30 71.2 -0.1 27 71.3 0

 Austria 30 72.3 1.1 30 71.2 -1.2 24 72.4 0.6 25 71.8 1.5

 Macedonia 31 70.7 3.6 53 67.1 -1.5 43 68.6 0.4 43 68.2 -0.3

 Macau 32 70.7 0.4 34 70.3 -1 29 71.3 -0.4 26 71.7 -0.1

 Armenia 33 70.3 3.2 52 67.1 -1.8 41 68.9 -0.5 38 69.4 0.6

 Botswana 34 71.1 -2.2 36 69.8 -2.2 27 72 1.4 30 70.6 1

 Brunei 35 69.8 0.9 39 68.9 -0.1 40 69 -

 Israel 36 69.7 -0.8 33 70.5 2.1 44 68.4 1.5 51 66.9 -0.9

 Colombia 37 69.7 -2 28 71.7 1 34 70.7 1.1 37 69.6 1.6

 Uruguay 38 69.7 1.1 43 68.6 -0.7 38 69.3 -0.4 36 69.7 -0.2

 Romania 39 69.7 3.1 57 66.6 1.1 62 65.5 0.4 59 65.1 0.7

 Japan 40 69.6 -3.7 20 73.3 0.9 25 72.4 0.6 24 71.8 0.2

 Jamaica 41 69.5 1.8 48 67.7 1 56 66.7 -0.1 52 66.8 1.7

 Kazakhstan 42 69 5.7 69 63.3 -0.4 67 63.7 0.7 68 63 -0.6

 Peru 43 68.9 1.2 47 67.7 0.3 47 67.4 -0.8 44 68.2 -0.5

 Bahrain 44 68.5 -4.9 18 73.4 -1.7 13 75.1 -0.4 12 75.5 0.3

 Poland 45 68.3 -0.3 42 68.6 1.6 50 67 1 57 66 1.8

 Kosovo 46 67.9

 Bulgaria 47 67.9 1.1 55 66.8 1.1 61 65.7 0.7 60 65 0.3

 Cyprus 48 67.9 0 45 67.9 0.3 46 67.6 -1.4 41 69 -2.8

 Belgium 49 67.8 -1 40 68.8 -1.1 35 69.9 0.7 40 69.2 0.2

 Malta 50 67.7 1.2 58 66.5 0.1 58 66.4 -1.1 47 67.5 0.5

 Rwanda 51 67.6 2.8 65 64.8 0.1 65 64.7 0.6 63 64.1 -0.8

 Vanuatu 52 67.4 6.3 84 61.1 1.6 93 59.5 2.9 109 56.6 0

 Jordan 53 66.7 -2.6 38 69.3 0.1 39 69.2 -1.2 33 70.4 0.5

 Panama 54 66.3 2.2 68 64.1 0.7 71 63.4 0.9 71 62.5 -2.7

 Thailand 55 66.2 3.8 75 62.4 -0.9 72 63.3 -0.8 61 64.1 -0.8

 Hungary 56 65.8 -1.0 54 66.8 -0.2 51 67 -0.3 48 67.3 0.2

 Slovakia 57 65.7 -1.5 50 67.2 0.8 57 66.4 -2.3 42 68.7 1.7

 Philippines 58 65.6 3.4 76 62.2 2.1 89 60.1 1.9 97 58.2 1.1

 Saint Vincent and the Grenadines 59 65.2 -2.8 44 68 1 52 67 0.3 54 66.7 0.2

 Turkey 60 65.2 2 70 63.2 -1.7 64 64.9 2 69 62.9 0.4

 Kuwait 61 65.1 2.6 74 62.5 0.2 76 62.3 -0.8 66 63.1 0.6

 Saint Lucia 62 65 -5.2 35 70.2 -0.5 33 70.7 0.3 32 70.4 -0.9

 Costa Rica 63 65 -2.2 51 67.2 0.3 53 66.9 -0.1 49 67 -1

 Saudi Arabia 64 64.4 2.3 77 62.1 -0.1 77 62.2 1.6 82 60.6 -1.9

 Albania 65 64.4 -1.3 63 65.7 -1.2 54 66.9 1.7 58 65.2 0.1

 El Salvador 66 64.1 -1.6 62 65.7 -0.5 59 66.2 -0.5 53 66.7 -2

 Dominica 67 63.7 -2.4 61 66.1 0.9 63 65.2 1.3 64 63.9 2.3

 Azerbaijan 68 63.6 2.6 85 61 -0.3 81 61.3 1.6 88 59.7 0.8

 Spain 69 63.6 -4.0 49 67.6 0.4 49 67.2 -0.8 46 68 -1.1

 Mexico 70 63.6 -2.8 59 66.4 -0.4 55 66.8 -0.2 50 67 1.7

 Fiji 71 63.4 4.4 98 59 0.3 99 58.7 1.5 105 57.2 -0.1

 France 72 63.3 0.8 73 62.5 -1 70 63.5 -0.6 62 64.1 0.9

 Tonga 73 63 3.7 95 59.3 1.1 104 58.2 2.2 112 56 -1

 Guatemala 74 63 2.6 87 60.4 -0.8 83 61.2 1.2 85 60 -0.9

 Ivory Coast 75 63.0 4.5 103 58.5 0.8 107 57.7 3.6 126 54.1 -0.2

 Dominican Republic 76 62.9 1.9 86 61 -0.3 80 61.3 1.6 87 59.7 -0.5

 Portugal 77 62.6 -2.7 64 65.3 1.8 69 63.5 0.4 67 63.1 0.1

 Namibia 78 62.5 2.9 93 59.6 0.2 94 59.4 -0.9 84 60.3 -1.6

 Italy 79 62.5 0.8 80 61.7 0.8 86 60.9 0.3 83 60.6 1.8

 Paraguay 80 62.4 1.3 83 61.1 -0.9 78 62 0.9 80 61.1 -0.7

 South Africa 81 62.3 -0.3 72 62.6 0.1 75 62.5 0.7 74 61.8 -0.9

 Oman 82 62.1 -4.6 56 66.7 -0.7 48 67.4 -0.7 45 68.1 0.2

 Montenegro 83 62 -2.7 66 64.7 1.1 68 63.6 1 70 62.6 0.1

 Indonesia 84 61.9 3.8 105 58.1 -0.4 100 58.5 1.6 108 56.9 0.5

 Seychelles 85 61.8 4.3 114 57.5 1.3 117 56.2 1.3 124 54.9 1.9

 Morocco 86 61.5 1.4 89 60.1 1.8 103 58.3 -1.3 90 59.6 -0.6

 Trinidad and Tobago 87 61.2 -2.9 67 64.1 1.4 73 62.7 0.4 72 62.3 -2.1

 Swaziland 88 61.1 1.2 91 59.9 -1.3 82 61.2 4 104 57.2 0

 Kyrgyzstan 89 61.1 -0.2 82 61.3 0.2 85 61.1 1.5 89 59.6 -0.6

 Bahamas 90 61.1 -7.6 41 68.7 -1.1 36 69.8 -0.3 35 70.1 2.1

 Uganda 91 60.9 1.2 92 59.7 -0.2 91 59.9 -1.2 79 61.1 -0.8

 Bosnia and Herzegovina 92 60.2 1.2 97 59 0.6 101 58.4 1.1 103 57.3 0

 Burkina Faso 93 59.6 1 102 58.6 -0.3 98 58.9 -1 86 59.9 -0.7

 Cambodia 94 59.5 2 110 57.5 0.1 108 57.4 -1.1 95 58.5 0.9

 Croatia 95 59.4 -2.1 81 61.5 1.1 87 60.4 -0.9 78 61.3 0.4

 Benin 96 59.2 0.4 99 58.8 1.7 113 57.1 -0.5 101 57.6 1.9

 Slovenia 97 59.2 -1.1 88 60.3 -2.4 74 62.7 1 76 61.7 -1.2

 Nicaragua 98 59.2 1.6 108 57.6 -0.8 102 58.4 1.8 110 56.6 -1.3

 Serbia 99 58.9 -1.1 90 60 0.6 95 59.4 0.8 94 58.6 0.6

 Honduras 100 58.8 1.4 116 57.4 0.3 112 57.1 -1.3 96 58.4 -0.4

 Belize 101 58.6 1.8 117 56.8 0.1 115 56.7 -0.6 102 57.3 -4.6

 Mali 102 58.6 2.2 119 56.4 0.9 122 55.5 -0.9 111 56.4 0.6

 Gabon 103 58.6 0.3 104 58.3 0.5 105 57.8 0 99 57.8 1.4

 Belarus 104 58.6 8.8 153 49.8 -0.3 150 50.1 2.1 154 48 -1

 Tanzania 105 58.6 1.1 109 57.5 -0.3 106 57.8 -0.1 98 57.9 0.9

 Guyana 106 58.5 3 123 55.5 -0.2 121 55.7 1.9 129 53.8 2.5

 Bhutan 107 58.4 1 115 57.4 0.7 116 56.7 1.7 122 55 -1.6

 Samoa 108 58.4 -3.5 78 61.9 0.8 84 61.1 4 106 57.1 -3.4

 Tajikistan 109 58.2 5.5 140 52.7 0.7 139 52 -1.4 131 53.4 0

 Moldova 110 58 0.5 111 57.5 0.2 110 57.3 1.8 115 55.5 1.1

 China 111 57.4 4.7 139 52.7 0.2 137 52.5 0.6 136 51.9 0.7

 Sri Lanka 112 57.4 -1.2 101 58.6 -1.4 90 60 -0.7 81 60.7 2.4

 Madagascar 113 57.4 -4.3 79 61.7 0 79 61.7 -0.3 73 62 -0.4

 Russia 114 57.1 5 143 52.1 0.2 140 51.9 0.8 139 51.1 0.6

 Nigeria 115 57.1 1.5 120 55.6 1.3 129 54.3 -0.8 120 55.1 -1.2

 Cape Verde 116 56.9 -9.5 60 66.4 0.3 60 66.1 2.4 65 63.7 0.2

 Democratic Republic of the Congo 117 56.4 13.7 170 42.7 -1 169 43.7 0.2 167 43.5 -0.3

 Ghana 118 56.2 -6.8 71 63 -1.2 66 64.2 2.9 77 61.3 0.6

 Guinea-Bissau 119 56.1 4.1 145 52 0.7 143 51.3 0.2 138 51.1 1

 Senegal 120 55.9 -1.9 106 57.8 2.4 125 55.4 -0.1 116 55.5 0.1

 Comoros 121 55.8 3.7 142 52.1 0.7 142 51.4 3.9 157 47.5 1.8

 Zambia 122 55.8 -2.9 100 58.7 -1.7 88 60.4 1.7 93 58.7 0.4

 Tunisia 123 55.7 -2.0 107 57.7 0.4 109 57.3 0.3 107 57 -1.6

 São Tomé and Príncipe 124 55.4 2.1 136 53.3 4.5 157 48.8 0.8 153 48 -2.2

   Nepal 125 55.1 3.8 152 51.3 1.2 149 50.1 -0.3 141 50.4 0.2

 Solomon Islands 126 55 8 159 47 0.8 165 46.2 1.2 165 45 -1.2

 Greece 127 55 1 130 54 -1.7 119 55.7 0.3 117 55.4 0

 Bangladesh 128 55 1.1 131 53.9 -0.2 131 54.1 1.5 132 52.6 -0.6

 Mongolia 129 54.8 -4.4 96 59.2 0.3 97 58.9 -2.8 75 61.7 0.2

 Barbados 130 54.5 -13.4 46 67.9 -0.4 45 68.3 -1 39 69.3 0.3

 Mauritania 131 54.4 1.1 135 53.3 0.1 134 53.2 0.9 134 52.3 -0.7

 Federated States of Micronesia 132 54.1 4.5 154 49.6 -0.2 153 49.8 -0.3 143 50.1 -0.6

 Laos 133 54 2.6 150 51.4 0.2 144 51.2 1.1 144 50.1 0.1

 Lesotho 134 53.9 4.3 155 49.6 0.1 154 49.5 2.4 155 47.9 1.3

 Kenya 135 53.5 -2.1 122 55.6 -1.5 111 57.1 1.2 114 55.9 -1.6

 Gambia 136 53.4 -4.1 113 57.5 -2 92 59.5 0.7 92 58.8 0

 Lebanon 137 53.3 -6.0 94 59.3 -0.1 96 59.4 -0.1 91 59.5 -0.6

 Togo 138 53.2 0.2 138 53 3.1 152 49.9 1.1 150 48.8 0.5

 Burundi 139 53.2 -0.5 132 53.7 2.3 141 51.4 2.4 148 49 0.9

 Brazil 140 52.9 -3.7 118 56.6 -0.3 114 56.9 -0.8 100 57.7 -0.2

 Pakistan 141 52.8 -2.8 121 55.6 0.4 126 55.2 0.1 121 55.1 0.4

 Ethiopia 142 52.7 1.2 149 51.5 1.5 151 50 0.6 146 49.4 -2.6

 India 143 52.6 -2 128 54.6 -1.1 120 55.7 0.5 119 55.2 0.6

 Egypt 144 52.6 -2.6 124 55.2 2.3 135 52.9 -1.9 125 54.8 -3.1

 Sierra Leone 145 52.6 0.9 147 51.7 1.2 148 50.5 2.2 151 48.3 -0.8

 Myanmar 146 52.5 5.6 161 46.9 0.4 162 46.5 7.3 172 39.2 0.5

 Vietnam 147 52.4 0.7 148 51.7 0.9 147 50.8 -0.2 140 51 -0.3

 Uzbekistan 148 52.3 5.3 160 47 0.5 163 46.5 0.5 162 46 0.2

 Malawi 149 52.9 -1.9 126 54.8 -0.6 124 55.4 0.1 118 55.3 -1.1

 Cameroon 150 51.8 -0.1 146 51.9 -0.7 136 52.6 0.3 133 52.3 0.5

 Central African Republic 151 51.8 5.9 166 45.9 -0.8 161 46.7 -3.7 142 50.4 0.1

 Papua New Guinea 152 50.9 -2.2 137 53.1 -0.8 132 53.9 0.3 130 53.6 -0.2

 Kiribati 153 50.9 4.5 164 46.4 0.1 164 46.3 0.4 163 45.9 -1

 Niger 154 50.8 -3.8 127 54.6 -0.5 127 55.1 1.2 128 53.9 -0.4

 Iran 155 50.5 8.7 171 41.8 1.5 173 40.3 -2.9 168 43.2 0.9

 Argentina 156 50.4 6.3 169 44.1 -0.5 166 44.6 -2.1 160 46.7 -1.3

 Maldives 157 50.3 -3.1 134 53.4 2.4 145 51 2 149 49 -0.2

 Mozambique 158 49.9 -4.9 125 54.8 -0.2 128 55 0 123 55 -2.1

 Haiti 159 49.6 -1.7 151 51.3 2.4 156 48.9 0.8 152 48.1 -2.6

 Ecuador 160 49.3 0.1 156 49.2 1.2 159 48 1.1 159 46.9 -1.4

 Liberia 161 49.1 -3.6 141 52.7 0.3 138 52.4 3.1 147 49.3 0.7

 Chad 162 49 3.1 165 45.9 1.4 167 44.5 -0.7 164 45.2 0.4

 Afghanistan 163 48.9

 Angola 165 48.5 0.6 158 47.9 0.2 160 47.7 0.4 158 47.3 0.6

 Ukraine 166 48.1 1.2 162 46.9 -2.4 155 49.3 3 161 46.3 0.2

 Suriname 167 48 -6.2 129 54.2 0 130 54.2 2.2 135 52 -0.6

 Bolivia 168 47.7 0.9 163 46.8 -1.6 158 48.4 0.5 156 47.9 -2.3

 Guinea 169 47.6 -4.5 144 52.1 -1.4 133 53.5 2.3 137 51.2 0.4

 Turkmenistan 170 47.4 6 172 41.4 -0.8 171 42.2 -0.4 169 42.6 -1.2

 Djibouti 171 46.7 -10.8 112 57.5 1.6 118 55.9 2 127 53.9 0

 Algeria 172 46.5 -2.4 157 48.9 -1.9 146 50.8 1.2 145 49.6 -1.4

 Timor-Leste 173 46.3 0.8 167 45.5 2.3 170 43.2 -0.5 166 43.7 0.4

 Equatorial Guinea 174 45 4.6 173 40.4 -4 168 44.4 2.1 170 42.3 -0.5

 Zimbabwe 175 44 6.4 175 37.6 2.1 176 35.5 6.9 175 28.6 2.3

 Eritrea 176 42.2 3.3 174 38.9 0.4 174 38.5 2.2 173 36.3 0.1

 Republic of the Congo 177 40 -5 168 45 4.4 172 40.6 1 171 39.6 -1.5

 Cuba 178 33.9 4.3 177 29.6 0.9 177 28.7 0.2 176 28.5 0.2

 Venezuela 179 27 -7.3 176 34.3 -2 175 36.3 0.2 174 36.1 -2

 North Korea 180 4.9 3.6 178 1.3 0.3 178 1 -0.5 177 1.5 0.5

 Yemen

133 53.7 -1.8 123 55.5 -0.4 113 55.9 0.6

Method (old)[edit] The Index's 2008 definition of economic freedom is "the highest form of economic freedom provides an absolute right of property ownership, fully realized freedoms of movement for labor, capital, and goods, and an absolute absence of coercion or constraint of economic liberty beyond the extent necessary for citizens to protect and maintain liberty itself."[30] The index scores nations on ten factors of economic freedom, separated into four categories, using statistics from organizations like the World Bank, the International Monetary Fund, Economist Intelligence Unit and Transparency International. In each factor, countries are scored 0 to 100, with 0 being the least free and 100 the most free. A score of 100 signifies an economic environment or set of policies that is most conducive to economic freedom.[30] The methodology has shifted and changed as new data and measurements have become available, especially in the area of Labor Freedom, which was given its own indicator spot in 2007.[2] The following list explains what each factor currently assesses and groups them according to their respective category:

Rule of Law

Property Rights: Degree of a country's legal protection of private property rights, degree of enforcement of those laws, independence of and corruption within the judiciary, and likelihood of expropriation. Freedom from Corruption: The non-prevalence of political corruption within a country, according to the Corruption Perceptions Index.

Limited Government

Fiscal Freedom: How free is a country from tax burden. It comprises three quantitative measures: top marginal tax rate of both individual (1) and corporate (2) income, and total tax burden as a percentage of GDP
GDP
(3). Government Size/Spending: Governments' expenditures as a percentage of GDP, including consumption and transfers. The higher the percentual spending, the lower the score.

Regulatory Efficiency

Business Freedom: A country's freedom from the burden of regulations on starting, operating, and closing business, given factors such as time, cost and number of procedures, as well as the efficiency of government in the regulatory process. Labor Freedom: How free is a country from legal regulation on the labor market, including those relating to minimum wages, hiring and firing, hours of work and severance requirements. Monetary Freedom: How free from microeconomic intervention and price instability is a country, basing on an equation considering the weighted average inflation rate in the last three years and price controls.

Open Markets

Trade Freedom: Freedom from sizeable numbers and burdens of tariffs and non-tariff barriers to imports and exports of a country. Investment Freedom: Freedom from restrictions on the movement and use of investment capital, regardless of activity, within and across the country's borders. Financial Freedom: A country's independence from government control and interference in the financial sector, including banks. It considers government ownership of financial firms, extent of financial and capital market development, government influence on the allocation of credit and openness to foreign competition.

Historical positions (1995–2008)[edit]

Country/Region 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995

 Hong Kong[a] 1 1 1 1 1 1 1 1 1 1 1 1 1 1

 Singapore 2 2 2 2 2 2 2 2 2 2 2 2 2 2

 Ireland 3 3 3 4 4 4 4 3 10 11 11 13 27 20

 Australia 4 4 7 9 8 10 11 8 5 5 7 9 10 8

 United States 5 6 5 5 7 7 8 6 8 7 8 8 5 4

 New Zealand 6 5 4 3 3 3 3 4 3 3 3 3 3

 Canada 7 10 10 12 12 13 14 21 20 25 27 26 20 18

 Chile 8 8 8 8 11 12 9 12 12 12 9 7 13 14

  Switzerland 9 9 9 6 5 6 6 10 6 4 4 4 4

 United Kingdom 10 7 6 7 9 9 7 7 4 6 5 5 7 3

 Denmark 11 12 13 13 17 20 23 33 33 32 34 30 31

 Estonia 12 11 15 14 10 8 10 9 24 13 15 24 38 26

 Netherlands 13 15 16 18 14 14 14 16 21 57 24 20 23

 Iceland 14 13 11 10 19 16 19 15 15 19 18 19

 Luxembourg 15 14 12 11 6 5 5 5 7 15 13 12 15

 Finland 16 16 17 21 16 15 16 27 50 54 55 39 47

 Japan 17 18 18 36 50 34 39 23 19 27 21 21 14 6

 Mauritius 18 32 35 35 51 52 33 45 36 20

 Bahrain 19 24 23 22 13 11 12 11 11 8 6 6 6 5

 Belgium 20 17 24 30 30 33 34 57 55 60 48 44 36

 Barbados 21 27 20 24 28 23 17 20 27 37 33 46 53

 Cyprus 22 20 21 20 15 19 20 22 35 33 29 27 30

 Germany 23 22 25 28 27 26 25 29 43 40 52 29 25 17

 The Bahamas 24 19 19 15 20 17 15 14 16 10 10 10 11 11

 Taiwan 25 25 29 19 26 21 22 18 17 18 20 22 9 7

 Lithuania 26 21 22 23 18 27 43 53 67 67 74 78 104

 Sweden 27 33 27 27 24 24 24 43 47 51 53 53 55 41

 Armenia 28 30 14 25 23 37 32 46 62 96 117 123 125

 Trinidad and Tobago 29 23 26 17 21 29 26 19 13 16 17 16 24

 Austria 30 26 30 34 32 35 36 37 31 53 43 40 26 16

 Spain 31 28 32 31 29 28 29 36 41 45 62 68 65 34

 Georgia 32 31 54 93 78 84 104 87 107 114 122 125 123

 El Salvador 33 29 28 16 22 22 21 17 9 9 22 18 21 19

 Norway 34 37 34 45 42 39 37 41 22 29 31 41 39

 Slovakia 35 36 33 42 48 77 76 85 108 105 85 85 75 46

 Botswana 36 35 31 26 25 30 42 42 42 59 60 72 56 57

 Czech Republic 37 39 40 47 35 36 40 26 30 23 28 54 29 23

 Latvia 38 38 37 39 33 44 52 44 57 50 56 57 86

 Kuwait 39 41 41 48 55 43 46 35 25 24 38 42 35

 Uruguay 40 34 43 33 37 25 30 24 28 30 26 31 46 37

^ Special administrative region (SAR) of China
China
since 1997

See also[edit]

List of countries by economic freedom List of freedom indices Mary O'Grady, an editor of the Wall Street Journal and co-editor of the Index of Economic Freedom Gross National Happiness Bhutan
Bhutan
GNH Index Happiness economics Corruption Perceptions Index Ease of doing business index

References[edit]

^ "Executive Summary" (PDF). Index of Economic Freedom. 15 January 2008. Archived from the original (PDF) on 27 February 2008. Retrieved 4 February 2008.  ^ a b William Beach, Time Kane (15 January 2008). "Methodology; Measuring the 10 Economic Freedoms" (PDF). Index of Economic Freedom. Archived from the original (PDF) on 27 February 2008. Retrieved 4 February 2008.  ^ Heritage - Country Rankings ^ Economic Freedom Index - Downloads ^ Methodology 2018 Index of Economic Freedom Book ^ Mary Anastasia O'Grady (15 January 2008). "The Real Key to Development". Wall Street Journal. Retrieved 4 February 2008.  ^ Carl J. Schramm (15 January 2008). "Chapter 1 Economic Fluidity: A Crucial Dimension of Economic Freedom" (PDF). The Heritage Foundation. Archived from the original (PDF) on 27 February 2008. Retrieved 4 February 2008.  ^ "In Pursuit of Happiness Research: Is It Reliable? What Does It Imply for Policy?", Will Wilkinson, The Cato institute, Policy Analysis No. 590, 11 April 2007 ^ Ovaska Tomi, Takashima Ryo (2006). "Economic policy and the level of self-perceived well-being: An international comparison". The Journal of Socio-Economics. 35: 308–325. doi:10.1016/j.socec.2005.11.054.  ^ More Freedom = More Happiness Archived 29 October 2008 at the Wayback Machine., Public Issues, Libertad Desarrollo, No. 750, 23 January 2006, ISSN 0717-1528 ^ "Chapter2: Economic Freedom and Peace" Archived 16 October 2008 at the Wayback Machine., Erik Gartzke, in Economic Freedom of the World: 2005 Annual Report, James Gwartney and Robert Lawson, Fraser Institute, 30 August 2005 ^ Barry Wood (15 January 2008). "Economic Freedom Holding Steady, 14th Index of Economic Freedom Shows". PR Newswire. Archived from the original on 18 January 2008. Retrieved 4 February 2008.  ^ a b c d "Executive Highlights" (PDF). The Heritage Foundation. The Heritage Foundation. 2011. Retrieved 20 February 2011.  ^ Ed Feulner (22 January 2008). "Football and economic freedom". IndyStar. Archived from the original on 19 March 2012. Retrieved 4 February 2008.  ^ Miller, Terry (2011). "The Limits of Government" (PDF). Heritage.org. The Heritage Foundation. p. 13. Retrieved 20 February 2011.  ^ a b "Global economic freedom dipped last year, annual survey says; Hong Kong
Hong Kong
remains world's freest". Washington Post. Associated Press. 12 January 2012. Retrieved 24 January 2012.  ^ Edwin Feulner (17 January 2012). "Still in top 10, but falling fast". The Washington Times. Retrieved 24 January 2012.  ^ Edwin J. Feulner (12 January 2012). "A Step Backward for Economic Freedom in 2012". The Wall Street Journal. Retrieved 24 January 2012.  ^ Adrian Karatnycky. Freedom in the World: The Annual Survey of Political Rights and Civil Liberties. Transaction Publishers. 2001. ISBN 978-0-7658-0101-2. p. 11 ^ "Report on the Criteria and Methodology for Determining the Eligibility of Candidate Countries for Millennium Challenge Account Assistance during Fiscal Year 2008" (PDF). Millennium Challenge Corporation. 1 September 2007. Archived from the original (PDF) on 27 February 2008. Retrieved 4 February 2008.  ^ The End of Poverty: Economic Possibilities for our Time, Jeffrey Sachs, Penguin Books, 2005, ISBN 1-59420-045-9, pp. 320–321. ^ " UAE
UAE
challenges its economic freedom ranking in paper by Heritage Foundation". Business Intelligence Middle East. 31 January 2008. Retrieved 31 January 2008.  ^ Stefan Karlsson (21 January 2005). "The Failings of the Economic Freedom Index". Mises Daily. Ludwig von Mises Institute. Archived from the original on 14 February 2015. Retrieved 18 April 2008.  ^ "Free, Free at Last", John Miller, Dollars and Sense, No. 258, March/April 2005 ^ "Laissez-faire Olympics, an LBO special report", Left Business Observer, 26 March 2005 ^ "2017 IEF (XLS) table download". The Heritage Foundation. Retrieved 2017-02-01.  ^ "2016 IEF (XLS) table download". The Heritage Foundation. Retrieved 2016-02-02.  ^ "2015 IEF (XLS) table download". The Heritage Foundation. Retrieved 2015-02-02.  ^ "2014 IEF (XLS) table download". The Heritage Foundation. Retrieved 2014-02-02.  ^ a b "Frequently Asked Questions". Index of Economic Freedom. 15 January 2008. Archived from the original on 23 January 2008. Retrieved 4 February 2008. 

External links[edit]

Official website Index of Economic Freedom in the 50 States from the Mercatus Center List of Global Development Indexes and Rankings

v t e

Lists of countries by political rankings

Freedom

Political

Freedom in the World Democracy Ranking

Press

Freedom House Reporters Without Borders

Economic

Fraser Institute The Heritage Foundation/The Wall Street Journal Trade

Corruption

Bribes Corruption barometer Corruption perceptions

Competitiveness

Composite Index of National Capability

History

Empire size First human settlement Flag adoption date Formation date Geopolitical changes

Rights

Rule of Law Index Privacy Property rights Democracy Index Democracy-Dictatorship Index Gender Gap Index LGBT rights

Other

Discrimination and violence against minorities List of countries by Fragile States Index Government transparency Ease of Doing Business Index Environmental Performance Index Fragile States Index Good Country Index Globalization Index Global Peace Index Global Terrorism Index Global Liveability Ranking Prosperity Index Incarceration rate Political terror scale Global Slavery Index OECD Better Life Index Satisfaction with Life Index

List of international rankings List of top international rankings by countr

.