Economic Freedom

United Arab Emirates, Jordan and Bahrain are the top three most economically-free nations in the Arab world, according to Economic Freedom of the Arab World: 2015 Annual Report, co-published by the Fraser Institute, Friedrich Naumann Foundation for Liberty, and International Research Foundation. This report compares and ranks 21 Arab nations in five areas of economic freedom: size of government, including expenditures, taxes and enterprises; commercial and economic law and security of property rights; access to sound money; freedom to trade internationally; and regulation of credit, labour and business.

Human Freedom Index: A Global Measurement of Personal, Civil, and Economic Freedom compares the level of human freedom in 152 countries using 76 indicators in areas that include freedom of speech, religion, individual economic choice, and women’s freedoms. It finds that Canada ranks sixth in the world while the United States ranks 20th.

Determinants of Economic Freedom finds that the ongoing tug-of-war between political parties trying to “buy” votes with policies catering to special interest groups is a key factor that can affect determining a country’s level of economic freedom. This equilibrium can change when external shocks such as wars and revolutions, economic depressions or recessions prompt the public to gravitate to political parties promising change and dramatic new directions. If that results in governments dramatically expanding their role in the economy, economic freedom levels can fall.