PUBLICATION:        The Province

DATE:                         2003.07.10

EDITION:                    Final

SECTION:                  Editorial

PAGE:                         A16

SOURCE:                   Special to The Province

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In other words: Economic freedom equals civil, political liberties

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"Freeing people economically unleashes individual drive and initiative and puts a nation on the road to economic growth," said Nobel Laureate Milton Friedman, a creator of the Economic Freedom Index.

Ingredients of economic freedom are personal choice, voluntary exchange, freedom to compete and the protection of person and property. Using 38 variables, the world index of economic freedom measures the institutions essential to ensuring the rule of law, property rights, freedom to trade, sensible regulation and reasonably sized government.

Canada ranked sixth (compared to 7th last year): We scored highly on legal structure, property rights, sound money and freedom to trade. But high government spending, taxation and over-regulation cost us many points.

Hong Kong has the highest economic freedom rating, then Singapore, the U.S., New Zealand and the United Kingdom. The last five nations on the index are Guinea-Bissau, Algeria, Zimbabwe, the Democratic Republic of the Congo and Myanmar.

"Countries prosper when they establish an environment where individuals can engage in productive activities and invest for the future," said co-author James Gwartney of Florida State University. Freer economies lead to richer people and richer people eventually demand political and civil freedoms.  

"As developed nations ... look to help people in failed and war-torn nations, economic freedom provides a road map to building the institutions necessary for economic and political success," said co-author Robert Lawson of Ohio's Capital University.

-- Fraser Institute's Economic Freedom of the World: 2003 Report