Executive Highlights
lobal economic freedom has declined
over the past year according to the 2012
Index of Economic Freedom. The tension
between government control and the free market
has heightened around the world, particularly in
developed countries. Eroding hard-earned gains
in economic freedom in years past, the mounting burden of reckless government spending in
many cases has overwhelmed gains in economic
freedom achieved in other policy areas.
The 2012 Index, the 18th edition, analyzes
economic policy developments in 184 countries
since the second half of 2010. Somalia, though
not formally graded, returns to the Index for the
first time since the 2001 Index. Countries are
graded and ranked on 10 measures of economic
freedom that evaluate the rule of law, the intrusiveness of government, regulatory efficiency,
and the openness of markets.
economic stagnation fueling long-term unemployment. For governments that increasingly are
constrained by budget deficits and rising debt, the
disconnect between past promises and the capability to fulfill them, and between financial assets
and liabilities, has become difficult to ignore. A
fundamental rethinking of the social contract,
the basic and proper relationship between government and citizen, has become not just an academic exercise, but a political debate that in some
countries has spilled into the streets.
The steady progress in global economic
freedom documented by the Index until
2008 has not resumed. The global average economic freedom score in the 2012 Index is 59.5, a
0.2 point decline from last year and matching
the second lowest level in the past 10 years. (See
Chart 1.) Renewed economic uncertainty and
stagnation caused by the sovereign debt turmoil
in some key developed economies have battered
Highlights from the 2012 Index world economic progress. Unquestionably, the
Rapid expansion of government, more policy choices made at this juncturewhich
than any market factor, appears to be respon- involve the overriding question of whether there
sible for flagging economic dynamism. Gov- will be more freedom or lesswill be vital in
ernment spending has not only failed to arrest determining levels of future prosperity.
the economic crisis, but alsoin many countries
Chile and Mauritius advanced into the
seems to be prolonging it. The big-government top 10 in the rankings in the 2012 Index,
approach has led to bloated public debt, turning reflecting notable advances in their economan economic slowdown into a fiscal crisis with ic freedom scores. Chile is returning to the top
10, where it last appeared in 2010. For Mauritius,
it is the first time in the top 10 and the first time
ever that a Sub-Saharan African country has
been so highly ranked. Ireland and the U.S. lost
ground, slipping to the 9th and the 10th spots,
respectively. Despite its high regulatory efficiency and strong rule of law, Denmark fell out
of the top 10 altogether because of huge government spending equivalent to almost 60 percent
of total domestic output and a high corresponding tax burden. Bahrain dropped from the top
10 as a result of worsening scores for corruption,
property rights, and government spending.
Every region continues to be represented
by at least one of the top 20 freest economies.
Nine of these elite economies are in Europe, led
by Switzerland, Ireland, and Denmark. Six are
in the AsiaPacific region. Replacing Japan, Taiwan has joined the top 20 as the worlds 18th
freest economy. Canada and the U.S. represent
North America. The other regions are represented by one country each: Chile (South and
Central America/Caribbean region); Mauritius
(Sub-Saharan Africa region); and Bahrain (Middle East and North Africa region).
The scores of 75 economies improved, but
90 countries lost economic freedom, and 14
showed no change. Of the 75 economies whose
scores improved, 73 are considered developing
or emerging countries. Many are in the Asia
Pacific, Sub-Saharan Africa, and South and Central America/Caribbean regions. Australia and
Iceland are the only two developed countries
that recorded score improvements in the 2012
Index, partly due to their efforts to bring government spending under control.
Economic freedom continued to advance
in the Sub-Saharan Africa and AsiaPacific
regions. Led by GuineaBissau, Rwanda, Liberia, and Zimbabwe, Sub-Saharan African had the
largest gains on average in the Index. In the Asia
Pacific region, Mongolia, Kazakhstan, and Taiwan led the way in enhancing economic freedom.
Four AsiaPacific economies and Switzerland earned designation as truly free
economies for the 2012 Index. Each achieved
a score above 80 on the grading scale. Hong Kong
successfully defended its status as the worlds
Global Economic Freedom
Average Score in the Index of Economic
Freedom Since 1995
61
2008:
60.2
60
2011:
59.7
2012:
59.5
59
58
57
1996:
57.1
56
1995
2000
2005
2010 2012
Sources: Terry Miller, Kim R. Holmes, and Edwin J.
Feulner, 2012 Index of Economic Freedom (Washington,
D.C.: The Heritage Foundation and Dow Jones &
Company, Inc., 2012), at [Link]/index.
Chart 1
[Link]
freest economy for a remarkable 18th year in a
row. Singapore remains the worlds second freest economy and closed the gap with Hong Kong
a bit as a result of advances in financial freedom.
Australia, New Zealand, and Switzerland maintained their previous standings of 3rd, 4th, and
5th, respectively. These five free economies relative strength is no accident. Their continuing
commitment to rule of law, limited government,
regulatory efficiency, and open markets has been
the source of impressive resilience during uncertain economic times.
Greater Economic Freedom:
The Imperative for Growth
and Progress
The overarching objective of economic policies must be to create an environment that pro-
2012 Index of Economic Freedom
Economic Freedom Promotes Prosperity
GDP per Capita (Purchasing Power Parity)
$100,000
Each dot represents a nation in
the Index of Economic Freedom
Trend L
ine
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
Correlation = 0.65
R2 = 0.42
$0
20
40
60
80
100
Overall Score in the 2012 Index of Economic Freedom
Sources: Terry Miller, Kim R. Holmes, and Edwin J. Feulner, 2012 Index of Economic Freedom (Washington, D.C.: The
Heritage Foundation and Dow Jones & Company, Inc., 2012), at [Link]/index; World Bank Group, World
Development Indicators Online, at [Link]
64165236~piPK:64165141~theSitePK:469372,[Link] (November 4, 2011); and International Monetary Fund, World
Economic Outlook Databases, at [Link] (November 4, 2011).
Chart 2
vides the best chance for sustained economic
growth, rising incomes, and improvements in
overall well-being. The broad consensus, supported by volumes of research, is that vibrant
and lasting economic growth is achievable
only when governments adopt economic
policies that increase individual choice and
opportunity, empowering and encouraging
entrepreneurship.
[Link]
TheIndex results, when compared with data
about changes in economic and social conditions in societies around the world, provide
strongempirical evidence that the free-market
system remains not only viablewith the value
of its core features such as private property
rights, openness, and flexibility almost unquestionedbut uniquely able to promote economic
dynamism and long-term prosperity.
Executive Highlights
Large Numbers of People Are Denied Economic Freedom
GDP per Capita (Purchasing Power Parity)
$100,000
Correlation = 0.65
R2 = 0.42
$10,000
China
India
Each circle represents a nation in
the Index of Economic Freedom
$1,000
Population
ine
dL
n
Tre
1 billion
500 million
250 million
100 million
60 or less: Mostly
Unfree or Repressed
10 million
$100
20
30
40
50
60
70
80
90
100
Overall Score in the 2012 Index of Economic Freedom
Sources: Terry Miller, Kim R. Holmes, and Edwin J. Feulner, 2012 Index of Economic Freedom (Washington, D.C.: The
Heritage Foundation and Dow Jones & Company, Inc., 2012), at [Link]/index; World Bank Group, World
Development Indicators Online, at [Link]
64165236~piPK:64165141~theSitePK:469372,[Link] (November 4, 2011); and International Monetary Fund, World
Economic Outlook Databases, at [Link] (November 4, 2011).
Chart 3
The positive relationship between economic
freedom and prosperity has been confirmed yet
again in the 2012 Index. GDP per capita is much
higher in countries with greater economic freedom. Chart 2 shows a strong positive relationship between the level of economic freedom and
GDP per capita.
While much of the world has progressed
toward greater economic freedom and higher
[Link]
prosperity in recent decades, a significant proportion of the worlds population lives in countries where economic freedom and opportunity
are restrained. As seen in Chart 3, almost threequarters of the worlds people live in countries
that are mostly unfree or repressed (economic freedom scores of less than 60). Much of
that 75 percent comes from just two countries,
India and China.
2012 Index of Economic Freedom
Economic Freedom and Poverty
Economic Freedom and
Economic Growth
Poverty Intensity
3.7%
0.24
0.25
0.20
Ten-Year Growth Rate in
Per-Capita Income
2.9%
2.8%
0.15
0.10
2.3%
2.1%
0.08
0.05
Mostly Free and
Moderately Free
Mostly Unfree
and Repressed
Categories in the 2012 Index of
Economic Freedom
Sources: Terry Miller, Kim R. Holmes, and Edwin J.
Feulner, 2012 Index of Economic Freedom (Washington,
D.C.: The Heritage Foundation and Dow Jones &
Company, Inc., 2012), at [Link]/index, and
United Nations, Human Development Report 2011,
Multidimensional Poverty Index, at
[Link]
(November 4, 2011).
Chart 4
[Link]
Higher economic freedom is strongly correlated with successful elimination of poverty.
Chart 4 shows that poverty intensity, as measured by the United Nations new Multidimensional Poverty Index that assesses the nature
and intensity of poverty at the individual level in
education, health outcomes, and standard of living, is much lower on average in countries with
greater economic freedom.
Advancing economic freedom is vital to lifting people to greater prosperity. Not only is a
higher level of economic freedom clearly associated with a higher level of per capita income, but
countries improvements in economic freedom
also increase their income growth rates, speeding economic and social progress. (See Chart 5.)
Chart 6 illustrates the impressive progress of
Mauritius, the first Sub-Saharan African country
1st
Quintile
2nd
Quintile
3rd
Quintile
4th
Quintile
5th
Quintile
Improvement in Economic Freedom Scores
Most
Least
Nations in the 2012 Index of
Economic Freedom
Sources: Terry Miller, Kim R. Holmes, and Edwin J.
Feulner, 2012 Index of Economic Freedom (Washington,
D.C.: The Heritage Foundation and Dow Jones &
Company, Inc., 2012), at [Link]/index;
World Bank Group, World Development Indicators
Online, at [Link]
WBSITE/EXTERNAL/EXTDEC/0,,menuPK:476823~page
PK:64165236~piPK:64165141~theSitePK:469372,[Link]
(November 4, 2011); and International Monetary
Fund, World Economic Outlook Databases, at
[Link]
(November 4, 2011).
Chart 5
[Link]
to rank in the Indexs top 10. For comparison, its
changes in GDP growth and economic freedom
are contrasted with those of the United Kingdom, from which Mauritius became independent in 1968.
Economic freedom is highly correlated with
entrepreneurial activity that creates new jobs
and increases opportunities and choices for individuals in advancing their own well-being. (See
Chart 7.)
Executive Highlights
Comparing Mauritius and the United Kingdom
Growth of GDP per Capita (1997=100)
160
154
Index of Economic Freedom Score
85
150
80
Mauritius
U.K.
140
77.0
75
130
74.1
U.K.
120
120
70
Mauritius
110
65
100
90
60
1997
2000
2005
2010
1999 2000
2005
2010 2012
Sources: Terry Miller, Kim R. Holmes, and Edwin J. Feulner, 2012 Index of Economic Freedom (Washington, D.C.: The
Heritage Foundation and Dow Jones & Company, Inc., 2012), at [Link]/index, and World Bank Group, World
Development Indicators Online, at [Link]
64165236~piPK:64165141~theSitePK:469372,[Link] (November 4, 2011).
Chart 6
The proven path to revitalizing economic
growth is to advance economic freedom by promoting policies that generate a virtuous cycle of
innovation, job creation, productivity growth,
and higher living standards that in turn helps to
create the social and economic resilience that
sustains and empowers individuals in a rapidly
evolving economic environment. As shown in
Chart 8, economic freedom is positively linked
to innovation.
The need to improve, or in some cases restore,
economic freedom is stronger than ever. The
challenge is to preserve past gains in economic
freedom and to ensure that reform agendas
focus on generating greater economic freedom,
not less.
With global economic recovery far from
secure, many countries are at a critical juncture,
Policy decisions will be difficult, and the pres-
[Link]
sure for government intervention to favor politically powerful interests can be severe. Trade
freedom and financial freedom are particularly
threatened around the world, and the push for
ever greater regulation in fields such as resource
usage or labor relations is unabated.
The fundamental principles emphasized in
the Index of Economic Freedomthe empowerment of individuals, equitable treatment for all,
and the promotion of competitioncan provide
a good guide. Policies can be judged on whether
they reinvigorate entrepreneurial dynamism
or perpetuate static patterns of production and
employment, whether they promote openness
or protectionism.
Ultimately, the choice is a simple one: for or
against economic freedom itself. The Index provides powerful evidence that the path to greater
freedom is also the path to greater prosperity.
2012 Index of Economic Freedom
Economic Freedom Propels
Entrepreneurial Dynamism
Economic Freedom and Innovation
Each dot represents a nation in the Index of
Economic Freedom
Each dot represents a nation in the
Index of Economic Freedom
Innovation Capacity
Rank in the Entrepreneurship
and Opportunity Sub-Index
75
20
60
Correlation = 0.76
R2 = 0.58
45
40
30
60
d
en
Tr Line
ine
dL
n
e
Tr
15
80
Correlation = 0.71
R2 = 0.50
0
20
100
60
80
100
Overall Score in the 2012 Index
of Economic Freedom
120
180 160 140 120 100 80
60
40 20
Rank in the 2012 Index
of Economic Freedom
Sources: Terry Miller, Kim R. Holmes, and Edwin J.
Feulner, 2012 Index of Economic Freedom (Washington,
D.C.: The Heritage Foundation and Dow Jones &
Company, Inc., 2012), at [Link]/index, and
2011 Legatum Prosperity Index, at http://
[Link]/[Link] (November 4, 2011).
Chart 7
40
Sources: Terry Miller, Kim R. Holmes, and Edwin J.
Feulner, 2012 Index of Economic Freedom (Washington,
D.C.: The Heritage Foundation and Dow Jones &
Company, Inc., 2012), at [Link]/index, and
INSEAD eLab, The Global Innovation Index 2011, at
[Link]
fullreport/[Link] (November 4, 2011)
Chart 8
[Link]
[Link]
Executive Highlights
World Rank
Country
Overall Score
Change from 2011
Property Rights
Freedom from Corruption
Fiscal Freedom
Government Spending
Business Freedom
Labor Freedom
Monetary Freedom
Trade Freedom
Investment Freedom
Financial Freedom
2012 Index of Economic Freedom World Rankings
Hong Kong
89.9
0.2
90.0
84.0
93.1
91.0
98.9
86.5
85.8
90.0
90.0
90.0
Singapore
87.5
0.3
90.0
93.0
91.3
91.3
97.2
92.1
84.8
90.0
75.0
70.0
Australia
83.1
0.6
90.0
87.0
63.4
67.1
91.9
90.6
84.5
86.2
80.0
90.0
New Zealand
82.1
-0.2
95.0
93.0
71.6
45.0
99.9
89.9
85.2
86.8
75.0
80.0
Switzerland
81.1
-0.8
90.0
87.0
67.9
65.8
77.9
87.9
84.4
90.0
80.0
80.0
Canada
79.9
-0.9
90.0
89.0
79.2
41.7
96.6
81.8
77.3
87.9
75.0
80.0
Chile
78.3
0.9
90.0
72.0
77.4
82.1
68.6
75.1
85.6
82.0
80.0
70.0
Mauritius
77.0
0.8
65.0
54.0
91.9
83.4
78.7
70.4
78.3
87.9
90.0
70.0
Ireland
76.9
-1.8
90.0
80.0
73.9
30.4
92.8
78.4
76.7
87.1
90.0
70.0
10
United States
76.3
-1.5
85.0
71.0
69.8
46.7
91.1
95.8
77.2
86.4
70.0
70.0
11
Denmark
76.2
-2.4
90.0
93.0
39.8
0.0
99.1
92.1
80.7
87.1
90.0
90.0
12
Bahrain
75.2
-2.5
55.0
49.0
99.9
72.2
76.5
91.1
70.4
82.8
75.0
80.0
13
Luxembourg
74.5
-1.7
90.0
85.0
63.6
46.6
75.9
40.9
81.3
87.1
95.0
80.0
14
United Kingdom
74.1
-0.4
90.0
76.0
56.4
21.5
94.7
71.5
73.9
87.1
90.0
80.0
15
The Netherlands
73.3
-1.4
90.0
88.0
51.2
20.9
81.9
60.0
83.6
87.1
90.0
80.0
16
Estonia
73.2
-2.0
80.0
65.0
79.1
38.8
75.7
56.9
79.3
87.1
90.0
80.0
17
Finland
72.3
-1.7
90.0
92.0
65.4
5.2
94.9
42.4
81.3
87.1
85.0
80.0
18
Taiwan
71.9
1.1
70.0
58.0
80.4
92.3
88.5
46.6
83.1
85.0
65.0
50.0
19
Macau
71.8
-1.3
60.0
50.0
75.8
88.1
60.0
55.0
84.2
90.0
85.0
70.0
20
Cyprus
71.8
-1.5
70.0
63.0
83.3
37.1
81.6
69.9
85.7
82.1
75.0
70.0
21
Sweden
71.7
-0.2
90.0
92.0
39.1
8.8
94.6
54.6
80.9
87.1
90.0
80.0
22
Japan
71.6
-1.2
80.0
78.0
67.1
47.0
81.8
81.4
88.9
81.8
60.0
50.0
23
Lithuania
71.5
0.2
60.0
50.0
93.6
41.7
79.2
64.6
79.3
87.1
80.0
80.0
24
Saint Lucia
71.3
0.5
70.0
70.0
74.1
67.7
84.7
83.5
85.8
71.9
65.0
40.0
25
Qatar
71.3
0.8
70.0
77.0
99.7
73.6
69.7
67.9
77.1
82.5
45.0
50.0
26
Germany
71.0
-0.8
90.0
79.0
61.3
32.2
90.5
41.4
83.5
87.1
85.0
60.0
27
Iceland
70.9
2.7
90.0
85.0
73.5
21.8
92.0
60.9
72.5
88.2
65.0
60.0
28
Austria
70.3
-1.6
90.0
79.0
50.5
15.4
70.3
78.1
82.2
87.2
80.0
70.0
29
Uruguay
69.9
-0.1
70.0
69.0
81.2
68.7
74.9
74.0
73.4
82.9
75.0
30.0
30
Czech Republic
69.9
-0.5
70.0
46.0
82.0
36.8
67.7
77.9
81.5
87.1
70.0
80.0
31
South Korea
69.9
0.1
70.0
54.0
72.8
67.2
93.6
49.7
78.9
72.6
70.0
70.0
32
Jordan
69.9
1.0
55.0
47.0
93.5
67.0
69.5
75.7
81.2
79.6
70.0
60.0
33
Botswana
69.6
0.8
70.0
58.0
78.3
53.7
69.1
70.2
72.4
79.7
75.0
70.0
34
Georgia
69.4
-1.0
40.0
38.0
87.8
55.8
86.9
92.1
74.4
89.2
70.0
60.0
35
United Arab Emirates
69.3
1.5
55.0
63.0
99.9
80.1
68.0
78.8
80.9
82.6
35.0
50.0
36
Spain
69.1
-1.1
70.0
61.0
61.3
37.1
81.3
51.8
81.5
87.1
80.0
80.0
37
Barbados
69.0
0.5
80.0
78.0
71.1
40.1
90.0
80.0
75.8
60.5
55.0
60.0
2012 Index of Economic Freedom
World Rank
Country
Overall Score
Change from 2011
Property Rights
Freedom from Corruption
Fiscal Freedom
Government Spending
Business Freedom
Labor Freedom
Monetary Freedom
Trade Freedom
Investment Freedom
Financial Freedom
2012 Index of Economic Freedom World Rankings
38
Belgium
69.0
-1.2
80.0
71.0
44.8
12.1
92.3
71.3
81.2
87.1
80.0
70.0
39
Armenia
68.8
-0.9
30.0
26.0
89.3
74.9
87.8
76.6
73.1
85.4
75.0
70.0
40
Norway
68.8
-1.5
90.0
86.0
52.5
35.3
88.4
46.3
75.1
89.3
65.0
60.0
41
El Salvador
68.7
-0.1
40.0
36.0
85.5
91.1
63.2
65.3
82.1
79.0
75.0
70.0
42
Peru
68.7
0.1
40.0
35.0
79.7
90.9
72.0
68.5
85.5
85.0
70.0
60.0
43
Macedonia
68.5
2.5
35.0
41.0
91.2
66.7
80.9
80.3
86.1
83.6
60.0
60.0
44
Costa Rica
68.0
0.7
55.0
53.0
82.8
90.8
57.6
62.7
73.4
85.1
70.0
50.0
45
Colombia
68.0
0.0
50.0
35.0
76.0
74.1
89.4
79.7
78.7
72.2
65.0
60.0
46
The Bahamas
68.0
0.0
70.0
55.0
97.7
85.2
70.9
82.7
76.0
42.2
30.0
70.0
47
Oman
67.9
-1.9
50.0
53.0
98.4
53.6
68.2
85.1
72.1
83.7
55.0
60.0
48
Israel
67.8
-0.7
70.0
61.0
64.1
41.0
64.4
65.1
79.0
83.6
80.0
70.0
49
Hungary
67.1
0.5
70.0
47.0
78.6
24.4
79.8
67.6
76.1
87.1
70.0
70.0
50
51
Malta
Slovakia
67.0
67.0
1.3
-2.5
70.0
50.0
56.0
43.0
67.8
84.2
43.8
48.2
70.0
71.0
60.0
58.1
80.5
83.5
87.1
87.1
75.0
75.0
60.0
70.0
52
Saint Vincent
and the Grenadines
66.5
-0.4
70.0
64.0
71.5
60.7
77.4
76.7
81.1
73.3
50.0
40.0
53
Malaysia
66.4
0.1
50.0
44.0
84.5
72.5
78.1
79.3
81.6
78.8
45.0
50.0
54
Mexico
65.3
-2.5
50.0
31.0
80.7
78.3
82.0
61.3
76.5
72.9
60.0
60.0
55
Panama
65.2
0.3
40.0
36.0
84.6
88.2
74.4
41.5
77.8
74.8
65.0
70.0
56
Latvia
65.2
-0.6
50.0
43.0
84.3
43.8
75.9
59.1
79.1
87.1
80.0
50.0
57
Albania
65.1
1.1
35.0
33.0
91.4
69.5
78.2
51.0
78.6
79.8
65.0
70.0
58
Jamaica
65.1
-0.6
40.0
33.0
75.5
58.7
84.7
69.6
72.4
72.1
85.0
60.0
59
Rwanda
64.9
2.2
35.0
40.0
77.2
78.5
73.6
91.4
75.2
78.0
60.0
40.0
60
Thailand
64.9
0.2
45.0
35.0
75.1
87.5
72.5
79.0
69.3
75.2
40.0
70.0
61
Bulgaria
64.7
-0.2
30.0
36.0
93.6
50.3
72.7
84.2
77.8
87.1
55.0
60.0
62
Romania
64.4
-0.3
40.0
37.0
87.4
55.1
70.5
62.6
74.3
87.1
80.0
50.0
63
Trinidad and Tobago
64.4
-2.1
50.0
36.0
85.5
65.1
60.1
77.3
70.1
69.9
60.0
70.0
64
Poland
64.2
0.1
60.0
53.0
74.4
40.3
61.4
61.3
79.1
87.1
65.0
60.0
65
Kazakhstan
63.6
1.5
40.0
29.0
90.4
83.4
72.9
88.7
71.8
79.6
30.0
50.0
66
Cape Verde
63.5
-1.1
65.0
51.0
77.3
61.8
59.0
48.5
80.5
66.9
65.0
60.0
67
France
63.2
-1.4
80.0
68.0
53.8
5.3
83.7
51.6
82.3
82.1
55.0
70.0
68
Portugal
63.0
-1.0
70.0
60.0
59.0
25.5
83.0
32.5
82.6
87.1
70.0
60.0
69
Slovenia
62.9
-1.7
60.0
64.0
64.8
27.9
81.4
42.2
81.2
87.1
70.0
50.0
70
South Africa
62.7
0.0
50.0
45.0
70.7
71.9
75.8
57.3
75.0
76.3
45.0
60.0
71
Kuwait
62.5
-2.4
50.0
45.0
99.9
47.2
61.8
63.5
71.3
81.6
55.0
50.0
72
Montenegro
62.5
0.0
40.0
37.0
91.3
31.7
69.2
86.1
81.2
83.6
55.0
50.0
73
Turkey
62.5
-1.7
50.0
44.0
77.7
58.5
67.1
40.0
71.9
85.4
70.0
60.0
Executive Highlights
Country
Overall Score
Change from 2011
Freedom from Corruption
Fiscal Freedom
Government Spending
Business Freedom
Labor Freedom
Monetary Freedom
Trade Freedom
Investment Freedom
Financial Freedom
74
Saudi Arabia
62.5
-3.7
45.0
47.0
99.6
37.3
87.5
71.1
64.9
82.3
40.0
50.0
75
Madagascar
62.4
1.2
40.0
26.0
88.3
93.6
71.1
50.8
76.0
73.5
55.0
50.0
76
Namibia
61.9
-0.8
30.0
44.0
65.7
73.0
70.8
85.0
74.4
86.5
50.0
40.0
77
Belize
61.9
-1.9
30.0
20.0
82.8
74.6
73.6
82.2
77.6
78.1
50.0
50.0
78
Uganda
61.9
0.2
30.0
25.0
80.4
93.0
49.1
87.9
74.6
73.6
45.0
60.0
79
Paraguay
61.8
-0.5
30.0
22.0
96.9
88.5
59.8
27.2
81.4
82.7
70.0
60.0
80
Dominica
61.6
-1.7
60.0
52.0
68.8
43.8
80.5
61.9
85.0
74.3
60.0
30.0
81
Mongolia
61.5
2.0
30.0
27.0
88.5
62.8
67.7
74.5
74.3
79.8
50.0
60.0
82
Guatemala
60.9
-1.0
30.0
32.0
79.6
93.9
48.5
53.5
77.3
84.6
60.0
50.0
83
Croatia
60.9
-0.2
40.0
41.0
76.4
45.0
63.4
44.4
81.4
87.5
70.0
60.0
84
Ghana
60.7
1.3
50.0
41.0
81.9
48.3
62.9
62.9
66.9
67.8
65.0
60.0
85
Burkina Faso
60.6
0.0
30.0
31.0
80.4
84.0
62.8
58.9
81.4
72.5
55.0
50.0
86
Samoa
60.5
-0.1
60.0
41.0
80.3
61.3
72.9
82.3
77.0
70.0
30.0
30.0
87
Morocco
60.2
0.6
40.0
34.0
69.7
74.8
77.2
27.6
77.9
75.7
65.0
60.0
88
Kyrgyz Republic
60.2
-0.9
20.0
20.0
93.1
66.5
74.1
88.9
71.0
63.2
55.0
50.0
89
Dominican Republic
60.2
0.2
30.0
30.0
85.8
91.4
55.5
58.7
75.1
80.1
55.0
40.0
90
Lebanon
60.1
0.0
25.0
25.0
90.8
68.2
53.9
60.6
76.9
80.4
60.0
60.0
91
Azerbaijan
58.9
-0.8
20.0
24.0
84.9
63.7
68.6
81.6
74.5
77.2
55.0
40.0
92
Italy
58.8
-1.5
50.0
39.0
55.0
19.4
77.4
43.0
82.0
87.1
75.0
60.0
93
Honduras
58.8
0.2
30.0
24.0
83.7
83.4
60.6
30.0
74.1
77.1
65.0
60.0
94
The Gambia
58.8
1.4
30.0
32.0
75.0
85.5
56.3
67.2
71.0
60.5
60.0
50.0
95
Tunisia
58.6
0.1
40.0
43.0
74.8
71.5
82.9
74.1
76.9
58.1
35.0
30.0
96
Zambia
58.3
-1.4
30.0
30.0
73.3
84.9
61.2
51.1
64.9
82.3
55.0
50.0
97
Sri Lanka
58.3
1.2
40.0
32.0
73.5
81.4
78.0
62.1
68.5
77.1
30.0
40.0
98
Serbia
58.0
0.0
40.0
35.0
84.1
39.3
56.5
68.7
68.0
77.9
60.0
50.0
99
Brazil
57.9
1.6
50.0
37.0
69.1
54.8
53.7
59.1
75.8
69.7
50.0
60.0
100
Egypt
57.9
-1.2
35.0
31.0
89.7
64.1
63.8
53.7
62.3
74.0
65.0
40.0
101
Nicaragua
57.9
-0.9
15.0
25.0
77.1
83.0
51.2
63.4
74.0
84.9
55.0
50.0
102
Cambodia
57.6
-0.3
30.0
21.0
91.1
90.0
40.7
47.2
80.7
65.2
60.0
50.0
103
Kenya
57.5
0.1
30.0
21.0
77.7
75.3
61.7
63.3
79.1
66.7
50.0
50.0
104
Bosnia and Herzegovina
57.3
-0.2
20.0
32.0
84.3
24.4
55.2
60.4
80.7
86.0
70.0
60.0
105
Fiji
57.3
-3.1
25.0
20.0
78.1
78.9
59.3
75.8
75.7
69.7
30.0
60.0
106
Swaziland
57.2
-1.9
40.0
32.0
67.2
56.5
66.4
70.8
74.5
69.7
55.0
40.0
107
The Philippines
57.1
0.9
30.0
24.0
79.1
89.7
54.3
51.7
77.1
75.5
40.0
50.0
108
Mozambique
57.1
0.3
30.0
27.0
77.1
69.3
66.8
39.7
74.8
81.1
55.0
50.0
109
Tonga
57.0
1.2
25.0
30.0
85.9
62.2
77.5
92.1
72.1
75.3
30.0
20.0
110
Tanzania
57.0
0.0
30.0
27.0
79.7
80.2
45.2
60.1
69.4
73.5
55.0
50.0
10
Property Rights
World Rank
2012 Index of Economic Freedom World Rankings
2012 Index of Economic Freedom
Change from 2011
Freedom from Corruption
Fiscal Freedom
Government Spending
Business Freedom
Monetary Freedom
Trade Freedom
Investment Freedom
Bhutan
56.6
-1.0
60.0
57.0
83.8
55.3
59.7
78.6
72.6
49.5
20.0
30.0
112
Vanuatu
56.6
-0.1
40.0
36.0
97.0
79.9
59.3
50.7
78.4
55.1
30.0
40.0
113
Gabon
56.4
-0.3
40.0
28.0
73.5
81.5
57.7
59.8
77.7
61.1
45.0
40.0
114
Malawi
56.4
0.6
45.0
34.0
79.3
62.2
42.0
58.2
72.6
70.9
50.0
50.0
115
Indonesia
56.4
0.4
30.0
28.0
83.5
91.6
54.6
52.1
75.2
73.9
35.0
40.0
116
Nigeria
56.3
-0.4
30.0
24.0
84.3
72.3
55.6
80.6
72.0
63.9
40.0
40.0
117
Mali
55.8
-0.5
30.0
27.0
60.1
79.9
50.8
66.5
80.7
73.2
50.0
40.0
118
Benin
55.7
-0.3
30.0
28.0
76.2
79.9
42.9
51.5
79.7
59.3
60.0
50.0
119
Greece
55.4
-4.9
50.0
35.0
65.3
16.2
76.3
36.6
72.6
82.1
60.0
60.0
120
Senegal
55.4
-0.3
40.0
29.0
65.4
78.5
58.4
43.5
81.6
72.2
45.0
40.0
121
Yemen
55.3
1.1
30.0
22.0
83.1
62.8
71.5
57.3
69.3
81.5
45.0
30.0
122
Pakistan
54.7
-0.4
30.0
23.0
80.6
88.1
70.0
47.8
66.3
66.0
35.0
40.0
123
India
54.6
0.0
50.0
33.0
76.1
74.8
35.5
74.2
62.9
64.1
35.0
40.0
124
Moldova
54.4
-1.3
40.0
29.0
86.5
38.7
70.0
41.7
74.4
79.0
35.0
50.0
125
Niger
54.3
0.0
30.0
26.0
76.9
80.5
35.9
40.8
86.4
71.7
55.0
40.0
126
Cte d'Ivoire
54.3
-1.1
20.0
22.0
78.1
86.6
42.7
56.1
81.7
70.3
35.0
50.0
127
Djibouti
53.9
-0.6
30.0
32.0
80.3
42.4
30.5
61.6
77.2
59.6
65.0
60.0
128
Papua New Guinea
53.8
1.2
20.0
21.0
68.3
72.6
59.0
74.0
73.2
84.8
35.0
30.0
129
Tajikistan
53.4
-0.1
20.0
21.0
89.0
75.5
61.6
56.8
67.4
82.5
20.0
40.0
130
Bangladesh
53.2
0.2
20.0
24.0
72.8
93.9
68.5
55.9
67.5
54.0
55.0
20.0
131
Mauritania
53.0
0.9
25.0
23.0
80.5
71.9
51.3
53.2
75.5
69.9
40.0
40.0
132
Seychelles
53.0
1.8
50.0
48.0
76.0
59.6
62.3
58.0
67.4
33.4
45.0
30.0
133
Suriname
52.6
-0.5
40.0
37.0
63.2
67.5
40.7
81.2
74.5
66.3
25.0
30.0
134
Ethiopia
52.0
1.5
30.0
27.0
74.8
91.1
64.4
55.5
67.1
65.6
25.0
20.0
135
Cameroon
51.8
0.0
30.0
22.0
69.3
90.8
47.1
48.1
70.9
54.9
35.0
50.0
136
Vietnam
51.3
-0.3
15.0
27.0
76.5
66.5
61.1
67.3
75.1
79.6
15.0
30.0
137
Guyana
51.3
1.9
30.0
27.0
64.0
52.0
65.5
65.3
77.4
71.5
30.0
30.0
138
China
51.2
-0.8
20.0
35.0
70.4
84.1
46.4
55.4
74.2
71.6
25.0
30.0
139
Syria
51.2
-0.1
30.0
25.0
84.4
78.5
60.1
50.0
70.9
72.8
20.0
20.0
140
Algeria
51.0
-1.4
30.0
29.0
82.9
47.9
66.3
54.4
76.3
72.8
20.0
30.0
141
Guinea
50.8
-0.9
20.0
20.0
69.3
82.6
38.5
64.7
67.1
61.2
45.0
40.0
142
Haiti
50.7
-1.4
10.0
22.0
80.6
85.3
33.3
65.4
76.0
74.8
30.0
30.0
143
Micronesia
50.7
0.4
30.0
30.0
97.6
3.9
57.0
83.7
73.4
81.0
20.0
30.0
144
Russia
50.5
0.0
25.0
21.0
82.5
48.6
65.1
63.5
66.3
68.2
25.0
40.0
145
Central African Republic
50.3
1.0
20.0
21.0
65.2
92.9
37.3
49.1
74.6
57.8
55.0
30.0
146
Bolivia
50.2
0.2
10.0
28.0
87.0
62.2
56.5
40.8
72.8
74.3
20.0
50.0
147
Nepal
50.2
0.1
30.0
22.0
86.0
88.1
53.6
45.4
74.9
61.5
10.0
30.0
Executive Highlights
Financial Freedom
Overall Score
111
Labor Freedom
Country
Property Rights
World Rank
2012 Index of Economic Freedom World Rankings
11
21.0
15.0
21.0
49.2
0.9
25.0
23.0
49.1
-0.5
10.0
24.0
49.0
1.1
20.0
48.6
2.1
30.0
Togo
48.3
-0.8
Ecuador
48.3
1.2
157
Burundi
48.1
-1.5
158
Argentina
48.0
159
Kiribati
46.9
160
Angola
46.7
0.5
161
Lesotho
46.6
-0.9
162
Solomon Islands
46.2
0.3
163
Ukraine
46.1
0.3
164
Uzbekistan
45.8
165
Comoros
45.7
166
Chad
167
168
169
Timor-Leste
170
Equatorial Guinea
171
Iran
172
173
Democratic Republic
of Congo
Burma
174
Venezuela
38.1
175
Eritrea
36.2
87.0
49.1
53.2
46.1
64.6
66.6
45.0
30.0
88.7
63.3
40.5
61.0
75.9
65.3
35.0
30.0
79.8
86.6
61.6
55.7
76.9
58.7
25.0
20.0
98.0
0.0
89.7
71.9
75.3
43.7
35.0
30.0
80.9
84.3
51.8
42.0
70.1
62.8
45.0
20.0
25.0
86.6
34.9
71.3
77.0
65.3
80.4
20.0
10.0
33.0
76.6
74.8
55.9
50.6
71.8
53.8
20.0
20.0
30.0
24.0
68.6
85.6
34.8
45.2
78.3
61.7
25.0
30.0
20.0
25.0
78.3
64.3
54.1
41.0
66.8
68.1
25.0
40.0
20.0
18.0
72.2
22.9
46.1
67.2
70.9
78.9
55.0
30.0
-3.7
20.0
29.0
65.5
56.9
61.0
48.9
60.7
67.6
40.0
30.0
2.1
30.0
32.0
72.4
0.0
61.2
85.5
77.3
55.4
25.0
30.0
20.0
19.0
84.1
53.2
45.5
43.9
61.2
65.2
35.0
40.0
40.0
35.0
49.1
0.0
57.5
65.0
75.5
69.1
35.0
40.0
30.0
28.0
69.3
30.3
63.7
68.1
77.4
55.4
10.0
30.0
30.0
24.0
78.2
29.4
46.2
51.2
67.7
84.4
20.0
30.0
0.0
15.0
16.0
94.4
64.9
67.6
60.1
64.2
66.1
0.0
10.0
1.9
30.0
21.0
64.9
85.3
41.5
31.2
78.3
69.4
15.0
20.0
44.8
-0.5
20.0
17.0
50.2
74.2
24.9
43.7
72.5
55.6
50.0
40.0
Republic of Congo
43.8
0.2
10.0
21.0
61.3
78.0
40.6
45.7
71.0
60.7
20.0
30.0
Turkmenistan
43.8
0.2
10.0
16.0
98.4
93.5
30.0
30.0
71.0
79.2
0.0
10.0
43.3
0.5
20.0
25.0
64.7
0.0
43.1
75.1
77.4
73.0
35.0
20.0
42.8
-4.7
20.0
19.0
75.5
28.0
44.7
43.8
73.1
58.8
25.0
40.0
42.3
0.2
10.0
22.0
80.6
76.9
64.8
51.5
62.0
45.7
0.0
10.0
41.1
0.4
10.0
20.0
72.5
76.1
38.7
39.0
51.2
63.0
20.0
20.0
38.7
0.9
10.0
14.0
82.0
96.0
20.0
20.0
61.2
73.6
0.0
10.0
0.5
5.0
20.0
74.8
67.3
47.3
36.0
46.4
58.8
5.0
20.0
-0.5
10.0
26.0
57.0
46.8
17.1
63.2
52.9
69.1
0.0
20.0
World Rank
Financial Freedom
20.0
Investment Freedom
3.6
-1.3
Trade Freedom
50.1
50.0
Monetary Freedom
30.0
Labor Freedom
Freedom from Corruption
30.0
Business Freedom
Property Rights
0.7
Government Spending
Change from 2011
50.2
Fiscal Freedom
Overall Score
2012 Index of Economic Freedom World Rankings
Country
148
So Tom and Prncipe
149
Guinea-Bissau
150
Laos
151
Maldives
152
Sierra Leone
153
Belarus
154
Liberia
155
156
176
Libya
35.9
-2.7
10.0
22.0
80.2
17.9
20.0
20.0
73.6
85.0
10.0
20.0
177
Cuba
28.3
0.6
10.0
37.0
61.5
0.0
10.0
20.0
71.3
62.7
0.0
10.0
178
Zimbabwe
26.3
4.2
10.0
24.0
65.2
38.7
34.9
29.6
0.0
50.4
0.0
10.0
179
North Korea
1.0
0.0
5.0
5.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
N/A
Afghanistan
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Iraq
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Liechtenstein
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Somalia
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Sudan
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
12
2012 Index of Economic Freedom
