Economic Freedom Basics

Economic freedoms are a subset of human freedoms and concern economic activities such as working, transacting, contracting with others, and owning and using productive property. Individuals are more economically free when they are allowed to make more of their own economic choices. Their choices, however, must respect the rights of others.

The index published in the Economic Freedom of the World Annual Report measures economic freedom in up to 165 jurisdictions as far back as 1970. Researchers have conducted about 1,000 studies employing the index. They find overwhelming evidence that economic freedom is associated with a higher standard of living.