The 10 Economic Freedoms

1. The 10 Economic Freedoms 1. Business Freedom 2. Trade Freedom 3. Fiscal Freedom 4. Government Size 5. Monetary Freedom 6. Investment Freedom 7. Financial Freedom 8. Property Rights 9. Freedom From Corruption 10. Labor Freedom 1

2. Index Users • Millennium Challenge Corporation –Trade Freedom factor • International Organizations – World Bank, IMF, Inter- American Development Bank, etc. (Overall Score, Property Rights, Investment Freedom, Freedom from Corruption factors) • Investment Firms – Emerging Market Investment • News Media (domestic and foreign) • Policy Makers (domestic and foreign) • Colleges and Universities around the World • Textbook publishers

3. The Index Cited in “The Economist”(January 24, 2008)

4. Guest Chapters in the 2008 Index • Chapter 2 • Carl Schramm, President and CEO of the Ewing Marion Kauffman Foundation, highlights entrepreneurship and the importance of “economic fluidity” that fosters innovation and as a crucial element of economic freedom. • Chapter 3 • Professor Stephen Parente, the University of Illinois at Urbana-Champaign, documents the vital necessity of dismantling barriers to economic catching-up so that all economies can have the chance to flourish in the 21st century. • Chapter 4 • Guy Sorman, a French journalist and author, reminds us of six major characteristics of globalization that we enjoy today and potential threats to them that should not be taken lightly.

5. Economic Freedom and Prosperity Sources: World Bank, World Development Indicators Online, at publications.worldbank.org/subscriptions/WDI (subscription required); Central Intelligence Agency, The World Factbook 2007, at www.cia.gov/cia/publications/factbook/index.html; International Monetary Fund, World Economic Outlook database at www.imf.org/external/pubs/ft/weo/2007/01/data/index.htm; and Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O’Grady, 2008 Index of Economic Freedom (Washington, D.C.: The Heritage Foundation and Dow Jones & Company, Inc., 2008), at www.heritage.org/index.

6. Economic Freedom Increases GDP Per Capita Sources: World Bank, World Development Indicators Online, at publications.worldbank.org/subscriptions/WDI (subscription required); Central Intelligence Agency at www.cia.gov/cia/publications/factbook/index.html; International Monetary Fund, World Economic Outlook database, 2007, at www.imf.org/external/pubs/ft/weo/2007/01/data/index.htm; and Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O’Grady, 2008 Index of Economic Freedom (Washington, D.C.: The Heritage Foundation and Dow Jones & Company, Inc., 2008), at www.heritage.org/index.

7. 60 52 Countries 51 Countries (33.1%) (32.5%) 45 30 24 Countries Countries* 23 Countries (15.3%) (14.6%) 15 7 Countries (4.5%) 0 0 – 49 . 9 50 – 59 . 9 60 – 69 . 9 70 – 79 . 9 80 – 100 . 0 Repressed Mostly Unfree Moderately Free Mostly Free Free 2008 Economic Freedom Score * A total of 157 countries were graded. 2008 Index of Economic Freedom Source : Edwin J . Feulner , Kim R . Holmes , and Mary Anastasia O’Grady , (Washington, D.C.: The Heritage Foundation and www.heritage.org/index Dow Jones & Company, Inc., 2007), at . Global Economic Freedom Distribution

8. 2008 Index of Economic Freedom Highlights • In pursuing sustainable prosperity, both the direction of policy and the commitment to economic freedom are important. Score Changes • Top 3: Most Improved Economic Freedom Scores • Egypt – business and trade environment, stable money, and financial freedom • Mauritius – accelerating tax reform, reducing corruption, improving business climate • Mongolia – implementing tax cuts and reducing government spending • Bottom 3: Most Severe Reduction in Economic Freedom Scores • Guyana – dramatic increase in government spending • Bangladesh – deteriorated property rights and labor freedom • Venezuela – significantly reduced property rights and trade freedom

9. Top 10 Hong Kong Singapore Ireland Australia United States New Zealand Canada Chile Switzerland United Kingdom Bottom 10 157. North Korea 156. Cuba 155. Zimbabwe 154. Libya 153. Burma 152. Turkmenistan 151. Iran 150. Belarus 149. Bangladesh 148. Venezuela Which Countries Enjoy Economic Freedom? 9

10. Costa Rica (64.8) (FTA) Panama (FTA) Malaysia Uganda Portugal Thailand Peru (FTA) Albania South Africa Jordan Bulgaria Saudi Arabia Belize Mongolia United Arab Emirates Italy Madagascar Italy Madagascar Qatar Colombia (FTA) Romania Fiji Kyrgyz Republic Macedonia Namibia Lebanon Turkey Slovenia Kazakhstan Paraguay Guatemala (FTA) Honduras (FTA) Greece (60.1) Countries at the Crossroads(Economic Freedom Scores between 60 and 65)

11. Crossroads for Critical Policy Decisions That Will Increase GDP Per Capita Critical Junction Sources: World Bank, World Development Indicators Online, at publications.worldbank.org/subscriptions/WDI (subscription required); Central Intelligence Agency at www.cia.gov/cia/publications/factbook/index.html; International Monetary Fund, World Economic Outlook database, 2007, at www.imf.org/external/pubs/ft/weo/2007/01/data/index.htm; and Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O’Grady, 2008 Index of Economic Freedom (Washington, D.C.: The Heritage Foundation and Dow Jones & Company, Inc., 2008), at www.heritage.org/index.

12. Who is Up? Who is Down? (1995 Index score = 100) Sources: Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O’Grady, 2008 Index of Economic Freedom (Washington, D.C.: The Heritage Foundation and Dow Jones & Company, Inc., 2008), at www,heritage.org; Human Development Report 2007/2008, United Nations Development Program, available at http://hdr.undp.org/en/

13. Western Hemisphere: Divergence in Economic Freedom * Aftermath of the Mexican Peso Crisis Hugo Boss? Sources: Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O’Grady, 2008 Index of Economic Freedom (Washington, D.C.: The Heritage Foundation and Dow Jones & Company, Inc., 2008), at www,heritage.org; Human Development Report 2007/2008, United Nations Development Program, available at http://hdr.undp.org/en/ *Note: NAFTA Countries (the U.S., Canada, and Mexico)

14. Hugo Boss?

15. Regional Performance in the 2008 Index • Global average economic freedom score is 60.3. (median: 60.2) • Europe has the highest average economic freedom score, while Sub-Saharan Africa has the lowest score. * *Note: Including NAFTA countries (the U.S., Canada, and Mexico)

16. Economic Freedom Matters in Every Region MOST FREE Sources: Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O’Grady, 2008 Index of Economic Freedom (Washington, D.C.: The Heritage Foundation and Dow Jones & Company, Inc., 2008), at www,heritage.org;

17. North America vs. Latin America? Sources: Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O’Grady, 2008 Index of Economic Freedom (Washington, D.C.: The Heritage Foundation and Dow Jones & Company, Inc., 2008), at www,heritage.org; Human Development Report 2007/2008, United Nations Development Program, available at http://hdr.undp.org/en/ Property Rights and Corruption: low scores in Latin America

18. Economic Freedom in the Americas

19. Argentina’s Performance in the Index Argentina’s Economic Freedom Score is 55.1

20. Brazil’s Performance in the Index Brazil’s Economic Freedom Score is 55.9

21. Chile’s Performance in the Index Chile’s Economic Freedom Score is 79.8

22. El Salvador’s Performance in the Index El Salvador’s Economic Freedom Score is 69.2

23. Mexico’s Performance in the Index Mexico’s Economic Freedom Score is 66.4

24. Venezuela’s Performance in the Index Venezuela’s Economic Freedom Score is 45

25. EconomicFreedom For Growth and Prosperity Around the World Any Questions/Comments Will be Welcomed! 25