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Economic

Annual Index Of Economic Freedom

Freedom is not the essential factor of growth because the lack of freedom, so bad, it is, is not able to stop the growth. In fact, the praise of freedom made by A. Smith is such that, necessarily, that freedom will promote domestic growth. Regarding capital, there seems, at first, a contradiction in the thinking of Adam Smith: "The industry of the company may increase its proportion as capital increases. It seems to depend on economic growth from increased capital and not by multiplying the number of workers and the improvement of the division of labor.

However, the theory of Adam Smith is consistent, in fact, it sees the capital as the wages fund, and in this case, the accumulation of capital induces a strong division of labor, and to distribute decent wages to point to foster a growing population. The surge in demand resulting encourages a greater division of labor, which encourages the accumulation of capital, etc.

The contradiction disappears, and we reach the role attributed to Adam Smith's work in economic growth. In summary, the work creates value, wealth and promoting economic growth but does not produce its resonant effects only with the help of capital because it is then possible to divide the work, increase the number of workers and using better machines.

The Heritage Foundation and The Wall Street Journal publishes an annual report on "Index of Economic Freedom." This report helps to assess and compare economic freedom in 179 countries.

The index ranks countries according to ten general criteria of economic freedom based on statistics from the World Bank, IMF and the Economist Intelligence Unit (a company belonging to the same group as The Economist).

Relationship Between Economic Freedom And Variations In Wealth Among Countries

The purpose of the index of economic freedom is made by the Heritage Foundation and The Wall Street Journal is to categorize the institutions, policies, and economic practices in quantitative and rigorous. However, it is more than a rudimentary classification, it also identifies the variables that comprise economic freedom and analyzes the interaction between freedom and wealth. The 2010 report on Economic Freedom Index (click on the link), which has just been published, covering 183 countries and 179 in class recall that the report on the index of economic freedom is an assessment of world economies effected based on 52 independent variables on a staggered basis of ten certain factors of economic freedom.

The lessons that can be removed from the index 2010 are as follows:

• Four countries in the Asia-Pacific continue to lead the rankings: Hong Kong (first in 16 years), Singapore, Australia and New Zealand.

• All major regions of the world retain at least one country in the leading 20 economically freest countries. With a lot of changes: Iceland lost 2.2 points, the United Kingdom, 2.5, and the United States, 2.7, Switzerland won three place is ranked 6th. Nine countries in the top 20 are European, six belong to the Asia-Pacific, two are in North ...