17/01/2008 3:18:03 pm
2008 Index of Economic Freedom. A few days ago, this year′s Index of Economic Freedom (Heritage/Wall Street Journal) was released. It is the 14th year, and economic freedom is measured in almost all the world′s countries. The main period of asessment is the second half of 2006 and first half of 2007.

The degree of economic freedom - the possibilities for voluntary economic exchange - is measured in ten categories using a number of variables. The results are clesr. The higher degree of economic freedom, the higher is GDP per capita - and with that follows also a great number of correlations on social issues. Unemployment and poverty is lower in economically freer countries.

During the past year, however, economnic freedom has not increased in the world. During the past decade, it did, but now it has stalled. Partly, this is due to the US actually decreasing its economic freedom, reflecting among other things increased public spending. Europe is on average getting economically freer, due to a number of continuous reforms. The country dropping the most is not surprisingly Venezuela.

Sweden is number 27, being 70,4 per cent free, an increase by 1,4 percentage points. Sweden is very free in several respects, but gets very low scores in fiscal freedom, government spending and labour market. The reforms by the new government might lead to some improvements in the coming years. But more is needed.

Read more about the Index here and a somewhat more extensive comment by me for Timbro about Sweden here.