The 2008 edition of the Economic Freedom of the World report is out today. The Fraser Institute released it this morning in Hong Kong [video here (7:28)].

You can follow the news clippings here as they come in.

The press release we sent out from Auburn is below the fold:

Release/Announcement:
For Immediate Release
September 16, 2008

Auburn University’s Lawson co-authors annual
Economic Freedom of the World report

AUBURN - Canada’s Fraser Institute in cooperation with
institutes in 75 nations and territories today released
the annual peer-reviewed Economic Freedom of the
World report, which measures the degree to which the
policies and institutions of countries are supportive of
economic freedom. This year’s publication rates 141
nations representing 95% of the world’s population for
2006, the most recent year for which data are
available. The report is cited widely in the international
press and in academic studies, and is followed closely
by policy-makers around the world.

The report uses 42 different measures to create an
index ranking countries around the world based on
policies that encourage economic freedom. The
cornerstones of economic freedom are personal choice,
voluntary exchange, freedom to compete, and security
of private property. Economic freedom is measured in
five different areas: (1) size of government; (2) legal
structure and security of property rights; (3) access to
sound money; (4) freedom to trade internationally;
and (5) regulation of credit, labor and business.
Research shows that individuals living in countries with
high levels of economic freedom enjoy higher levels of
prosperity, greater individual freedoms, and longer life
spans. This year’s report also contains new research
showing the impact of economic freedom on poverty
reduction.

“Economic freedom is one of the key building blocks of
the most prosperous nations around the world.
Countries with high levels of economic freedom are
those in which people enjoy high standards of living
and personal freedoms. Countries at the bottom of the
index face the opposite situation; their citizens are
often mired in poverty, are governed by totalitarian
regimes and have few if any, individual rights or
freedoms,” said Auburn University College of Business
professor Robert Lawson, co-author of the report.

International Rankings

In this year’s main index, Hong Kong retains the
highest rating for economic freedom, with a score of
8.94 out of 10. The other top scorers are: Singapore
(8.57), New Zealand (8.28), Switzerland (8.2), the
United Kingdom (8.07), Chile (8.06), Canada (8.05),
Australia (8.04), the United States (8.04), and Ireland
(7.92).
The rankings (and scores) of other large economies are
Germany, 17 (7.64); Taiwan, 18 (7.63), Japan, 27
(7.48); South Korea, 29 (7.42); Sweden, 33 (7.35);
France, 45 (7.19); Italy, 49 (7.15); Mexico, 58 (6.98);
India, 77 (6.59); China, 93 (6.29); Brazil, 96 (6.16);
and Russia, 101 (6.12).

Several countries have substantially increased their
ratings and become relatively free during the past
decade. Estonia increased its rating by 2.27 points
since 1995 and is now one of the freest economies in
the world. Lithuania and Latvia have increased their
ratings by at least two points since 1995 and their
2006 ratings are greater than 7.0. The ratings of
Cyprus, Hungary, Kuwait, and South Korea have also
improved substantially and their ratings are now 7.3 or
more. Two African economies, Zambia and Ghana,
have become substantially freer with ratings of 7.13
and 7.04, respectively.

However, African nations continue to occupy most of
the bottom spots on the index with the lowest levels of
economic freedom, joined by Venezuela and Myanmar.
The 10 nations with the lowest levels of economic
freedom are: Zimbabwe (2.67), Angola (4.10),
Myanmar (4.19), the Republic of Congo (4.64), Niger
(4.67), Venezuela (4.67), Guinea-Bissau (5.01),
Central Africa Republic (5.01), Chad (5.12), Rwanda
(5.23), and Burundi (5.23).

“Weakness in the rule of law and property rights is
particularly pronounced in sub-Saharan Africa, among
Islamic nations, and for many nations that were part of
the former Soviet bloc,” said James Gwartney, coauthor
of the report and professor of economics at Florida State University.
“Many Latin American and Southeast Asian nations also
score poorly for rule of law and property rights. The
nations that rank poorly in this category also tend to
score poorly in the trade and regulation categories,
even though several have reasonably sized
governments and sound money.”

Economic Freedom and World Poverty

The 2008 edition of the Economic Freedom of the
World report includes new research from Gwartney and
Seth W. Norton, professor of business at Wheaton
College, examining the role of economic freedom in
eliminating poverty with a particular focus on sub-
Saharan Africa.

The authors conclude that the institutions and policies
of most sub-Saharan African nations are highly
inconsistent with economic growth and poverty
reduction. The failure of the legal system to protect
property rights, the roadblocks imposed by trade
restrictions, and the heavy regulation and
administrative costs imposed on business undermine
economic growth because they stifle the gains from
trade, entrepreneurship, and investment. Given that
most of the sub-Saharan countries are relatively small,
the high trade barriers are particularly damaging.

More Information

For more information on the Economic Freedom of the
World report, the Economic Freedom Network, data
sets, and previous Economic Freedom of the World
reports, visit www.freetheworld.com.
(Contributed by Dina Kanellos Roberts.)
Contact: Robert A. Lawson, (334) 844-3007,
(rlawson@auburn.edu), or Mike Clardy, (334) 844-
9999 (clardch@auburn.edu)