Here's bad news for those who oppose global free trade: Not only did the world-wide trend towards greater economic liberty hold steady over the past year, but the incomes of poor individuals across the globe are rising as result. The world isn’t only growing richer. The gap between the per-capita income of have-not populations and that of the developed world is narrowing. This good news for human progress is documented in the 2007 Heritage Foundation/The Wall Street Journal 2007 Index of Economic Freedom, released today. Neither another year of Islamic terrorism, nor record high oil prices, nor fear mongering on Capitol Hill about the China peril have been able to reverse a gradual global shift that reflects the basic human longing for individual liberty. While not all of mankind is participating in this advance, in those places where freedom has increased, people are becoming decidedly better off. The average freedom score this year for the 157 countries ranked is the second highest since we began measuring economic freedom 13 years ago. It is down a fraction from last year, but each region of the globe enjoys greater economic freedom than it did a decade ago. Hong Kong, Singapore and Australia are the three freest economies in the world this year, in that order. The U.S. ranks No. 4. Among the 20 freest economies in the world, Europe holds 12 places. The associated higher GDP rates that come with economic freedom “seem to create a virtuous cycle, triggering further improvements in economic freedom. Our 13 years of Index data strongly suggest that countries that increase their levels of freedom experience faster growth rates,” says the report. Contrary to socialist views, labor freedom and improving social conditions actually go together. What he concludes could be applied to the rest of the globe in all areas of economic policy: “If the world wants to achieve both more jobs and better living standards, freedom is essential.” From an article by Mary Anastasia O’Grady in ‘The Wall Street Journal’, January 16
