We’ve been posting a lot about Haiti . . . the annual release of the Heritage Foundation’s Economic Freedom rankings [in partnership with The Wall Street Journal] puts that countries issues into stark relief.
Here’s a bit about the way the ranking is determined, from their FAQ page:
Q.1. What is economic freedom?
Economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.Q.2. What are the benefits of economic freedom?
Studies in this and previous editions of the Index of Economic Freedom demonstrate important relationships between economic freedom and positive social and economic values such as per capita income, economic growth rates, human development, democracy, the elimination of poverty, and environmental protection. For further information, see especially the Executive Highlights and Chapter 2: Fifteen Years of Advancing FreedomQ.3. How do you measure economic freedom?
We measure ten components of economic freedom, assigning a grade in each using a scale from 0 to 100, where 100 represents the maximum freedom. The ten component scores are then averaged to give an overall economic freedom score for each country. The ten components of economic freedom are:Business Freedom | Trade Freedom | Fiscal Freedom | Government Spending | Monetary Freedom | Investment Freedom | Financial Freedom | Property rights | Freedom from Corruption | Labor Freedom
Here’s the US’s ranking explanation—we’ve slipped, as is only natural, given the leadership we chose and their foundational worldview.
But here’s Haiti’s ranking explanation.
No comparison.
Read the analysis and you recognize why the country that has had the most NGOs operating within it hasn’t become less radically impoverished as a result—it’s foundations are ruined. Furthermore, business investment flows to countries that relatively higher indexes of economic freedom. Companies don’t want to invest in a country—bringing trade, jobs, money, purchasing, and all the other attendant goodies—when there is no economic freedom. Don’t doubt that businesses look at these sorts of rankings and analysis to determine likely places for development and investment. Property rights, government corruption, fiscal freedom, etc, are important “intangible assets” that countries bring to the table for economic development.
The US is so blessed—blessed beyond our deserving. I do hope that we recognize that—and ultimately fight for the economic freedoms that our Constitution assured us in principle.
1 Comment •
I can’t help but comment on the fact that Rowan is showing up for some economic/theology conference in New York this week. It seems to me that he should stick to his knitting. I don’t know that macro-economics is his bag.
It seems to me that he should preach the gospel, and let others in that field speak to economic systems. It just seems so wasteful, when so much is going on in the church that needs his attention.
Of course, I’m sure it is somewhat of a break for him to be able to sit up there and pontificate with other religous leaders about global economic matters.
[1] Posted by Looking for Leaders on 01-26-2010 at 04:59 PM • top