Economic Freedom of the World: 2004 Annual Report

This eighth edition of Economic Freedom of the World rates and ranks 123 nations for 2002, the most recent year for which data are available. The report also updates data in earlier reports in instances where data have been revised. The index contains 38 variables, including 18 survey-based variables obtained from survey data published in the International Country Risk Guide and the Global Competitiveness Report. While survey data have weaknesses, they provide insight into the important areas of legal structure and regulation and, to a lesser extent, of international trade.

The first Economic Freedom of the World Report, published in 1996, was the result of a decade of research by a team, which included several Nobel laureates and over 60 other leading scholars, in a broad range of fields, from economics to political science and from law to philosophy.

“The world’s political leaders and others concerned with economic growth… would do well to give their custom to… [the] Economic Freedom of the World report, an annual publication that aims to measure economic freedoms in 123 countries.”
—The Economist

“Economic freedom advances economic growth, reduces poverty and promotes other civil and political freedoms. It is also a tonic against terrorism because of the opportunities it creates. All the nations behind global terrorism lack economic freedom.”
—Nobel laureate Milton Friedman

“It’s an article of faith for most economists that freedom of trade pays off in economic growth. Their faith is supported by hard numbers in… [the] Economic Freedom of the World report.”
—Business Week

James Gwartney is a professor at Florida State University. Robert Lawson is a professor at Capital University.