James d. Gwartney

Exhibit 17: Economic Freedom and the UN World Happiness
Index
4.48
5.08
5.44
6.54
0
2
4
6
8
10
Least Free
Third
Second
Most Free
Economic Freedom Quartile
UN W
orld Happiness Index
People in countries with greater economic freedom tend to be happier about their lives.
Note: “The rankings are based on answers to the main life evaluation question ... This is called the Cantril ladder: it asks
respondents to think of a ladder, with the best possible life for them being a 10, and the worst possible life being a 0.
They are then asked to rate their own current lives on that 0 to 10 scale.” Data are for 2015.
Sources: Average Economic Freedom Panel Score, 1995–2016; United Nations, 2016, World Happiness Report 2016
Update.
Recently, the Fraser Institute and its partners have supplemented the Economic
Freedom Index with a second measure designed to capture “Personal Freedom.” This measure
focuses on the rule of law, security and safety, and freedom of movement, religion, assembly,
expression and identity. As can be seen in Exhibit 18, there is a close correspondence between
personal freedom and economic freedom. Free societies are not only richer, they usually show
greater respect for human rights.

---

134
Exhibit 18: Relationship Between Personal and Economic
Freedom, 2016
E
C
O
N
O
M
IC
F
R
E
E
D
O
M
PERSONAL FREEDOM
10
10
8
8
6
6
4
4
2
2
Yemen, Rep.
Libya
Venezuela
Central Afr. Rep.
Argentina
Croatia
Syria
Sudan
Russia
Hong Kong
New Zealand
Brunei Darussalam
UAE
Singapore
Mauritius
USA
Source: Ian Vasquez and Tanja Porcnik, The Human Freedom Index 2018: A Global Measurement of Personal, Civil,
and Economic Freedom. Publishers: The Cato Institute, the Fraser Institute, and the Friedrich Naumann Foundation for
Freedom.
Both economic theory and the empirical evidence indicate that countries grow more
rapidly, achieve higher income levels, and make more progress against poverty when they
adopt and maintain policies along the lines outlined in this section. The key to economic
progress is to create sound institutions and adopt consistent policies to enhance both economic
and personal freedoms. The sooner citizens and political leaders around the world become

---

135
aware of this need and begin moving their countries toward greater economic freedom, the
more prosperous the world will be.