Researchers have measured the level of economic freedom using criteria such as government spending, taxes, regulation, the legal system and property rights, among others, writes Jorge L. Rodríguez.
In places with greater economic freedom, per capita income is almost 10 times higher than in countries with the opposite conditions, writes Jorge L. Rodríguez. (Shutterstock) (El Nuevo Día)
Economic freedom is the right of every human being to earn an honest living -that is, to work, produce, undertake, sell, buy and exchange goods and services- responsibly and voluntarily, without undue governmental interference or obstacles (Carrión-Tavárez, 2024). This right does not distinguish between race, sex, age, nationality, ethnic origin, language, religion, political opinion or socioeconomic level.
Empirical evidence has shown that the engine for prosperity in a society is the talent, creativity and innovation of its individuals through the exercise of their economic freedom in a free market. Numerous studies have confirmed that there is a correlation between economic freedom and human development, education, health, life expectancy, prosperity, happiness, per capita income and the environment (Stryzhak, 2020).
The engine of a people's prosperity is the talent, creativity and innovation of its individuals through the exercise of their economic freedom in a free market, writes Jorge L. Rodríguez. (Shutterstock) (El Nuevo Día)
To analyze this correlation, academic researchers have measured the level of economic freedom in various places using criteria such as "government spending", "taxes", "regulation", "legal system and property rights", "sound currency" and "freedom to trade internationally", among others that affect people's lives. Only in a few countries such as Cuba has insufficient data been found to measure economic freedom.
According to the Fraser Institute's Economic Freedom of the World 2023 report, the 10 jurisdictions with the greatest economic freedom in the world are Singapore, Hong Kong, Switzerland, New Zealand, the United States, Ireland, Denmark, Australia, the United Kingdom and Canada. On the other hand, the 10 countries with the least economic freedom are the Republic of Congo, Algeria, Argentina, Libya, Iran, Yemen, Sudan, Syria, Zimbabwe and Venezuela.
In the places with the greatest economic freedom, 95% of the population, both men and women, can read and write; extreme poverty is less than 1%; people live an average of 15 years longer; and per capita income is almost 10 times higher than in the countries with the least economic freedom. It is not surprising, then, that "life satisfaction" (or "happiness") in the freest countries is 37.16% higher than in the least free countries.
Economic freedom also affects competitiveness and environmental performance. Eight of the ten places with the greatest economic freedom in the world are also among the top 10 in the Institute for Management Development's Global Competitiveness Index 2023. Similarly, in Yale University's Global Environmental Performance Index 2024, countries with high economic freedom average 42.35% better quality of resources such as air and water.
Economic freedom is not only a fundamental right, but also the engine that drives the realization of our dreams. It is the key that opens the door to equal opportunities and resources. By reclaiming our economic freedom, we are not only defending our individual interests, but also those of our communities and future generations. It is time to remove bureaucratic barriers, foster competition and innovation, and build a just and prosperous Puerto Rico based on economic freedom for all.
This opinion article was originally published in Spanish in El Nuevo Día.
