2001 Index of Economic Freedom

2001 Index of Economic Freedom

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The Heritage Foundation and The Wall Street Journal introduce the 2001 Index of Economic Freedom.

Now in its seventh edition, the Index measures how well 155 countries score on a list of 50 independent variables divided into 10 broad factors of economic freedom.

The higher the score on a factor, the greater the level of government interference and the less economic freedom a country enjoys. The 50 variables are grouped into the following categories: banking and finance, capital flows and foreign investment, monetary policy, fiscal burden of government, trade policy, wages and prices, government intervention in the economy, property rights, regulation, and black-market activity.

New to the 2001 edition includes a foreward by Robert Bartley, editor of The Wall Street Journal, who offers an overview of this year's economic events and a reflection on the importance of Nobel Prize economist Robert Mundell's work in creating "the current trend toward freer economies around the world." This year's edition also contains a chapter by Mary O'Grady of The Wall Street Journal on how free trade flows improve every participating country's economic well being. In another new chapter, John Hulsman, Gerald P. O'Driscoll, Jr., and Denise H. Froning ofThe Heritage Foundation explain the central role that a new Free Trade Association can play in achieving free trade and open borders.

A practical reference guide, the Index of Economic Freedom is an indispensable handbook for foreign policy experts, economists, journalists, students, and business executives seeking opportunities in the global economy. It is also an essential guide to economic growth for anyone who wants to understand why some countries prosper and others lag behind.