Economic Freedom and Global Prosperity

Why free markets and secure property rights matter for human flourishing

Introduction

Economists and philosophers alike have long argued that economic freedom—secure property rights, open trade and limited government—is a prerequisite for prosperity. But how strong is the evidence? This article examines global data and philosophical arguments to show that societies that respect economic liberty are wealthier, healthier and freer.

Measuring economic freedom worldwide

The Fraser Institute produces the Economic Freedom of the World index, which measures freedom in 165 jurisdictions. Its 2025 report lists Hong Kong, Singapore, New Zealand, Switzerland, the United States, Ireland, Australia, Taiwan, Denmark and the Netherlands among the most economically free countries1. The index finds that global economic freedom increased from 2000 to 2019 but declined after the pandemic. People living in the freest quartile of countries have average incomes 6.2 times higher than those in the least free quartile, work seven fewer hours per week, enjoy life expectancies 17 years longer and breathe cleaner air1. These data underscore the human benefits of economic liberty.

Advancing free societies

The Independent Institute aims to advance peaceful, prosperous and free societies grounded in human worth and dignity. It is a non‑partisan public‑policy organisation that shapes ideas into lasting impact through publications, events and multimedia programmes. By applying independent thinking to pressing social and economic challenges and connecting ideas with networks and organisations, the Independent Institute seeks to unleash human flourishing around the globe.2

Austrian economics and natural law

The Mises Institute promotes the Austrian tradition in economics. Drawing on the Late Scholastics, Austrian economists argue that property rights and freedom to contract and trade are natural rights; taxes, price controls and regulations that inhibit enterprise are unjust.3 They see the economist’s first job as telling governments what they cannot do. Austrian theory emphasises the importance of spontaneous order and voluntary cooperation over central planning.

Economic freedom in Israel

The Jerusalem Institute for Market Studies (JIMS) advocates economic freedom and individual liberty in Israel. According to InfluenceWatch, JIMS publishes economic policy papers, operates educational projects and administers public opinion surveys. The institute supports tax reform, cutting government spending, eliminating monopolies and expanding school choice. It argues that import restrictions raise consumer prices and that free trade would reduce costs for Israeli families.4 JIMS thus provides a case study of how liberalisation can benefit a small, open economy.

Conclusion

From international indices to philosophical treatises and national think tanks, the evidence is clear: economic freedom matters. Countries that protect property rights, allow voluntary exchange and limit government control are wealthier and healthier. Institutions like the Fraser Institute, Independent Institute, Mises Institute and JIMS contribute to our understanding of why liberty and prosperity go hand in hand—and why reforms should not be confined to any one country.

References

  1. Fraser Institute, Economic Freedom of the World 2025 – lists Hong Kong, Singapore, New Zealand, Switzerland, the United States, Ireland, Australia, Taiwan, Denmark and the Netherlands among the most economically free jurisdictions and shows that people in the freest countries have incomes over six times higher, work fewer hours and live longer than those in the least free countries.
  2. Independent Institute, Our Mission – states that the Institute seeks to boldly advance peaceful, prosperous and free societies grounded in a commitment to human worth and dignity and applies independent thinking and networks to unleash human flourishing.
  3. Mises Institute, What Is Austrian Economics? – explains that Late Scholastic scholars advocated property rights and freedom to contract and trade, opposed taxes and price controls, and argued that economists must tell governments what they cannot do.
  4. InfluenceWatch, Jerusalem Institute for Market Studies – notes that JIMS advocates economic freedom and individual liberty in Israel, publishes policy papers and calls for tax reform, cutting spending, eliminating monopolies and expanding school choice; it also reports that JIMS argues import restrictions raise consumer prices and that free trade would benefit Israeli families.