Heritage Foundation Issues Index of Economic Freedom
In an effort to develop the link between economic freedom and prosperity, the 2004 Index of Economic Freedom has analyzed 155 countries, from the United States to Sri Lanka to North Korea.
The editors of the Index of Economic Freedom believe that there is a "secret" to prosperity and that there is a way out for countries who cannot seem to grow and develop. The evidence assembled in this 10th annual country-by-country report on the openness of economics worldwide demonstrates that the road to growth is paved with liberty.
The Index, published jointly by the Heritage Foundation and the Wall Street Journal, documents that the nations with the most economic freedom are also the most prosperous. Those with the best scores in the 10 categories measured, which include trade policy, fiscal burden or government, government intervention in the economy, monetary policy, capital flows and foreign investment, banking and finance, wages and prices, property rights, regulation and informal (or black) market activity, enjoy higher standards of living and higher per capita incomes.
The latest data show that countries begin to observe the benefits of opening their economies simply by starting or continuing the process. The one-fifth of countries surveyed where Index scores improved the most enjoyed an average growth in gross domestic product (GDP) of 4.89%. For the one fifth that improved the least, GDP grew at only about half that rate.
The process works in reverse for those that restrict their economies. According to Index editors Marc Miles, Edwin Feulner and Mary Anastasia O'Grady, if countries slow or stop their progress, growth plummets. The message that governments should take from the new Index is that they can help themselves by starting to adopt free-market economic policies.
Data gathered for the 2004 Index suggest that many countries are getting the message. Of the 155 countries analyzed, 75 scored better this year than last year and 11 had scores that were unchanged. The scores of 69 countries were worse than last year. Overall, 16 countries are classified as having "free" economies, 55 as "mostly free," 72 as "mostly unfree" and 12 as "repressed."
A few of the most free countries include Hong Kong, the United Kingdom and the United States, while Venezuela, Iran and North Korea are some of the least free.
Each country received a detailed two-page report, highlighting the economic patterns throughout the year. In addition, an executive summary in the Index provides brief summaries of sections of the world-such as North America and Europe, Latin America and the Caribbean, North Africa and the Middle East and Asia-Pacific. Due to civil unrest and anarchy in the countries of Angola, Burundi, Congo, Sudan and Iraq, the editors suspended grading this year.
For more information or to order a copy of the 2004 Index of Economic Freedom, visit: www.heritage.org/index or call 1-800-975-8625.
How Bad Is Your Legal System?
In the wake of several recent House bills to halt frivolous litigation, one organization decided to move from anecdotal to tangible in regards to impressions of the nation's civil justice system.
A recent study conducted by the U.S. Chamber Institute for Legal Reform (ILR), a separately incorporated affiliate of the U.S. Chamber of Commerce, analyzed which states-faced with the growing trend of frivolous litigation-possess the best and worst legal systems in the country.
ILR's "State Liability Systems Ranking Study" was based on responses regarding tort and contract litigation, treatment of class action suits, punitive damages, timeliness of summary judgement, judges' impartiality and competence, and juries' predictability and fairness. The grades were combined to create the overall ranking of state liability systems.
According to surveyed businesses, the states doing the best job of creating a fair and reasonable litigation environment are Delaware, Nebraska, Virginia, Iowa and Idaho, while the bottom five tallied in as Mississippi, West Virginia, Alabama, Louisiana and California.
While some states emerged as leaders in creating a fair and reasonable litigation system, the majority of those surveyed give an overall ranking of fair or poor to the state court liability system in America.
In addition, over 80% reported that the litigation environment in a state could affect important business decisions such as where to locate.
IRL says it believes that America's "legal crisis" is crippling companies, driving down shareholder value, putting employees out of work, raising consumer prices and making a handful of plaintiffs' trial lawyers millionaires overnight. Legal experts at IRL have also observed many plaintiffs' lawyers are exploiting flaws in the system. Likewise, frivolous lawsuits have become so plentiful that court dockets are clogged.
In an effort to combat dysfunctional legal systems, ILR is active in the courts and in the court of public opinion, and in the legislatures.
For the complete State Liability Systems Ranking study results, visit ILR's website at: www.legalreformnow.com.
Hillsdale College Hosts National Leadership Seminar
Conservatives from across the country will be congregating in Seattle, Wash., at the Sheraton Hotel and Towers, May 24-25, 2004, for a National Leadership Seminar on "The American Character and American Liberty," sponsored by Hillsdale College. Several meals are included in the National Leadership Seminar.
"The American Character and American Liberty" seminars emphasize how the virtues required for liberty can be seen in the American character: the enterprising virtues that lead Americans to start businesses, the neighborly virtues that lead Americans to give so much to charity, the self-restraint that prevents Americans from living irresponsibly, the self-assertiveness that causes Americans to resent being bossed, the courage and resourcefulness that make Americans good soldiers when war is forced upon them.
The purpose of government is to protect its citizens' rights while encouraging the virtues that support liberty. However, American government today tends to do the opposite, whether through welfare policies that undermine self-reliance, tax policies that discourage charity or social policies that weaken the family.
These seminars will address the connection between American character and American liberty, the extent to which they have been weakened and the means by which they might be restored.
Seminar speakers will include George Gilder, president of Gilder Publishing LLC; Larry P. Arnn, president of Hillsdale College; David Limbaugh, author of Persecution: How Liberals are Waging War Against Christianity; Robert Herbold, of Microsoft Corporation; Max Boot, Council on Foreign Relations; and John Lott, Jr., from the American Enterprise Institute.
Established in 1981, Hillsdale College's National Leadership Seminars presents programs nationwide on issues of politics, economics and culture. Since 1983, its seminars have been attended by more than 19,000 community, business and media leaders around the country.
For more information or to register for this event, contact [email protected].
