In many ways economic freedom Is an antidote to poverty in the past two decades during which the EFI has been charting the advances of economic freedom, have been the most prosperous in the history of the world.
The countries that have adopted some type of free market capitalism with economies open to the free flow of goods, services, and capital, have participated in an era of globalization and economic integration that provided solutions to many of the world’s development problems. The free market system the is rooted in the principles of economic freedom, nondiscrimination, empowerment of the individuals, and open competition has fueled unprecedented economic growth around the world. EFI illustrates as the global economy has moved toward greater economic freedom, world GDP has nearly doubled. This progress has lifted hundreds of millions of people out of poverty and cut the global poverty rate by two-thirds. By taking people out of poverty and opening new doors of opportunity has led to an increase of prosperity of more people around the world. More and more people are living better lives than ever before.
This clearly shows monumental reduction in global poverty is an achievement that should inspire celebration of the free-market system, deeper understanding of its dynamics, and greater commitment to its promotion.The main key driver in the reduction of poverty is dynamic and resilient economic growth that comes with improving economic freedom. Surprisingly not, one of the most important goals of economic policy in almost every country in the world has been to increase the rate of economic growth.
Specifically, more documents in the previous editions of EFI index and supported by volumes of academic research, vibrant and lasting economic growth results when governments implement policies that enhance economic freedom and empower individuals with greater choice and more opportunities. Meaning that advancing economic freedom is the imperative for dynamic economic expansion and true progress for a greater number of people. There is a robust direct relationship between improvements in economic freedom and levels of economic growth per capita. Whether long-term (20 years), medium-term (10 years), or short-term (five years), the relationship between positive changes in economic freedom and rates of economic growth is consistent.