Freedom as the key to prosperity: Lessons from the world's growth miracles and economic disasters

Hlavac, Marek (2010): Freedom as the key to prosperity: Lessons from the world's growth miracles and economic disasters.

Abstract

What do China, Estonia, Germany, India, Chile, South Korea and Slovakia all have in common? They have all enacted free-market reforms, and have seen their inhabitants’ living standards soar as a result. This essay describes how free-market policies have improved economic performance in these “growth miracles.” We will also draw contrasts with the policies adopted by governments in some “economic disasters” – countries that have failed to improve the economic well-being of their populations. The lessons we learn from these comparisons paint a clear picture: A country’s economy performs best when its policies lead to greater economic freedom, limit the role of government, and promote respect for the rule of law.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic growth; economic disasters; growth miracles; rule of law; limited government; economic freedom
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

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