Abstract

This report is a practical guide for using the Index of Economic Freedomthe invaluable annual measure of economic (and hence political) freedom around the world. Published jointly by The Heritage Foundation and The Wall Street Journal, and celebrating its 20th anniversary in 2014, the ideas behind the Index are fundamental and enduring, applicable to many of the decisions that researchers and policymakers must make. This guide provides over 20 ways how peoplewhether policymakers, business owners, or interested individualscan learn from and use the Index for advocacy, policy analysis, education, market analysis, investment promotion, academic research, and entrepreneurship.

In 2014, the Index of Economic Freedom, co-published by The Wall Street Journal and The Heritage Foundation, celebrates its 20th anniversary. For two decades, the Index, by cataloguing economic policy developments of the globe, has served as a beacon for people around the world who recognize enhanced economic liberty and individual opportunity as the surest path to greater prosperity.

The Index has also been a practical guide for students, professors, educators, investors, government officials, think tank researchers, and advocacy groups across the world. Its timely and accurate research has become a significant source of information for experts in government policy, education, and market research, influencing leaders across the globe.

There is even more that the Index can do. This report is a practical guide to help individuals use the Index in their everyday lives, particularly as they struggle to enhance and defend their own economic freedom. The ideas behind the Index are fundamental and enduring, applicable to many of the decisions that researchers and policymakers must make. This guide provides over 20 ways how the Index can be used and built upon in advocacy, policy analysis, education, market analysis, investment promotion, academic research, and entrepreneurship. As the Index moves into its next decade, the publishers goal is to make it as useful and relevant as possible.

Advocacy

At the heart of the Index of Economic freedom is a desire to promote the ideals of liberty and economic empowerment throughout the world. Ordinary people at the grassroots level are constantly on the front lines promoting and defending the principles of economic freedom. The Index is a vital tool for those who want to mold a better livelihood for themselves, and better society in general, through advocacy. In 2014, no country in the Index received a perfect score, either overall or in any factor. This leaves plenty of ammunition for advocates of economic freedom to promote their causes. Those interested in advocating for increased levels of economic freedom in their country should consider:

Policy Analysis

Economic freedom should be a guiding principle for policymakers and their staff as they shape the laws and institutions of society. The Index is a helpful guide for anyone interested in seeing which policies are succeeding, and which are failing, in promoting economic freedom. In addition, the Index and its complementary data[4]are a helpful barometer by which policymakers can measure the progress of building effective and efficient institutions and programs. Using Index analysis and data is also useful for measuring and benchmarking economic and institutional impacts, as laws and policies are implemented. For example, since 2004, the U.S. Millennium Challenge Corporation (MCC) has used the Index to determine whether countries should qualify for U.S. foreign assistance.[5] Policymakers who want to improve the efficacy of their efforts to promote prosperity by ensuring consistency with the principles of economic freedom can:

Education

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Using the Index of Economic Freedom: A Practical Guide