Freedom as the Key to Prosperity: Lessons from the World's Growth Miracles and Economic Disasters

16 Pages Posted: 30 Sep 2010

See all articles by Marek Hlavac

Marek Hlavac

Central European Labour Studies Institute (CELSI)

Date Written: July 15, 2010

Abstract

What do China, Estonia, Germany, India, Chile, South Korea and Slovakia all have in common? At first glance, not a lot. All have their own cultures, traditions and politics. But one important aspect of their histories unites them: 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.

Keywords: economic growth, economic freedom, rule of law, economic development, limited government, political economy

JEL Classification: O1, P48, O4

Suggested Citation

Hlavac, Marek, Freedom as the Key to Prosperity: Lessons from the World's Growth Miracles and Economic Disasters (July 15, 2010). Available at SSRN: https://ssrn.com/abstract=1685037 or http://dx.doi.org/10.2139/ssrn.1685037

Marek Hlavac (Contact Author)

Central European Labour Studies Institute (CELSI) ( email )

Zvolenská 29
Bratislava, 82109
Slovakia

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