The study concludes that Hong Kong continues to be the most economically free country in the world. Following Hong Kong is Singapore, New Zealand, the United States and the United Kingdom. Between 1990 and 1997, New Zealand moved into the top five and Switzerland dropped out of the top five. Latin American countries, in general, fared better in 1997 than in previous measurements. Malaysia, Indonesia, and Venezuela were among those experiencing substantial declines in their rankings.
Economic freedom leads to greater prosperity.
One of the most compelling results of the study is the relationship between economic freedom and prosperity. As freedom declined, so did the average per capita GDP, as well as the average growth rate. Data from this and other studies in the Economic Freedom of the World series confirms that countries with consistently high levels of economic freedom perform far better than those with low levels of economic freedom. The research indicates that political leadership which fosters more economic freedom creates the domestic foundations for a higher standard of living and increased economic growth. Eight new variables in the index.