2007 Index of Economic Freedom

Tim Kane, Ph.D.

Kim R. Holmes, Ph.D.

Mary Anastasia O’Grady

with Ana Isabel Eiras, Anthony B. Kim, Daniella Markheim, Andrew L. Peek, and Brett D. Schaefer

Copyright © 2007 by The Heritage Foundation and Dow Jones & Company, Inc.

Table of Contents

Foreword ...................................................... ix

Paul A. Gigot

Preface .......................................................... xi

Edwin J. Feulner, Ph.D.

Acknowledgments ................................................ xiii

Tim Kane, Ph.D., Kim R. Holmes, Ph.D., and Mary Anastasia O’Grady

What’s New in the 2007 Index? .................................................... xv

Executive Summary ..............................................................1

Chapter 1: Global Inequality Fades as the Global Economy Grows ........................15

Xavier Sala-i-Martin

Chapter 2: The Urgent Need for Labor Freedom in Europe—and the World ...............27

Johnny Munkhammar

Chapter 3: Methodology: Measuring the 10 Economic Freedoms ..........................37

William W. Beach and Tim Kane, Ph.D.

Chapter 4: Economic Freedom in Five Regions ........................................57

Tim Kane, Ph.D.

Chapter 5: The Countries .......................................................................73

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