• 00:00    |    
    Initial credits
  • 00:20    |    
  • 03:30    |    
    Milton Friedman and the measuring of economic freedom
  • 04:37    |    
    The five criteria of the economic freedom index
    • Size of the government
    • Legal structure and security of property rights
    • Access to sound money
    • Freedom to trade internationally
    • Regulation
  • 07:25    |    
    Results: marks and rankings of various nations
  • 10:57    |    
    Two strong correlations
    • Economic freedom and per capita income
    • Economic freedom and economic growth
  • 14:22    |    
    Why are freer countries better developed?
    • More private investments
      • Investments are attracted by tax cuts
      • Correlation between economic freedom and private investments
      • Poor countries need trade, not aid
      • Correlation between economic freedom and corruption
    • The open economy
      • The Ricardian model of free trade and its false implications
      • The importance and meaning of competition
    • Entrepreneurship
      • Security of property rights
      • Low taxation
      • Low regulation, especially in the labor market
      • Foreign entrepreneurs
    • Human capital
      • The importance of human capital over natural resources
      • Health and education
      • Economic freedom and human dignity
  • 45:08    |    

Economic Freedom and Development: Why the Statistical Correlation?

New Media  | 04 de noviembre de 2004  | Vistas: 2573

According to Prof. Jacques Garello, there are five steps that are needed in order to obtain economic freedom: Size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulations. He analyzes the strong correlation between economic freedom and economic growth, as well as education and health; he also mentions the relationship between financial freedom, per-capita income, increase amount of private investments and the increase of knowledge that are caused by an open economy. Prof. Garello emphasizes the importance of human capital by demonstrating that countries with limited natural resources, such as Japan and Korea, have a great amount of wealth due to the amount of human capital; after all, the ideal economy is the one in which the most amount of wealth is created with the least amount of resources.


Jacques Garello is professor of economics at the Université Aix-Marseille III,…


Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín