Ian Vásquez ,”The Central Role of Economic Freedom in Democracy“ “Economic freedom is a desirable end unto itself because it generally expands the range of choice of the individual, both as a consumer and as a producer. The larger role of economic freedom in society, however, is often under-appreciated, including by those who believe in political pluralism; human rights; and freedom of association, religion, and speech.(…) Thus the dilemma that China’s Communist Party currently faces is familiar. To maintain social stability, China must continue the economic liberalization that has fueled more than two decades of high growth. But market reforms have given hundreds of millions of Chinese greater independence from the state and have created an emerging middle class that increasingly demands political freedom and representation. The party wishes to maintain political power, but economic liberalization is undermining that goal, while ending liberalization would reduce growth and cause instability. As in the case of China and countless other nations, economic freedom encourages political pluralism by promoting the growth that produces a middle class and citizens less dependent on the state. Empirical evidence supports that relationship.The most comprehensive empirical study on the relationship between a country’s economic policies and institutions and a country’s level of prosperity is the Canadian Fraser Institute’s Economic Freedom of the World report. It looks at 38 components of economic freedom, ranging from the size of government to the rule of law to monetary and trade policy, in 127 countries over a period of more than 30 years. The study finds a strong relationship between economic freedom and prosperity. The freest economies have an average per capita income of $25,062 compared with $2,409 in the least free countries. Free economies also grow faster than less free economies. Per capita growth in the past 10 years was 2.5 percent in the most free countries, while it was 0.6 percent in the least free countries.”
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