1 Economic Freedom of the World: 2007 Annual Report Omans Achievement International Research Foundation Press Conference Muscat, Oman September 4, 2007

1

Economic Freedom of the Economic Freedom of the World: 2007 Annual ReportWorld: 2007 Annual Report

Oman’s AchievementOman’s Achievement International Research

Foundation Press Conference

Muscat, Oman September 4, 2007

Fred McMahon, Director, Globalization Studies, The Fraser Institute Canada

2

THANK YOU FOR THANK YOU FOR COMING!COMING!

The key to changing the world is changing the climate of opinion about what works and what does not work in creating prosperity and other positive outcomes

The key to changing the climate of opinion is providing the widest possible audience with good information about the causes of development and under-development

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It is a pleasure and an honour It is a pleasure and an honour to be hereto be here

I would like to thank Salem Al Ismaily, Executive President of the Omani Center for

Investment Promotion and Export Development, and Azzan Al Busaidi, CEO of the

International Research Foundation of Oman, for inviting me and congratulate both on the great work they are doing for Oman and

worldwide in providing the best possible information here and internationally.

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What is Economic FreedomWhat is Economic Freedom

Individuals have economic freedom when property they acquire without the use of force, fraud, or theft is protected from physical invasions by others and they are free to use, exchange, or give their property as long as their actions do not violate the identical rights of others. An index of economic freedom should measure the extent to which rightly acquired property is protected and individuals are engaged in voluntary transactions.

James Gwartney et al. 1996

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Why is economic freedom Why is economic freedom importantimportant

People are the best positioned to make choices for themselves and their family.

With voluntary economic agreements, everyone gains.

This dynamic spreads through the economy and generates prosperity and hope

A quick peak at the top and bottom 10.

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Income (per person) of the Top 10Income (per person) of the Top 10

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

GDP per Capita, 2005 (ppp)

EstoniaNew Zealand

SingaporeAustralia

United KingdomCanada

Hong KongSwitzerland

IrelandUnited States

Sources: The Fraser Institute; The World Bank, World Development Indicators Sources: The Fraser Institute; The World Bank, World Development Indicators CD-ROM, 2007.CD-ROM, 2007.

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Income (per person) of the Income (per person) of the Bottom TenBottom Ten

0 10,000 20,000 30,000 40,000 50,000 60,000

GDP per Capita, 2005 (ppp)

BurundiCongo, Dem. R.

NigerCentral Afr. Rep.

Congo, Rep. OfChadTogo

ZimbabweAngola

Venezuela

Sources: The Fraser Institute; The World Bank, World Development Sources: The Fraser Institute; The World Bank, World Development Indicators Indicators CD-ROM, 2007.CD-ROM, 2007.

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Economic Freedom of the World ProjectEconomic Freedom of the World Project

Objective: find a way to measure economic freedom and explore the connection between it and other variables

20 year project Led by the late Milton Friedman, Rose

Friedman and Michael WalkerInvolved 60 of the world’s top scholars

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The Economic Freedom of The Economic Freedom of the World Indexthe World Index

An annual compilation of data representing factors which make a country economically free

Authors: James Gwartney and Robert Lawson A compendium of 42 variables affecting economic

freedom based on objective data or independent surveys

A ranking of 141 countries representing 95% of the world’s population according to the extent to which they permit their citizens to be economically free

Now a collaboration of Institutes in 71 different countries

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How is Economic Freedom MeasuredHow is Economic Freedom MeasuredAnd what the measurements meanAnd what the measurements mean

Size of government and taxationPrivate property and the rule of lawSoundness of MoneyTrade regulation and tariffsRegulation of business, labour and capital

markets

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Talk about making a difference …Talk about making a difference …

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Albanian Center for Economic Albanian Center for Economic Research, AlbaniaResearch, AlbaniaFundación Libertad, ArgentinaFundación Libertad, ArgentinaInstitute of Public Affairs, AustraliaInstitute of Public Affairs, AustraliaTIGRA®, AustriaTIGRA®, AustriaCenter for Economic and Political Center for Economic and Political Research, AzerbaijanResearch, AzerbaijanThe Nassau Institute, BahamasThe Nassau Institute, BahamasMaking Our Economy Right (MOER), Making Our Economy Right (MOER), BangladeshBangladeshScientific Research Mises Center, Scientific Research Mises Center, BelarusBelarusCentre for the New Europe, BelgiumCentre for the New Europe, BelgiumFundacion Libertad y Democracia Fundacion Libertad y Democracia (FULIDE), Bolivia(FULIDE), BoliviaInstituto Liberal do Rio de Janeiro, Instituto Liberal do Rio de Janeiro, BrazilBrazilInstitute for Market Economics, Institute for Market Economics, BulgariaBulgariaCambodia Institute of Development Cambodia Institute of Development Study, Cambodia Study, Cambodia The Fraser Institute, CanadaThe Fraser Institute, CanadaInstituto Libertad y Desarrollo, ChileInstituto Libertad y Desarrollo, ChileILP- Instituto Libertad y Progreso, ILP- Instituto Libertad y Progreso, ColombiaColombiaInstituto para la Libertad y el Instituto para la Libertad y el Análisis de Políticas, Costa RicaAnálisis de Políticas, Costa RicaThe Institute of Economics, CroatiaThe Institute of Economics, CroatiaLiberální Institut, Czech RepublicLiberální Institut, Czech RepublicCenter for Politiske Studier (CEPOS), Center for Politiske Studier (CEPOS), DenmarkDenmarkFundación Economía y Desarrollo Fundación Economía y Desarrollo Inc., Dominican RepublicInc., Dominican RepublicInstituto Ecuatoriano de Economía Instituto Ecuatoriano de Economía Política, EcuadorPolítica, Ecuador International University Concordia Audentes, Audentes University, EstoniaAssociation pour la Liberté Economique et le Progrès Social (ALEPS), France

Alternate Solutions Institute, PakistanAlternate Solutions Institute, PakistanFundación Libertad, PanamaFundación Libertad, PanamaCentro de Investigación y Estudios Centro de Investigación y Estudios Legales (CITEL), PeruLegales (CITEL), PeruThe Center for Research and The Center for Research and Communication, PhilippinesCommunication, PhilippinesCentrum im. Adama Smitha, PolandCentrum im. Adama Smitha, PolandCausa Liberal, PortugalCausa Liberal, PortugalRomania Think Tank, RomaniaRomania Think Tank, RomaniaInstitute of Economic Analysis, RussiaInstitute of Economic Analysis, RussiaThe F.A. Hayek Foundation, Slovak The F.A. Hayek Foundation, Slovak RepublicRepublicThe Free Market Foundation of Southern The Free Market Foundation of Southern Africa, South AfricaAfrica, South AfricaPathfinder FoundationPathfinder Foundation , Sri Lanka, Sri LankaInternational Research Foundation International Research Foundation (IRF), Sultanate of Oman(IRF), Sultanate of OmanTimbro, SwedenTimbro, SwedenLiberales Institut, SwitzerlandLiberales Institut, SwitzerlandArthur Lok Jack Graduate School of Arthur Lok Jack Graduate School of Business, The University of the West Business, The University of the West Indies, Trinidad, W.I.Indies, Trinidad, W.I.Association for Liberal Thinking, TurkeyAssociation for Liberal Thinking, TurkeyThe Ukrainian Center for Independent The Ukrainian Center for Independent Political Research, UkrainePolitical Research, UkraineThe Institute of Economic Affairs, United The Institute of Economic Affairs, United KingdomKingdomCATO Institute, USACATO Institute, USAThe Centre for the Dissemination of The Centre for the Dissemination of Economic Knowledge (CEDICE), VenezuelaEconomic Knowledge (CEDICE), VenezuelaResearch Center for Entrepreneurship Research Center for Entrepreneurship and Development Policies, Vietnamand Development Policies, VietnamFree Market Center (FMC), YugoslaviaFree Market Center (FMC), YugoslaviaZambia Institute for Public Policy Analysis Zambia Institute for Public Policy Analysis (ZIPPA), Zambia(ZIPPA), Zambia

Member Institutes of Economic Freedom of the World Network

Society for Disseminating Economic Knowledge:“New Economic School – Georgia”, GeorgiaLiberales Institut, GermanyThe Institute of Economic Affairs, GhanaCentro de Investigaciones Económicas Nacionales, GuatemalaInstitut de Recherche pour la Liberte Economique et la Prosperite (IRLEP), HaitiHong Kong Centre for Economic Research, Hong KongSzazadveg Foundation, HungaryCentre for Social and Economic Research, IcelandCentre for Civil Society, IndiaThe Institute for Development of Economics and Finance, IndonesiaOpen Republic Institute, IrelandInstitute for Advanced Strategic and Political Studies, IsraelCentro Einaudi, ItalyBureau d'Analyse d'Ingenierie et de Logiciels (BAILO), Ivory CoastAfrican Research Center for Public Policy and Market Process, KenyaCenter for Free Enterprise, KoreaEconomic Policy Institute-Bishkek Consensus, Kyrgyz RepublicLithuanian Free Market Institute, LithuaniaD'Letzeburger Land, LuxembourgCentro de Investigación para el Desarrollo A.C., MexicoOpen Society Forum, MongoliaThe Center for Entrepreneurship and Economic Development, MontenegroThe New Zealand Business Roundtable, New ZealandInstitute of Public Policy Analysis, NigeriaCivita – Center for Business and Society Incorporated, Norway

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Sample of Press Coverage forFraser Institute’ Economic Freedom of the World 2006

All Africa, AfricaAll Africa, AfricaAmbito Financiero, ArgentinaAmbito Financiero, ArgentinaEl Litoral, ArgentinaEl Litoral, ArgentinaDaily News, BahrainDaily News, BahrainDaily Star, BeirutDaily Star, BeirutMmegi, BotswanaMmegi, BotswanaEkonomika, BratislavaEkonomika, BratislavaCapital Weekly, BulgariaCapital Weekly, BulgariaInvestor, BulgariaInvestor, BulgariaNovinar, BulgariaNovinar, BulgariaSega, BulgariaSega, BulgariaSofia Echo, BulgariaSofia Echo, BulgariaCalgary Herald, CanadaCalgary Herald, CanadaVancouver Sun, CanadaVancouver Sun, CanadaGlobe and Mail, CanadaGlobe and Mail, CanadaNational Post, CanadaNational Post, CanadaSouth China Morning Post, South China Morning Post, ChinaChinaXinhua News Agency, ChinaXinhua News Agency, ChinaBusiness Day, ColombiaBusiness Day, ColombiaLa Colombiano, ColombiaLa Colombiano, ColombiaLa Republica, ColombiaLa Republica, ColombiaPortafolio, ColombiaPortafolio, ColombiaLa Prensa Libre, Costa RicaLa Prensa Libre, Costa RicaBaltic Business Weekly, Baltic Business Weekly, EstoniaEstonia

El Economista, MexicoEl Economista, MexicoEl Financiero, MexicoEl Financiero, MexicoEl Universal, MexicoEl Universal, MexicoTiempo, MexicoTiempo, MexicoDaily News, MontenegroDaily News, MontenegroDaily Press, MontenegroDaily Press, MontenegroMina business, MontenegroMina business, MontenegroPobjeda, MontenegroPobjeda, MontenegroFaz.Net, NetherlandsFaz.Net, NetherlandsInternational Herald Tribune, New ZealandInternational Herald Tribune, New ZealandBusiness Recorder, PakistanBusiness Recorder, PakistanPoland Today, PolandPoland Today, PolandRompres, RomaniaRompres, RomaniaBBC Monitoring, RussiaBBC Monitoring, RussiaKommersant, RussiaKommersant, RussiaBiz Day, South AfricaBiz Day, South AfricaBusiness Day, South AfricaBusiness Day, South AfricaMail and Guardian, South AfricaMail and Guardian, South AfricaNews 24, South AfricaNews 24, South AfricaSunday times, South AfricaSunday times, South AfricaLibertad Digital, SpainLibertad Digital, SpainTaipei Times, TaiwanTaipei Times, TaiwanBangkok Post, ThailandBangkok Post, ThailandTurkish Daily News, TurkeyTurkish Daily News, TurkeyBusiness Journal, USBusiness Journal, USTCS Daily, USTCS Daily, USWashington Times, USWashington Times, USEl Universal, VenezuelaEl Universal, Venezuela

Postman, EstoniaPostman, EstoniaL'Agefi Suisse, FranceL'Agefi Suisse, FrancePress Digest, Hong KongPress Digest, Hong KongReuters, Hong KongReuters, Hong KongStandard, Hong KongStandard, Hong KongBudapest Business Journal, HungaryBudapest Business Journal, HungaryMTI Eco News, HungaryMTI Eco News, HungaryBusiness Weekly, IcelandBusiness Weekly, IcelandFrettabladid, IcelandFrettabladid, IcelandBusiness Standard, IndiaBusiness Standard, IndiaTimes of India, IndiaTimes of India, IndiaEconomist, InternationalEconomist, InternationalZeev Klein, IsraelZeev Klein, IsraelCorrier Economica, ItalyCorrier Economica, ItalyIl Corriere della Sera, ItalyIl Corriere della Sera, ItalyIl Tempo, ItalyIl Tempo, ItalyIndiscreto, ItalyIndiscreto, ItalyJakarta Post, JakartaJakarta Post, JakartaKorea Economic Daily, KoreaKorea Economic Daily, KoreaKorea Herald, KoreaKorea Herald, KoreaKorea Times, KoreaKorea Times, KoreaSeoul Daily, KoreaSeoul Daily, KoreaYon Hap News, KoreaYon Hap News, KoreaLatvian News Agency, LatviaLatvian News Agency, LatviaBernama Daily, MalaysiaBernama Daily, MalaysiaBusiness Times, MalaysiaBusiness Times, MalaysiaDaily Express, MalaysiaDaily Express, Malaysia

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Sub-national and Regional IndicesSub-national and Regional Indices

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Economic Freedom of the Arab WorldEconomic Freedom of the Arab World

16

Marketization Index of Chinese Provinces

17

Economic Freedom Index of Indian States

18

Economic Freedom Index of Argentinean Provinces

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Economic Freedom of North AmericaEconomic Freedom of North America

20

Introducing the 2007 Economic Introducing the 2007 Economic Freedom of the World Index ResultsFreedom of the World Index Results

Oman’s

Achievement

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Oman and the WorldOman and the World

Oman is one of the world’s top 20 economically free nations

Oman and the UAE are essentially tied as the freest nations in the Arab world

Oman is well ahead of the world average

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Economic Freedom: The WorldEconomic Freedom: The World

0 2 4 6 8 10

Score (out of 10)

Z imb a b weMya n ma r

C o n g o , De m. R .A n g o la

C o n g o , R e p . OfC e n tra l A fr.V e n e zu e la

B u ru n d iT o g oNig e rC h a d

G u in e a -B issa u R wa n d a

A lg e riaMa li

A rg e n tin aS yria

C a me ro o nMa la wi

B u rk in a F a soG a b o nNe p a l

S e rb ia S ie rra L e o n e

Nig e riaU k ra in e

B e n inR u ssia

C o lo mb iaE c u a d o r

Ma d a g a sc a rS e n e g a lMo ro c c o

F ijiC o te d 'Iv o ire

P a k ista nB ra zil

B a n g la d e shS ri L a n k a

E th io p iaHa iti

A lb a n iaG u ya n a

B o sn ia a n dV ie tn a m

S lo v e n iaP a p . Ne w

A ze rb a ija nG h a n a

Mo za mb iq u eT u rk e y

Ma c e d o n iaIn d o n e siaT a n za n iaB a rb a d o s

C h in aC ro a tia

Ira nR o ma n ia

Do min ic a nMa u rita n iaP a ra g u a yMo ld o v a

Nic a ra g u aE g yp t

U g a n d aT u n isia

B e lizeIn d ia

P h ilip p in e sK e n ya

B o liv iaNa mib iaZ a mb ia

Ho n d u ra sT rin id a d &

Ma la ysiaS o u th A fric aMo n te n e g ro

K yrg yz R e p u b licT h a ila n d

L e so th oU ru g u a yB u lg a riaP o la n dG re e c eF ra n c eJo rd a n

Ita lyC ze c h R e p .

B a h ra inG u a te ma laMo n g o lia

Me xic oIsra e l

B a h a ma sG e o rg ia

S p a inP o rtu g a l

B o tswa n aB e lg iu mJa ma ic a

P e ruT a iwa nA rme n ia

S lo v a k R e pMa lta

S o u th K o re aK a za k h sta n

K u wa itC o sta R ic a

P a n a maJa p a nNo rwa y

Ma u ritiu sL a tv ia

S we d e nL ith u a n ia

Hu n g a ryC yp ru sA u striaOma n

E l S a lv a d o rG e rma n y

U n it. A ra b E m.Ne th e rla n d s

De n ma rkC h ile

Ic e la n dL u xe mb o u rg

F in la n dA u stra liaIre la n dE sto n ia

C a n a d aU n ite d

U n ite d S ta te sS witze rla n d

Ne w Z e a la n dS in g a p o re

Ho n g K o n g

Source: The Fraser Source: The Fraser Institute.Institute.

Oman

24

Economic Freedom Over TimeEconomic Freedom Over Time

4

6

8

1990 1995 2000 2001 2002 2003 2004 2005

Eco

nom

ic F

reed

om

Sco

re

World Average Oman


25

Economic Freedom: The Top 20!!Economic Freedom: The Top 20!!

0 2 4 6 8 10

Score (out of 10)

World averageAustria

El SalvadorGermany

OmanUnit. Arab Em.

DenmarkNetherlands

ChileFinlandIceland

LuxembourgAustralia

IrelandEstoniaCanada

United KingdomUnited States

SwitzerlandNew Zealand

SingaporeHong Kong


26

Size of Government: Top 20Size of Government: Top 20

0 2 4 6 8 10

Score (out of 10)

DenmarkNetherlands

FinlandAustria

LuxembourgOman

GermanyWorld

IrelandChile

AustraliaUnited

New ZealandCanadaIcelandEstonia

SwitzerlandUnit. Arab

United StatesSingapore

Hong KongEl Salvador


27

Sound Money: Top 20Sound Money: Top 20

0 2 4 6 8 10

Score (out of 10)

World AverageUnit. Arab Em.

IcelandChile

OmanAustralia

United KingdomEstonia

NetherlandsDenmarkGermany

Hong KongAustria

El SalvadorFinland

New ZealandIreland

SwitzerlandCanada

LuxembourgSingapore

United States


28

Freedom to Trade: Top 20Freedom to Trade: Top 20

0 2 4 6 8 10

Score (out of 10)

IcelandWorld

El SalvadorAustralia

OmanSwitzerland

United StatesFinlandCanada

UnitedAustria

DenmarkGermany

New ZealandLuxembourg

EstoniaNetherlands

Unit. ArabChile

IrelandSingapore

Hong Kong


29

Credit Market Regulation: Top 20Credit Market Regulation: Top 20

0 2 4 6 8 10

Score (out of 10)

GermanyUnit. Arab Em.World Average

SwitzerlandIceland

SingaporeNetherlands

AustriaCanada

DenmarkUnited StatesLuxembourg

IrelandAustralia

ChileHong Kong

OmanEl Salvador

FinlandUnited

EstoniaNew Zealand


30

Labour Market Regulation: Top 20Labour Market Regulation: Top 20

0 2 4 6 8 10

Score (out of 10)

GermanyAustriaFinlandIreland

World AverageNetherlandsEl Salvador

EstoniaLuxembourg

Unit. Arab Em.AustraliaCanada

ChileUnited

DenmarkIceland

OmanNew ZealandUnited States

SwitzerlandSingapore

Hong Kong


31

Business Regulation: Top 20Business Regulation: Top 20

0 2 4 6 8 10

Score (out of 10)

World AverageEl Salvador

NetherlandsOman

Unit. Arab Em.United

LuxembourgChile

AustriaUnited States

GermanyEstonia

SwitzerlandIreland

AustraliaCanada

Hong KongSingapore

DenmarkNew Zealand

IcelandFinland


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Oman’s Achievement:Oman’s Achievement:Focus on the legal systemFocus on the legal system

Single most important factor for economic freedom– Property rights and contracting particularly

important for economic growth

Institutional improvement is the greatest challenge faced by all nations

Oman has great achievements– Leads the Arab world and the vast majority of

other nations including France and Belgium

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Oman’s Achievement over timeOman’s Achievement over time

0123456789

10

1990 1995 2000 2005

Legal system

34

Legal System: Top 20Legal System: Top 20

0 2 4 6 8 10

Score (out of 10)

El SalvadorWorld AverageUnit. Arab Em.

ChileEstonia

OmanUnited States

Hong KongIreland

SingaporeCanadaAustria

United KingdomLuxembourg

AustraliaGermany

FinlandSwitzerlandNetherlands

IcelandNew Zealand

Denmark


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Why is Economic Freedom Why is Economic Freedom ImportantImportant

36

Per Capita Income and Economic Per Capita Income and Economic Freedom QuartileFreedom Quartile

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

GD

P P

er C

apit

a (p

pp

), 2

005

Least FreeQuartile

3rd Quartile 2nd Quartile Most FreeQuartile

Least Free …………… Most FreeLeast Free …………… Most FreeSources: The Fraser Institute; The World Bank, World Development Sources: The Fraser Institute; The World Bank, World Development Indicators CD-ROM, 2007.Indicators CD-ROM, 2007.

37

Per Capita Income of Poorest 10% Per Capita Income of Poorest 10% and Economic Freedomand Economic Freedom

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

Least Free Quartile 3rd Quartile 2nd Quartile Most Free Quartile

Least Free …….. Most Free Least Free …….. Most Free Sources: The Fraser Institute; The World Bank, World Development Indicators Sources: The Fraser Institute; The World Bank, World Development Indicators

CD-ROM, 2007.CD-ROM, 2007.

38

The impact of Economic Freedom on The impact of Economic Freedom on the UN’s Human Development Index the UN’s Human Development Index and other indicators of well-beingand other indicators of well-being

39

Human Development Index and Human Development Index and Economic Freedom QuartilesEconomic Freedom Quartiles

0.0

0.2

0.4

0.6

0.8

1.0

Un

ited

Nat

ion

s H

um

an D

evel

op

men

t In

dex

Least FreeQuartile


Least Free ……………. Most FreeLeast Free ……………. Most Free

Sources: The Fraser Institute; United Nations Development Programmme, Human Sources: The Fraser Institute; United Nations Development Programmme, Human Development Indicators 2006, available at http://hdr.undp.org/.Development Indicators 2006, available at http://hdr.undp.org/.

40

Life Expectancy at Birth and Life Expectancy at Birth and Economic Freedom QuartilesEconomic Freedom Quartiles

0

20

40

60

80

Yea

rs

Least FreeQuartile



Sources: The Fraser Institute; The World Bank, World Development Indicators CD-Sources: The Fraser Institute; The World Bank, World Development Indicators CD-

ROM, 2007.ROM, 2007.

41

Infant Mortality and Economic Infant Mortality and Economic Freedom QuartileFreedom Quartile

0

20

40

60

80

Per

1,0

00 li

ve b

irth

s, 2

005

Least FreeQuartile


Least Free ………..…. Most FreeLeast Free ………..…. Most Free Sources: The Fraser Institute; The World Bank, World Development Indicators Sources: The Fraser Institute; The World Bank, World Development Indicators

CD-ROM, 2007.CD-ROM, 2007.

42

% of Population Using Improved % of Population Using Improved Water SourcesWater Sources

0

20

40

60

80

100

Per

cen

tag

e

Least FreeQuartile


Least Free …………….. Most FreeLeast Free …………….. Most Free Sources: The Fraser Institute; The World Bank, World Development Indicators Sources: The Fraser Institute; The World Bank, World Development Indicators

CD-ROM, 2007.CD-ROM, 2007.

43

Economic Freedom lays the foundation Economic Freedom lays the foundation for the natural evolution of other for the natural evolution of other freedoms and democracy over timefreedoms and democracy over time

44

Economic Freedom and Political RightsEconomic Freedom and Political Rights Lower ratings indicate higher level of political rightsLower ratings indicate higher level of political rights

0.0

1.0

2.0

3.0

4.0

5.0

Po

liti

cal

Rig

hts

(o

ut

of

10)

Least FreeQuartile



Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 1972 through 2005, available at http://www.freedomhouse.org/.1972 through 2005, available at http://www.freedomhouse.org/.

45

Economic Freedom and Civil LibertiesEconomic Freedom and Civil Liberties Lower ratings indicate higher level of civil liberties Lower ratings indicate higher level of civil liberties

0.0

1.0

2.0

3.0

4.0

5.0

Civ

il L

iber

ties

(o

ut

of

10)

Least FreeQuartile


Least Free …….. Most FreeLeast Free …….. Most Free Sources: The Fraser Institute; Freedom House, Freedom in the World Country Sources: The Fraser Institute; Freedom House, Freedom in the World Country Ratings, 1972 through 2005, available at http://www.freedomhouse.org/.Ratings, 1972 through 2005, available at http://www.freedomhouse.org/.

46

Economic Freedom Versus CorruptionEconomic Freedom Versus CorruptionHigher value indicates lower level of corruptionHigher value indicates lower level of corruption

0

2

4

6

8

10

Co

rru

pti

on

Ra

tin

g

(ou

t o

f 1

0)

Least FreeQuartile


Least Free ………….. Most FreeLeast Free ………….. Most Free Sources: The Fraser Institute; Transparency International, Corruption Perceptions Index, Sources: The Fraser Institute; Transparency International, Corruption Perceptions Index,

available at http://www.transparency.org.available at http://www.transparency.org.

47

Increasing the Increasing the Economic Freedom of OmanisEconomic Freedom of Omanis

48

Increasing economic freedomIncreasing economic freedom

Reduce Size of Government– High government consumption (35.5% of total

consumption) can crowd out private sector initiatives and reduce economic freedom

49

Increasing economic freedomIncreasing economic freedom

Legal structure: Oman’s achievements are great but improvements are possible– Legal enforcement of contracts (6.4 out of 10)

should be more certain and timely

50

Oman has a bright futureOman has a bright future

Oman already has high achievement in economic freedom

Oman has steadily increased its economic freedom

Far-sighted leaders like Salem and Azzan and many others are committed to increasing the economic freedom and well-being of Omanis.

51

ConclusionsConclusionsEconomic Freedom

Increases prosperity for allReduces poverty Increases other freedomsImproves quality of life

All this can be seen in today’s data All this can be seen in today’s data and lessons from historyand lessons from history

52

www.freetheworld.comwww.freetheworld.com

www.fraserinstitute.cawww.fraserinstitute.ca

Documents

1 Economic Freedom of the World: 2007 Annual Report Omans Achievement International Research Foundation Press Conference Muscat, Oman September 4, 2007