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This comprehensive volume, featuring insights from twenty leading economists and diplomats, serves as a roadmap for navigating the complexities of contemporary governance. By examining the trajectories of various nations and regions, the discourse illuminates key trends shaping global prosperity and underscores the importance of preserving fundamental freedoms in the face of evolving geopolitical challenges. 

The contemporary geopolitical landscape is marked by a series of crises—economic downturns, geopolitical tensions, and global pandemics—that have reshaped the role of governments worldwide. In response to these challenges, governments have significantly expanded their authority, prompting a reevaluation of traditional liberal principles and fundamental freedoms. This shift has led to a complex interplay between security imperatives and individual liberties, raising concerns about the erosion of trust in public institutions and the proliferation of surveillance technologies. 

Against this backdrop, the Atlantic Council’s Freedom and Prosperity Center seeks to explore policies that strike a delicate balance between fostering trust in governance and protecting personal liberties. Through political, economic, and legal reforms, policymakers are challenged to navigate the multifaceted dynamics of freedom, security, and prosperity in an increasingly interconnected world. 

Comprehensive analysis spanning eighteen countries and regions highlights four alarming trends: privacy infringements, human capital losses, environmental challenges, and declining productivity. These underscore the urgent need for innovative policy responses that prioritize individual liberties while addressing pressing socio-economic and environmental concerns. 

Central to this discussion is the recognition of the enduring relationship between freedom and prosperity. The chapters in this book provide compelling evidence that the preservation and advancement of freedoms are essential drivers of sustained economic growth and societal well-being. 

Today’s complex interplay between geopolitical forces and domestic governance structures highlights the need for a nuanced understanding of the factors driving global prosperity. By engaging in rigorous empirical analysis and leveraging insights from diverse disciplines, policymakers can develop informed strategies to navigate the challenges of the twenty-first century. By prioritizing trust, transparency, and accountability in governance, policymakers can foster an environment conducive to sustained economic growth, social cohesion, and global prosperity. 

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Foreword: Creating another wave of democracy

By: Daron Acemoglu

The best way to counter the current pernicious trends is to create another wave of democracy, similar to the one witnessed after the collapse of military dictatorships in Southern Europe in the 1970s. This requires reinstating democracy support, institutional trust, and empowering civil society appropriately.

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Regaining trust in government

By: Simeon Djankov, Joseph Lemoine, and Dan Negrea

Crises like COVID-19 prompt increased government control, challenging liberal values. Declining trust in governments clashes with security needs, urging policies to balance freedom and prosperity. Energy security challenges hinder net-zero goals, posing economic challenges globally, alongside privacy dilemmas amid surveillance tech in China, Russia, and the Middle East.

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East Asia & the Pacific

China’s authoritarian trend meets resistance in East Asia and the Pacific

By: Kelley E. Currie

China’s influence shapes political and economic dynamics in East Asia and the Pacific. Despite resistance, its practices hinder freedom across the region. Youth movements demand responsive systems. Weak institutions and challenges like inequality persist, requiring diversified economic strategies and strengthened democracies to navigate regional complexities.

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China must spread its wealth to reach equality

By: Johanna Kao

Despite phenomenal growth in GDP, Chinese people have seen only modest gains (if any) across a range of freedom and prosperity indices. The Chinese Communist Party has failed to share the benefits of the country’s upward economic trajectory equally among its citizens.

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Europe

EU’s future prosperity will be marked by war in Ukraine

By: Simeon Djankov

The EU’s freedom and prosperity dynamics will be marked by the war in Ukraine. The indexes provoke philosophical reflection: Is Europe’s prosperity dwindling due to an extensive social safety net? Is the strength of European integration declining with new members, while the strength of EU federalism diminishes?

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Russia will suffer decreases in every dimension of prosperity

By: Konstantin Sonin

Over fifteen years, Russia’s economy stagnated with low growth and persistent inequality. Challenges include minority rights restrictions, healthcare issues, and an educational crisis due to teacher exodus.

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Ukraine’s recovery hinges on allied support

By: Yuriy Gorodnichenko

Ukraine faces challenges with its judicial system and war aftermath, including destruction, displacement, and educational setbacks. Recovery will require allied support and strategic policies.

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Latin America & the Caribbean

Economic challenges are a barrier to Argentina’s prosperity

By: Guido Sandleris

In Argentina’s recent election, libertarian economist Javier Milei won by 11 percent, tapping into economic discontent. His platform stressed freedom and spending cuts, but facing challenges like hyperinflation and fiscal deficits, he may need to moderate his approach for success.

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Economic reform is crucial for growth in Brazil

By: José A. Scheinkman

Brazil’s economic prospects are hindered by high taxes, inefficient regulations, and security concerns, particularly in drug trafficking routes. Reform efforts, including tax and fiscal reforms, along with leveraging Brazil’s strengths like clean energy, are crucial for growth and education opportunities.

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Chile struggles with economic stagnation

By: Andrés Velasco

Chile grapples with economic slowdown and political polarization. Growth has stalled, and trust in democratic institutions has waned as parties have multiplied. Despite failed attempts to rewrite the constitution, polarization persists, complicating Chile’s political future.

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Mexico’s vital institutions face decline

By: Vanessa Rubio-Márquez

Mexico’s institutions are vital for freedoms, but face decline. To advance, it needs strong governance, growth, and redistribution. Despite potential growth from favorable conditions, risks persist. Strengthening governance and productivity is crucial for prosperity.

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Middle East & North Africa

Climate crisis fuels change in MENA region

By: Rabah Arezki

The region faces economic and political transitions amid geopolitical risks, climate change, and energy market shifts. Escalating conflicts are exacerbating instability. Climate change poses existential threats, intensifying water crises and domestic tensions. Socioeconomic transformation will be vital to meet youth aspirations and tackle polarization.

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Egypt grapples with political uncertainty under El-Sisi

By: Rabah Arezki

Egypt faces economic challenges with heavy debt and political unrest. President Abdel Fattah El-Sisi’s reelection may not prompt reforms, exacerbating inflation and currency devaluation. Gulf aid hinges on reforms, while militarization impedes change. Regional tensions heighten instability risks.

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Saudi Arabia’s economic shifts under MBS raise stability concerns

By: Rabah Arezki

Saudi Arabia’s economic transformation under MBS maintains political control, risking instability amid regional conflicts. Reliance on public funds for investments may falter as the world shifts from fossil fuels, and demands for political freedom grow.

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North America

Rising US public debt threatens economic freedom

By: Edward Glaeser

US public debt has surged, posing risks to economic freedom. Despite stability expectations, reforms are needed, like deregulating small businesses and improving urban schools. However, political polarization and the dominance of identity politics hinder progress towards these goals.

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South & Central Asia

India’s political freedom is at risk

By: Pratap Bhanu Mehta

Political freedom in India is declining, with potential for further erosion if the current government remains. Economic prospects are cautiously optimistic, but regional disparities persist, posing challenges to democracy. India’s federal structure may both check centralization and fuel political conflict.

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Pakistan faces urgent need for comprehensive reforms to spur long-term growth and stability

By; Ali Cheema

Pakistan needs extensive economic and institutional reforms to boost long-term growth and prosperity. These reforms involve improving property rights, increasing public investment in education and health, and addressing political polarization. A new political settlement is necessary to foster stability and enable these reforms.

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Sub-Saharan Africa

Sub-Saharan Africa grapples with development imperatives

By: William Easterly

Sub-Saharan Africa confronts urgent development challenges, including the imperative for democratization and institution building, amid critical security concerns. With declining foreign support and China’s Belt and Road Initiative rising, worries arise over debt and politicized financing. Despite potential through regional integration, diverse political interests and institutional weaknesses remain obstacles.

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Stabilizing revenue will lead Kenya to greater prosperity

By: Robert Mudida

Kenya aims to grow manufacturing and GDP via the African Continental Free Trade Area. Formalizing informal jobs stabilizes revenue. Expanding global value chains, especially in tourism, boosts growth. Institutional reform is key for lasting prosperity.

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South Africa needs political change to meet economic demands

By: Greg Mills

South Africa’s future hinges on political changes, especially the potential shift to a coalition government in the 2024 election. Economic challenges, including rising debt, demand urgent reforms. Global alliances, notably with BRICS and China, affect trade dynamics, emphasizing the need for diversification.

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Explore the data

Trackers and Data Visualizations

Jun 15, 2023

Freedom and Prosperity Indexes

The indexes rank 164 countries around the world according to their levels of freedom and prosperity. Use our site to explore twenty-eight years of data, compare countries and regions, and examine the sub-indexes and indicators that comprise our indexes.

The Freedom and Prosperity Center aims to increase the prosperity of the poor and marginalized in developing countries and to explore the nature of the relationship between freedom and prosperity in both developing and developed nations.

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