Libertad y Progreso (LyP), an Atlas Network partner based in Argentina, recently partnered with the Fraser Institute, another Atlas Network partner based in Canada, to discuss the role of government in the economy in “Economic Freedom Audit in Argentina 2017” (report in Spanish).
In the report, LyP argues: “Economic freedom reflects the ability of individuals and families to make their own economic decisions, limiting government interference.” In a free society, economic freedom and government interference are inversely related — the more the government is involved in the economic decisions of Argentines, the less economic freedom they have. Consequently, the report goes on, saying, “Those nations that [retained] free-market policies are now among the most prosperous countries in the world, while Argentina followed a populist way and the prospects dimmed.”
Their research is based on the Index of Economic Freedom of the World (EFW) which has six key factors in determining the amount economic freedom a country has: size of government, legal structure of property rights, currency access, freedom to trade, and regulations on business. Argentina is currently one of the lowest-rated countries.
LyP believes that “A shift toward a freer economy could help Argentina rise to a level equivalent to that of the prosperity of the most developed nations,” even citing the correlation between more economic freedom and less political corruption.
By looking at issues such as government consumption, taxes, transfer and subsidies, judicial efficiency, property rights, contract enforcement, barriers to international and domestic trade, and credit market regulations, the report analyzes some of the most relevant economic problems in Argentina in hopes of increasing economic freedom and prosperity.
Read the full “Economic Freedom Audit in Argentina 2017” report here (report in Spanish).