Teh Global Retreat and Rebound of Economic Freedom
Recent data reveals a concerning trend: a global decline in economic freedom, particularly during the COVID-19 pandemic, coinciding with setbacks in โขpersonal and political liberties. Though, indicators suggest โa potential rebound is underway, offering a glimmer of hope for โcontinued human progress.
The Economic Freedom โof theโฃ World report highlights a โคsignificant downturn in โฃeconomic freedom,โ with hong Kong experiencing a particularly sharp decline.This is largely โคattributed to the implementationโ of a 2020 securityโ law,which appears to have dismantled the “one country,two systems” framework previously in โplace.
The United States has also seenโฃ its economic freedom challenged by a resurgenceโ of protectionist policies. A related report,โข “U.S. Economic Freedom in a Trade War,” demonstrates that tariffs imposed under the Trump administration are projected to substantially lower the U.S.’s trade freedom ranking, dropping from 56th to 76thโค place, and its overall economic freedom โคranking, falling from 5th to 10th.
These declines โin economic freedom are not merely abstract concerns. The reportโข underscores a strong correlationโ between economic โfreedomโ and positive societal outcomes. Countries withโฃ greater economicโ freedom consistently exhibit higher per capita GDP, lower poverty rates, increased life โexpectancy, and reduced โขinfant mortality. Furthermore,economicallyโ freeโค nations tend to enjoy greaterโ personal freedom โฃoverall.
The period of diminished โeconomic freedom appearsโ toโฃ align with broader losses of freedom. The Human Freedom Index found that 87.4% of the โคworld’s โpopulation experienced a reduction inโ freedom between 2019 and 2022. The Democracy Index 2024 from the Economist Intelligenceโค Unit โsimilarly points to aโ “continuing democratic malaise” following the initial rollback of freedoms during the pandemic.
However, recent data offers encouraging signs. Theโฃ Human Progress Simon Abundance Index โคshows a recovery in resource abundance โafter โฃa downturn between 2021 and 2022, linked to pandemic-related lockdowns, monetary expansion, and the war in Ukraine. โค Moreover, the World Bank reports a decrease in global poverty, falling from 890 millionโค in 2021 โ(a jump from 840 million in 2019)โฃ to 831 million in 2025, reversing a worrying trend after decadesโฃ of decline.
These developments underscore โthe critical importance of economicโฃ freedom.โข Restricting individuals’ ability to engage โin free exchange – to buy, sell, own property, and contract – not only hinders economic growth but also diminishes personalโค autonomy and โขoverall human flourishing. Conversely, fostering economic freedom is โฃessential for alleviating poverty, promoting prosperity, and safeguarding essential liberties, making it a cause worthy โฃof continued advocacy and protection.