LESSON 2 THE RELATIONSHIP BETWEEN ECONOMIC FREEDOM AND POLITICAL FREEDOM VISUAL 2.1 QUOTATIONS ON POLITICAL AND ECONOMIC FREEDOM Quotation 1: I know of no example in time or place of a society that has been marked by a large measure of political freedom and that has not also used something comparable to a free market to organize the bulk of economic activity. Milton Friedman, Nobel Prize-winning economist, Capitalism and Freedom (University of Chicago Press, 1962). Quotation 2: It is a historical fact that modern democratic institutions...have existed only in countries with predominantly privately-owned, market oriented economies, or capitalism, if you prefer the name. Robert Dahl, After the Revolution: Authority in a Good Society (Yale University Press, 1990). Quotation 3: The more well-to-do a nation, the greater the chances that it will sustain democracy. Seymour Lipset, Political Man: The Social Basis of Politics (The Johns Hopkins University Press, 1981). 26 FOCUS:UNDERSTANDING ECONOMICS IN CIVICS AND GOVERNMENT © COUNCIL FOR ECONOMIC EDUCATION,NEW YORK,NY THE RELATIONSHIP BETWEEN ECONOMIC FREEDOM AND POLITICAL FREEDOM LESSON 2 VISUAL 2.2 POLITICAL AND ECONOMIC FREEDOM IN 30 RANDOMLY SELECTED COUNTRIES Index of Economic Freedom Country Freedom (IEF) Rating House Status Cuba 29.7 Not Free Zimbabwe 35.8 Not Free Myanmar (Burma) 40.1 Not Free Turkmenistan 42.5 Not Free Syria 48.2 Not Free Chad 46.4 Not Free Laos 49.1 Not Free Algeria 52.2 Not Free Russia 54.0 Not Free Guinea 55.1 Not Free Sierra Leone 48.4 Partly Free Djibouti 52.6 Partly Free Yemen 53.8 Partly Free Burkina Faso 55.0 Partly Free Turkey 59.3 Partly Free Kenya 59.4 Partly Free Albania 61.4 Partly Free Madagascar 61.4 Partly Free Nicaragua 62.7 Partly Free Georgia 68.7 Partly Free Mongolia 60.1 Free Brazil 60.9 Free Peru 62.1 Free South Africa 64.1 Free Czech Republic 69.7 Free Australia 71.3 Free Lithuania 72.0 Free Germany 73.5 Free Ireland 81.3 Free United Kingdom 81.6 Free FOCUS:UNDERSTANDING ECONOMICS IN CIVICS AND GOVERNMENT © COUNCIL FOR ECONOMIC EDUCATION,NEW YORK,NY 27 LESSON 2 THE RELATIONSHIP BETWEEN ECONOMIC FREEDOM AND POLITICAL FREEDOM VISUAL 2.3 IEF RATING BY FREEDOM HOUSE CATEGORY NOT FREE PARTLY FREE FREE 90 80 70 60 50 40 30 20 10 0 Index of Economic Freedom Score Index of Economic Freedom Peru Laos Cuba Chad Syria Brazil Kenya Yemen Russia Turkey Guinea Algeria Ireland Georgia Albania Djibouti Mongolia Germany Australia zimbabwe Lithuania Nicaragua Madagascar South Africa Sierra Leone Burkina Faso Turkmenistan Czech Republic Czech United Kinddom Myanmar(Burma) 28 FOCUS:UNDERSTANDING ECONOMICS IN CIVICS AND GOVERNMENT © COUNCIL FOR ECONOMIC EDUCATION,NEW YORK,NY THE RELATIONSHIP BETWEEN ECONOMIC FREEDOM AND POLITICAL FREEDOM LESSON 2 VISUAL 2.4 COMPLETED AVERAGE IEF RATING BY FREEDOM HOUSE CATEGORY FOR 30 RANDOMLY SELECTED COUNTRIES AVERAGE INDEX OF ECONOMIC FREEDOM (IEF) RATING BY FREEDOM HOUSE CATEGORY FOR 30 SELECTED COUNTRIES 80 69.66 70 58.27 60 50 45.31 Avg. IEF Rating 40 30 20 10 0 Not Free Partly Free Free FOCUS:UNDERSTANDING ECONOMICS IN CIVICS AND GOVERNMENT © COUNCIL FOR ECONOMIC EDUCATION,NEW YORK,NY 29 LESSON 2 THE RELATIONSHIP BETWEEN ECONOMIC FREEDOM AND POLITICAL FREEDOM VISUAL 2.5 TESTING THE RELATIONSHIP BETWEEN ECONOMIC AND POLITICAL FREEDOM Country Freedom House Predicted IEF Actual IEF Rating Category Rating Iran NOT FREE 43.1 South Korea FREE 68.6 United States FREE 82.0 Country IEF Rating Predicted Freedom Actual Freedom House Category House Category Norway 70.1 FREE Estonia 78.1 FREE Haiti 52.2 NOT FREE 30 FOCUS:UNDERSTANDING ECONOMICS IN CIVICS AND GOVERNMENT © COUNCIL FOR ECONOMIC EDUCATION,NEW YORK,NY.