The The EFW is a good measure for policy

The Economic Freedom Index provides a system to
measure the level of economic freedom based on five major components (Gwartney , Lawson, & Hall, 2017). The index allows
researchers to study the relationship between government policies, how
developed a country is, and how economically free a country is. The Economic
Index is a good tool for policy makers and researchers to examine the country’s
current policies, and where they can improve.

The concept of economic freedom is that of
self-ownership, that is people are free to choose and make their own decisions
as long as it does not interfere with others (Gwartney , Lawson, & Hall, 2017). One of the problems
with the Economic Freedom Index, is that it did not previously adjust for
gender inequality (Gwartney , Lawson, & Hall, 2017). However, there is
still an issue as the index only adjusts for data based on legal differences
only. Many communities will discriminate against women culturally, and
traditionally. Although cultural practices are not legally enforced, many women
are not given a choice. These traditions could mean that a woman is not allowed
to attend school. This should be accounted for in the EFW rating, as women are
not making these decisions for themselves. The EFW rating can help to encourage
countries to provide the same standard of living to everyone regardless of
their gender.

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Furthermore, countries are able to compare themselves
against others in the same region. By doing so, they are able to see where they
are able to improve by implementing different policies. Researches also use the
EFW rating to compare differences in how countries are performing economically (Gwartney , Lawson, & Hall, 2017). Countries that are
not performing as well can utilize this report in order to see which areas they
need to improve upon. They can also use this as a chance to change their
economic policies, so they better reflect those in their region that have
scored a high EFW rating. As discussed in the report, a country with a small fiscal
government cannot ensure economic freedom maximized for the country’s current
capabilities (Gwartney , Lawson, & Hall, 2017). Countries that rank
poorly in the components related to a capable government can use these indicators
to possible change their political structure. These countries also typically
rank poorly in the trade and, regulation area of the EFW rating (Gwartney , Lawson, & Hall, 2017). These nations could
further enhance economic growth by improving in these areas. One of the many
benefits is, increased trade will lead to increased income, which will decrease
poverty, and increase standards of living.

The EFW is a good measure for policy makers, and
researchers to gauge how the policies, and regulations are performing in a
country. As reported, developing countries experience much more rapid growth in
the average EFW rating, than developed countries (Gwartney , Lawson, & Hall, 2017). This higher EFW
rating leads to a higher per-capita income, lower poverty rates, longer life
spans, more political and civil liberties, gender equality, and higher levels
of happiness (Gwartney , Lawson, & Hall, 2017). Countries can also
compare themselves against others inside their regions, and finds ways to
improve their current policies. This will allow for greater economic growth
when a better policy is implemented.

Economic freedom is linked to a better standard of
living for citizens. As reported, developing countries experience a much more
rapid growth in the average EFW rating compared to developed countries (Gwartney ,
Lawson, & Hall, 2017). Countries can use this as an
indication to see if they are headed in the right direction. They are able to
change their policies in order to achieve a EFW measure, which translates to a
higher standard of living for citizens. A higher EFW measure, also means that a
higher rate of economic growth. This can help close the gap between developing,
and developed countries.