Top 5 Most Economically Free Countries in the World

Economic freedom is the sole right to private property, a free market economy, and the individual choice to invest, work, produce, and consume without governmental restraints. The Heritage Foundation and the Wall Street Journal have joined forces to create the 2009 Index of Economic Freedom, "the link between economic opportunity and prosperity". The ten components used to create the index are: Freedom from Corruption, Government Size, Property Rights, Business Freedom, Financial Freedom, Fiscal Freedom, Investment Freedom, Labor Freedom, Monetary Freedom, and Trade Freedom. The following is a compilation of the most economically free countries on the planet.

New Zealand is the 5^th economically freest nation in the world with an index score of 82.0. New Zealand's economy has remained afloat thanks to low tariff rates as well market principles that lure in foreign investors. Businesses enjoy much flexibility in licenses and practices in the work place. New Zealand scored the lowest in Fiscal Freedom, 62.5, because of its high income taxes that sky rocket up to 39%. The island nation scored the highest in Business Freedom, 99.9, which is exemplified in the amount of time it takes to start a business in New Zealand; it takes only one day while the world average if 38 days.

Ireland has an index score of 82.2, making it the 4^th economically freest country on the planet. Foreign invest is booming in this island nation and financial markets are virtually transparent. There is a separate judicial system that is solely dedicated to the protection of property rights. Ireland scored the lowest in Government Size, 64.9, which can be attributed to public spending on the elderly population on services such as health care. It scored the highest Business Freedom, 93.0, thanks to direct bankruptcy procedures and speedy business license queues.

With an index score of 82.6, Australia is the 3^rd most economically free nation in the world. Economic laws in Australia promote an investment environment and the rule of law puts property rights up on a pedestal. Australia scored the lowest in Fiscal Freedom, 61.4, is attributed to a top income tax rate nearing 45% which is in the process of being reduced. Labor Freedom was Australia's highest scoring category with a 94.7 which is linked to flexible workplace regulations that promote job creation.

The 2^nd most economically free country in the world is Singapore, with a score of 87.1. Singapore's openness to the global market has been the breeding ground for stable economic growth rates, about 6% per year. No tariffs exist in Singapore and the government is very efficient in the protection of its citizen's private property. Singapore scored lowest in Financial Freedom, 50.0, which can be linked to three main banks controlling most of the assets on the island, with one being owned by the government. Singapore scored the highest in Business Freedom, 98.3, which correlates with the freedom to start a business which takes only 4 days.

Hong Kong is the most economically free country in the world with an index score of 90.0. Banking is transparent and taxation is only a small percentage of the gross domestic product. Property rights are held to the highest standard by an independent judicial system. Hong Kong scored the lowest in Freed from Corruption, 83.0, which correlates with minimal corruption. The island nation scored the highest in Trade Freedom, 95.0, which is linked to its tariff being non-existent.