P R E L I M I N A R Y R E P O R T

24“The datamay lead to abetter understandingofthe role offreedom inhumanprogress.”to propose alternative weighting or structuralapproaches that seem more sensible to them.Because of the challenges in putting togethera broad measure of human freedom, this workin progress is certainly not the last word onthe extent of freedom in countries around theworld. But we do think this index is quite reasonableand hope it will be useful in exploringand demonstrating the value of individual libertyand the ways in which it correlates withother aspects of various societies.Even if this study confirms some of whatwe expected to observe, it is worth echoingMilton Friedman when he referred to the creationof the economic freedom index: “Whatwe have done is to acquire a set of data thatcan be used to explore just how the relationworks, and what are the essential connections,and that will enable skeptics to test their viewsobjectively.” 21Indeed, the Economic Freedom of the Worldindex has served just that purpose and more,producing an abundant literature on the linkbetween economic freedom and phenomenaas diverse as foreign aid, armed conflict, andhappiness. The Human Freedom Index has thepotential to do as much and looks increasinglyimportant at a time when the world’s leadingmarket democracies struggle with economicproblems and when hybrid forms of authoritarianismare being sold as viable alternativesto liberalism. Over time, this index could tracknot only specific gains and losses of freedom;it could also help to see what links may existbetween the assortment of freedoms andother variables. What are the relationshipsamong personal freedom, economic freedom,and democracy at different levels of development?Are some types of freedom, economicor personal, more conducive to the spreadand sustenance of other freedoms? What isthe relationship between various measuresof human well-being (including income) andchanges in personal freedom? Under whatconditions are increases or decreases in freedomlikely to come about? Delving into thoseand innumerable other questions that the datamay help us to answer will surely lead to a betterunderstanding of the role of freedom in humanprogress.APPENDIX A: AREAS, COMPONENTS, AND SUB-COMPONENTS OF THEECONOMIC FREEDOM OF THE WORLD INDEX1. Size of GovernmentA. Government consumptionB. Transfers and subsidiesC. Government enterprises and investmentsD. Top marginal tax rate(i) Top marginal income tax rates(ii) Top marginal income and payroll tax rate2. Legal System and Property RightsA. Judicial independenceB. Impartial courtsC. Protection of property rightsD. Military interference in rule of law and politicsE. Integrity of the legal systemF. Legal enforcement of contractsG. Regulatory restrictions on the sale of real property