Economic Freedom of the World

26 • Economic Freedom of the World: 2016 Annual Report
Exhibit 1.10: Economic Freedom and Extreme and Moderate Poverty Rates
Extreme and
moderate poverty
are lower in
countries with
more economic
freedom.
Poverty ratge (%)
50
40
30
20
10
0
30.6%
48.1%
12.1%
24.2%
6.9%
14.1%
1.9% 2.3%
extreme moderate extreme moderate extreme moderate extreme moderate
Least Free Third
Second Most Free
Economic Freedom Quartile
Note: The extreme poverty rate is the percentage of a country’s population that lives
on $1.90 per day; the moderate poverty rate is the percentage that lives $3.10 per day, in
2011 constant PPP-adjusted dollars.
Sources: Gwartney, Lawson and Hall, 2015, Economic Freedom of the World: 2015
Annual Report; World Bank, 2016, World Development Indicators; for details, see
Connors, 2011.
Exhibit 1.11: Economic Freedom and the Income Share of the Poorest 10%
The share of
income earned
by the poorest
10% of the
population
is unrelated
to economic
freedom.
Income Share (%), 2000–2014
3.0
2.5
2.0
1.5
1.0
0.5
2.45%
2.29%
2.17%
2.75%
0.0
Least Free
Third
Second
Economic Freedom Quartile
Most Free
Sources: Gwartney, Lawson and Hall, 2015, Economic Freedom of the World: 2015
Annual Report; World Bank, 2016, World Development Indicators.
Fraser Institute ©2016 • www.fraserinstitute.org • www.freetheworld.com