20 Most Liberal Countries in the World

Meerub Anjum
11 min read

In This Article:

In this article, we will look into the 20 most liberal countries in the world. If you want to skip our detailed analysis, you can go directly to the 5 Most Liberal Countries in the World.

Economic Liberalism vs Economic Conservatism

The concepts of liberalism and conservatism both advocate for economic freedom. Economic liberalism is a political and economic ideology that supports personal liberty, economic freedom, private property, and less government interference while promoting economic development. Economic conservatism also stems from the concept of economic liberalism and advocates for a free market with restrictive government intervention. Conservatives strongly oppose the intervention of government and believe that free markets are more capable of ensuring better resource allocation. Liberals, on the other hand, believe that high government spending on the social welfare of individuals can improve their quality of life and can also contribute to economic development. Some of the most conservative countries report very low social spending which ultimately affects the well-being and quality of life of its residents.

Relationship Between Economic Freedom and Growth

Economic liberalism is built on the very idea of economic freedom, which in turn fosters innovation, entrepreneurship, and efficient resource allocation. A freedom-induced economic environment leads to economic growth. Countries with a liberal economic outlook tend to have improved democratic and protective civil liberties which also leads to political freedom.

Europe has some of the freest countries in the world in terms of both personal and business freedom. The region is also dominant with around 15 countries ranking among the most business-friendly countries in the world. According to a research study "The Relationship Between Economic Freedom and Economic Growth in EU Countries" by Ivana Brki?, there is a positive relationship between economic freedom and economic growth in a country. The study explores this interrelationship for European Union Countries, by analyzing the impact of economic freedom elements on the GDP growth of the member countries. The study concluded that the change in economic freedom is a significant factor in measuring a country's economic growth.

Another study "Economic Freedom Influences Economic Growth and Unemployment: An Analysis of the Eurozone" by Roberto Cervelló-Royo et al., analyzes the correlation between economic freedom and economic growth. The study explores various economic freedom indicators such as business freedom, government integrity, labor freedom, and tax burden levels and interrelates them with the economic growth of the eurozone and concludes that lower tax rates and high labor and business freedom enhance a country's economic growth.

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