If the worlds wealthy countries provide aid it could

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“If the world’s wealthy countries provide aid, it could be channeled into investment that would trigger growth and development” (Gwartney et al., 2011, p.328). In order for this not to backfire, the country will need to follow regulations that support “market allocation” and be respectful of private property (Gwartney et al., 2011, p.328). There must be extensive institutional transformation in order to turn the economy around for the less fortunate country involved (Gwartney et al., 2011, p.328).
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ECON 214 D05 201320 Lisa A. Wilson Liberty University 3. Indicate five of the world's economies that are the most free. How do the income levels and growth rates of freer economies compare with those that are less free? Five of the world economies that are the most free are: Hong Kong, Singapore, New Zealand, United States, and Switzerland. Economies with organizations and guidelines that were aligned with economic freedom had considerably “higher income levels” (Gwartney, Stroup, Sobel, Macpherson, 2011, p.338-339). The countries with less economic freedom had lower income levels (Gwartney et al., 2011, p.339). Similarly, growth rates of freer economies grew “at an annual rate of 3.1 percent compared to only 1.2 percent growth” for the countries with less economic freedom (Gwartney, 2011, p.340). There is a strong correlation between higher economic freedom and higher income levels and growth rates.
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  • Spring '13
  • Frank
  • Economics, Saudi Arabia, Gwartney, Gwartney et al.

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