Clearly, as the index of economic freedom increases, so in general do countries’ HDIs. Since one would expect as many cultural determinants for a country’s HDI as economic, it is not at all surprising there is a great deal of scatter in the country points, especially at the lower values of the economic freedom index. What Economic Freedom Indexes Leave Out. to eighth place—“behind Canada!”—of the United States on the Heritage Foundation/Wall Street Journal Index of Economic Freedom. The Index is based on several metrics, including freedom of movement of capital, the degree of business regulation, and levels of taxes and spending. An economic freedom index allows us to make broad comparisons among countries, but the index is a blunt measure. What is the freest economy in the world? Hong Kong. Hong Kong has relatively low taxes, a good legal system, sound money, free trade, and minimal regulations; and it has had these institutions and policies in place for several