Annual Economic Freedom of the World ConferencesMontenegro 2007Economic Freedom of the World Network Annual Conference in Budva, Montenegro from October 17 to 19, 2007On October 17-19, the annual Economic Freedom of the World conference was held in Budva, Montenegro. The conference was organized by the Center for Entrepreneurship and Economic Development (CEED), a think tank in Montenegro, and The Fraser Institute, and was sponsored by the Montenegrin Investment Promotion Agency (MIPA). About 40 participants from North America, Western Europe, and Eastern Europe attended the event. The conference focused on institutions, economic freedom, and the rule of law. It was evident from the various presentations that, in terms of economic reforms, Eastern Europe has made significant improvements since the collapse of the Soviet Union. For example, most nations in the region have been reducing personal income taxes or adopting low flat tax rates, cutting tariff rates, stabilizing their currencies, and opening up their credit markets. However, many of the nations in the region achieved currency stability through currency boards or by pegging their local currencies to other more stable currencies. Countries like Bosnia and Herzegovina, Bulgaria, Estonia, and Lithuania, for example, all have currency boards, whereas Montenegro, for instance, adopted the Euro. By the end of the meeting, it was also evident that the region has a long way to go if it is to become a vibrant and flourishing free market economy. While most of the nations in Eastern Europe have reduced personal income taxes, payroll taxes remain unchanged. Changing the personal income tax rates was relatively easier than changing the payroll tax rates as the latter requires reforming the entire social security system to which the payroll taxes are linked. Such a reform would involve adjusting pension systems, unemployment insurance, and health insurance. Lastly and perhaps most importantly, it was evident that there has been little improvement in the rule of law. This is likely the most fundamental failure of the region. A country can have low income taxes and low tariff rates, but without the rule of law-i.e., the enforcement of contracts, an impartial court system, and an independent judiciary-the benefits of these reforms are limited. The rule of law is essential to the protection of property and security of contract, both of which are cornerstones of a market economy. If the powerful can steal property or violate contracts at will, no one but the powerful can build businesses, and thus the powerful can deprive the masses of economic freedom. Economic freedom and opportunity are also crippled if the enforcement of contracts or property rights involves long delays or bribes, or if it runs up against incompetence. The conference participants applauded regional leaders for their courageous reforms so far, but also urged them to undertake the remaining reforms necessary for economic growth and prosperity. The conference officially ended with The Fraser Institute giving an Adam Smith tie and scarf, as a small and symbolic token of our appreciation, to the local co-host Ms. Dragana Radevic, Executive Director of the Center for Entrepreneurship and Economic Development, and conference sponsor, Dr. Petar Ivanovic, CEO of the Montenegrin Investment Promotion Agency, for not only their great work on the conference but also for their efforts and perseverance in pushing for economic reforms in Montenegro.
Costa Rica 2006The 2006 Economic Freedom of the World Network meeting in Costa Rica focused on the important subject of the rule of law in Latin America. (For further details, please click on the communiqué and press release issued by the meeting on the rule of law and other aspects of economic freedom in Latin America.)
The meeting was a tremendous success. We would all like to thank Dr. Rigoberto Stewart, Executive Director of Costa Rica's Institute for Liberty and Policy Analysis (Instituto para la Libertad y el Análisis de Política - INLAP), for a tremendous job in organizing the meeting. It was much enjoyed for both the high quality of the presentations and its social aspects. We would also like to thank the remaining members of the INLAP's team - Dan Spitzer, Juan Ricardo Fernández, Maribel Herrera and Ana Ivelis Chacón- for their assistance. Much of the conference dealt with the false perception that Latin America implemented deep market reforms in the 1990s, and the impact of the actual reality of the failure to reform. As the communiqué states: "A failure to implement market-based reforms and embrace the rule of law has resulted in a lost decade for most Latin American nations." "The network's research conclusively dispels the myth that Latin America moved to market reform and that market reform failed to produce results for the region. Instead, the research shows the region never had a sustained reform effort and most dangerously, has failed to establish the rule of law. Limited reforms were attempted in the first half of the 1990s but these were too restricted and too short lived to have much effect." "Despite this, nations that have built the strongest market economies have done considerably better than those where reform has failed to take hold. The nations with the four highest economic freedom scores in Latin America - Chile, Panama, El Salvador, and Costa Rica - have average per capita GDP that is 19.2 per cent higher than in 1995. This is more than five times the average growth of 3.7 per cent of the four worst performers, Venezuela, Colombia, Ecuador, and Guyana." The meeting was held in San José, Costa Rica, on November 2-4, 2006.
Oman 2005
The Economic Freedom of the World Network meeting in Muscat, Oman, held from November 20 to 21, 2005, was a tremendous success. Our sincere thanks go to our host, the International Research Foundation (IRF) of Oman, for making this meeting one of our most successful and memorable ones. Special thanks must go to the team organizing the event, Sheikha Al Farsi and in particular we wish to acknowledge Salem Ben Nasser Al Ismaily, Executive President of OCIPED, for inviting us to Oman and for his continuing support of our work in the region. We would also like to thank our sponsors -- The Omani Centre for Investment Promotion and Export Development (OCIPED), Bank Muscat, National Bank of Oman, Oman Arab Bank and Omantel-- without whom this conference would not be possible. The discussions focused on case studies of countries on how they moved on the economic freedom front and what are the lessons/consequences from the process. We had stimulating and thought-provoking presentations from Oman, Kenya, Mongolia, Costa Rica, Zambia, and Slovakia, to name a few. On the night of November 20, the IRF hosted the Economic Freedom of the Arab World Awards, based on the Economic Freedom of the Arab World report. Awards were presented to those Arab countries which have highest levels of economic freedom. This was definitely one of the most glamorous gala dinners we have had during our conferences. The exceptional hospitality and delicious food were symbolic and representative of Oman and its people. The meeting was also a great opportunity not only to renew old friendships but also to make the new ones with participants from the region. Many thanks to our host, once again, for organizing the reception, which took place in tents at Al Bustan Palace and where traditional Omani food was served, and the tour of Muttrah Souk (old shopping market)which gave us some insight into the Omani culture and history.
Slovakia, 2003The Economic Freedom of the World Network meeting in Bratislava, Slovakia, in October 2003, was another terrific success. All of us must thank our hosts, the F. A. Hayek Foundation and its executive director Ján Oravec and Dr. Ivona Holzerova, project co-coordinator. They organized a terrific meeting for work and socially. We had fascinating discussions on the problems and solutions facing transition economies - those that are moving from non-free to free economies. The discussions focused on Central and Eastern Europe and Muslim nations. Jim Gwartney and Bob Lawson explained the advances they are making in measuring economic freedom and describing its impact, particularly through impressive new work on investment. Finally and, for many, not least: this was another opportunity to renew old friendships and make new ones. Our hosts made sure the atmosphere was conducive. They organized a delightful reception on the opening evening, followed by a glittering banquet the following night, and a fascinating walking tour of Bratislava on the last day. We hope to see everyone at the 2004 meeting in Africa. We should be able to send out information shortly. 
Conference participants gather for a group photo after a day of
discussions.
Ján Oravec (fourth from the left), Executive Director of the F. A. Hayek Foundation, giving a presentation on economic reforms in Slovakia over the last decade.
Discussion in the conference room (from left to right--Michael Walker,
Executive Director of the Fraser Institute, Robert Lawson, co-author of the
Economic Freedom of the World Reports, and James Gwartney, lead author of
the Economic Freedom of the World Reports).
Salem Ben Nasser Al Ismaily, Executive President of the Omani Centre for
Investment Promotion and Export Development (OCIPED), and Michael Walker,
Executive Director of the Fraser Institute.
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