The Freedom Index measures Economic Freedom, Political Freedom, and Legal Freedom. Economic Freedom refers to an economic system that fairly upholds the rights of all businesses and economic actors. Economic Freedom is measured as an equally weighted average of four indicators: Property Rights, Trade Freedom, Investment Freedom, and Women’s Economic Freedom. Political Freedom refers to a political system that fairly protects the rights of all its citizens. Political Freedom is measured as an equally weighted average of the following three indicators: constraints on government, political rights, and civil liberties. Legal Freedom refers to the effective implementation of a country’s rule of law by encompassing specific rules, as well as the social capital and institutions that support the implementation of these rules. Legal Freedom is measured as the equally weighted average of the following indicators: Judicial Effectiveness, Government Integrity, Regulatory Effectiveness, Order and Security, and State Capacity.
Source: Atlantic Council