Debate about the direction of causality between economic freedom and democracy has become more controversial in recent years due to the multifaceted interaction between the two. However, the positive relationship that exists between economic freedom and political freedom is undeniable. Chart 8 demonstrates that there is a positive linkage between advancing economic freedom and greater political freedom as measured by Freedom House. Although the relationship is not as robust as one might hope to see, over the past two decades, countries that have advanced their economic freedom have tended to achieve greater enhancement of political freedom in general.
Undoubtedly, achieving greater political freedom and well-functioning democracy is a messy and often excruciating process. However, the complex interplay between improving economic freedom and advancing political freedom is something positive and merits further examination.