ECONOMIC FREEDOM AND DEVELOPMENT OF SMALL COUNTRIES

Abstract

Economic freedom is an important prerequisite for achieving economic growth and development, especially for small countries that do not have the bargaining power for anti-liberal economic policies, nor can they determine the international economic relations. Tis paper will present the theoretical concept of economic freedom, with an emphasis on its importance. The paper will show the condition of economic freedom of small countries, with a comparative analysis of the components of economic freedom of small and large countries, according to the Index of Economic Freedom. The importance of economic freedom is highlighted, especially in the context of economies of small countries that are characterized by vulnerability, inability to develop a diversified economy and the lack of specific resources, which determines their need for greater government participation in the economy. The main objective of the paper is to present the impact of economic freedom on the development of small countries and explain ways of improving conditions of economic freedom in these countries.

Keywords

• economic freedom
• small countries
• economic growth
• economic development