ECONOMIC OPPORTUNITY AND QUALITY

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1 ECONOMIC OPPORTUNITY AND QUALITY OF LIFE: THE BEST AND WORST COUNTRIES IN THE WORLD What makes a country the best place to live in a global economy is the right combination of market and government institutions to provide for both economic opportunity and quality of life for its citizens. --Panos Mourdoukoutas, C.W. Post Campus of Long Island University, and Abraham Stefanidis, Athens University of Economics and Business What is the Economic Opportunity and Quality of Life Index? The EOQL Index measures how efficiently and effectively different countries combine and mix market and government institutions to advance economic and social prosperity. The Index has two components: The Economic Opportunity component that measures how well countries deploy market institutions to perform what they do best: Unleash the creativity and ingenuity of the people to allocate resources efficiently and effectively in the production of goods and services that satisfy their private needs, creating wealth for themselves and society. It includes the Economic Freedom, the Ease of Doing Business, the Globalization, the Number of R&D Scientists, and the Growth Competitiveness subcomponents. The Economic Freedom subcomponent, for instance, measures a society s freedom to work, invest, produce and consume products and services (see Exhibit 1). Similarly, the Globalization subcomponent measures a society s openness and connectivity to other societies. The Quality of Life component that measures how well countries deploy government institutions to perform what they do best: Release the compassion of the people for the commons, areas of society where markets fail or are inadequate. It includes the Environmental Sustainability, the Occupational Accident and the Human Development subcomponents. The Environmental Sustainability component, for instance, measures a society s natural resources, pollution and environmental performance. Similarly, the Human Development subcomponent measures a society s standards in health, knowledge and life decency terms.

2 Which countries have the best and worst EOQL scores? Iceland, Canada, Sweden, Switzerland, and Finland occupy the top positions in the list of countries that best combine and mix market and government institutions to deliver economic and social prosperity (see EOQL Index). They nurture free and open markets, which provide economic prosperity. At the same time, they let an efficient and effective government create safe workplaces, protect the environment, and help people learn and live long and healthy material and spiritual lives. Zimbabwe, Ethiopia, Chad, Burkina Faso, and Benin occupy the bottom positions on the list. They all fail to develop and nurture the conditions that make each system functional and allow it to excel, deploying government institutions and market institutions backwards, in areas of society each one fails rather than excels: government institutions in addressing private needs and market institutions in addressing common needs. The Economic Opportunity and Quality of Life (EOQL) Index Country EOQL Score Country EOQL Score 1 ICELAND TUNISIA CANADA BRAZIL SWEDEN ROMANIA SWITZERLAND GEORGIA FINLAND NAMIBIA AUSTRALIA MONGOLIA NORWAY KAJAKHSTAN DENMARK EL SALVADOR IRELAND SOUTH AFRICA SINGAPORE BELARUS USA BOLIVIA NEW ZEALAND MOLDOVA HONG KONG SAR KYRGYZSTAN NETHERLANDS PARAGUAY AUSTRIA GUYANA JAPAN NICARAGUA UK SRI LANKA GERMANY ECUADOR ESTONIA UKRAINE LITHUANIA TURKEY FRANCE UGANDA BELGIUM PHILIPPINES, THE PORTUGAL GHANA ISRAEL CHINA LATVIA AZERBAIJAN SLOVENIA PAPUA NEW GUINEA SPAIN MADAGASCAR CHILE GUATEMALA CZECH REPUBLIC VENEZUELA SLOVAK REPUBLIC, THE CAMBODIA HUNGARY MOROCCO ITALY ALGERIA URUGUAY HONDURAS MALAYSIA DOMINICAN REPUBLIC KOREA SOUTH INDONESIA TAIWAN NEPAL GREECE PAKISTAN ARMENIA ZAMBIA COSTA RICA SENEGAL CROATIA INDIA PANAMA KENYA POLAND TANZANIA 0.735

3 43 UNITED ARAB EMIRATES MALI MAURITIUS EGYPT BULGARIA VIETNAM KUWAIT CAMEROON ARGENTINA SYRIA FYROM IRAN ALBANIA BANGLADESH THAILAND CENTRAL AFRICAN REPUBLIC JORDAN NIGERIA TRINIDAD & TOBAGO CONGO, REPUBLIC OF THE BOTSWANA MALAWI PERU MOZAMBIQUE RUSSIA GUINEA COLOMBIA BENIN MEXICO BURKINA FASO BOSNIA & HERZEGOVINA CHAD SAUDI ARABIA ETHIOPIA JAMAICA ZIMBABWE Note: EOQL scores range between and ; they give relative country ranks, the lower the individual country score, the better its EOQL rank. How is the EOQL Index estimated? The Index is estimated by using published data on each of its individual components. Each subcomponent of the EOQL Index is calculated as a relative rank from the published data (see Exhibit 2). For example, the Economic Freedom component is the score derived from a country s position divided by the total number of ranked countries. The US is ranking 9 th out of 157 countries. Therefore, the value of this component is Once all components are calculated, then they are weighted and compiled to the final EOQL score. Applying the EOQL score calculation in 120 countries we derive the EOQL countries ranking. Exhibit 1 Sources of Data Used in the Index Components Economic Opportunity Economic Freedom Ease of Doing Business Globalization Global Creativity Researchers (per million people) Growth Competitiveness Quality of Life Environmental Sustainability Occupational Accident Human Development Publication Source The Wall Street Journal and the Heritage Foundation The World Bank The A.T. Kearney/Foreign Policy Based on Kenneth Florida s The Flight of the Creative Class Based on The United Nations Data The World Economic Forum Yale University, Columbia University and the World Economic Forum Based on International Labour Organization s Data United Nations Development Program (UNDP)

4 Components Exhibit 2 EOQL Score Estimation (a) # ed (b) Relative (c)=(a)/(b) Contribution to the Score (d)= (c)*weight factor Economic Opportunity Score 0,000 Economic Freedom 157 0,000 0,000 Ease of Doing Business 155 0,000 0,000 Globalization 62 0,000 0,000 Global Creativity 45 0,000 0,000 Researchers (per million people) 96 0,000 0,000 Growth Competitiveness 117 0,000 0,000 Quality of Life Score 0,000 Environmental Sustainability 146 0,000 0,000 Occupational Accident 141 0, 000 0,000 Human Development 177 0, 000 0,000 EOQL Index Score 0,000 Indicative country EOQL Index scores Exhibit 3 Iceland EOQL Index Score Indicator ed to the Score Economic Freedom Ease of Doing Business Globalization Global Creativity Researchers (per million people) Growth Competitiveness Economic Opportunity Score Environmental Sustainability Occupational Accident Human Development Quality of Life Score EOQL Index Score * Iceland s position: #1, Good EOQL score range: Exhibit 4 USA EOQL Index Score

5 Indicator ed to the Score Economic Freedom Ease of Doing Business Globalization Global Creativity Researchers (per million people) Growth Competitiveness Economic Opportunity Score Environmental Sustainability Occupational Accident Human Development Quality of Life Score EOQL Index Score * USA s position: #11, Good EOQL score range: Indicator Exhibit 5 Turkey EOQL Index Score ed to the Score Economic Freedom Ease of Doing Business Globalization Global Creativity Researchers (per million people) Growth Competitiveness Economic Opportunity Score Environmental Sustainability Occupational Accident Human Development Quality of Life Score EOQL Index Score * Turkey s position: #80, Bad EOQL score range: Indicator Exhibit 6 Iran EOQL Index Score ed to the Score Index of Economic Freedom

6 Ease of Doing Business Globalization Index Global Creativity Index Researchers (per million people) Growth Competitiveness Index Economic Effectiveness Score Environmental Sustainability Index Occupational Accident Index Human Development Index Social Effectiveness Score EOQL Index Score * Iran s position: #108, Bad EOQL score range:

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