Wealth of Nations Country Data

Heritage Foundation

Scoring Criteria

• Property rights land ownership, personal goods, ideas, inventions, and wealth.

Does the country have laws that protect property rights?

Does the government enforce those laws?

Protected ownership incentive to accumulate wealth

Property Rights

Business Freedom How easy is it to start, operate, and close a

business?• Ease of entry growth• Less regulations ease of production growth

USA Incorporating a business takes five days on average, but the overall cost of meeting regulatory requirements has increased by over $60 billion since 2009, with more than 130 new regulations imposed.  

Hong Kong

business start-up process is straightforward, with no minimum capital required

France No minimum capital requirement for launching a firm

China It takes 13 procedures and over a month to launch a business. Completing licensing requirements remains time-consuming and costs over three times the level of average annual income.

Fiscal Freedom

How much are people and firms taxed?Less taxes more incentive to work and

produce

Tax Income Structures and Rates

Overall Tax Burden

USA Progressive 10 – 39.6% 21.5%

Hong Kong Flat 15% 14%

France Progressive 44% 44.2%

China Progressive 45% 19%

Trade Freedom Existence of trade restrictions? Are outside investors encouraged to invest in

your country?• FDI Flow – Foreign Direct Investment.

Average Tariff Rate Trade Barriers

USA 1.3%

Hong Kong

zero tariff rate minimal non-tariff barriers

France 1.1 percent (EU Standard)

few non-tariff barriers to trade.

China 4.1% layers of non-tariff barriers add to the cost of trade

True/False Statements

Nothing is absolute….mostly true or mostly false.

Forms of Government Autocracy

• Monarchy = the head of state is a king or queen Absolute Constitutional

Republic = the government's authority comes from the people• Direct Democracy• Representative DemocracySystems of Government

Power Within Levels of Government Presidential Systems - the legislative and executive branches are separate and independent of each other.

Voters elect the President and member of Congress.Parliamentary Systems - the chief executive is

chosen by the legislature/parliament Voters elect members of Parliament, who then elect the

Prime Minister