The Role of State in Promoting Economic Freedom

Abstract

Economic freedom is the right of every human being to work, to dispose of, and to control the property acquired by his own labor. This implies minimal interference by the state, which is reflected primarily in the protection of fundamental rights, as well as law enforcement and efficiency in the performance of the contracts. All sectors of the economy should be exempt from state interference and the state should refrain from interfering in the market. The interest in economic freedom has grown more and more among economists and researchers since most of the world’s states switched to mixed economies. Of course, this issue is also relevant in Georgia and in the post-Soviet countries, as the economy in these countries has been managed in a planned way, which has completely destroyed the formal and informal state bodies and state institutes. We often hear the opinions of economists and researchers about the optimal level of economic freedom, whether their dispute exists or whether the optimal limit of economic freedom is defined, or where is the limit after which we can say that economic freedom has reached its natural level. There is no foreseeable and unambiguous opinion on this question, for the simple reason that the world economy is in constant dynamics and is undergoing daily changes, the prediction of which is often very complex. Keywords: Economic Freedom, Role of Government in Economic Freedom, Index of Economic Freedom, Optimal Level of Economic Freedom, Open Market.