Daniel J. Mitchell

If you look at measures (such as the Fraser Institute’s Economic Freedom of the World index) of what makes a nation competitive and prosperous, you’ll find some obvious variables such as fiscal policy, trade openness, regulatory burden, and monetary policy.

But in addition to those policy levers, you’ll find that it’s equally important that a nation does a good job of protecting and maintaining the rule of law.

This is not something easy to define or measure. It includes all sorts of characteristics such as protection of property rights, absence of corruption, honest courts, government transparency, and non-discriminatory application of laws.

But one thing is clear. Nations that don’t have good rule of law are not going to enjoy much prosperity, even if they have ostensibly good policies.

So it was with considerable interest that I saw that a Rule of Law Index has been released by the World Justice Project.

This is the first I’ve heard of the WJP, and I don’t pretend to be an expert in this area, but the Index is interesting and impressive.

And I’m a bit dismayed – but not surprised – to see that the United States only ranks #19 in their comprehensive measure of the rule of law. Here are the top 52 nations.

Rule of Law Rankings

If you look at the detailed data for the 8 major categories in the Index, you’ll see that the United States was fairly consistent, with a high score of 17 and low scores of 27.

To use a classroom analogy, America is akin to a decent student, with grades of B+ in some classes and B- in other classes.

Other nations display more variety. They may have a higher overall GPA (like #10 Singapore) or lower overall GPA (like #50 Belarus), but their grades for specific categories may deviate substantially.

Daniel J. Mitchell

Daniel J. Mitchell is a top expert on tax reform and supply-side tax policy at the Cato Institute.

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