As you can see, higher GDP per capita is associated with more economic freedom. I found that if GDP per capita increases by 1000 USD, economic freedom score, on average, improves by 0.6 percentage points, all other remaining constant. In addition, 48.03 percent of the variation in economic freedom is explained by the variability of GDP per capita.
Economic freedom is an essential determinant of economic development. The lack of institutions of private property, rule of law and contract enforcement is the main source of economic underdevelopment and contemporary stagnation in the third world.
It is not natural disasters and the lack of humanitarian aid that keeps Haiti poor but the absence of economic freedom which has lead to widespread corruption in judiciary, business and politics, and to the diversion of investment out of the country. Haiti's economic freedom index (50.8) is among lowest in the sample of 50 countries.
The least economically free countries are Venezuela (37.1), Libya (40.2), Belarus (48.7) and Russia (50.3). The best performing countries in economic freedom are Australia (82.6), New Zealand (82.1), Ireland (81.3) and Switzerland (81.1).
Economic freedom and GDP per capita in 50 countries