Scatter plot comparing Human Freedom Score and GDP per capita for LatAm countries and other developing regions | Sources: CATO Institute, World Bank, Latinometrics
Human Freedom in LatAm vs Other Developing Regions

The Human Freedom Index (HFI) is a broad measure of human freedom, defined as the absence of coercive constraint. Developed by the Cato Institute and the Fraser Institute, the 2021 annual index measures 82 indicators of personal and economic freedom in areas such as religion regulation, rule of law, movement, size of government, security and safety, trade, and expression.

Even though Human Freedom and income per capita seem correlated, that is not 100% the case. If we categorize all countries’ income per capita (adjusted by Purchasing Power Parity) by freedom quartiles, this is the average GDP per Capita that we get, sorted by freedom:

$48K

$22K

$9K

$11K

Interestingly, countries in the 4th quartile have a higher income than countries in the 3rd quartile. Our chart illustrates that trend: Even though Bolivia and Guatemala earn significantly less money than the MENA region on average, they enjoy more freedoms than people in the Middle East. In general, out of the 11 world regions, LatAm ranks #6 in freedom (behind North America, Western Europe, Oceania, Eastern Europe, and East Asia).