Beware the rathole

International | | Mindy Belz

When the Heritage Foundation, a conservative, Washington-based think tank, released its first Index of Economic Freedom in 1994, it hoisted an arcane set of data onto an acrimonious debate.

Sen. Jesse Helms, re-installed as chairman of the Senate Foreign Relations Committee in 1995, promptly equated U.S. foreign aid with sending dollars "down a rathole." Words flew from the State Department to the senator's chambers and back again, but not until last year did some of Mr. Helms's reforms come to pass. The U.S. Agency for International Development was brought under the State Department's wing and its funding sharply curtailed.

During that time the Index has performed an unusual feat in Washington: letting the numbers do the talking. With an abundance of data on economic growth, government expenditures, and gross domestic product, the report has steadily shown that, even in the world of numbers, worldview matters. Its perennial conclusion: "Countries with the most economic freedom are more likely to have higher rates of economic growth and enjoy greater prosperity than those with less economic freedom."