The 12 aspects of economic freedom measured in the Index are grouped into four broad pillars:

Rule of law (property rights, judicial effectiveness, and government integrity);

Government size (tax burden, government spending, and fiscal health);

Regulatory efficiency (business freedom, labor freedom, and monetary freedom); and

Market openness (trade freedom, investment freedom, and financial freedom).

Rule of Law

Property Rights. In a fully functioning market economy, the ability to accumulate private property and wealth is a central motivating force for both workers and investors. Private property rights and an effective rule of law to protect them are vital features of any such economy. Secure property rights give citizens the confidence to undertake entrepreneurial activity, save their income, and make long-term plans because they know that their income, savings, and property (both real and intellectual) are safe from unfair expropriation or theft.

Property rights are a primary factor in the accumulation of capital for production and investment. Secure titling is key to unlocking the wealth embodied in real estate, making natural resources available for economic use, and providing collateral for investment financing. It is also by extending and protecting property rights that societies avoid the “tragedy of the commons”—the phenomenon that leads to the degradation and exploitation of property that is held communally and for which no one is accountable.

A key aspect of the protection of property rights is the enforcement of contracts. The voluntary undertaking of contractual obligations is the foundation of the market system and the basis for economic specialization, gains from commercial exchange, and trade among nations. Evenhanded government enforcement of private contracts is crucial to ensuring equity and integrity in the marketplace.

Judicial Effectiveness. Effective legal frameworks protect the rights of all citizens against infringement of the law by others, including infringement by governments and powerful parties. Judicial effectiveness requires efficient and fair judicial systems to ensure that laws are fully respected and appropriate legal actions are taken against violations.

Especially for developing countries, judicial effectiveness may be the area of economic freedom that is most important in laying the foundations**************************************** for economic growth. In advanced economies, deviations from judicial effectiveness may be the first signs of serious problems that will lead to economic decline.

There is abundant evidence from countries around the world that an honest, fair, and effective judicial system is a critical factor in empowering individuals, ending discrimination, and enhancing competition. In the never-ending struggle to improve the human condition and achieve greater prosperity, an institutional commitment to the preservation and advancement of judicial effectiveness is indispensable.

Government Integrity. In a world characterized by social and cultural diversity, practices that are regarded as corrupt in one place may simply reflect traditional interactions in another. For example, small informal payments to service providers or even government officials may be regarded as a normal means of compensation, a “tip” for unusually good service, or a corrupt form of extortion.

While such practices may indeed constrain an individual’s economic freedom, their impact on the economic system as a whole is likely to be modest. Of far greater concern is the systemic corruption of government institutions by such practices as bribery, nepotism, cronyism, patronage, embezzlement, and graft. Though not all of these practices are crimes in every society or circumstance, they all erode the integrity of government wherever they are found. By allowing some individuals or special interests to gain government benefits at the expense of others, they are grossly incompatible with the principles of fair and equal treatment that are necessary for an economically free society.

There is a direct relationship between the extent of government intervention in economic activity and the prevalence of corruption. In particular, excessive and redundant government regulations provide opportunities for bribery and graft, which in turn are detrimental to economic growth and development. In addition, government regulations or restrictions in one area may create informal or black markets in another. For example, by imposing such burdensome barriers to the conduct of business as including regulatory red tape and high transaction costs, a government can incentivize bribery and encourage illegitimate and secret interactions that compromise the transparency that is essential to the efficient functioning of a free market.

Government Size

Tax Burden. All govern...

Context

Income inequality is a global issue reflecting the uneven distribution of wealth within and between countries. Developed nations exhibit varying income levels due to economic policies and labor dynamics, resulting in Gini coefficients of around 0.3 to 0.4. Conversely, developing nations often experience higher income disparities due to limited access to education, healthcare, and jobs, leading to Gini coefficients exceeding 0.4, exacerbating poverty cycles and social tensions. This inequality hampers economic growth, social cohesion, and upward mobility. Addressing it requires comprehensive policies, including progressive taxation and equitable resource distribution, to promote a more just and inclusive society.

Content

This dataset comprises historical information encompassing various indicators concerning Inequality in Income on a global scale. The dataset prominently features: ISO3, Country, Continent, Hemisphere, Human Development Groups, UNDP Developing Regions, HDI Rank (2021), and Inequality in Income from 2010 to 2021.

Dataset Glossary (Column-wise)

• ISO3 - ISO3 for the Country/Territory
• Country - Name of the Country/Territory
• Continent - Name of the Continent
• Hemisphere - Name of the Hemisphere
• Human Development Groups - Human Development Groups
• UNDP Developing Regions - UNDP Developing Regions
• HDI Rank (2021) - Human Development Index Rank for 2021
• Inequality in Income from 2010 to 2021 - Inequality in Income from year 2010 to 2021

Data Dictionary

• UNDP Developing Regions:
  • SSA - Sub-Saharan Africa
  • LAC - Latin America and the Caribbean
  • EAP - East Asia and the Pacific
  • AS - Arab States
  • ECA - Europe and Central Asia
  • SA - South Asia

Structure of the Dataset

https://i.imgur.com/LIrXWPP.png" alt="">

Acknowledgement

This Dataset is created from Human Development Reports. This Dataset falls under the Creative Commons Attribution 3.0 IGO License. You can check the Terms of Use of this Data. If you want to learn more, visit the Website.

Cover Photo by: Image by Image by pch.vector on Freepik

Thumbnail by: Image by Salary icons created by Freepik - Flaticon

I built this dataset to answer one big question: Can people in developing regions be happier without being rich? I combined data from trusted global reports to compare happiness, education, and money in 14 South Asian and Middle Eastern countries.

What’s Inside?

• Happiness Scores (0–10 scale from the 2023 World Happiness Report)
• Education Stats: Literacy rates, school enrollment (offline), and % of people using online learning (UNESCO + government surveys)
• Money Metrics: GDP per person, average income, unemployment, and poverty rates (World Bank)
• Social Support: How much people feel helped by friends/family

Why These Countries?

• Places like India and Bangladesh have booming online education but low incomes.
• Gulf nations like Qatar and UAE are rich but score lower on social freedom.
• Afghanistan and Lebanon show how wars and crises crush happiness.

Cool Things You Can Do

1. Compare “happy poor” vs. “unhappy rich” countries:
   • Nepal (happiness = 5.269 | GDP = $1,380) vs. Saudi Arabia (happiness = 6.494 | GDP = $24,500)
2. Test if online education beats traditional schools:
   • UAE has 38.2% online learning access vs. Pakistan’s 11.8%
3. Find hidden patterns: Why does Sri Lanka have 92.3% literacy but high poverty (25.6%)?

Data Sources

• Happiness Scores: World Happiness Report 2023
• Education & Economy: World Bank and UNESCO (2023 estimates)
• Missing Data: Afghanistan’s GDP/income stats are blank due to Taliban rule.

Who Should Use This?

• Teachers studying education’s role in happiness
• Economists exploring “money vs. joy” debates
• Students learning data analysis with real-world problems

Pro Tip: Use maps to compare regions! Saudi Arabia’s happiness (6.494) is double Afghanistan’s (1.859).