see 2012 ranking: 10
http://www.heritage.org/index/Ranking

When institutions protect the liberty of individuals, greater prosperity results for all.

Economist Adam Smith formed this theory in his influential work, The Wealth of Nations, in 1776. In 2011, his theory is measured – and proven – in the Index of Economic Freedom, an annual guide published by The Wall Street Journal and The Heritage Foundation, Washington's No. 1 think tank.

For over a decade, The Wall Street Journal and The Heritage Foundation, Washington's preeminent think tank, have tracked the march of economic freedom around the world with the influential Index of Economic Freedom. Since 1995, the Index has brought Smith's theories about liberty, prosperity and economic freedom to life by creating 10 benchmarks that gauge the economic success of 183 countries around the world. With its user-friendly format, readers can see how 18th century theories on prosperity and economic freedom are realities in the 21st century.

The Index covers 10 freedoms – from property rights to entrepreneurship – in 183 countries.