“Changing laws is easy. For instance, if you want to reduce inflation, all you do is stop printing money. Putting the legal system in order is simple and necessary, but then you have to change fundamental things,” Dr. Lawson is quoted by Lrytas.lt.
While economic freedom indices might not take into account bureaucracy, corruption and business culture (or lack thereof), they do have tangible effects on a country’s economy.
“The state cannot just outlaw corruption, taking bribes is already illegal. You have to change the entire culture,” according to Dr. Lawson.
He believes that the most efficient ways of fighting corruption is cutting taxes and liberalizing markets. “The Scandinavian countries are the only ones with little corruption and high taxes. Everywhere else, the level of corruption drops when taxes are cut,” he says.