The United States, once ranked by The Economist as the world’s most free economy, has slipped well outside the top 10 and now sits roughly in the top 20. In the same rankings, smaller nations such as Denmark, Georgia, and even North Macedonia rank higher on measures of economic freedom, while many former “Western” powerhouses have fallen behind.
A broader shift in global freedom
- Freedom indices: Recent editions of the Economist Freedom Index place the United States near the bottom of the top 20, while countries traditionally viewed as “socialist” (e.g., Denmark) and former Soviet republics (e.g., Georgia) rank ahead.
- Economic performance: Nations that were once considered peripheral—Serbia, Montenegro, Bosnia, Colombia, Malaysia, and Lithuania—have shown measurable improvements in GDP growth, regulatory environments, and personal wealth creation.
- Passport strength: Serbia’s passport, for example, has become one of the fastest‑growing in terms of visa‑free travel, reflecting rising diplomatic acceptance.
Why emerging markets attract entrepreneurs
- Adversity breeds resilience – People who have lived through hyperinflation, currency collapse, or authoritarian rule tend to value liberty and entrepreneurship more intensely than those who have never faced such pressures.
- Diversification of risk – In countries where government policy can change abruptly (e.g., Venezuela’s currency devaluation), citizens and investors alike seek assets and banking options outside the domestic system.
- Opportunity for rapid upside – Nations that have recently transitioned from low‑growth to high‑growth phases often offer lower entry costs for businesses and real estate, as well as less saturated markets.
Illustrative experiences
- Lithuania: An older café owner described how the country’s freedom and economic openness expanded dramatically from the 1970s to today.
- The Balkans: Young entrepreneurs in Serbia, Montenegro, and Bosnia recounted periods of rapid money‑value decline, prompting them to adopt multi‑currency holdings and seek foreign banking relationships.
- Colombia and Malaysia: Both nations have progressed from relatively constrained economies to more open, investment‑friendly environments, attracting foreign capital and talent.
- Venezuela: Recent conversations highlighted the loss of confidence in the national currency and the resulting push for diversification abroad.
The “Visa‑Waiver Syndrome”
When a passport gains the ability to enter the United States without a visa, it often signals that the issuing country has reached a high level of economic and diplomatic development. This milestone can paradoxically lead to a “back‑slide” as citizens become more comfortable and less inclined to pursue further international diversification. The speaker cites Chile as an example where such a shift has occurred.
Practical considerations for investors and digital nomads
- Build a “basket” of jurisdictions: No single country can replicate Singapore’s combination of stable banking, strong passport, and low tax burden. Instead, allocate assets across multiple nations to capture each’s comparative advantage.
- Assess each country on three criteria
- Financial stability – Inflation history, currency convertibility, and regulatory transparency.
- Mobility – Visa‑free access to major economies and the ease of obtaining residency or citizenship.
- Economic freedom – Property rights, ease of doing business, and tax policy.
- Monitor geopolitical trends – The decline of Western military and economic influence is accompanied by the rise of regional powers such as China and Turkey, which can reshape trade routes and investment flows.
- Leverage local knowledge – Partnerships with residents who have experienced systemic shocks (e.g., hyperinflation) provide insight into risk mitigation strategies that outsiders might overlook.
Outlook
The overall trajectory suggests a gradual erosion of Western dominance in both economic freedom and global influence. Simultaneously, a growing number of emerging economies are demonstrating the capacity to attract talent, capital, and diplomatic goodwill. For individuals seeking long‑term wealth preservation and growth, diversifying across a range of resilient, upward‑moving nations—particularly those with a recent history of adversity—offers a pragmatic path forward.
