ABSTRACT
This chapter begins by examining the case for concluding that economic freedom is necessary for economic growth, and describes a set of constitutional provisions that are conducive to economic freedom and economic growth. A number of studies have argued that economic freedom is a prerequisite for economic growth. Developed economies rely on income taxation for a substantial share of their revenues. Income taxation is less important as a revenue source in developing economies, but it is no less important that any income tax be structured to minimize its burden on economic development. An understanding of the components of economic freedom and their relationship to economic growth can help to provide a foundation for developing more specific constitutional provisions that can help generate prosperity. The clearest route to prosperity for developing nations is through international trade, and interference with international trade is counterproductive for several reasons.
