How Economic Freedom Can Create Prosperity
A Liberal Perspective
At the Friedrich Naumann Foundation for Freedom, we believe that economic freedom is the key to creating opportunity, innovation, and prosperity—especially in regions like the Middle East, where young populations are full of potential but often face limited chances.
Our economic views are inspired by liberal thinkers like Friedrich August von Hayek, a Nobel Prize-winning economist who argued that centralized planning and excessive state control over markets often lead to inefficiency, corruption, and lost potential. Hayek believed that individuals—not governments—are best positioned to make decisions about their lives, including their economic choices. In a functioning social market economy, which we advocate for, millions of people make choices every day, and this decentralized system can allocate resources far more efficiently than a central planner ever could.
At FNF, we are convinced that a social market economy with limited state intervention and a global trade with a minimum of barriers are the most powerful tools to reduce poverty and increase prosperity. When businesses are free to operate, when entrepreneurs can start ventures without unnecessary bureaucratic barriers, and when trade is open and competitive, societies benefit. In a running social market economy Jobs are created, prices stay competitive, and innovation thrives while those people who struggle to be competitive for instance due to health issues are not left alone.
This is not just a theory—it’s backed by data.
According to the World Bank, the number of people living in extreme poverty globally has declined dramatically—from nearly 2 billion in 1990 to around 650 million in 2019. One of the main drivers of this reduction has been the integration of developing countries into global markets and the decline of trade barriers.
Of course, markets need rules and fair regulation to work properly—there is a role for the state, especially in ensuring competition, protecting property rights, and supporting vulnerable groups. But when the state tries to do too much, it often crowds out private initiative, breeds inefficiency, and limits the very growth that could help people improve their lives.
For Jordan, which is rich in human talent but limited in natural resources, the answer lies not in more state control, but in creating the conditions for a vibrant private sector to grow. That means removing unnecessary red tape, encouraging investment, supporting entrepreneurship, and embracing open trade with the world.
FNF stands for individual responsibility, innovation, and open markets—not because it is easy, but because it works.
For more information and articles check our FNF global website: https://www.freiheit.org/topic/social-market-economy