Index of Common Sense Economics 2026
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The Common Sense Economics Index (CSEI) is an aggregate indicator that assesses the quality of economic policies pursued by governments around the world and the extent to which they take into account common sense axioms and criteria of human activity when developing and implementing economic policies.
The CSEI from the International Liberty Institute is an innovative tool for determining the economic IQ of a country and its government as a whole.
It also demonstrates the quality of economic education in the country, the elites' understanding of economic science, the government's focus on applying best international practices, and common sense in creating and implementing government strategies for economic growth.
Among dozens of different indicators and factors in 2026, we have selected six authoritative, internationally recognized indices that form the basis for calculating the CSEI 2026. They include hundreds of indicators of human development and economic growth, including assessments of human freedom, legal aspects, property, trade, competition, public administration, the quality of the business climate, parameters of social protection, the environment, and infrastructure. These indices provide a powerful evidence base for demonstrating the positive impact of common sense economics and correspond to the 15 axioms of common sense, which can be found in the full version of the Index.
The 2026 Common Sense Index includes 144 countries. The countries are divided into five groups based on their economic IQ. The details for each group and country are provided in the overall report.
Methodology And Sources
- Human Freedom Index from Cato Institute - 165 countries.
- Index of Economic Freedom from Frazer Institute - 165 countries.
- Property Rights Protection Index from Property Rights Alliance - 126 countries.
- Rule of Law Index from World Justice Project - 143 countries.
- Prosperity Index from Atlantic Council - 164 countries.
- Global Innovation Index from WIPO - 139 countries
Common Sense Economics Index Ratings and Rankings 2026
Overview of the Index of Common Sense Economics 2026
Switzerland became the leading country in the Index in 2026, with the most intelligent, science-oriented, fact-based, and clear assessment of potential and assets by the government, significantly improving its result over the year. Denmark lost its leading position. Ireland rose 5 positions and ranks third this year.
Finland, New Zealand, the Netherlands, and Sweden lost ground in the top 10 countries, while Luxembourg and Australia improved their positions. The United States and Germany did not change their results. In the group «Government of Smart Decisions» there are no authoritarian countries. Countries that also understand and value freedom, free market institutions, and Western civilization are on the verge of joining this group.
In the second group, governments tend to focus on applying common sense in economic policy. It is worth noting the successes of Cyprus, which fell just 3 points short of making it into the first group, and also Portugal and Bulgaria, which moved from the third group to the second. This group includes individual post-Soviet, post-totalitarian countries that have achieved success in their transition to a market economy: Lithuania, Latvia, Slovenia, and Slovakia, Romania, Croatia, and Georgia, which have maintained their previous positions. Poland is also in the group. Although it lost one position in the ranking, it improved its overall economic IQ score.
Map of the Common Sense Economics
Ukraine’s CSEI Profile 2026
Ukraine's result is logical, given the enormous size of the public sector, the low quality of public administration, the suppression of private enterprise, and the simultaneous increase in regulatory burdens. All of these are convincing symptoms of Ukraine's institutional illness—a disregard for common sense.
The economic IQ of the Ukrainian government in 2026 is lower than that of 66% of countries worldwide.
The reason for Ukraine's poor performance remains unchanged: it ignores a key factor in the model of entrepreneurial growth and development — economic freedom.
Ukraine's long-term development strategy should focus on entering the top 30 of the Common Sense Economics Index and raising the country's indicators to the values of the first group of the CSEI. Such an economic policy KPI will allow for a quick and adequate assessment of the Government's activities to ensure rapid, long-term economic growth and development.
Systematic, consistent, long-term implementation of the recommendations of the Common Sense Economy Index from the International Liberty Institute guarantees that any country will move into the top 30 of this global ranking and, consequently, join the ranks of the world's developed countries.
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