Prosperity was a choice and not a destiny and if countries made the right decisions, they would achieve economic growth, Free Market Foundation executive director Leon Louw said on Friday.

Wealth was related to economic freedom, he said, noting that the biggest difference between rich and poor countries was that if you overburden the economy with too much government in the form of tax and regulation, this would constrain growth. A relatively free market economy, on the other hand, would lead to higher economic growth.

Studies conducted by the foundation have found that economies that were less free were, on average, poorer and achieved lower growth, while those that were more free were, on average, richer and achieved higher growth.

Wealthier countries tended to grow at between 1% and 3% a year, regardless of who was in power, while who was in power in poorer countries dictated whether an economy would grow or not, said Louw.

He noted, however, that poorer countries tended to focus on other priorities, such as politics and staying in power, rather than on what it knew had to be done to produce prosperity.

Further, he stated that the most important variable in terms of economic growth was the rule of law, adding that any country could fail in many other aspects, as long as it was successful in ensuring the rule of law.

Louw said that the global economic crisis presented South Africa with an opportunity to become a successful and exciting financial haven.

The country had so far said to investors that it was not implementing certain policies and that it was sticking to financial policies that work. However, he said that South Africa must now also be seen doing "the right thing" and stick to "free market policies that worked".

Meanwhile, Louw commented that South Africa's new political dispensation presented both threats and possibilities.

Despite the new Cabinet including more "communist" ministers than ever before, government seemed to be more open to suggestions, which provided citizens with "tremendous opportunities" to influence the course of events in the country.