As the most economically free state, South Dakota’s business climate is thriving and companies are relocating and opening plants in the state. A full list of all 50 states and their rankings and the data underlying the rankings can be found in the latest edition of the U.S. Economic Freedom Index: 2008 Report. The Index scores states based on 143 variables, including regulatory and fiscal obstacles imposed on businesses and residents. The states that are the least economically free are clustered in the densely populated states of the Northeast. South Dakota, Minnesota, Illinois and Wisconsin made big leaps in relative economic freedom from 2004 to 2008. An economic-freedom renaissance has been undergoing in the Upper Midwest. States heading in the wrong direction include Texas, Alaska, Delaware, Arizona and North Carolina.