January 14 (SeeNews) - Bulgaria topped the economic freedom ranking in southeast Europe, while Bosnia and Herzegovina remained last in the region in a report issued by U.S. think-tank Heritage Foundation on Wednesday.
Following are country rankings from the 2009 Index of Economic Freedom of 179 countries in the world. At the top are Hong Kong, Singapore and Australia which are ranked as the freest, while the least free economies are at the bottom - Cuba, Zimbabwe and North Korea.
BULGARIA
Bulgaria, which joined the EU in January 2007, is the best ranked southeast European performer, occupying the 56th position in the overall ranking.
"Bulgaria is ranked 26th freest among the 43 countries in the Europe region, and its overall score is well above the world average," the report said but added that the country needs a more independent judicial system.
Weak property rights, lingering corruption, and inefficient bureaucracy also hold down the country's overall economic freedom, the report said.
ALBANIA
Albania, which signed a Stabilisation and Association Agreement (SAA) with the European Union (EU) in 2006, is the second best southeast European performer, ranked 62nd in the overall tally.
"Albania's overall score is reduced by weak property rights and pervasive corruption,” the report said.
Albania is ranked 27th freest among the 43 countries in the Europe region. Last year Albania was the first-ranked among southeast European countries.
ROMANIA
Romania ranks 65th, up from the 68th position in last year's ranking.
"Romania has steadily restructured its economy, improving economic freedom in many areas and achieving an average economic growth rate of approximately 6 percent over the past five years," the Heritage Foundation said in the report published on its website.
There are several remaining institutional challenges to economic freedom. Labour freedom, property rights, and freedom from corruption lag behind other countries in the region, the report said.
“Romania is ranked 29th out of 43 countries in the Europe region, and its overall score is higher than the world average,” the report added.
SLOVENIA
Slovenia, the top performer in southeast Europe in last year's ranking with its 58th position, now ranks 68th.
Slovenia enjoys relatively high levels of business freedom, trade freedom, investment freedom, property rights, and freedom from corruption, but it has room for improvement in government size and labour freedom, the report said.
EU member country Slovenia is ranked 30th out of 43 countries in the Europe region.
MACEDONIA
Macedonia ranks 78th.
“Macedonia enjoys high degrees of trade freedom, fiscal freedom, and monetary freedom,” the report said.
In recent years, the country has achieved steady annual economic growth of around 3 percent. With its moderate tariff and non-tariff barriers, Macedonia is generally open to global trade.
But the property rights are not secure, especially in contrast with other states in Europe, largely because the court system is prone to corruption, political interference, and inefficiency, the report said.
MONTENEGRO
Montenegro ranks 94th. This year's economy freedom ranking is the first one for Montenegro.
Montenegro scores above the world average in trade freedom, fiscal freedom, monetary freedom, and business freedom. The economy has been relatively stable despite high fiscal deficits. The average economic growth rate during the past five years has been over 3 percent, but unemployment remains high at over 10 percent, the report said.
What Montenegro needs is a stronger commitment to reform, it added.
SERBIA
Serbia is at 109th position, and ranks 37th out of 43 countries in the Europe region.
Serbia scores above average in fiscal freedom and labor freedom, but business freedom, government size, monetary freedom, investment freedom, and freedom from corruption are weak.
Government spending is high, reaching over 40% of GDP, the report said. Also, high inflation and government control of prices of basic goods and other services are factors that have a negative influence on Serbia’s ranking.
Last year Serbia was not ranked.
CROATIA
EU candidate Croatia is on the 116th position, and its ranking slipped from the 113th position in last year's ranking.
“Croatia is ranked 38th out of 43 countries in the Europe region, and its overall score is far below the regional average,” the report said.
Heritage Foundation said that Croatia’s overall weakness stems from its outsized government.
Also there is notably heavy regulation of business, labor, and even the right to property. The court system remains vulnerable to corruption, political interference, and inefficient bureaucracy, the report added.
MOLDOVA
“Moldova scores just above the world average in trade freedom, business freedom, and fiscal freedom and has achieved relatively steady economic growth over the past five years,” the report said.
Moldova, ranked 120th, has a number of institutional shortcomings that impede entrepreneurial activity. Monetary freedom, investment freedom, and freedom from corruption are weak.
Also inflation is high, although the government has been phasing out price supports on certain goods, the report added.
BOSNIA AND HERZEGOVINA
Bosnia and Herzegovina ranked 134th, 40th among the 43 countries in the Europe region.
Bosnia and Herzegovina's trade freedom and monetary freedom scores are slightly higher than the global average. Economic development was initially helped by reconstruction efforts, but international trade has been a major source of economic growth, the Heritage Foundation said.
Exports have grown at an average annual rate of about 20% for a decade. Inefficient and high government spending, weak property rights, and widespread corruption hold down overall economic freedom, however, lowered its ranking position.
So far, only Slovenia, Bulgaria and Romania have joined the EU. The other countries of southeast Europe are at different stages of building closer ties with the union.
The 15th edition of the index ranks the countries worldwide in 10 categories: business, trade and fiscal freedom, freedom from government, monetary, investment and financial, property rights, freedom from corruption and labour freedom.
SELECTED CATEGORIES (POINTS):
Country |
Business Freedom |
Investment Freedom |
Trade Freedom |
Financial Freedom |
Fiscal Freedom |
Ranking |
Albania |
67.0, Up |
70.0, Up |
75.8, Unchanged |
70.0, Unchanged |
92.8, Up |
62 |
Bosnia and Herzegovina |
59.9, Up |
50.0, Unchanged |
77.2, Down |
60.0, Unchanged |
71.8, Down |
134 |
Bulgaria |
73.5, Up |
60.0 Unchanged |
85.8, Down |
60.0, Unchanged |
86.2, Up |
56 |
Croatia |
59.9, Up |
50.0, Unchanged |
87.6, Unchanged |
60.0, Unchanged |
68.7, Down |
116 |
Macedonia |
58.2, Down |
50.0, Unchanged |
81.6, Down |
60.0, Unchanged |
89.4, Up |
78 |
Moldova |
70.1, Up |
30.0, Unchanged |
81.6, Up |
50.0, Unchanged |
85.3, Up |
120 |
Montenegro |
68.7 |
40.0 |
80.2 |
50.0 |
89.1 |
94 |
Romania |
74.9, Up |
60.0, Unchanged |
85.8, Down |
50.0, Unchanged |
87.0, Up |
65 |
Serbia |
56.0 |
40.0 |
78.0 |
50.0 |
85.9 |
109 |
Slovenia |
84.5 Up |
60.0, Unchanged |
85.8 Down |
50.0 Unchanged |
62.9, Up |
68 |
Avg. Change |
64.3 |
48.8 |
73.2 |
49.1 |
74.9 |
|