Ranked by the Heritage Foundation and the Wall Street Journal
The Heritage Foundation and the Wall Street Journal recently released their 13th annual Index of Economic Freedom, which identifies the variables that comprise economic freedom and analyzes the interaction of freedom with wealth. The Index measures 157 countries across 10 specific factors of economic freedom.
10. Guinea-Bissau
Guinea-Bissau’s economy is 45.7% free. It scores well in fiscal freedom and somewhat well in monetary freedom. Significant restrictions on foreign investment combine with domestic regulations and an inflexible labor market to create a business-hostile climate. Corruption is so rampant that the informal market (mainly diamonds) dwarfs the legitimate market.
9. Angola
Angola’s economy is 43.5% free. The country has attained a moderate degree of economic freedom despite a devastated infrastructure and a fledgling government. But inflation is high, regulation chokes business, investment is basically unwelcome, government size is excessive, corruption is crippling, and political influence mars the judiciary.
8. Iran
Iran’s economy is 43.1% free. Its economy scores well in only one of the 10 factors measured: fiscal freedom. Overall tax revenue as a percentage of GDP is significant. Iran’s economy is unfree in many ways. High tariff rates and non-tariff barriers impede trade and foreign investment alike. Corruption is rampant, and the fair adjudication of property rights in a court of law cannot be guaranteed.
