The World's Ten Least Free Economies
by Human Events
1. North Korea Overall Score: 3.0
The Democratic People’s Republic of Korea has maintained a Communist
system since its founding in 1948. All aspects of business operations are
controlled and dominated by the government. Normal foreign trade is almost
zero. No courts are independent of political interference, and private
property is strictly regulated by the state.
2. Cuba Overall Score: 27.5
A one-party Communist state with a command economy, Cuba depends heavily on
external assistance and a captive labor force. The Communist government
dictates economic policy, and all aspects of business are tightly
controlled. In recent years, Venezuelan oil has enabled Cuba to retreat on
the limited reforms undertaken in the mid-1990s, recentralizing the economy.
3. Zimbabwe Overall Score: 29.8
Zimbabwe has transformed itself from the “breadbasket of Africa” into a
starvation-ridden, destitute tyranny. All areas of economic freedom score
below or far below the world average. Economic mismanagement and political
repression designed to strengthen Mugabe’s hold on power have led to chaos
and severe economic decline.
4. Libya Overall Score: 38.7
Oil revenues generate almost all export earnings in Libya’s
state-dominated economy. The country has suffered from more than 30 years of
socialist economic policies. The top income and corporate tax rates are
moderate, but surtaxes can be extremely high. Inflation is also moderate,
although price controls distort the market.
5. Burma Overall Score: 39.5
Despite significant natural resources, restrictive economic policies and
international sanctions still impede economic development. It is hard to
conduct formal private-sector activity with official approval. The almost
complete lack of a judicial system forces companies to negotiate directly
with the government to resolve disputes.
6. Turkmenistan Overall Score: 43.4
Turkmenistan is ranked 28th out of 30 countries in the Asia-Pacific region.
The overall freedom to start, operate and close a business is very limited
by a regulatory environment. The system is non-transparent, and enforcement
is inconsistent. Personal relations with government officials often help to
determine how regulations are applied.
7. Iran Overall Score: 44.0
Iran’s economy still suffers from long-standing economic mismanagement.
Mahmoud Ahmadinejad became president in 2005 and halted tentative efforts to
reform the state-dominated economy. High world oil prices have raised export
revenues and helped to service Iran’s large foreign debt, but the economy
remains burdened by high unemployment, inflation, corruption, costly
subsidies and a public sector that is both bloated and inefficient.
8. Belarus Overall Score: 44.7
Belarus’s statist economy and policy of international isolation have
discouraged foreign investment and development of the high-tech sector.
Foreign investment in all sectors faces hurdles, from outright restrictions
to bureaucratic incompetence. Weak rule of law allows for significant
corruption and insecure property rights.
9. Bangladesh Overall Score: 44.9
One of the world’s poorest nations, Bangladesh had made some progress in
recent years with growth in its export sector, particularly in the garment
industry. The formal financial system remains weak, and the majority of
Bangladeshis work in agriculture, reflecting little economic dynamism in the
country.
10. Venezuela Overall Score: 45.0
Hugo Chávez confiscated control from private-sector oil companies and
nationalized the largest electricity supplier and the biggest telephone
company. He is spending billions on an international, anti-American petro-diplomacy
campaign. Venezuela has one of the world’s highest inflation rates. Price
controls on food, medicines, and basic services discourage private
production and result in shortages.
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