Azernews.Az

Economic freedoms have improved in Azerbaijan, the Heritage Foundation has said, ranking its economy the 96th freest in the world. Hovewer, the country remains in the ‘mostly unfree’ group.
In its 2010 Index, which assessed 179 countries, the US-based group said the country advanced three points and granted it an economic freedom score of 58.8 out of 100 points. Its overall score is 0.8 point higher than last year, reflecting a significant improvement in investment freedom offset by modest declines in several other factors. Azerbaijan is ranked 16th out of 41 countries in the Asia–Pacific region, and its overall score is above the regional average but just below the world average, the report says.
It said Azerbaijan’s impressive economic growth has been driven mainly by oil and gas. Continued transformation and restructuring are needed, both to capitalize on Azerbaijan’s well-educated labor force and tradition of entrepreneurship and to diversify production. The government has implemented wide-ranging reforms to improve economic freedom. Openness to global trade, relatively moderate taxation, streamlined business processes, and improved public-sector management have aided the transition to a market-based system.
The Heritage Foundation said, however, that despite considerable gains in regulatory reform and economic diversification led by the services sectors, substantial challenges remain, particularly in implementing more institutional and systemic reforms. Property rights and freedom from corruption remain weak, and government interference and control hurt overall monetary stability and foreign investment, it claimed.
The rating was compiled based on ten criteria. On Business Freedom, the country ranked with 74.6 points. The report said Azerbaijan’s overall regulatory environment has improved. Starting a business takes less than half the world average of 35 days. Obtaining a business license involves more than the global average of 18 procedures, but closing a business is relatively easy.
Granting the score of 77.1 on Trade Freedom, the group claimed that such factors as a weak legal regime, arbitrary customs administration, import and export restrictions, and weak enforcement of property rights add to the cost of trade.
Azerbaijan was rated with 79.5 points on Fiscal Freedom and 77.5 points on Government Spending, 62.7 points on Monetary Freedom, 55.0 points on Investment Freedom, 40.0 points on Financial Freedom, 20.0 points on Property Rights, 19.0 points on Freedom From Corruption, and 82.5 points on Labor Freedom.
Azerbaijan ranked 107th in 2008 and 99th in 2009.
As for other regional states, the report rated Armenia 38th, with 69.2 points in 2010. The country’s rating has declined in the past three years, as it ranked 28th in 2008, 31st in 2009 and 38th in 2010.
Georgia, another South Caucasus republic, maintained its high rating in this year’s report and was termed as a free nation, ranking 26th, with 70.4 points.
Estonia ranked 16th, while Lithuania 29th, and Latvia 50th. Kyrgyzstan’s rating declined, and it stood 80th, while Kazakhstan ranked 82nd.
Other CIS states were rated below Azerbaijan. Moldova was rated 125th, Tajikistan 128th, Russia 143rd. Belarus received the 150th ranking, while Uzbekistan 158th, Ukraine 162nd, and Turkmenistan 171st.
Hong Kong topped the rating, with 89.7 points, followed by Singapore (86.1 points) and Australia (82.6 points).
At the bottom of the list are Cuba (26.7 points), Zimbabwe (21.4 points) and North Korea (one point).*