Moldova Ranks 124th in World Economic Freedom Top
OREANDA-NEWS. January 16, 2012. Moldova has been placed on the 124th position among 183 countries included in a world economic freedom top. The latter was worked out by the US Foundation Heritage and the magazine The Wall Street Journal, according to a report, "2012 Index of Economic Freedom".
The Moldovan economy is regarded as "partially free", and picked up 54.4 points out of 100, down by 1.3 points against 2011. The situation improved in three out of 10 indexes of economic freedom, taken into account while elaborating the top. Stagnation was recorded in three sectors and worsening in another four ones, according to the report.
Moldova enjoys a high degree of fiscal freedom, business and labour freedom, American experts have said. The corruption, governmental spending and investment freedom are the weak points of the Moldovan economy.
At the regional level, Moldova ranks 40th out of 43 countries. On the whole, the score is under the average regional values (66.4 points) and world ones (59.5 points).
The progress made by the Moldovan government at the macroeconomic level and in terms of consolidating the entrepreneurial climate was unequal. The foundations of the economic freedom are neither well-established nor strongly protected in the economy, the US experts stressed. They also said the judicial system is vulnerable to political interferences and corruption. At the same time, the protection of the ownership rights remains low. This might undermine prospects of a more dynamic and sustainable economic development. The state's intervention in the private sector enhances the economic risk in a volatile political environment.
The top was complied on the basis of a scale of points between 0 and 100. The higher the index is, the freer the economy is, and the state's intervention is weaker. Moldova got more points in terms of fiscal freedom, respectively, 86.5, trade freedom - 79, monetary freedom - 74.4 points, as well as business freedom - 70. The country mustered points under the average amount in terms of corruption - 29, ownership rights - 40 per cent, and investment freedom 35 per cent.
Out of the former Soviet republics, which are presently independent states, Estonia ranks 16th, Lithuania 23rd, Georgia 34th and Armenia 39th. Russia is on the 144th position on the economic freedom top and Ukraine ranks 163rd.
Moldova had an impressive evolution in 2002-2004. On this period, the country went up from the 120th to the 105th position in 2002, respectively 92nd in 2003, and advanced by another 13 positions in 2004. In 2005, Moldova was placed on the 77th position, and ranked 83rd in 2006. Moldova registered the lowest index of economic freedom in 1995, when its economy was described as repressed.
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