Freedom

of the
World

Most Free

2nd Quartile

3rd Quartile

Least Free

LIBERAL2EPORT

Economic Freedom
of the World
2013 Annual Report

James Gwartney
Robert Lawson
Joshua Hall
 Economic Freedom
of the World
2013 Annual Report

James Gwartney Robert Lawson Joshua Hall

Florida State University Southern Methodist University West Virginia University

with

Alice M. Crisp Bodo Knoll Hans Pitlik Martin Rode

Florida State University University of Hohenheim Austrian Institute University of Navarra
of Economic Research

2013
 Copyright ©2013 by the Fraser Institute. All rights reserved. No part of this book may be reproduced in
any manner whatsoever without written permission except in the case of brief quotations embodied in
critical articles and reviews.

The authors of this book have worked independently and opinions expressed by them are, therefore, their
own and do not necessarily reflect the opinions of the supporters, trustees, or staff of the Fraser Institute.
This publication in no way implies that the Fraser Institute, its trustees, or staff are in favor of, or oppose
the passage of, any bill; or that they support or oppose any particular political party or candidate.

Published in cooperation with the Economic Freedom Network

Cover designbybyCOMDOK
Production Bill Ray GmbH, Berlin.
Printed and bound in Canada
Published by The Liberal Institute of the Friedrich-Naumann-Stiftung für die Freiheit,
Truman House, Potsdam Babelsberg.
Data available to researchers
The full data set, including all of the data published in this report as well as data omitted due to limited
space, can be downloaded for free at <http://www.freetheworld.com>. The data file available there contains
the most up-to-date and accurate data for the Economic Freedom of the World index. Some variable
names and data sources have evolved over the years since the first publication in 1996; users should
consult earlier editions of Economic Freedom of the World for details regarding sources and descriptions
for those years. All editions of the report are available in PDF and can be downloaded for free from
<http://www.freetheworld.com>. However, users are always strongly encouraged to use the data from this
most recent data file as updates and corrections, even to earlier years’ data, do occur. Users doing long-
term or longitudinal studies are encouraged to use the chain-linked index as it is the most consistent
through time. If you have difficulty downloading the data, please contact Fred McMahon via e-mail
to <freetheworld@fraserinstitute.org>. If you have technical questions about the data itself, please contact
Joshua Hall <joshua.c.hall@gmail.com> or Robert Lawson <robert.a.lawson@gmail.com>.

Please cite the data in your bibliography as:

Authors: James Gwartney, Robert Lawson, and Joshua Hall
Title: 2013 Economic Freedom Dataset, published in Economic Freedom of the World: 2013 Annual Report
Publisher: Fraser Institute
Year: 2013
URL: <http://www.freetheworld.com/datasets_efw.html>

Cite this publication

Authors: James Gwartney, Robert Lawson, and Joshua Hall
Title: Economic Freedom of the World: 2013 Annual Report
Publisher: Fraser Institute
Date of publication: 2013
Digital copy available from <www.fraserinstitute.org> and <www.freetheworld.com>

Publishing history
See page 274 for a list of all volumes of Economic Freedom of the World and associated publications.

Cataloguing Information
Gwartney, James D.
Economic freedom of the world … annual report / James D. Gwartney.
Annual.
Description based on: 1997
2013 issue by James Gwartney, Robert Lawson, and Joshua Hall, with Alice M. Crisp, Bodo Knoll, Hans
Pitlik, and Martin Rode.
Issued also online.
ISSN 1482-471X; ISBN 978-0-88975-262-7 (2013 edition).
1. Economic history--1990- --Periodicals. 2. Economic indicators--Periodicals.
I. Fraser Institute (Vancouver, B.C.) II. Title

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 Table of Contents

Executive Summary / v

Chapter 1 Economic Freedom of the World in 2011 / 1

Chapter 2 Country Data Tables / 25

Chapter 3 Institutions and Economic, Political, and Civil Liberty in Africa / 179
by Alice M. Crisp and James Gwartney

Chapter 4 Economic Freedom, Democracy, and Life Satisfaction / 215

by Martin Rode, Bodo Knoll, and Hans Pitlik

Appendix Explanatory Notes and Data Sources / 235

About the Authors / 249

About the Contributors / 250

Acknowledgments / 251

The Economic Freedom Network / 252

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Fraser Institute ©2013 E www.fraserinstitute.org E www.freetheworld.com
 Economic Freedom of the World: 2013 Annual Report E v

Executive Summary

Economic Freedom of the World

The index published in Economic Freedom of the World measures the degree to which
the policies and institutions of countries are supportive of economic freedom. The
cornerstones of economic freedom are personal choice, voluntary exchange, free-
dom to compete, and security of privately owned property. Forty-two variables are
used to construct a summary index and to measure the degree of economic freedom
in five broad areas:

1 Size of Government;

2 Legal System and Property Rights;

3 Sound Money;

4 Freedom to Trade Internationally;

5 Regulation.

Since our first publication in 1996, numerous studies have used the data pub-
lished in Economic Freedom of the World to examine the impact of economic free-
dom on investment, economic growth, income levels, and poverty rates. Virtually
without exception, these studies have found that countries with institutions and
policies more consistent with economic freedom have higher investment rates,
more rapid economic growth, higher income levels, and a more rapid reduction
in poverty rates.1
The EFW index now covers 152 countries and territories.2 Data are available for
approximately 100 nations and territories back to 1980, and many back to 1970.3
This data set makes it possible for scholars to analyze the impact of both cross-coun-
try differences in economic freedom and changes in that freedom across a three-
decade time frame.

1 For a review, see Hall, Joshua, and Robert Lawson (2013). Economic Freedom of the World: An
Accounting of the Literature. Contemporary Economic Policy. <http://onlinelibrary.wiley.com/doi/10.1111/
coep.12010/abstract>.
2 Historical data are provided for 153 nations in Chapter 2: Country Data Tables. However, due to
events in Syria, data for 2011 are questionable and, therefore, have not been shown in the tables.
For the same reason, Syria is not included this year among the 152 countries ranked in the index.
3 A comprehensive data set is available at <www.freetheworld.com>.

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vi E Economic Freedom of the World: 2013 Annual Report

Economic freedom from around the world

Average chain-linked rating
The average chain-linked economic freedom rating for the 102 countries with rat-
ings since 1980 has increased from 5.34 in 1980 to 5.82 in 1990 to 6.74 in 2000 and
finally to 6.87 in 2011. After a global average drop between 2007 and 2009, the aver-
age summary rating increased modestly in both 2010 and 2011, though it remains
below its peak level of 6.92 in 2007. The chain-linked index is used for this compari-
son because it is most appropriate for measurement of changes across time.

Countries included
There are 152 countries included in this year’s index, up from 144 last year. The
new countries added to the index (with data for both 2010 and 2011) are Brunei
Darussalam, Cape Verde, The Gambia, Lebanon, Suriname, Swaziland, Tajikistan,
Timor-Leste, and Yemen. Because of the civil war and the unreliability of the data
since 2011, the rating for Syria has been temporarily suspended, though historical
data are included in Chapter 2: Country Data Tables.

Top-rated countries
Hong Kong and Singapore, once again, occupy the top two positions. The other
nations in the top ten are New Zealand, Switzerland, United Arab Emirates,
Mauritius, Finland, Bahrain, Canada, and Australia.

Other major countries

The rankings of some other major countries are: United Kingdom (12th), United
States (17th), Germany (19th), Japan (33rd), South Korea (33rd), France (40th), Italy
(83rd), Mexico (94th), Russia (101st), Brazil (102nd), India (111th), and China (123rd).

Lowest-rated countries
The ten lowest-rated countries are: Algeria, Democratic Republic of Congo, Burundi,
Central African Republic, Angola, Chad, Zimbabwe, Republic of Congo, Myanmar, and,
in last place, Venezuela. Eight of the countries in the bottom ten are located in Africa.

Nations that are economically free out-perform

non-free nations in indicators of well-being

T Nations in the top quartile of economic freedom had an average per-capita GDP
of $36,446 in 2011, compared to $4,382 for nations in the bottom quartile in
2011US(PPP) dollars (Exhibit 1.6).

T In the top quartile, the average income of the poorest 10% was $10,556, compared
to $932 in the bottom quartile in 2011US(PPP) dollars (Exhibit 1.9). Interestingly,
the average income of the poorest 10% in the most economically free nations is
more than twice the overall average income in the least free nations.

T Life expectancy is 79.2 years in nations in the top quartile compared to 60.2 years
in those in the bottom quartile (Exhibit 1.10).

T Political and civil liberties are considerably higher in economically free nations than
in unfree nations (Exhibit 1.11).

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 Economic Freedom of the World: 2013 Annual Report E vii

Chapter 1: Economic Freedom of the World in 2011

James Gwartney, Robert Lawson, and Joshua Hall
In chapter one, the authors of Economic Freedom of the World provide an overview
of the report and discuss why economic freedom is important. They also review the
continuing decline of economic freedom in the United States.

Chapter 2: Country Data Tables

Detailed historical information is provided for each of the 152 countries and territo-
ries in the index as well as for Syria, though 2011 data are not included for this nation.

Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa

Alice M. Crisp and James Gwartney
In this chapter takes a close look at the economic, political, and civil institutions of
26 African countries. The economic, political, and civil institutions of a country are
interrelated and they work as a combination to influence the operation of an econ-
omy. To a large degree, researchers know the bundle of economic institutions and
policies that lead to economic growth and prosperity. But, economic institutions
are an outgrowth of political institutions and the choices that emanate from the
political process. Similarly, civil liberties influence the public discourse and thereby
have an impact on both economic and political decision-making. Because of these
interrelationships, it is important to consider institutional quality in all of these
areas. Chapter 3 provides detailed information on the institutional strengths and
weaknesses of each of the 26 African economies.

Chapter 4: Economic Freedom, Democracy, and Life Satisfaction

Martin Rode, Bodo Knoll, and Hans Pitlik
The research presented in this chapter indicates that both economic freedom and
political democracy exert an independent impact on life satisfaction over and above
the impact of per-capita income levels and other indicators of material well-being.
This is true even after accounting for the influence of marriage, belief in God, trust,
regional differences, and other variables that prior research has identified as impor-
tant determinants of life satisfaction. Moreover, the impact of economic freedom
and democracy on life satisfaction is quite substantial, particularly when both the
direct and indirect effects through higher income levels and lower rates of unem-
ployment are taken into account.

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viii E Economic Freedom of the World: 2013 Annual Report

Data available to researchers

The full data set, including all of the data published in this report as well as data omit-
ted due to limited space, can be downloaded for free at <http://www.freetheworld.com>.
The data file available there contains the most up-to-date and accurate data for the
Economic Freedom of the World index. Some variable names and data sources
have evolved over the years since the first publication in 1996; users should consult
earlier editions of Economic Freedom of the World for details regarding sources and
descriptions for those years. All editions of the report are available in PDF and can
be downloaded for free at <http://www.freetheworld.com>. However, users are always
strongly encouraged to use the data from this most recent data file as updates and
corrections, even to earlier years’ data, do occur. Users doing long-term or longitu-
dinal studies are encouraged to use the chain-linked index as it is the most consis-
tent through time.
If you have difficulty downloading the data, please contact Fred McMahon via
e-mail to <freetheworld@fraserinstitute.org>. If you have technical questions about the
data itself, please contact Joshua Hall <joshua.c.hall@gmail.com> or Robert Lawson
<robert.a.lawson@gmail.com>.
Please cite the data in your bibliography as:

Authors James Gwartney, Robert Lawson, and Joshua Hall

Title 2013 Economic Freedom Dataset, published in Economic Freedom of the World: 2013
Annual Report
Publisher Fraser Institute
Year 2013
URL <http://www.freetheworld.com/datasets_efw.html>.

Fraser Institute ©2013 E www.fraserinstitute.org E www.freetheworld.com

Chapter 1 Economic Freedom of the World in 2011

It has now been a little more than a quarter of a century since Michael Walker and
the Fraser Institute partnered with Milton and Rose Friedman on the Economic
Freedom of the World (EFW) project. From the very beginning, the sole objective
of this project was to clearly define and measure the consistency of institutions and
policies with economic freedom for a large set of countries and territories. This
single objective remains the focal point of this project.
A lot has happened since the initial 1986 meeting. A comprehensive measure of
economic freedom has been developed. The EFW index now covers 152 countries
and territories1 and data are available for approximately 100 countries and territo-
ries back to 1980. This data set makes it possible for scholars to analyze the impact
of both cross-country differences in economic freedom and changes in that freedom
across a three-decade time frame.
Moreover, there is far greater awareness of the importance of institutions and
policies today than was true when the project was initiated. During the past two
decades, there has been a virtual explosion of scholarly research examining the
impact of economic, political, and legal institutions on the performance of econ-
omies. Much of this research has used the Economic Freedom of the World mea-
sure (see Hall and Lawson, 2013). From the beginning, the researchers involved
in the EFW project recognized that more accurate measurement of the institu-
tional and policy environment would enhance our understanding of economic
growth and development. Thus, we are delighted to see the index so widely used
in this manner.

The concept of economic freedom

The cornerstones of economic freedom are (1) personal choice, (2) voluntary ex-
change coordinated by markets, (3) freedom to enter and compete in markets, and
(4) protection of persons and their property from aggression by others. Economic
freedom is present when individuals are permitted to choose for themselves and
engage in voluntary transactions as long as they do not harm the person or property
of others. While individuals have a right to their own time, talents, and resources,
they do not have a right to those of others. Thus, individuals do not have a right to
take things from others or demand that others provide things for them. The use of

1 Historical data are provided for 153 nations in Chapter 2: Country Data Tables. However, due to
events in Syria, data for 2011 are questionable and, therefore, have not been shown in the tables.
For the same reason, Syria is not included this year among the 152 countries ranked in the index.

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2 E Economic Freedom of the World: 2013 Annual Report

violence, theft, fraud, and physical invasions are not permissible in an economically
free society, but otherwise, individuals are free to choose, trade, and cooperate with
others, and compete as they see fit.
To a large degree, the EFW measure is an effort to identify how closely the insti-
tutions and policies of a country correspond with the ideal of a limited government,
where the government protects property rights and arranges for the provision of a
limited set of “public goods” such as national defense and access to money of sound
value, but little beyond these core functions. In order to receive a high EFW rating,
a country must provide secure protection of privately owned property, even-handed
enforcement of contracts, and a stable monetary environment. It also must keep
taxes low, refrain from creating barriers to both domestic and international trade,
and rely more fully on markets rather than government spending and regulation
to allocate goods and resources. In many ways, a country’s EFW summary rating
is a measure of how closely its institutions and policies compare with the idealized
structure implied by standard textbook analysis of microeconomics.

The EFW measure and scholarly research

Robert Lucas, the 1995 Nobel laureate, has stated, “Once you start thinking about
economic growth, it is hard to think about anything else”. Lucas is correct. Moreover,
this is an exciting time to examine the underlying factors of the growth process.
The opportunity for widespread constructive institutional change is perhaps greater
than at any time in history. A comprehensive and accurate measure of the degree to
which countries rely on market institutions is central to ongoing scholarly research
to disentangle the importance of economic and political institutions, as well as cli-
matic, locational, cultural, and historical factors that affect economic performance.
Scholarly research has already provided strong evidence that freer economies have
higher levels of private investment, grow more rapidly, and achieve both higher income
levels and lower rates of poverty. But numerous unanswered questions remain. Does
democracy reinforce economic freedom or, perhaps with the passage of time, lead
to debt, dependency, and special-interest politics that undermine it? What political
institutions are most consistent with economic freedom, growth, and prosperity? Is
economic freedom good or bad for the environment? How important are cultural and
historical factors as sources of growth and development? These questions are impor-
tant and complex. It is both our belief and expectation that the Economic Freedom of
the World measure will help scholars examine them more thoroughly in the future.

The Economic Freedom of the World index for 2011

The construction of the index published in Economic Freedom of the World is based on
three important methodological principles. First, objective components are always
preferred to those that involve surveys or value judgments. Given the multi-dimen-
sional nature of economic freedom and the importance of legal and regulatory ele-
ments, it is sometimes necessary to use data based on surveys, expert panels, and
generic case studies. To the fullest extent possible, however, the index uses objective
components. Second, the data used to construct the index ratings are from external
sources such as the International Monetary Fund, World Bank, and World Economic
Forum that provide data for a large number of countries. Data provided directly from
a source within a country are rarely used, and only when the data are unavailable from

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 Chapter 1: Economic Freedom of the World in 2011 E 3

international sources. Importantly, the value judgments of the authors or others in

the Economic Freedom Network are never used to alter the raw data or the rating of
any country. Third, transparency is present throughout. The report provides informa-
tion about the data sources, the methodology used to transform raw data into compo-
nent ratings, and how the component ratings are used to construct both the area and
summary ratings. Complete methodological details can be found in the Appendix:
Explanatory Notes and Data Sources of this report. The entire data set used in the
construction of the index is freely available to researchers at <www.freetheworld.com>.

Structure of the EFW index

Exhibit 1.1 indicates the structure of the EFW index. The index measures the
degree of economic freedom present in five major areas: [1] Size of Government;
[2] Legal System and Property Rights; [3] Sound Money; [4] Freedom to Trade
Internationally; [5] Regulation.
Within the five major areas, there are 24 components in this year’s index. Many
of those components are themselves made up of several sub-components. In total,
the index comprises 42 distinct variables. Each component and sub-component
is placed on a scale from 0 to 10 that reflects the distribution of the underlying
data. When sub-components are present, the sub-component ratings are averaged
to derive the component rating. The component ratings within each area are then
averaged to derive ratings for each of the five areas. In turn, the five area ratings are
averaged to derive the summary rating for each country. The following section pro-
vides an overview of the five major areas.

1 Size of Government
The four components of Area 1 indicate the extent to which countries rely on the
political process to allocate resources and goods and services. When government
spending increases relative to spending by individuals, households, and businesses,
government decision-making is substituted for personal choice and economic free-
dom is reduced. The first two components address this issue. Government con-
sumption as a share of total consumption (1A) and transfers and subsidies as a share
of GDP (1B) are indicators of the size of government. When government consump-
tion is a larger share of the total, political choice is substituted for personal choice.
Similarly, when governments tax some people in order to provide transfers to others,
they reduce the freedom of individuals to keep what they earn.
The third component (1C) in this area measures the extent to which countries
use private investment and enterprises rather than government investment and
firms to direct resources. Governments and state-owned enterprises play by rules
that are different from those to which private enterprises are subject. They are not
dependent on consumers for their revenue or on investors for capital. They often
operate in protected markets. Thus, economic freedom is reduced as government
enterprises produce a larger share of total output.
The fourth component (1D) is based on (1Di) the top marginal income tax rate
and (1Dii) the top marginal income and payroll tax rate and the income threshold
at which these rates begin to apply. These two sub-components are averaged to cal-
culate the top marginal tax rate (1D). High marginal tax rates that apply at relatively
low income levels are also indicative of reliance upon government. Such rates deny
individuals the fruits of their labor. Thus, countries with high marginal tax rates and
low income thresholds are rated lower.

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4 E Economic Freedom of the World: 2013 Annual Report

Exhibit 1.1: Areas, Components, and Sub-components of the EFW Index

1. Size of Government
A. Government consumption D. Top marginal tax rate
(i) Top marginal income tax rate
B. Transfers and subsidies
(ii) Top marginal income and payroll tax rate
C. Government enterprises and investment

2. Legal System and Property Rights

A. Judicial independence F. Legal enforcement of contracts

B. Impartial courts G. Regulatory restrictions on the sale of real property

C. Protection of property rights H. Reliability of police

D. Military interference in rule of law and politics I. Business costs of crime

E. Integrity of the legal system

3. Sound Money
A. Money growth C. Inflation: most recent year

B. Standard deviation of inflation D. Freedom to own foreign currency bank accounts

4. Freedom to Trade Internationally

A. Tariffs C. Black-market exchange rates
(i) Revenue from trade taxes (% of trade sector)
D. Controls of the movement of capital and people
(ii) Mean tariff rate
(i) Foreign ownership/investment restrictions
(iii) Standard deviation of tariff rates
(ii) Capital controls
B. Regulatory trade barriers (iii) Freedom of foreigners to visit
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting

5. Regulation
A. Credit market regulations C. Business regulations
(i) Ownership of banks (i) Administrative requirements
(ii) Private sector credit (ii) Bureaucracy costs
(iii) Interest rate controls/negative real interest rates (iii) Starting a business
(iv) Extra payments/bribes/favoritism
B. Labor market regulations
(v) Licensing restrictions
(i) Hiring regulations and minimum wage
(vi) Cost of tax compliance
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations
(v) Mandated cost of worker dismissal
(vi) Conscription

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 Chapter 1: Economic Freedom of the World in 2011 E 5

Taken together, the four components of Area 1 measure the degree to which
a country relies on personal choice and markets rather than government budgets
and political decision-making. Therefore, countries with low levels of government
spending as a share of the total, a smaller government enterprise sector, and lower
marginal tax rates earn the highest ratings in this area.

2 Legal System and Property Rights

Protection of persons and their rightfully acquired property is a central element
of economic freedom and a civil society. Indeed, it is the most important function
of government. Area 2 focuses on this issue. The key ingredients of a legal system
consistent with economic freedom are rule of law, security of property rights, an
independent and unbiased judiciary, and impartial and effective enforcement of
the law. The nine components in this area are indicators of how effectively the pro-
tective functions of government are performed. These components are from three
primary sources: the International Country Risk Guide, the Global Competitiveness
Report, and the World Bank’s Doing Business project.
Security of property rights, protected by the rule of law, provides the founda-
tion for both economic freedom and the efficient operation of markets. Freedom
to exchange, for example, is meaningless if individuals do not have secure rights to
property, including the fruits of their labor. When individuals and businesses lack
confidence that contracts will be enforced and the fruits of their productive efforts
protected, their incentive to engage in productive activity is eroded. Perhaps more
than any other area, this area is essential for the efficient allocation of resources.
Countries with major deficiencies in this area are unlikely to prosper regardless of
their policies in the other four areas.

3 Sound Money
Money oils the wheels of exchange. An absence of sound money undermines gains
from trade. As Milton Friedman informed us long ago, inflation is a monetary phe-
nomenon, caused by too much money chasing too few goods. High rates of mone-
tary growth invariably lead to inflation. Similarly, when the rate of inflation increases,
it also tends to become more volatile. High and volatile rates of inflation distort rela-
tive prices, alter the fundamental terms of long-term contracts, and make it virtu-
ally impossible for individuals and businesses to plan sensibly for the future. Sound
money is essential to protect property rights and, thus, economic freedom. Inflation
erodes the value of property held in monetary instruments. When governments
finance their expenditures by creating money, in effect, they are expropriating the
property and violating the economic freedom of their citizens.
The important thing is that individuals have access to sound money: who pro-
vides it makes little difference. Thus, in addition to data on a country’s inflation and
its government’s monetary policy, it is important to consider how difficult it is to
use alternative, more credible, currencies. If bankers can offer saving and checking
accounts in other currencies or if citizens can open foreign bank accounts, then
access to sound money is increased and economic freedom expanded.
There are four components to the EFW index in Area 3. All of them are objec-
tive and relatively easy to obtain and all have been included in the earlier editions
of the index. The first three are designed to measure the consistency of monetary
policy (or institutions) with long-term price stability. Component 3D is designed to
measure the ease with which other currencies can be used via domestic and foreign

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6 E Economic Freedom of the World: 2013 Annual Report

bank accounts. In order to earn a high rating in this area, a country must follow poli-
cies and adopt institutions that lead to low (and stable) rates of inflation and avoid
regulations that limit the ability to use alternative currencies.

4 Freedom to Trade Internationally

In our modern world of high technology and low costs for communication and
transportation, freedom of exchange across national boundaries is a key ingredient
of economic freedom. Many goods and services are now either produced abroad
or contain resources supplied from abroad. Voluntary exchange is a positive-sum
activity: both trading partners gain and the pursuit of the gain provides the motiva-
tion for the exchange. Thus, freedom to trade internationally also contributes sub-
stantially to our modern living standards.
At the urging of protectionist critics and special-interest groups, virtually all
countries adopt trade restrictions of various types. Tariffs and quotas are obvious
examples of roadblocks that limit international trade. Because they reduce the con-
vertibility of currencies, controls on the exchange rate also hinder international
trade. The volume of trade is also reduced if the passage of goods through customs
is onerous and time consuming. Sometimes these delays are the result of administra-
tive inefficiency while in other instances they reflect the actions of corrupt officials
seeking to extract bribes. In both cases, economic freedom is reduced.
The components in this area are designed to measure a wide variety of restraints
that affect international exchange: tariffs, quotas, hidden administrative restraints,
and controls on exchange rates and capital. In order to get a high rating in this area,
a country must have low tariffs, easy clearance and efficient administration of cus-
toms, a freely convertible currency, and few controls on the movement of physical
and human capital.

5 Regulation
When regulations restrict entry into markets and interfere with the freedom to
engage in voluntary exchange, they reduce economic freedom. The fifth area of the
index focuses on regulatory restraints that limit the freedom of exchange in credit,
labor, and product markets. The first component (5A) reflects conditions in the
domestic credit market. One sub-component provides evidence on the extent to
which the banking industry is privately owned. The final two sub-components indi-
cate the extent to which credit is supplied to the private sector and whether controls
on interest rates interfere with the market in credit. Countries that use a private
banking system to allocate credit to private parties and refrain from controlling
interest rates receive higher ratings for this regulatory component.
Many types of labor-market regulations infringe on the economic freedom of
employees and employers. Among the more prominent are minimum wages, dis-
missal regulations, centralized wage setting, extension of union contracts to non-
participating parties, and conscription. The labor-market component (5B) is
designed to measure the extent to which these restraints upon economic freedom
are present. In order to earn high marks in the component rating regulation of the
labor market, a country must allow market forces to determine wages and establish
the conditions of hiring and firing, and refrain from the use of conscription.
Like the regulation of credit and labor markets, the regulation of business activi-
ties (component 5C) inhibits economic freedom. The sub-components of 5C are
designed to identify the extent to which regulations and bureaucratic procedures

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 Chapter 1: Economic Freedom of the World in 2011 E 7

restrain entry and reduce competition. In order to score high in this portion of the
index, countries and territories must allow markets to determine prices and refrain
from regulatory activities that retard entry into business and increase the cost of
producing products. They also must refrain from “playing favorites”, that is, from
using their power to extract financial payments and reward some businesses at the
expense of others.

Construction of Area and Summary ratings

Theory provides us with some direction regarding elements that should be included
in the five areas and the summary index, but it does not indicate what weights
should be attached to the components within the areas or among the areas in the
construction of the summary index. It would be nice if these factors were inde-
pendent of each other and a weight could be attached to each of them. In the past,
we investigated several methods of weighting the various components, including
principle component analysis and a survey of economists. We have also invited
others to use their own weighting structure if they believe that it is preferable. Our
experience indicates that the summary index is not very sensitive to alternative
weighting methods.
Furthermore, there is reason to question whether the areas (and components)
are independent or work together like the wheels, motor, transmission, driveshaft,
and frame of a car. Just as it is these interconnected parts that provide the mobility
of an automobile, it may be the combination of interrelated factors that brings about
economic freedom. Which is more important for the mobility of an automobile: the
motor, wheels, or transmission? The question cannot be easily answered because
the parts work together. If any of these key parts break down, the car is immobile.
Institutional quality may be much the same. If any of the key parts are absent, the
overall effectiveness is undermined.
As the result of these two considerations, we organize the elements of the index
in a manner that seems sensible to us but we make no attempt to weight the com-
ponents in any special way when deriving either area or summary ratings. Of course,
the component and sub-component data are available to researchers who would like
to consider alternative weighting schemes and we encourage them to do so.

Summary Economic Freedom Ratings for 2011

Exhibit 1.2 presents summary economic freedom ratings, sorted from highest to low-
est. These ratings are for the year 2011, the most recent year for which comprehensive
data are available. There are now 152 countries and territories rated, up from 144 in
last year’s report. The new countries added to the index (with data for both 2010
and 2011) are Brunei Darussalam, Cape Verde, The Gambia, Lebanon, Suriname,
Swaziland, Tajikistan, Timor-Leste, and Yemen. Because of the civil war and the unre-
liability of the data since 2010, the rating for Syria has been temporarily suspended.
Hong Kong and Singapore, once again, occupy the top two positions. The
other nations in the top 10 are New Zealand, Switzerland, United Arab Emirates,
Mauritius, Finland, Bahrain, Canada, and Australia. The rankings of some other
major countries are the United Kingdom (12th), United States (17th), Germany (19th),
Japan (33rd), Korea (33rd), France (40th), Italy (83rd), Mexico (94th), Russia (101st),
Brazil (102nd), India (111th), and China (123rd). The 10 lowest-rated countries are:

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8 E Economic Freedom of the World: 2013 Annual Report

Exhibit 1.2: Summary Economic Freedom Ratings for 2011

0 2 4 6 8 10 0 2 4 6 8 10
Hong Kong 1 8.97 Barbados 77 6.96
Singapore 2 8.73 Papua New Guinea 77 6.96
New Zealand 3 8.49 Trinidad & Tobago 79 6.95
Switzerland 4 8.30 Indonesia 80 6.90
United Arab Emirates 5 8.07 Tunisia 81 6.87
Mauritius 6 8.01 Moldova 82 6.86
Finland 7 7.98 Italy 83 6.85
Bahrain 8 7.93 Kazakhstan 84 6.84
Canada 8 7.93 Greece 85 6.83
Australia 10 7.88 Belize 86 6.82
Chile 11 7.87 Kenya 87 6.81
United Kingdom 12 7.85 South Africa 88 6.80
Jordan 13 7.81 Paraguay 89 6.78
Denmark 14 7.78 Ghana 90 6.71
Taiwan 15 7.77 Bosnia & Herzegovina 91 6.67
Estonia 16 7.76 Sri Lanka 92 6.66
United States 17 7.73 Tanzania 93 6.65
Cyprus 18 7.72 Mexico 94 6.64
Germany 19 7.68 Thailand 94 6.64
Ireland 20 7.66 Colombia 96 6.61
Malta 21 7.65 Slovenia 97 6.59
Peru 22 7.64 Haiti 98 6.56
Armenia 23 7.62 Morocco 98 6.56
Qatar 23 7.62 Swaziland 98 6.56
Georgia 25 7.61 Russia 101 6.55
Lithuania 25 7.61 Brazil 102 6.51
Austria 27 7.59 Kyrgyz Republic 102 6.51
Hungary 27 7.59 Serbia 104 6.46
Sweden 29 7.58 Mauritania 105 6.42
Netherlands 30 7.57 Namibia 106 6.39
Norway 31 7.56 Madagascar 107 6.37
Spain 32 7.53 Bolivia 108 6.36
Japan 33 7.50 Egypt 108 6.36
Korea, South 33 7.50 Lesotho 110 6.35
Luxembourg 35 7.49 Guyana 111 6.34
Rwanda 36 7.46 India 111 6.34
Slovak Republic 36 7.46 Pakistan 111 6.34
Lebanon 38 7.41 Bangladesh 114 6.33
Bahamas 39 7.40 Sierra Leone 115 6.32
France 40 7.38 Yemen, Republic 116 6.31
Iceland 41 7.37 Azerbaijan 117 6.30
Belgium 42 7.36 Malawi 117 6.30
Uruguay 43 7.35 Timor-Leste 117 6.30
Portugal 44 7.34 Suriname 120 6.29
Romania 45 7.32 Cape Verde 121 6.24
Latvia 46 7.31 Vietnam 122 6.23
Oman 46 7.31 China 123 6.22
Albania 48 7.27 Nigeria 124 6.21
Bulgaria 49 7.26 Nepal 125 6.19
Israel 49 7.26 Ukraine 126 6.16
Montenegro 49 7.26 Iran 127 6.05
Botswana 52 7.25 Tajikistan 128 6.01
Czech Republic 52 7.25 Senegal 129 5.97
Nicaragua 54 7.23 Benin 130 5.95
Kuwait 55 7.22 Mali 130 5.95
Guatemala 56 7.21 Burkina Faso 132 5.94
Honduras 56 7.21 Cameroon 132 5.94
Philippines 56 7.21 Ecuador 134 5.85
Poland 59 7.20 Côte d’Ivoire 135 5.76
Saudi Arabia 60 7.14 Gabon 136 5.73
Dominican Republic 61 7.13 Argentina 137 5.69
Jamaica 62 7.12 Guinea-Bissau 138 5.68
Costa Rica 63 7.11 Mozambique 139 5.63
Fiji 64 7.10 Niger 140 5.60
Uganda 64 7.10 Togo 141 5.57
Zambia 64 7.10 Ethiopia 142 5.47
Panama 67 7.08 Algeria 143 5.32
Malaysia 68 7.06 Congo, Dem. Rep. of 144 5.28
Mongolia 68 7.06 Burundi 145 5.26
Turkey 68 7.06 Central African Rep. 145 5.26
Brunei Darussalam 71 7.05 Angola 147 5.17
Macedonia 71 7.05 Chad 148 4.98
El Salvador 73 7.03 Zimbabwe 149 4.59
Cambodia 74 7.02 Congo, Republic of 150 4.57
Croatia 75 7.01 Myanmar 151 4.08
Gambia, The 76 6.98 Venezuela 152 3.93

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 Chapter 1: Economic Freedom of the World in 2011 E 9

Algeria, Democratic Republic of Congo, Burundi, Central African Republic, Angola,

Chad, Zimbabwe, Republic of Congo, Myanmar, and—in last place—Venezuela.
Eight of the countries in the bottom ten are located in Africa.
The EFW index is calculated back to 1970 as the availability of data allows; see
the Chapter 2: Country Data Tables or our website, <http://www.freetheworld.com>,
for information from past years. Because some data for earlier years may have been
updated or corrected, researchers are always encouraged to use the data from the
most recent annual report to assure the best-quality data.

Area Economic Freedom Ratings (and Rankings) for 2011

Exhibit 1.3 presents the ratings (and rankings) for each of the five areas of the index
and for Components 5A, 5B, and 5C. A number of interesting patterns emerge from
an analysis of these data. High-income industrial economies generally rank quite
high for Legal System and Property Rights (Area 2), Sound Money (Area 3), and
Freedom to Trade Internationally (Area 4). Their ratings were lower, however, for
Size of Government (Area 1) and Regulation (Area 5). This was particularly true
for western European countries.
On the other hand, a number of developing nations have a small fiscal size of
government but rate low in other areas and, as a result, have a low overall rating. The
lesson from this is clear: a small fiscal size of government is insufficient to ensure
economic freedom. The institutions of economic freedom, such as the rule of law
and property rights, as well as sound money, trade openness, and sensible regula-
tion are also required.
Weakness in the rule of law and property rights is particularly pronounced
in sub-Saharan Africa, among Islamic nations, and for several nations that were
formerly part of the Soviet bloc, though several countries in the latter group have
made impressive strides toward improvement. Many nations in Latin America
and Southeast Asia also score poorly for rule of law and property rights. The
nations that rank poorly in this category also tend to score poorly in the trade
and regulation areas, even though several have reasonably sized governments and
sound money.

The Chain-Linked Summary Index

The data published in Economic Freedom of the World are available for many countries
and territories back to 1970. Through time, the index has become more comprehen-
sive and the available data more complete. As a result, the number and composition
of the components for many countries will vary across time. This presents a problem
similar to that confronted when calculating GDP or a price index over time when
we know that the underlying bundle of goods and services is changing from one
year to another. In order to correct for this problem and assure comparability across
time, we have done the same thing that statisticians analyzing national income do:
we have chain-linked the data.
The base year for the chain-link index is 2000 and, as a result, the chain-link
index is not available for any countries added since that year. Changes in a coun-
try’s chain-linked index through time are based only on changes in components

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10 E Economic Freedom of the World: 2013 Annual Report

Exhibit 1.3: Area Economic Freedom Ratings (Rankings) for 2011

Areas Components of Area 5
1 2 3 4 5 5A 5B 5C
Size of Legal System Sound Freedom Regulation Credit Market Labor Market Business
Government and Property Money to Trade regulations regulations regulations
Rights Internationally
Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank)
Albania 8.3 (11) 5.0 (92) 9.8 (2) 7.1 (78) 6.2 (122) 7.0 (131) 5.9 (100) 5.8 (99)

Algeria 4.4 (144) 4.0 (130) 7.2 (106) 5.7 (140) 5.3 (145) 6.3 (139) 4.9 (128) 4.7 (141)

Angola 5.4 (119) 3.7 (139) 5.7 (146) 6.1 (130) 5.0 (148) 7.6 (112) 3.1 (150) 4.3 (144)

Argentina 6.0 (99) 4.2 (120) 6.8 (122) 5.8 (138) 5.6 (141) 6.8 (134) 5.3 (118) 4.7 (142)

Armenia 8.3 (9) 5.8 (65) 9.1 (46) 7.4 (62) 7.4 (55) 9.2 (43) 6.7 (72) 6.3 (61)

Australia 6.2 (89) 8.0 (13) 9.4 (28) 7.7 (47) 8.1 (17) 9.4 (26) 7.3 (55) 7.7 (24)

Austria 5.0 (136) 8.0 (14) 9.6 (14) 7.9 (33) 7.5 (47) 9.0 (52) 6.3 (87) 7.2 (35)

Azerbaijan 5.4 (118) 6.1 (55) 6.5 (129) 6.5 (110) 6.9 (87) 8.0 (100) 6.6 (73) 6.1 (72)

Bahamas 8.2 (14) 6.6 (40) 7.1 (111) 6.3 (119) 8.8 (5) 8.8 (71) 8.9 (7) 8.7 (2)

Bahrain 6.9 (55) 6.8 (33) 9.3 (33) 7.9 (31) 8.7 (6) 9.0 (59) 8.9 (6) 8.3 (8)

Bangladesh 8.8 (4) 3.6 (140) 6.5 (133) 6.1 (132) 6.7 (103) 8.2 (90) 6.6 (75) 5.3 (124)

Barbados 6.7 (66) 6.7 (38) 6.3 (137) 7.6 (55) 7.5 (49) 7.9 (103) 7.7 (37) 6.9 (44)

Belgium 3.9 (149) 7.1 (27) 9.7 (6) 8.1 (19) 8.0 (23) 9.5 (24) 7.4 (50) 7.0 (40)

Belize 6.9 (54) 4.4 (116) 8.4 (73) 6.5 (112) 8.0 (21) 10.0 (1) 8.2 (19) 5.8 (97)

Benin 6.1 (96) 4.5 (111) 6.9 (116) 5.7 (139) 6.6 (105) 9.1 (49) 5.9 (99) 4.9 (134)

Bolivia 6.3 (80) 4.3 (117) 8.5 (71) 7.0 (88) 5.7 (139) 8.7 (75) 4.5 (139) 4.0 (147)

Bosnia & Herzegovina 5.3 (122) 5.2 (86) 8.1 (85) 7.5 (58) 7.1 (73) 9.7 (16) 6.3 (86) 5.4 (120)

Botswana 6.2 (84) 6.7 (37) 8.5 (68) 7.0 (86) 7.8 (34) 9.1 (50) 7.3 (56) 6.9 (42)

Brazil 7.0 (48) 5.3 (85) 8.2 (77) 7.1 (77) 4.9 (149) 6.5 (137) 4.6 (137) 3.7 (149)

Brunei Darussalam 5.0 (134) 6.5 (41) 8.2 (78) 7.7 (42) 7.8 (32) 7.1 (130) 9.0 (4) 7.3 (32)

Bulgaria 6.6 (69) 5.0 (91) 9.3 (35) 7.6 (52) 7.7 (35) 9.7 (15) 7.7 (34) 5.8 (100)

Burkina Faso 5.2 (127) 4.3 (119) 6.9 (118) 6.0 (134) 7.3 (60) 8.3 (86) 7.8 (31) 5.9 (86)

Burundi 4.3 (146) 3.1 (143) 7.1 (113) 5.0 (148) 6.9 (90) 7.9 (104) 7.7 (36) 5.1 (131)

Cambodia 7.9 (21) 4.8 (100) 9.2 (42) 7.0 (83) 6.2 (125) 6.0 (144) 7.4 (52) 5.2 (126)

Cameroon 6.2 (90) 3.9 (136) 6.8 (123) 6.1 (128) 6.7 (100) 7.6 (115) 7.9 (28) 4.7 (140)

Canada 6.2 (87) 8.1 (11) 9.1 (48) 7.6 (49) 8.6 (8) 9.5 (25) 8.5 (10) 7.7 (22)

Cape Verde 5.4 (120) 6.0 (56) 6.2 (140) 6.6 (104) 7.0 (85) 9.2 (40) 4.7 (134) 7.0 (41)

Central African Rep. 7.0 (50) 2.3 (151) 6.8 (124) 4.7 (149) 5.5 (142) 7.3 (124) 3.4 (149) 5.9 (88)

Chad 5.9 (100) 2.8 (146) 5.9 (144) 5.0 (147) 5.2 (146) 6.3 (140) 6.2 (90) 3.1 (151)

Chile 7.5 (33) 7.2 (26) 8.9 (60) 8.2 (17) 7.6 (40) 9.3 (30) 6.3 (89) 7.3 (31)

China 4.5 (143) 6.0 (57) 7.9 (91) 6.6 (105) 6.1 (130) 6.8 (136) 5.6 (111) 6.0 (80)

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 Chapter 1: Economic Freedom of the World in 2011 E 11

Exhibit 1.3 (continued): Area Economic Freedom Ratings (Rankings) for 2011
Areas Components of Area 5
1 2 3 4 5 5A 5B 5C
Size of Legal System Sound Freedom Regulation Credit Market Labor Market Business
Government and Property Money to Trade regulations regulations regulations
Rights Internationally
Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank)
Colombia 6.2 (88) 4.2 (121) 8.2 (80) 7.3 (67) 7.1 (70) 9.3 (30) 5.8 (103) 6.3 (62)

Congo, Dem. Rep. of 5.7 (109) 2.4 (150) 7.4 (103) 5.2 (143) 5.7 (140) 5.5 (148) 5.7 (108) 5.8 (91)

Congo, Republic of 4.5 (141) 2.8 (147) 4.6 (150) 5.1 (146) 5.9 (136) 6.3 (141) 6.5 (77) 4.9 (136)

Costa Rica 7.8 (23) 6.1 (54) 6.9 (119) 8.2 (15) 6.6 (107) 7.2 (126) 6.3 (88) 6.3 (66)

Côte d’Ivoire 6.5 (74) 3.1 (142) 6.5 (130) 6.1 (126) 6.5 (108) 9.0 (59) 5.7 (104) 4.9 (137)

Croatia 5.3 (123) 5.7 (73) 9.5 (21) 7.6 (56) 7.0 (79) 9.2 (41) 6.4 (83) 5.4 (119)

Cyprus 7.2 (41) 6.8 (36) 9.5 (23) 8.1 (20) 7.0 (82) 8.1 (96) 6.1 (92) 6.7 (48)

Czech Republic 5.3 (124) 6.2 (52) 9.5 (24) 7.7 (41) 7.6 (43) 9.3 (36) 7.6 (44) 5.8 (90)

Denmark 4.3 (145) 8.2 (10) 9.7 (5) 8.3 (12) 8.4 (9) 9.7 (14) 7.4 (53) 8.2 (11)

Dominican Republic 8.2 (12) 4.2 (124) 9.3 (36) 7.6 (54) 6.3 (119) 7.0 (132) 6.4 (78) 5.6 (114)

Ecuador 5.6 (115) 4.0 (133) 6.5 (131) 7.0 (87) 6.2 (128) 9.3 (37) 4.3 (142) 5.0 (133)

Egypt 6.8 (65) 4.5 (109) 9.1 (52) 6.3 (123) 5.2 (147) 5.0 (151) 4.9 (127) 5.7 (108)

El Salvador 8.4 (7) 3.9 (135) 9.1 (47) 7.3 (65) 6.4 (117) 8.5 (80) 4.8 (130) 5.9 (87)

Estonia 6.3 (81) 7.3 (23) 8.9 (57) 8.3 (11) 8.0 (22) 10.0 (1) 6.2 (91) 7.8 (20)

Ethiopia 6.2 (86) 5.4 (80) 4.4 (151) 5.1 (145) 6.2 (124) 5.5 (147) 7.5 (47) 5.7 (103)

Fiji 7.9 (20) 5.8 (68) 6.5 (134) 6.6 (108) 8.9 (4) 9.4 (27) 9.0 (3) 8.2 (10)

Finland 5.0 (133) 8.9 (1) 9.5 (25) 8.5 (9) 8.0 (20) 9.9 (11) 5.6 (112) 8.6 (4)

France 4.7 (139) 7.3 (24) 9.6 (9) 8.0 (28) 7.3 (61) 9.0 (54) 5.9 (97) 7.1 (36)

Gabon 5.7 (104) 4.6 (107) 5.4 (147) 6.1 (127) 6.8 (96) 7.1 (128) 7.4 (48) 5.8 (95)

Gambia, The 6.0 (98) 5.8 (64) 8.1 (84) 7.7 (45) 7.3 (64) 7.3 (125) 8.1 (21) 6.4 (57)

Georgia 6.9 (52) 5.7 (71) 9.0 (53) 8.5 (8) 7.9 (27) 9.0 (53) 7.0 (64) 7.6 (26)

Germany 5.6 (114) 8.0 (15) 9.6 (16) 7.9 (32) 7.4 (56) 8.3 (89) 6.3 (84) 7.6 (27)

Ghana 7.3 (37) 5.5 (77) 7.1 (110) 6.8 (97) 6.8 (98) 7.8 (105) 6.6 (74) 5.9 (89)

Greece 6.2 (85) 5.3 (83) 9.6 (12) 7.6 (57) 5.4 (144) 6.0 (145) 4.3 (143) 6.0 (78)

Guatemala 8.0 (16) 4.1 (127) 9.3 (38) 8.2 (18) 6.5 (113) 8.8 (70) 4.7 (131) 5.8 (92)

Guinea-Bissau 6.3 (82) 2.9 (145) 6.1 (142) 6.2 (125) 7.0 (80) 10.0 (10) 3.5 (148) 7.6 (28)

Guyana 5.0 (134) 4.4 (114) 7.7 (99) 7.0 (85) 7.6 (44) 8.5 (82) 8.2 (18) 5.9 (83)

Haiti 8.7 (5) 2.2 (152) 8.0 (89) 6.9 (94) 7.1 (75) 9.0 (63) 8.3 (16) 4.0 (148)

Honduras 8.3 (10) 4.1 (128) 9.3 (39) 7.6 (51) 6.8 (97) 9.2 (44) 5.0 (122) 6.2 (68)

Hong Kong 8.9 (3) 8.1 (12) 9.2 (45) 9.4 (1) 9.3 (1) 10.0 (1) 9.3 (1) 8.5 (6)

Hungary 6.7 (67) 6.2 (53) 9.6 (10) 7.7 (40) 7.7 (36) 10.0 (1) 6.8 (68) 6.3 (63)

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12 E Economic Freedom of the World: 2013 Annual Report

Exhibit 1.3 (continued): Area Economic Freedom Ratings (Rankings) for 2011
Areas Components of Area 5
1 2 3 4 5 5A 5B 5C
Size of Legal System Sound Freedom Regulation Credit Market Labor Market Business
Government and Property Money to Trade regulations regulations regulations
Rights Internationally
Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank)
Iceland 5.0 (137) 8.2 (8) 9.3 (41) 6.6 (106) 7.8 (31) 7.6 (114) 7.6 (41) 8.2 (9)

India 6.4 (78) 5.7 (70) 6.7 (125) 6.3 (122) 6.8 (99) 7.0 (133) 8.0 (24) 5.3 (123)

Indonesia 7.8 (26) 4.6 (108) 9.1 (51) 6.8 (98) 6.3 (120) 8.2 (93) 4.7 (132) 6.0 (82)

Iran 6.1 (95) 5.8 (63) 7.7 (98) 5.1 (144) 5.5 (143) 6.2 (142) 4.7 (135) 5.6 (111)

Ireland 4.8 (138) 7.9 (17) 9.6 (11) 8.8 (3) 7.3 (62) 6.1 (143) 8.1 (20) 7.7 (25)

Israel 6.2 (83) 6.2 (50) 8.8 (64) 8.0 (29) 7.0 (78) 9.0 (58) 5.2 (121) 6.9 (43)

Italy 3.7 (151) 5.9 (60) 9.7 (7) 7.8 (39) 7.2 (68) 9.0 (65) 7.0 (67) 5.7 (105)

Jamaica 7.7 (28) 5.0 (94) 8.6 (66) 7.3 (68) 7.1 (72) 7.6 (110) 7.9 (29) 5.9 (85)

Japan 5.3 (125) 7.4 (22) 9.9 (1) 7.1 (76) 7.8 (30) 8.1 (97) 8.3 (14) 7.1 (37)

Jordan 7.6 (30) 6.5 (43) 9.1 (49) 7.9 (30) 7.9 (24) 8.3 (87) 8.4 (12) 7.0 (39)

Kazakhstan 7.1 (46) 6.0 (59) 8.2 (79) 5.4 (141) 7.6 (42) 9.3 (30) 7.1 (60) 6.3 (64)

Kenya 7.0 (49) 4.7 (104) 8.4 (74) 6.7 (100) 7.2 (65) 8.5 (78) 7.6 (45) 5.6 (110)

Korea, South 6.8 (58) 6.6 (39) 9.5 (26) 7.6 (53) 6.9 (86) 9.3 (30) 4.7 (133) 6.8 (46)

Kuwait 6.4 (76) 7.0 (29) 7.9 (90) 7.5 (61) 7.3 (63) 8.3 (84) 7.1 (62) 6.5 (55)

Kyrgyz Republic 7.7 (29) 4.4 (112) 7.6 (100) 6.4 (115) 6.4 (116) 7.1 (129) 6.4 (80) 5.7 (102)

Latvia 5.7 (108) 6.5 (44) 9.0 (55) 8.1 (24) 7.4 (59) 9.0 (64) 6.7 (70) 6.4 (59)

Lebanon 9.0 (2) 4.7 (103) 9.4 (30) 7.1 (81) 7.0 (83) 7.4 (118) 8.0 (25) 5.5 (116)

Lesotho 5.7 (110) 4.5 (110) 8.0 (88) 6.1 (129) 7.4 (58) 10.0 (1) 7.1 (63) 5.1 (130)

Lithuania 7.0 (51) 6.5 (42) 9.2 (43) 7.7 (46) 7.7 (38) 9.0 (56) 7.4 (49) 6.6 (53)

Luxembourg 3.9 (148) 8.3 (7) 9.4 (31) 8.2 (13) 7.7 (39) 9.3 (38) 5.7 (107) 8.0 (15)

Macedonia 6.1 (92) 5.4 (81) 8.1 (82) 7.5 (59) 8.1 (18) 9.8 (12) 7.7 (40) 6.8 (45)

Madagascar 9.0 (1) 3.0 (144) 7.9 (92) 5.9 (135) 6.0 (133) 7.6 (113) 4.9 (129) 5.5 (117)

Malawi 5.8 (103) 5.2 (88) 7.4 (105) 6.4 (116) 6.8 (94) 7.8 (107) 7.1 (61) 5.6 (112)

Malaysia 6.0 (97) 6.9 (31) 6.5 (132) 7.6 (50) 8.2 (15) 9.2 (42) 8.0 (26) 7.5 (30)

Mali 6.1 (94) 4.4 (113) 6.6 (127) 6.4 (113) 6.1 (129) 7.7 (109) 5.5 (114) 5.3 (125)

Malta 5.8 (102) 7.2 (25) 9.5 (22) 8.2 (16) 7.5 (45) 9.0 (55) 7.2 (58) 6.3 (65)

Mauritania 7.3 (40) 4.8 (99) 6.8 (121) 6.4 (114) 6.8 (92) 8.8 (72) 7.4 (51) 4.3 (143)

Mauritius 7.9 (18) 6.4 (47) 9.2 (44) 8.4 (10) 8.2 (16) 9.7 (13) 7.7 (38) 7.1 (38)

Mexico 6.8 (64) 4.6 (106) 8.1 (83) 7.0 (82) 6.7 (104) 8.3 (83) 5.5 (115) 6.2 (70)

Moldova 7.5 (35) 5.5 (78) 7.6 (102) 6.8 (96) 6.9 (88) 9.5 (20) 5.5 (113) 5.7 (107)

Mongolia 7.3 (39) 5.8 (67) 7.8 (95) 6.9 (92) 7.5 (48) 9.5 (23) 7.2 (57) 5.8 (96)

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 Chapter 1: Economic Freedom of the World in 2011 E 13

Exhibit 1.3 (continued): Area Economic Freedom Ratings (Rankings) for 2011
Areas Components of Area 5
1 2 3 4 5 5A 5B 5C
Size of Legal System Sound Freedom Regulation Credit Market Labor Market Business
Government and Property Money to Trade regulations regulations regulations
Rights Internationally
Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank)
Montenegro 5.7 (107) 6.3 (49) 8.9 (58) 7.8 (38) 7.6 (41) 9.6 (18) 7.1 (59) 6.1 (74)

Morocco 6.6 (70) 6.0 (58) 7.2 (109) 7.0 (89) 6.1 (131) 7.2 (127) 4.5 (138) 6.6 (52)

Mozambique 5.6 (112) 4.2 (125) 6.1 (141) 6.4 (117) 5.9 (135) 8.9 (66) 3.1 (151) 5.7 (106)

Myanmar 5.7 (111) 3.2 (141) 5.3 (148) 1.8 (152) 4.5 (150) 5.3 (150)

Namibia 5.2 (129) 6.4 (48) 6.3 (138) 6.2 (124) 7.9 (26) 10.0 (1) 7.6 (42) 6.1 (73)

Nepal 7.6 (31) 4.2 (126) 6.3 (136) 6.4 (118) 6.5 (109) 8.2 (91) 5.8 (102) 5.5 (115)

Netherlands 3.6 (152) 8.3 (6) 9.5 (19) 8.6 (7) 7.8 (29) 8.8 (69) 6.8 (69) 7.9 (18)

New Zealand 6.5 (72) 8.8 (2) 9.6 (13) 8.7 (5) 8.9 (3) 9.5 (21) 8.7 (9) 8.5 (7)

Nicaragua 7.9 (19) 4.8 (98) 8.5 (70) 7.8 (36) 7.2 (69) 9.7 (17) 6.3 (85) 5.6 (113)

Niger 6.8 (62) 3.9 (134) 6.7 (126) 4.4 (150) 6.3 (121) 9.6 (19) 3.8 (146) 5.3 (121)

Nigeria 6.3 (79) 4.0 (132) 7.2 (108) 6.5 (109) 7.0 (84) 8.3 (88) 7.8 (30) 4.8 (138)

Norway 5.1 (130) 8.6 (3) 9.4 (29) 7.3 (66) 7.4 (50) 10.0 (1) 4.3 (141) 8.0 (16)

Oman 5.1 (131) 7.5 (21) 7.6 (101) 8.1 (23) 8.3 (11) 9.0 (59) 8.0 (23) 7.9 (19)

Pakistan 8.7 (6) 4.2 (123) 6.2 (139) 6.3 (120) 6.3 (118) 7.9 (102) 5.9 (98) 5.1 (127)

Panama 6.5 (71) 5.2 (87) 8.5 (69) 8.2 (14) 6.9 (91) 9.1 (45) 5.2 (120) 6.3 (67)

Papua New Guinea 7.5 (34) 4.7 (102) 7.2 (107) 7.0 (84) 8.3 (10) 8.6 (76) 8.7 (8) 7.7 (23)

Paraguay 7.9 (17) 3.7 (138) 8.9 (62) 7.2 (72) 6.2 (126) 8.3 (84) 4.6 (136) 5.6 (109)

Peru 7.8 (24) 4.9 (96) 9.4 (27) 8.6 (6) 7.4 (52) 9.3 (30) 7.0 (65) 6.0 (81)

Philippines 8.3 (8) 4.6 (105) 9.3 (40) 6.7 (99) 7.1 (76) 9.1 (47) 6.1 (94) 6.0 (77)

Poland 5.5 (116) 6.4 (46) 9.5 (20) 7.4 (64) 7.2 (67) 8.0 (99) 7.7 (39) 6.0 (79)

Portugal 5.6 (113) 6.8 (35) 9.7 (3) 8.0 (25) 6.6 (106) 8.2 (94) 4.9 (126) 6.7 (49)

Qatar 6.9 (56) 7.9 (18) 8.1 (86) 7.8 (37) 7.5 (46) 5.9 (146) 7.9 (27) 8.6 (5)

Romania 6.5 (73) 5.6 (74) 9.3 (32) 7.8 (35) 7.4 (57) 9.3 (29) 7.0 (66) 5.8 (94)

Russia 6.8 (63) 5.4 (82) 8.5 (67) 5.9 (136) 6.2 (127) 7.3 (122) 6.0 (95) 5.3 (122)

Rwanda 6.4 (77) 6.8 (34) 8.9 (61) 6.9 (91) 8.3 (12) 8.6 (77) 8.3 (15) 8.0 (14)

Saudi Arabia 5.1 (132) 7.5 (19) 7.8 (96) 7.3 (69) 8.1 (19) 8.1 (95) 8.1 (22) 7.9 (17)

Senegal 5.7 (106) 4.4 (115) 7.0 (115) 6.7 (102) 6.0 (132) 8.9 (68) 4.4 (140) 4.9 (135)

Serbia 5.9 (101) 5.0 (95) 7.9 (93) 7.2 (74) 6.4 (114) 8.5 (81) 5.7 (105) 5.1 (129)

Sierra Leone 8.1 (15) 4.2 (122) 6.9 (117) 6.6 (103) 5.7 (138) 5.4 (149) 5.9 (101) 5.9 (84)

Singapore 8.2 (13) 8.4 (5) 8.9 (59) 9.3 (2) 8.9 (2) 10.0 (1) 7.7 (35) 9.0 (1)

Slovak Republic 6.4 (75) 5.8 (66) 9.6 (15) 8.0 (26) 7.4 (51) 9.0 (57) 7.6 (43) 5.7 (104)

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14 E Economic Freedom of the World: 2013 Annual Report

Exhibit 1.3 (continued): Area Economic Freedom Ratings (Rankings) for 2011
Areas Components of Area 5
1 2 3 4 5 5A 5B 5C
Size of Legal System Sound Freedom Regulation Credit Market Labor Market Business
Government and Property Money to Trade regulations regulations regulations
Rights Internationally
Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank) Rating (Rank)
Slovenia 4.5 (142) 6.2 (51) 8.3 (75) 7.5 (60) 6.5 (111) 7.4 (119) 5.6 (110) 6.5 (54)

South Africa 5.5 (117) 5.9 (62) 8.3 (76) 7.2 (73) 7.2 (66) 9.1 (46) 6.0 (96) 6.6 (51)

Spain 6.2 (91) 6.8 (32) 9.7 (4) 7.8 (34) 7.1 (71) 9.4 (28) 5.4 (116) 6.6 (50)

Sri Lanka 7.8 (22) 5.3 (84) 6.5 (135) 6.9 (90) 6.7 (101) 7.4 (120) 6.4 (81) 6.4 (56)

Suriname 5.4 (121) 4.3 (118) 8.5 (72) 6.5 (111) 6.8 (93) 7.7 (108) 7.8 (33) 5.0 (132)

Swaziland 5.7 (105) 4.8 (97) 7.8 (94) 6.7 (101) 7.7 (37) 8.9 (67) 7.8 (32) 6.4 (60)

Sweden 3.7 (150) 8.2 (9) 9.6 (8) 8.0 (27) 8.3 (14) 10.0 (1) 6.7 (71) 8.1 (13)

Switzerland 7.7 (27) 8.6 (4) 9.3 (34) 7.2 (71) 8.6 (7) 9.3 (30) 8.4 (13) 8.1 (12)

Taiwan 7.5 (32) 7.0 (28) 9.5 (18) 7.7 (44) 7.1 (77) 8.7 (74) 5.0 (124) 7.6 (29)

Tajikistan 5.2 (126) 5.4 (79) 7.1 (112) 5.9 (137) 6.4 (115) 8.0 (100) 5.2 (119) 6.0 (75)

Tanzania 7.1 (43) 5.7 (69) 7.4 (104) 6.0 (133) 7.0 (81) 8.7 (73) 6.4 (79) 5.8 (93)

Thailand 7.3 (38) 5.1 (89) 7.0 (114) 6.9 (93) 6.8 (95) 9.3 (39) 5.0 (125) 6.2 (69)

Timor-Leste 4.1 (147) 3.8 (137) 8.8 (63) 7.4 (63) 7.4 (54) 9.5 (22) 7.3 (54) 5.4 (118)

Togo 6.7 (68) 2.6 (148) 6.6 (128) 6.1 (131) 5.9 (134) 7.5 (117) 4.2 (145) 6.1 (71)

Trinidad & Tobago 6.8 (61) 4.7 (101) 8.1 (81) 7.6 (48) 7.4 (53) 9.0 (59) 7.5 (46) 5.8 (98)

Tunisia 6.9 (53) 6.4 (45) 6.8 (120) 7.1 (79) 7.1 (74) 7.6 (116) 6.5 (76) 7.2 (34)

Turkey 7.1 (45) 5.5 (76) 9.0 (54) 7.2 (70) 6.5 (112) 8.0 (98) 5.0 (123) 6.4 (58)

Uganda 7.4 (36) 5.0 (93) 8.1 (87) 7.1 (75) 7.9 (25) 9.0 (51) 8.9 (5) 5.8 (101)

Ukraine 6.8 (60) 5.1 (90) 6.0 (143) 6.6 (107) 6.2 (123) 8.5 (79) 6.1 (93) 4.1 (146)

United Arab Emirates 7.8 (25) 7.5 (20) 8.6 (65) 8.1 (21) 8.3 (13) 7.6 (111) 8.5 (11) 8.7 (3)

United Kingdom 5.2 (128) 8.0 (16) 9.6 (17) 8.7 (4) 7.8 (33) 7.3 (123) 8.3 (17) 7.7 (21)

United States 6.8 (59) 7.0 (30) 9.3 (37) 7.7 (43) 7.9 (28) 7.3 (121) 9.0 (2) 7.3 (33)

Uruguay 7.1 (44) 5.6 (75) 9.1 (50) 8.1 (22) 6.9 (89) 8.2 (92) 5.7 (106) 6.7 (47)

Venezuela 4.6 (140) 2.5 (149) 4.7 (149) 3.4 (151) 4.4 (151) 6.5 (138) 3.5 (147) 3.3 (150)

Vietnam 7.0 (47) 5.7 (72) 5.7 (145) 6.3 (121) 6.5 (110) 9.1 (48) 5.6 (109) 4.7 (139)

Yemen, Republic 7.1 (42) 4.0 (129) 7.7 (97) 6.9 (95) 5.8 (137) 6.8 (135) 5.4 (117) 5.1 (128)

Zambia 6.9 (57) 5.9 (61) 8.9 (56) 7.1 (80) 6.7 (102) 7.8 (106) 6.4 (82) 6.0 (76)

Zimbabwe 6.1 (93) 4.0 (131) 3.2 (152) 5.2 (142) 4.3 (152) 4.5 (152) 4.3 (144) 4.3 (145)

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 Chapter 1: Economic Freedom of the World in 2011 E 15

that were present in adjoining years. For example, the 2010 chain-linked rating is
based on the 2009 rating but is adjusted based on the changes in the underlying
data between 2009 and 2010 for those components that were present in both years.
If the common components for a country in 2010 were the same as in 2009, then
no adjustment was made to the country’s 2010 summary rating. However, if the
2010 components were lower than those for 2009 for the components present in
both years, then the country’s 2010 summary rating was adjusted downward pro-
portionally to reflect this fact. Correspondingly, in cases where the ratings for the
common components were higher in 2010 than for 2009, the country’s 2010 sum-
mary rating was adjusted upward proportionally. The chain-linked ratings were
constructed by repeating this procedure backward in time to 1970 and forward in
time to 2011.
The chain-linked methodology means that a country’s rating will change across
time periods only when there is a change in ratings for components present during
adjacent years. This is precisely what one would want when making comparisons
across time periods.

Average chain-linked economic freedom rating

Exhibit 1.4 shows the average chain-linked economic freedom rating for the 101
countries with ratings since 1980. The average level of economic freedom, as mea-
sured by this chain-linked EFW index, has increased from 5.34 in 1980 to 5.82 in
1990 to 6.74 in 2000 and finally to 6.87 in 2011. After seeing the global average drop
between 2007 and 2009, the average summary rating increased modestly in both
2010 and 2011.
We have also derived the average summary rating for the 101 countries and ter-
ritories weighted by country population. The pattern of the population weighted
summary ratings is the same as that of Exhibit 1.4. This indicates that, on average,
the world is more economically free to day than it was three decades ago. The major
contributing factors to this long-term increase in economic freedom were reduc-
tions in marginal income-tax rates, more stable monetary policy, a decline in the
use of military conscription, and liberalization of trade policies.
The chain-linked summary ratings for all years are found in Exhibit 1.5. The
chain-link methodology was also used to derive ratings for Area 1 to Area 5. These
are shown at the top of the country tables above the unadjusted ratings. Please
note that there can be significant differences between the unadjusted and the
chain-linked ratings; this is especially true for countries with less complete data
in earlier years. Researchers conducting long-term studies should use the chain-
linked data.

The declining economic freedom of the United States

Throughout most of period from 1980 to 2000, the United States ranked as the
world’s third-freest economy, behind Hong Kong and Singapore. As Exhibit 1.5
indicates, the chain-linked summary rating of the United States in 2000 was 8.65,
second only to Hong Kong. By 2005, the US rating had slipped to 8.21 and its rank-
ing fallen to 8th. The slide has continued. The United States placed 16th in 2010 and
19th in 2011. The 7.74 chain-linked rating of the United States in 2011 was nearly a
full point less than the 2000 rating.
What accounts for the decline of economic freedom in the United States?
While the US ratings and rankings have fallen in all five areas of the EFW index,

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16 E Economic Freedom of the World: 2013 Annual Report

Exhibit 1.4: Average Chain-linked EFW Rating for the 101 countries
with ratings since 1980
10
9

Average Chain-linked EFW Rating

8
7 6.74 6.87 6.91 6.92 6.83 6.82 6.86 6.87
6.38
6 5.82
5.34 5.43
5
4
3
2
1
0
1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011

the reductions have been largest in Legal System and Property Rights (Area 2),
Freedom to Trade Internationally (Area 4), and Regulation (Area 5). The plunge
in Area 2 has been huge. In 2000, the 9.23 rating of the United States was the
ninth highest in the world. But by 2011, the area rating had slid to 6.93, placing
the United States 38th worldwide. The 2.30-point reduction in the Area 2 rating
of the United States was tied with Venezuela as the largest reduction among the
countries rated.
While it is difficult to pinpoint the precise reason for this decline, the increased
use of eminent domain to transfer property to powerful political interests, the rami-
fications of the wars on terrorism and drugs, and the violation of the property rights
of bondholders in the auto-bailout case have all weakened the tradition of strong
adherence to the rule of law in the United States and we believe have contributed
to the sharp decline in the rating for Area 2.
Expanded use of regulation has been an important contributing factor to the
declining ratings of the United States. During the past decade, non-tariff trade bar-
riers, restrictions on foreign investment, and business regulation have all grown
extensively. Michael Walker, who along with Milton and Rose Friedman, was the
central figure in the development of this project, often stated: “Regulation is the
raw material of corruption”. Thus, he would not be surprised that the expanded
use of regulation in the United States was accompanied with sharp reductions in
ratings for components such as independence of the judiciary, impartiality of the
courts, and regulatory favoritism. To a large degree, the United States has expe-
rienced a significant move away from rule of law and toward a highly regulated,
politicized state.
The approximate one-unit decline in the summary rating between 2000 and
2010 on the 10-point scale of the index may not sound like much, but scholarly
work on this topic indicates that a one-point decline is associated with a reduction
in the long-term growth of GDP of between 1.0 and 1.5 percentage points annu-
ally (Gwartney, Holcombe, and Lawson, 2006). This implies that, unless policies
undermining economic freedom are reversed, the future annual growth of the US
economy will be half its historic average of 3%.

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 Chapter 1: Economic Freedom of the World in 2011 E 17

Exhibit 1.5: Chain-linked summary ratings from 1970 to 2011

1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Albania 4.37 5.07 6.23 6.28 6.64 7.13 6.92 7.12 7.31 7.45 7.44 7.47 7.49 7.42

Algeria 3.82 3.60 3.43 4.06 4.66 4.68 4.60 4.63 4.76 5.25 5.17 5.14 4.95 4.97 5.01 4.71

Argentina 4.36 2.76 3.96 3.30 4.42 7.04 7.40 6.73 6.23 6.09 6.23 5.97 6.09 6.30 6.07 5.95 5.70 5.67

Australia 6.96 6.07 6.86 7.17 7.57 7.98 8.07 7.93 7.97 8.11 8.02 8.24 8.28 8.32 8.21 8.10 8.07 8.05

Austria 6.08 5.93 6.33 6.34 6.98 7.16 7.55 7.38 7.40 7.96 7.86 7.84 7.81 7.79 7.68 7.62 7.60 7.58

Bahamas 6.38 6.26 6.33 6.43 6.41 6.69 6.78 6.75 6.79 6.89 6.85 6.72 6.81 6.85 6.73 6.65 6.63

Bahrain 7.42 6.92 6.91 7.21 7.74 7.64 7.62 7.56 7.34 7.39 7.65 7.81 7.72 7.61 7.75 7.88

Bangladesh 3.03 3.38 3.68 4.57 5.49 6.02 5.81 5.99 5.89 5.69 6.17 6.34 6.29 6.30 6.52 6.43 6.42

Barbados 5.53 5.66 6.10 6.15 6.14 6.20 6.21 6.11 6.12 6.20 6.39 6.18 6.14 6.08 6.27 6.56 6.53

Belgium 7.44 6.80 7.06 7.03 7.35 7.43 7.89 7.53 7.48 7.67 7.54 7.53 7.50 7.54 7.46 7.42 7.52 7.48

Belize 5.69 5.42 6.10 6.86 6.54 6.48 6.93 6.96 6.88 6.93 6.81 6.83 6.82 6.82 6.72 6.69

Benin 5.23 4.98 5.25 4.92 5.49 5.51 5.64 5.59 5.44 5.59 5.91 5.79 5.67 5.74 5.73 5.60

Bolivia 4.18 3.44 5.42 6.60 6.97 6.70 6.55 6.49 6.38 6.38 6.40 6.17 6.12 6.34 6.36 6.33

Botswana 5.25 5.57 5.92 6.40 7.42 7.39 7.42 7.21 7.24 7.31 7.20 7.35 7.07 7.00 7.20 7.46

Brazil 5.10 4.06 3.83 3.28 4.46 4.72 5.93 5.86 6.16 6.01 6.03 6.27 6.21 6.16 6.42 6.33 6.52 6.56

Bulgaria 5.02 3.90 4.60 5.37 5.88 6.45 6.69 6.63 6.85 7.00 7.03 7.10 7.24 7.20 7.16

Burundi 3.83 3.94 4.37 4.58 3.89 4.73 4.95 4.73 4.50 4.61 4.84 5.31 5.23 4.81 5.22 5.04 5.20

Cameroon 5.62 5.73 5.81 5.68 5.92 6.04 6.07 6.10 6.18 6.19 6.16 6.04 5.97 6.11 6.33 6.23

Canada 7.91 7.12 7.68 7.78 8.09 8.11 8.36 8.25 8.22 8.33 8.29 8.34 8.31 8.29 8.25 8.14 8.17 8.05

Central African Rep. 4.35 4.80 4.39 5.27 5.35 5.21 5.75 5.82 5.26 5.47 5.74 5.68 5.76 5.70 5.75

Chad 4.97 4.97 4.93 5.47 5.91 5.90 5.81 5.62 5.30 5.38 5.37 5.36 5.52 5.60 5.54

Chile 3.96 3.62 5.38 5.83 6.78 7.53 7.41 7.57 7.70 7.89 7.75 7.92 7.93 8.05 7.98 7.92 7.98 7.90

China 3.74 4.74 4.43 5.17 5.75 5.81 5.79 5.87 5.54 5.88 5.98 6.09 6.07 6.12 6.08 6.03

Colombia 5.28 4.84 4.74 5.22 5.07 5.59 5.51 5.58 5.57 5.82 5.82 5.84 5.97 6.18 6.12 6.32 6.35 6.41

Congo, Dem. Rep. 4.05 3.49 2.60 3.61 3.03 3.28 3.85 3.73 4.58 4.53 4.55 4.52 5.04 5.11 5.08 4.98 5.07 5.07

Congo, Republic of 4.50 4.31 4.97 5.02 4.28 4.62 4.48 4.72 4.81 4.71 4.81 4.73 4.94 5.19 4.99 4.72

Costa Rica 5.92 5.07 5.03 6.64 6.97 7.51 7.32 7.21 7.44 7.20 7.66 7.85 7.67 7.46 7.49 7.42 7.21

Côte d’Ivoire 5.39 6.08 5.57 5.20 5.99 5.96 5.82 5.90 5.90 6.01 6.13 6.10 5.86 6.10 5.91 5.94

Croatia 5.06 6.35 6.28 6.43 6.54 6.68 6.75 6.82 6.92 7.04 7.08 7.05 7.29

Cyprus 5.80 5.53 5.53 6.04 6.41 6.51 6.52 6.98 6.87 7.63 7.55 7.53 7.77 7.73 7.66 7.65 7.63

Czech Republic 5.84 6.53 6.56 6.67 6.84 6.89 6.92 6.91 7.14 7.17 7.09 7.13 7.17

Denmark 6.84 6.24 6.39 6.53 7.26 7.73 7.92 7.69 7.78 8.06 8.00 7.94 7.96 7.97 7.87 7.74 7.94 7.83

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18 E Economic Freedom of the World: 2013 Annual Report

Exhibit 1.5 (continued): Chain-linked summary ratings from 1970 to 2011

1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Dominican Republic 5.16 4.91 4.34 5.99 6.76 6.73 6.69 6.19 5.59 6.42 6.33 6.42 6.30 6.82 7.01 7.02

Ecuador 3.87 4.89 5.29 4.38 5.35 6.15 5.82 5.61 6.22 6.21 5.47 5.85 5.93 5.78 5.81 5.80 5.72 5.76

Egypt 3.59 4.40 4.86 4.60 5.99 6.81 6.60 6.22 6.10 6.08 6.59 6.72 6.97 6.79 6.69 6.79 6.65

El Salvador 4.57 4.29 4.80 7.65 7.57 7.52 7.45 7.49 7.50 7.54 7.66 7.73 7.63 7.40 7.29 7.22

Estonia 6.08 7.61 7.67 7.75 7.86 7.81 7.97 7.95 7.94 7.74 7.72 7.80 7.77

Fiji 5.28 5.58 5.98 5.73 6.12 6.24 6.12 6.17 6.14 6.13 6.54 6.49 6.49 6.54 6.42 6.39 6.37

Finland 6.82 6.16 6.65 6.92 7.24 7.50 7.73 7.61 7.63 7.95 7.87 7.97 7.87 7.91 7.81 7.79 7.91 7.99

France 6.63 5.93 6.09 5.99 7.07 7.02 7.31 6.97 7.14 7.38 7.39 7.38 7.38 7.58 7.49 7.47 7.49 7.45

Gabon 4.50 5.08 5.47 5.38 5.81 5.64 5.58 5.65 5.68 5.60 5.78 5.69 5.73 5.69 5.63 5.52

Germany 7.44 6.85 7.16 7.25 7.65 7.63 7.67 7.45 7.54 7.83 7.73 7.76 7.70 7.61 7.53 7.57 7.58 7.69

Ghana 3.64 3.05 3.20 5.06 5.53 5.66 5.78 6.14 6.40 6.36 6.49 6.99 7.00 6.80 7.02 6.89 6.83

Greece 6.33 5.86 5.76 5.14 5.99 6.44 6.91 6.79 6.99 7.32 7.26 7.31 7.27 7.33 6.92 6.79 6.88 6.77

Guatemala 5.98 6.46 5.87 4.68 5.62 6.96 6.57 6.62 6.80 6.91 6.84 7.15 7.26 7.28 7.17 7.16 7.13 7.14

Guinea-Bissau 3.24 3.45 4.43 4.84 4.89 5.10 4.97 5.20 5.50 5.19 5.24 5.66 5.68 5.75

Guyana 5.20 6.72 6.65 6.41 6.28 6.01 6.36 6.53 6.74 6.96 6.89 6.75 6.85

Haiti 6.51 5.76 5.61 5.59 6.89 6.60 6.56 6.67 6.75 6.77 6.75 6.72 6.88 6.99 6.70 6.82

Honduras 5.97 5.38 5.45 6.26 6.68 6.47 6.72 6.78 6.75 6.86 7.19 7.22 7.14 6.96 7.03 7.00

Hong Kong 8.69 8.71 9.02 8.63 8.59 9.14 8.86 8.81 8.77 8.82 8.76 8.95 8.96 9.03 9.07 9.00 8.92 8.87

Hungary 3.94 4.67 5.04 6.19 6.56 6.90 6.68 7.21 7.35 7.23 7.13 7.14 7.18 7.19 7.32 7.61

Iceland 6.13 4.40 5.25 5.53 6.95 7.69 8.04 7.93 7.91 8.05 8.01 8.09 7.96 7.84 7.15 7.02 7.05 7.33

India 5.36 4.50 5.35 5.02 5.05 5.80 6.32 6.16 6.39 6.50 6.40 6.89 6.68 6.55 6.55 6.47 6.40 6.50

Indonesia 4.54 5.21 5.06 6.14 6.52 6.62 6.07 5.70 6.03 6.38 6.20 6.63 6.69 6.77 6.75 6.78 7.05 7.06

Iran 5.80 5.64 3.36 3.83 4.39 4.31 5.90 6.27 6.11 6.21 6.36 6.47 6.34 6.28 6.32 6.43 6.56 6.28

Ireland 6.79 5.97 6.47 6.54 7.13 8.29 8.20 8.01 8.06 8.05 8.11 8.41 8.26 8.20 7.82 7.67 7.78 7.82

Israel 4.58 3.87 3.48 4.03 4.66 6.04 6.77 6.70 7.20 7.20 7.14 7.37 7.25 7.26 7.22 7.13 7.31 7.27

Italy 5.98 5.17 5.37 5.57 6.60 6.66 7.36 7.20 7.29 7.15 7.18 7.33 7.23 6.85 6.76 6.72 6.79 6.81

Jamaica 3.92 4.85 5.48 6.65 7.57 7.34 7.38 7.36 7.48 7.63 7.61 7.45 7.26 7.26 7.10 7.23

Japan 6.78 6.38 6.88 7.05 7.58 7.50 7.90 7.51 7.46 7.88 7.77 7.79 7.75 7.74 7.65 7.50 7.58 7.48

Jordan 5.28 5.32 5.71 5.81 6.45 7.40 7.09 7.41 7.39 7.17 7.61 7.51 7.69 7.51 7.43 7.72 7.79

Kenya 4.80 4.63 4.80 5.29 5.43 5.89 6.72 6.80 6.81 6.96 6.59 7.24 7.11 7.05 6.67 6.90 6.90 6.84

Korea, South 5.39 5.26 5.49 5.54 6.31 6.67 6.79 7.10 7.15 7.27 7.31 7.26 7.44 7.47 7.26 7.18 7.28 7.30

Kuwait 4.99 6.85 5.46 6.93 7.07 7.49 7.58 7.59 7.48 7.46 7.57 7.73 7.47 7.48 7.50 7.30

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 Chapter 1: Economic Freedom of the World in 2011 E 19

Exhibit 1.5 (continued): Chain-linked summary ratings from 1970 to 2011

1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Latvia 5.28 6.96 6.97 7.34 7.18 7.15 7.30 7.43 7.36 7.26 7.11 7.02 7.19

Lithuania 5.31 6.60 6.55 6.96 6.97 6.90 6.96 7.05 7.13 7.00 7.02 7.14 7.18

Luxembourg 7.47 7.62 7.51 7.82 7.79 7.93 8.02 8.02 7.89 7.93 7.98 7.72 7.70 7.76 7.77 7.66 7.65 7.61

Madagascar 4.01 4.59 4.49 4.61 5.96 6.27 5.83 6.03 5.78 5.79 5.88 6.18 6.12 6.21 6.36 6.34

Malawi 5.17 4.62 4.96 5.40 4.57 4.95 5.17 5.23 5.64 5.33 5.16 5.34 5.63 5.91 5.99 6.05 6.09

Malaysia 6.51 6.29 6.94 7.00 7.40 7.62 6.79 6.39 6.58 6.66 6.69 6.99 6.91 6.98 6.71 6.76 7.03 7.05

Mali 5.41 5.73 4.81 5.11 5.22 6.19 5.94 5.59 6.06 5.87 6.03 6.34 6.37 6.04 6.14 6.07 6.03

Malta 5.50 5.28 5.48 6.92 6.76 6.73 6.84 6.53 7.45 7.68 7.51 7.81 7.60 7.58 7.62 7.59

Mauritius 4.80 4.73 6.12 6.06 7.55 7.60 7.38 7.20 7.11 6.97 7.57 7.41 7.95 8.04 7.93 7.95 8.01

Mexico 6.45 5.76 5.13 4.61 6.13 6.43 6.44 6.31 6.64 6.62 6.62 6.82 6.86 6.78 6.71 6.60 6.69 6.63

Morocco 5.65 5.07 4.45 5.20 5.18 6.28 6.14 6.14 6.13 6.32 6.15 6.37 6.21 6.33 6.34 6.35 6.44 6.51

Myanmar 4.50 4.15 3.13 3.80 3.67 3.44 3.09 3.19 3.67 3.63 3.93 3.40 3.52 3.69 3.79 3.70

Namibia 5.11 6.14 6.38 6.35 6.39 6.51 6.20 6.46 6.36 6.57 6.54 6.55 6.41 6.20

Nepal 5.49 5.01 5.11 5.15 5.87 5.88 5.83 5.51 5.51 6.18 6.40 6.02 5.88 5.69 5.80 5.92

Netherlands 7.04 6.55 7.23 7.28 7.60 7.95 8.21 7.91 7.94 7.88 7.83 7.92 7.84 7.84 7.78 7.63 7.64 7.76

New Zealand 6.32 5.69 6.35 6.21 7.82 8.84 8.52 8.39 8.52 8.56 8.56 8.56 8.26 8.50 8.41 8.36 8.37 8.51

Nicaragua 3.69 1.78 2.75 5.47 6.69 6.38 6.75 6.80 6.61 6.86 7.00 7.01 6.81 6.77 6.77 6.87

Niger 4.63 5.07 5.16 4.33 5.44 5.07 5.03 5.24 5.63 5.62 5.70 5.64 5.59 5.67 5.68 5.70

Nigeria 3.55 3.36 3.25 3.68 3.31 3.76 5.30 5.03 5.53 5.57 5.56 6.03 6.42 6.28 5.98 5.84 5.92 6.15

Norway 5.93 5.58 5.79 6.46 7.13 7.56 7.27 7.12 7.03 7.60 7.53 7.69 7.54 7.69 7.59 7.46 7.49 7.52

Oman 6.78 6.34 6.99 7.53 7.57 7.53 7.58 7.45 7.39 7.44 7.73 7.64 7.69 7.65 7.59

Pakistan 4.20 3.54 4.30 4.91 4.87 5.67 5.41 5.42 5.62 5.40 5.41 5.86 5.93 5.89 5.72 5.94 5.94 6.01

Panama 6.67 5.55 6.12 6.45 7.44 7.56 7.53 7.52 7.59 7.51 7.60 7.55 7.63 7.32 7.33 7.24 7.12

Papua New Guinea 5.89 6.06 6.37 5.83 5.80 5.74 5.69 5.75 6.16 6.14 6.37 6.44 6.53 6.60 6.62

Paraguay 5.68 4.82 5.60 6.53 6.44 6.47 6.32 6.27 6.14 6.36 6.33 6.30 6.44 6.50 6.59 6.65

Peru 4.42 3.54 3.90 2.61 3.97 6.50 7.30 7.29 7.29 7.30 7.23 7.30 7.33 7.33 7.44 7.44 7.51 7.55

Philippines 5.29 5.22 5.33 5.07 5.79 7.30 6.97 6.81 6.92 6.94 6.64 7.00 7.05 6.93 6.83 6.78 7.06 7.14

Poland 3.46 3.55 5.37 6.34 6.13 6.45 6.50 6.89 6.89 6.99 6.94 6.99 7.13 7.11 7.18

Portugal 5.89 3.73 5.53 5.37 6.25 7.46 7.55 7.41 7.64 7.63 7.65 7.43 7.49 7.46 7.36 7.18 7.16 7.43

Romania 4.39 4.31 3.81 5.27 5.24 5.83 6.19 6.17 7.08 6.82 7.33 7.00 7.17 7.14 7.18

Russia 4.43 5.15 5.14 5.62 5.73 5.91 6.08 6.09 6.25 6.32 6.25 6.33 6.35

Rwanda 5.02 3.78 5.40 5.51 5.85 5.64 5.62 5.93 6.25 6.52 6.86 6.89 7.38 7.38

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20 E Economic Freedom of the World: 2013 Annual Report

Exhibit 1.5 (continued): Chain-linked summary ratings from 1970 to 2011

1970 1975 1980 1985 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Senegal 4.43 5.17 5.31 4.56 5.88 5.65 5.73 5.63 5.67 5.72 5.63 5.73 5.64 5.79 5.75 5.72

Sierra Leone 4.97 4.97 3.67 3.86 4.33 5.23 4.99 5.50 5.93 5.77 5.99 6.07 6.39 6.29 6.66 6.69 6.73

Singapore 7.61 7.41 7.76 8.00 8.59 8.90 8.61 8.51 8.74 8.68 8.58 8.73 8.64 8.65 8.62 8.60 8.60 8.60

Slovak Rep 5.55 6.20 6.53 6.55 6.92 7.47 7.64 7.54 7.55 7.59 7.49 7.43 7.47

Slovenia 5.15 6.72 6.91 6.87 6.97 6.93 6.95 7.02 7.02 7.08 7.04 6.58 6.58

South Africa 6.30 5.71 5.85 5.49 5.50 6.57 7.08 7.05 7.04 7.20 7.02 7.00 6.94 6.95 6.67 6.61 6.87 6.93

Spain 6.41 5.85 6.10 6.08 6.57 7.25 7.54 7.26 7.31 7.72 7.65 7.60 7.55 7.52 7.44 7.22 7.32 7.50

Sri Lanka 4.77 4.95 4.81 6.07 6.16 6.12 6.08 6.26 6.05 6.21 6.39 6.20 6.02 6.12 6.27 6.42

Sweden 5.51 5.35 5.68 6.47 7.11 7.28 7.62 7.31 7.56 7.70 7.51 7.58 7.53 7.52 7.49 7.53 7.73 7.67

Switzerland 7.45 7.46 7.99 8.15 8.15 8.19 8.63 8.37 8.53 8.42 8.32 8.19 8.17 8.20 8.02 8.05 8.13 8.12

Syria 3.96 4.19 3.31 3.07 3.53 4.23 4.92 5.20 4.83 4.76 5.23 5.46 5.20 5.46 5.27 5.46 5.52

Taiwan 6.65 5.83 6.58 6.84 7.30 7.41 7.45 7.34 7.53 7.54 7.62 7.68 7.72 7.69 7.64 7.55 7.86 7.86

Tanzania 4.41 3.19 3.65 3.47 3.87 5.43 6.07 6.14 5.94 5.98 6.03 6.44 6.56 6.47 6.36 6.22 6.44 6.49

Thailand 6.05 6.01 6.09 6.17 6.83 7.18 6.51 6.16 6.63 6.68 6.56 6.68 6.80 6.80 6.78 6.70 6.66 6.60

Togo 4.07 5.15 5.73 5.46 5.81 5.99 6.16 5.93 5.76 6.00 6.09 5.70 5.71 5.75 5.85 5.90

Trinidad & Tobago 4.57 4.83 4.80 5.52 7.29 7.55 7.49 7.33 7.21 7.08 7.14 7.25 7.26 7.16 7.08 6.95 6.97

Tunisia 4.54 4.57 4.82 4.60 5.32 5.73 6.08 6.08 5.94 5.94 5.96 6.02 6.36 6.35 6.29 6.27 6.22 6.26

Turkey 3.49 3.87 3.77 4.85 5.06 5.89 5.81 5.20 5.48 5.93 6.07 6.09 6.20 6.33 6.61 6.52 6.54 6.69

Uganda 3.14 2.82 2.86 5.15 7.00 6.94 7.08 7.18 7.10 7.31 7.48 7.61 7.57 7.51 7.57 7.38

Ukraine 3.39 4.56 4.69 5.32 5.22 5.43 5.74 5.87 5.84 5.80 5.83 5.83 6.09

United Arab Emirates 6.03 6.83 7.20 6.95 7.28 7.30 7.52 7.43 7.26 7.50 7.65 7.74 7.70 7.52 7.74 7.85

United Kingdom 5.98 5.92 6.57 7.53 8.08 8.20 8.50 8.38 8.41 8.52 8.38 8.38 8.25 8.15 8.08 7.95 7.94 7.97

United States 7.60 7.73 7.92 8.11 8.35 8.50 8.65 8.44 8.40 8.36 8.37 8.21 8.13 8.21 7.99 7.71 7.75 7.74

Uruguay 6.07 5.97 6.34 6.47 7.08 6.85 7.09 6.92 7.00 7.02 6.98 7.08 7.12 7.06 7.29 7.30

Venezuela 7.31 6.17 6.69 6.08 5.69 4.40 5.83 5.71 4.57 4.18 4.57 4.52 4.54 4.25 4.10 4.16 3.79 3.74

Zambia 4.00 4.60 3.54 3.09 4.76 6.90 6.75 6.78 7.02 7.08 7.37 7.55 7.71 7.69 7.71 7.72 7.62

Zimbabwe 4.57 4.51 4.83 5.77 4.60 3.64 3.63 3.71 3.24 2.88 2.94 3.19 4.50 4.56 4.40 4.50

Fraser Institute ©2013 E www.fraserinstitute.org E www.freetheworld.com

 Chapter 1: Economic Freedom of the World in 2011 E 21

Economic freedom and human progress

As is customary, this chapter concludes with some graphs illustrating simple rela-
tionships between economic freedom and various other indicators of human and
political progress. The graphs use the average of the chain-linked EFW index for the
period from 2000 to 2011, breaking the data into four quartiles ordered from low
to high. Because persistence is important and the impact of economic freedom will
be felt over a lengthy time period, it is better to use the average rating over a fairly
long time span rather than the current rating to observe the impact of economic
freedom on performance.
The graphs begin with the data on the relationship between economic freedom
and the level of per-capita GDP and economic growth. In recent years, numerous
scholarly studies have analyzed these relationships in detail and, almost without
exception, have found that countries with higher and improving economic freedom
grow more rapidly and achieve higher levels of per-capita GDP.
Many of the relationships illustrated in the graphs below reflect the impact of
economic freedom as it works through increasing economic growth. In other cases,
the observed relationships may reflect the fact that some of the variables that influ-
ence economic freedom may also influence political factors like trust, honesty in
government, and protection of civil liberties. Thus, we are not necessarily arguing
that there is a direct causal relation between economic freedom and the variables
considered below. In other words, these graphics are no substitute for real, scholarly
investigation that controls for other factors. Nonetheless, we believe that the graphs
provide some insights about the contrast between the nature and characteristics of
market-oriented economies and those dominated by government regulation and
planning. At the very least, these figures suggest what might be fruitful areas for
future research.

Exhibit 1.6: Economic Freedom and Income per Capita, 2011

Countries with more economic 40000
$36,466
GDP per capita, PPP (US$2011), 2011

freedom have substantially higher 35000

per-capita incomes.
30000

25000
Sources: Fraser Institute, Economic
20000 $17,869
Freedom of the World: 2013 Annual
Report; World Bank, World Development 15000
Indicators 2013.
10000 $8,523

5000 $4,382

0
Least Free Third Second Most Free
Economic Freedom Quartile

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22 E Economic Freedom of the World: 2013 Annual Report

Exhibit 1.7: Economic Freedom and Economic Growth, 1991–2011

Countries with more economic 4.0
3.69%
freedom tend to grow more rapidly.

(average annual %), 1991–2011

3.5

Growth (%) in GDP per capita

3.15%
3.0 2.81%

Sources: Fraser Institute, Economic

2.5
Freedom of the World: 2013 Annual
Report; World Bank, World Development 2.0
Indicators 2013.
1.5
Note: The growth data were adjusted to 1.09%
control for the initial level of income. 1.0

0.5
0.0
Least Free Third Second Most Free
Economic Freedom Quartile

Exhibit 1.8: Economic Freedom and the Income Share of the Poorest 10%, 2000–2011
The share of income earned by the 3.0
2.76%
poorest 10% of the population is 2.57%
unrelated to economic freedom. 2.5 2.34% 2.28%
Income Share (%)

2.0
Sources: Fraser Institute, Economic
Freedom of the World: 2013 Annual 1.5
Report; World Bank, World Development
Indicators 2013. 1.0

0.5

0.0
Least Free Third Second Most Free
Economic Freedom Quartile

Exhibit 1.9: Economic Freedom and the Income Earned by the Poorest 10%, 2011
The amount of income, as opposed 12000
to the share, earned by the poorest $10,556
poorest 10% (US$2011), 2011

10000
Annual income per capita of

10% of the population is much

higher in countries with higher
8000
economic freedom.

6000

Sources: Fraser Institute, Economic $3,792

4000
Freedom of the World: 2013 Annual
Report; World Bank, World Development $1,779
2000
Indicators 2013. $932

0
Least Free Third Second Most Free
Economic Freedom Quartile

Fraser Institute ©2013 E www.fraserinstitute.org E www.freetheworld.com

 Chapter 1: Economic Freedom of the World in 2011 E 23

Exhibit 1.10: Economic Freedom and Life Expectancy, 2011

Life expectancy is about 20 years 90
longer in countries with the 79.2
80
70.7 72.8
most economic freedom than in

Life expectancy at birth,

70
countries with the least. 60.2

total (years), 2011

60
50
Sources: Fraser Institute, Economic 40
Freedom of the World: 2013 Annual
30
Report; World Bank, World Development
Indicators 2013. 20

10
0
Least Free Third Second Most Free
Economic Freedom Quartile

Exhibit 1.11: Economic Freedom and Political Rights and Civil Liberties
Greater economic freedom is 17
associated with more political
Political Rights and Civil Liberties

2.0 2.1 2.0 2.0

rights and civil liberties. 26

3.0
35 3.2

Sources: Fraser Institute, Economic

44
Freedom of the World: 2013 Annual Report; 4.6
Freedom House, Freedom in the World 2012. 4.9
53

Note: Political rights and civil liberties

62
are measured on a scale from 1 to 7:
1 = the highest degree of political rights Pol Civ Pol Civ Pol Civ Pol Civ
71
and civil liberties; 7 = the lowest. Least Free Third Second Most Free
Economic Freedom Quartile

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24 E Economic Freedom of the World: 2013 Annual Report

References

Freedom House (2012). Freedom in the World 2012: The Arab Uprisings and Their Global
Repercussions. <http://www.freedomhouse.org/report/freedom-world/freedom-world-2012>.

Gwartney, James, Randall Holcombe, and Robert Lawson (2006). Institutions

and the Impact of Investment on Economic Growth. Kyklos 59, 2: 255–273.
<http://onlinelibrary.wiley.com/doi/10.1111/j.1467-6435.2006.00327.x/abstract>.

Hall, Joshua, and Robert Lawson (2013). Economic Freedom of the World: An
Accounting of the Literature. Contemporary Economic Policy. <http://onlinelibrary.
wiley.com/doi/10.1111/coep.12010/abstract>.

World Bank (2013). World Development Indicators 2013. < http://data.worldbank.org/

data-catalog/world-development-indicators>.

Data available to researchers

The full data set, including all of the data published in this report as well as data omit-
ted due to limited space, can be downloaded for free at <http://www.freetheworld.com>.
The data file available there contains the most up-to-date and accurate data for the
Economic Freedom of the World index. Some variable names and data sources have
evolved over the years since the first publication in 1996; users should consult earlier
editions of Economic Freedom of the World for details regarding sources and descrip-
tions for those years. All editions of the report are available in PDF and can be down-
loaded for free at <http://www.freetheworld.com>. However, users are always strongly
encouraged to use the data from this most recent data file as updates and corrections,
even to earlier years’ data, do occur. Users doing long-term or longitudinal studies are
encouraged to use the chain-linked index as it is the most consistent through time.
If you have difficulty downloading the data, please contact Fred McMahon via
e-mail to <freetheworld@fraserinstitute.org>. If you have technical questions about the
data itself, please contact Joshua Hall <joshua.c.hall@gmail.com> or Robert Lawson
<robert.a.lawson@gmail.com>. Please cite the data in your bibliography as:

Authors James Gwartney, Robert Lawson, and Joshua Hall

Title 2013 Economic Freedom Dataset, published in Economic Freedom of the World:
2013 Annual Report
Publisher Fraser Institute
Year 2013
URL <http://www.freetheworld.com/datasets_efw.html>.

Published work using ratings from Economic Freedom of the World

A list of published papers that have used the economic freedom ratings from
Economic Freedom of the World is available on line at <http://www.freetheworld.com/
papers.html>. In most cases, a brief abstract of the article is provided. If you know
of other papers current or forthcoming that should be included on this page, or
have further information about any of these papers or authors, please write to
<freetheworld@fraserinstitute.org>.

Fraser Institute ©2013 E www.fraserinstitute.org E www.freetheworld.com

Chapter 2 Country Data Tables

This chapter presents detailed data on the components used in constructing the
EFW index for the 1531 jurisdictions included in this study. For each country for
which data were available, we present the overall EFW index rating and the rank
of that country for the years 1980, 1985, 1990, 1995, 2000, 2005, 2010, and 2011.
(Ratings are also available for many countries for 1970, 1975, 2001, 2002, 2003,
2004, 2006, 2007, 2008, and 2009 but these data are not shown in the tables
because of limited space. See www.freetheworld.com for full data.) Like all the ratings
in the index, these are values out of 10; 10 is the highest possible rating and zero
(0) is the lowest. A higher rating indicates a greater degree of economic freedom.

Chain-Linked The country data tables show both unadjusted and chain-linked rat-
ings and ranks. See chapter 1 for a full explanation of the chain-linked method. The
top row under the “Chain-linked” section shows the country’s chain-linked sum-
mary rating for each year and, in parentheses, its overall rank. In the rows below,
titles on the left in bold face indicate the five areas of economic freedom that are
combined to generate an overall rating. The cells to their right give the chain-linked
rating and, in parentheses, the rank for that particular area for each year.

Unadjusted The top row under the “Unadjusted” section shows the country’s sum-
mary rating for each year and, in parentheses, its overall rank. In the rows below,
titles on the left in bold face indicate the five areas of economic freedom that are
combined to generate an overall score. The cells to their right give the rating for that
area for each year. Underneath each area title are the titles of the components and
sub-components that are combined to generate that area’s score. In these rows are
the scores for each year presented, where data are available. Shown in italic beside
some scores are the actual data used to derive that particular component rating.
For some countries, data for other components for certain years may be reported
even though there were insufficient data to compute area or summary ratings. A
more complete description of each component, including the methodology used
to calculate the ratings, can be found in the Appendix: Explanatory Notes and Data
Sources (p. 235).

1 The table for Syria, with historic data, is included in this chapter but, due to events in the country,
data for 2011 are questionable and, therefore, have not been shown. For this reason, Syria is not
included this year among the 152 countries ranked in Exhibits 1.2 and 1.3.

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26 E Economic Freedom of the World: 2013 Annual Report

Albania
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.37 (97) 5.07 (97) 6.23 (77) 7.12 (53) 7.49 (33) 7.42 (38)
Area 1. Size of Government 3.51 (102) 6.54 (40) 7.63 (18) 8.89 (4) 8.89 (3) 9.13 (2)
Area 2. Legal System and Property Rights 5.25 (50) 5.21 (58) 4.85 (89) 4.77 (84) 5.22 (76) 5.82 (64) 5.40 (74)
Area 3. Sound Money 4.89 (94) 4.90 (91) 3.26 (105) 7.40 (71) 9.64 (9) 9.73 (3) 9.78 (2)
Area 4. Freedom to Trade Internationally 6.24 (72) 5.88 (89) 6.29 (85) 7.20 (58) 7.07 (65)
Area 5. Regulation 2.62 (112) 4.57 (103) 5.47 (101) 5.69 (101) 5.89 (106) 5.82 (107)

Unadjusted
Summary Ratings Rank) h 4.60 (90) 4.98 (97) 6.19 (77) 6.98 (66) 7.34 (44) 7.27 (48)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.19 6.54 7.63 8.04 8.04 8.26
A. Government consumption 7.70 (13.81) 7.83 (13.39) 4.87 (23.44) 7.78 (13.55) 9.10 (9.07) 8.99 (9.42) 9.29 (8.41) 9.29 (8.40)
B. Transfers and subsidies 3.51 (24.30) 7.85 (8.40) 7.80 (8.57) 9.66 (1.73) 7.39 (10.09) 7.23 (10.65)
C. Government enterprises and investment 4.00 (39.00) 6.00 (26.70) 8.00 (19.45) 7.00 (21.28) 8.00 (18.12)
D. Top marginal tax rate 5.50 8.50 8.50
(i) Top marginal income tax rate 9.00 (25) 10.00 (10) 10.00 (10)
(ii) Top marginal income and payroll tax rate 2.00 (51) 7.00 (32) 7.00 (32)

Area 2. Legal System and Property Rights 5.25 5.21 4.64 4.58 4.80 5.36 4.97
A. Judicial independence 2.38 3.29 2.64
B. Impartial courts 3.94 4.31 2.66 4.51 3.80
C. Protection of property rights 3.36 4.05 3.56
D. Military interference in rule of law and politics 3.65 6.67 8.33 8.33 8.33
E. Integrity of the legal system 6.96 3.33 3.68 4.17 4.17
F. Legal enforcement of contracts 5.17 5.36 5.36
G. Regulatory restrictions on sale of real property 8.06 5.46 5.63
H. Reliability of police 4.91 5.86 5.07
I. Business costs of crime 4.64 7.17 6.15

Area 3. Sound Money 6.52 6.54 3.26 7.40 9.64 9.73 9.78
A. Money growth 0.00 (78.90) 9.57 (2.16) 9.50 (2.50) 9.86 (0.71) 9.98 (-0.09)
B. Standard deviation of inflation 9.64 (0.91) 9.62 (0.95) 0.00 (86.94) 5.03 (12.43) 9.53 (1.16) 9.75 (0.62) 9.81 (0.48)
C. Inflation: most recent year 9.93 (0.35) 10.00 (0.00) 8.03 (9.83) 9.99 (0.05) 9.53 (2.37) 9.29 (3.55) 9.31 (3.45)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.90 5.88 6.33 7.25 7.12

A. Tariffs 5.70 6.11 8.24 8.45 8.45
(i) Revenue from trade taxes (% of trade sector) 5.70 (6.45) 5.14 (7.29) 8.14 (2.79) 8.57 (2.14) 8.57 (2.14)
(ii) Mean tariff rate 6.60 (17.00) 8.74 (6.30) 9.00 (5.00) 9.00 (5.00)
(iii) Standard deviation of tariff rates 6.60 (8.50) 7.83 (5.42) 7.78 (5.55) 7.78 (5.55)
B. Regulatory trade barriers 4.89 6.86 6.60
(i) Non-tariff trade barriers 4.41 6.28 5.75
(ii) Compliance costs of importing and exporting 5.36 7.45 7.45
C. Black-market exchange rates 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 2.00 1.54 2.19 3.68 3.42
(i) Foreign ownership/investment restrictions 5.02 6.41 5.66
(ii) Capital controls 0.00 0.00 0.00 2.00 1.54 1.54 4.62 4.62
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 2.47 4.57 5.47 6.09 6.31 6.23

A. Credit market regulations 0.00 4.55 4.61 7.49 7.04 7.05
(i) Ownership of banks 0.00 2.00 2.00 5.00 5.00 5.00
(ii) Private sector credit 5.64 2.83 8.46 6.12 6.14
(iii) Interest rate controls/negative real interest rates 0.00 6.00 9.00 9.00 10.00 10.00
B. Labor market regulations 5.97 5.97 5.87
(i) Hiring regulations and minimum wage 5.60 5.57 5.57
(ii) Hiring and firing regulations 6.69 6.11 6.09
(iii) Centralized collective bargaining 7.74 6.86 6.24
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 4.81 6.30 6.30
(vi) Conscription 0.00 0.00 0.00 3.00 10.00 3.00 3.00 3.00
C. Business regulations 4.82 5.91 5.78
(i) Administrative requirements 2.66 5.68 5.18
(ii) Bureaucracy costs 0.99 4.81 4.81
(iii) Starting a business 8.40 9.54 9.64
(iv) Extra payments/bribes/favoritism 4.94 4.78 4.21
(v) Licensing restrictions 4.63 4.83 4.83
(vi) Cost of tax compliance 7.31 5.84 6.00

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 Chapter 2: Country Data Tables E 27

Algeria
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.82 (90) 3.60 (98) 3.43 (106) 4.06 (115) 4.66 (117) 5.25 (115) 5.01 (119) 4.71 (119)
Area 1. Size of Government 4.72 (62) 3.55 (93) 5.02 (73) 6.71 (36) 5.65 (80) 4.84 (105) 3.65 (121) 3.52 (121)
Area 2. Legal System and Property Rights 3.77 (59) 3.52 (84) 3.50 (83) 3.52 (111) 2.39 (120) 3.48 (105) 2.90 (116) 2.63 (118)
Area 3. Sound Money 5.23 (87) 6.30 (74) 4.50 (97) 5.37 (84) 7.00 (80) 7.51 (79) 8.42 (64) 7.23 (85)
Area 4. Freedom to Trade Internationally 1.97 (79) 1.45 (87) 1.31 (101) 1.91 (110) 4.80 (115) 5.34 (111) 5.14 (111) 5.06 (114)
Area 5. Regulation 2.83 (109) 2.78 (123) 3.45 (123) 4.67 (119) 4.75 (119) 4.88 (118)

Unadjusted
Summary Ratings Rank) h 3.97 (89) 3.74 (96) 3.45 (107) 4.09 (116) 4.75 (117) 5.74 (126) 5.48 (142) 5.32 (143)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.32 3.25 4.60 6.71 5.65 4.84 3.65 4.39
A. Government consumption 4.65 (24.19) 4.50 (24.69) 5.19 (22.35) 5.29 (22.01) 4.53 (24.60) 3.90 (26.74) 2.80 (30.47) 2.41 (31.80)
B. Transfers and subsidies 7.84 (8.43) 8.41 (6.32) 8.63 (5.52) 8.15 (7.29) 8.15 (7.29)
C. Government enterprises and investment 4.00 (32.50) 2.00 (47.90) 4.00 (30.40) 7.00 (24.90) 4.00 (37.80) 2.00 (48.40) 0.00 (61.26) 0.00 (61.26)
D. Top marginal tax rate 7.00
(i) Top marginal income tax rate 7.00 (35)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 3.77 3.52 3.50 3.68 2.87 5.32 4.44 4.02
A. Judicial independence 4.57 2.54 2.53
B. Impartial courts 3.61 3.84 5.11 3.28 2.60
C. Protection of property rights 5.80 3.47 2.56
D. Military interference in rule of law and politics 0.00 0.00 5.00 5.00 5.00
E. Integrity of the legal system 6.96 3.33 5.00 5.00 5.00
F. Legal enforcement of contracts 4.39 4.39 4.39
G. Regulatory restrictions on sale of real property 6.57 6.76 6.48
H. Reliability of police 6.89 4.56 3.38
I. Business costs of crime 4.58 4.94 4.28

Area 3. Sound Money 5.23 6.30 4.50 5.37 7.00 7.51 8.42 7.23
A. Money growth 8.35 (8.24) 7.81 (10.96) 9.35 (3.25) 8.11 (9.44) 7.95 (10.26) 7.84 (10.81) 8.35 (8.25) 8.77 (6.15)
B. Standard deviation of inflation 7.70 (5.75) 8.33 (4.17) 5.53 (11.17) 4.07 (14.83) 5.14 (12.16) 7.52 (6.20) 6.13 (9.67) 6.06 (9.86)
C. Inflation: most recent year 4.87 (25.66) 9.07 (4.64) 3.12 (34.40) 4.31 (28.46) 9.93 (0.34) 9.67 (1.64) 9.22 (3.91) 9.10 (4.52)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 5.00 10.00 5.00

Area 4. Freedom to Trade Internationally 2.55 1.89 1.69 1.91 4.80 5.98 5.75 5.67
A. Tariffs 7.66 5.66 5.08 3.72 4.95 6.95 6.76 6.76
(i) Revenue from trade taxes (% of trade sector) 3.58 (9.63) 6.36 (5.46) 8.21 (2.69) 8.16 (2.76) 8.16 (2.76)
(ii) Mean tariff rate 7.66 (11.70) 5.66 (21.70) 5.08 (24.60) 5.42 (22.90) 5.08 (24.60) 6.84 (15.80) 6.28 (18.60) 6.28 (18.60)
(iii) Standard deviation of tariff rates 2.16 (19.60) 3.40 (16.50) 5.81 (10.47) 5.83 (10.42) 5.83 (10.42)
B. Regulatory trade barriers 6.35 5.89 5.22
(i) Non-tariff trade barriers 5.16 4.73 3.39
(ii) Compliance costs of importing and exporting 7.53 7.05 7.05
C. Black-market exchange rates 0.00 0.00 0.00 0.00 7.78 7.93 8.57 9.07
D. Controls of the movement of capital and people 0.00 0.00 0.00 2.00 1.67 2.70 1.80 1.61
(i) Foreign ownership/investment restrictions 6.07 4.27 3.69
(ii) Capital controls 0.00 0.00 0.00 2.00 1.67 0.91 0.00 0.00
(iii) Freedom of foreigners to visit 1.13 1.13 1.13

Area 5. Regulation 2.93 2.78 3.45 5.06 5.16 5.30

A. Credit market regulations 0.00 0.00 0.87 0.48 2.26 4.45 5.67 6.33
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Private sector credit 1.74 1.44 1.78 3.34 10.00 10.00
(iii) Interest rate controls/negative real interest rates 0.00 5.00 10.00 7.00 9.00
B. Labor market regulations 5.16 4.99 4.87
(i) Hiring regulations and minimum wage 5.60 5.57 5.57
(ii) Hiring and firing regulations 4.35 4.74 3.85
(iii) Centralized collective bargaining 5.59 4.91 5.04
(iv) Hours regulations 6.00 6.00 6.00
(v) Mandated cost of worker dismissal 8.42 7.76 7.76
(vi) Conscription 5.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00
C. Business regulations 5.58 4.80 4.70
(i) Administrative requirements 3.31 2.10 2.13
(ii) Bureaucracy costs 3.74 3.31 3.31
(iii) Starting a business 8.94 8.97 8.98
(iv) Extra payments/bribes/favoritism 5.66 3.20 2.62
(v) Licensing restrictions 6.90 6.29 6.24
(vi) Cost of tax compliance 4.94 4.94 4.94

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28 E Economic Freedom of the World: 2013 Annual Report

Angola
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 3.69 (140) 5.27 (146) 5.17 (147)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.72 5.66 5.42
A. Government consumption 2.59 (31.20) 4.15 (25.90) 3.18 (29.20)
B. Transfers and subsidies 8.58 (5.71) 9.00 (4.17) 9.00 (4.17)
C. Government enterprises and investment 0.00 (62.50) 0.00 (76.37) 0.00 (75.83)
D. Top marginal tax rate 9.50 9.50
(i) Top marginal income tax rate 10.00 (17) 10.00 (17)
(ii) Top marginal income and payroll tax rate 9.00 (25) 9.00 (25)

Area 2. Legal System and Property Rights 3.15 3.74 3.65

A. Judicial independence 3.08 2.36 2.36
B. Impartial courts 2.92 2.51 2.51
C. Protection of property rights 4.11 2.85 2.85
D. Military interference in rule of law and politics 3.33 3.33 3.33
E. Integrity of the legal system 5.00 5.00 4.17
F. Legal enforcement of contracts 2.30 2.30 2.30
G. Regulatory restrictions on sale of real property 1.35 5.47 5.50
H. Reliability of police 3.84 4.23 4.23
I. Business costs of crime 2.40 5.62 5.62

Area 3. Sound Money 1.26 5.57 5.67

A. Money growth 0.00 (53.88) 5.12 (24.41) 5.76 (21.22)
B. Standard deviation of inflation 0.00 (40.17) 5.06 (12.36) 4.62 (13.44)
C. Inflation: most recent year 5.05 (24.76) 7.11 (14.47) 7.31 (13.47)
D. Freedom to own foreign currency bank accounts 0.00 5.00 5.00

Area 4. Freedom to Trade Internationally 6.10 6.11 6.11

A. Tariffs 7.92 7.91 7.93
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 8.48 (7.60) 8.54 (7.30) 8.54 (7.30)
(iii) Standard deviation of tariff rates 7.35 (6.62) 7.28 (6.79) 7.31 (6.72)
B. Regulatory trade barriers 4.02 4.02 4.02
(i) Non-tariff trade barriers 6.67 4.71 4.71
(ii) Compliance costs of importing and exporting 1.38 3.33 3.33
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.46 2.50 2.50
(i) Foreign ownership/investment restrictions 5.83 5.20 5.20
(ii) Capital controls 1.54 2.31 2.31
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 4.22 5.25 5.00

A. Credit market regulations 5.20 7.38 7.61
(i) Ownership of banks 5.00 8.00 8.00
(ii) Private sector credit 5.61 6.15 6.84
(iii) Interest rate controls/negative real interest rates 5.00 8.00 8.00
B. Labor market regulations 3.99 4.01 3.07
(i) Hiring regulations and minimum wage 3.30 3.33 3.33
(ii) Hiring and firing regulations 4.39 4.17 4.17
(iii) Centralized collective bargaining 7.62 6.28 6.28
(iv) Hours regulations 4.00 4.00 4.00
(v) Mandated cost of worker dismissal 4.62 6.26 0.65
(vi) Conscription 0.00 0.00 0.00 0.00
C. Business regulations 3.46 4.36 4.32
(i) Administrative requirements 2.17 1.76 1.76
(ii) Bureaucracy costs 0.46 2.86 2.86
(iii) Starting a business 3.09 6.49 6.64
(iv) Extra payments/bribes/favoritism 4.88 2.89 2.89
(v) Licensing restrictions 3.18 5.36 4.96
(vi) Cost of tax compliance 6.95 6.84 6.84

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 Chapter 2: Country Data Tables E 29

Argentina
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.96 (84) 3.30 (103) 4.42 (95) 7.04 (33) 7.40 (34) 5.97 (100) 5.70 (110) 5.67 (112)
Area 1. Size of Government 5.44 (38) 4.66 (63) 6.18 (41) 8.22 (7) 7.78 (17) 7.56 (31) 6.29 (67) 5.95 (79)
Area 2. Legal System and Property Rights 4.20 (52) 4.56 (62) 6.03 (37) 5.45 (73) 5.41 (71) 3.68 (104) 3.76 (105) 3.71 (105)
Area 3. Sound Money 2.50 (102) 2.50 (106) 2.50 (108) 6.57 (63) 9.71 (5) 5.44 (114) 6.12 (115) 6.79 (98)
Area 4. Freedom to Trade Internationally 3.91 (55) 1.43 (88) 4.13 (73) 8.61 (21) 7.62 (51) 6.28 (86) 6.16 (90) 5.70 (100)
Area 5. Regulation 3.78 (91) 3.65 (95) 3.38 (105) 6.36 (44) 6.49 (52) 6.81 (63) 5.99 (102) 6.07 (99)

Unadjusted
Summary Ratings Rank) h 4.30 (80) 3.58 (100) 4.54 (91) 7.01 (36) 7.40 (32) 5.99 (110) 5.72 (138) 5.69 (137)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.10 5.22 6.18 8.22 7.78 7.56 6.29 5.95
A. Government consumption 6.91 (16.50) 7.94 (13.00) 8.53 (11.00) 8.06 (12.60) 6.88 (16.62) 6.98 (16.26) 5.89 (19.98) 5.53 (21.20)
B. Transfers and subsidies 7.49 (9.70) 6.95 (11.70) 8.17 (7.20) 7.33 (10.30) 7.22 (10.69) 8.28 (6.82) 8.28 (6.82) 8.28 (6.82)
C. Government enterprises and investment 4.00 (39.50) 4.00 (38.30) 4.00 (30.00) 10.00 (8.50) 10.00 (6.44) 10.00 (11.03) 6.00 (12.65) 6.00 (12.65)
D. Top marginal tax rate 6.00 2.00 4.00 7.50 7.00 5.00 5.00 4.00
(i) Top marginal income tax rate 6.00 (45) 2.00 (62) 7.00 (35) 9.00 (30) 8.00 (35) 7.00 (35) 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate 1.00 (57) 6.00 (40) 6.00 (36-43) 3.00 (46) 3.00 (49) 1.00 (58)

Area 2. Legal System and Property Rights 4.20 4.56 6.03 5.45 5.41 4.22 4.31 4.25
A. Judicial independence 3.87 3.17 1.96 2.63 2.12
B. Impartial courts 4.20 5.18 2.62 2.61 2.34
C. Protection of property rights 4.57 3.72 3.18 2.92 2.75
D. Military interference in rule of law and politics 7.66 6.67 7.22 7.50 7.50
E. Integrity of the legal system 6.96 8.33 5.00 4.17 4.17
F. Legal enforcement of contracts 5.02 5.02 5.02
G. Regulatory restrictions on sale of real property 6.74 6.70 6.66
H. Reliability of police 3.11 3.17 3.09
I. Business costs of crime 3.16 4.11 4.61

Area 3. Sound Money 2.50 2.50 2.50 6.57 9.71 5.44 6.12 6.79
A. Money growth 0.00 (90.34) 0.00 (252.73) 0.00 (441.58) 7.07 (14.66) 9.50 (-2.48) 3.33 (33.35) 7.53 (12.34) 9.47 (2.67)
B. Standard deviation of inflation 0.00 (119.77) 0.00 (208.29) 0.00 (1198.84) 0.00 (52.44) 9.52 (1.20) 5.37 (11.56) 7.25 (6.87) 7.24 (6.90)
C. Inflation: most recent year 0.00 (92.02) 0.00 (620.84) 0.00 (2064.19) 9.23 (3.87) 9.81 (-0.94) 8.07 (9.64) 4.68 (26.60) 5.44 (22.81)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 4.62 1.69 4.40 8.54 7.62 6.43 6.31 5.84
A. Tariffs 4.05 3.07 3.19 7.46 7.47 6.49 6.28 6.33
(i) Revenue from trade taxes (% of trade sector) 3.67 (9.50) 1.53 (12.70) 3.40 (9.90) 7.53 (3.70) 7.92 (3.12) 5.58 (6.62) 5.58 (6.62) 5.58 (6.62)
(ii) Mean tariff rate 4.44 (27.80) 4.60 (27.00) 5.90 (20.50) 7.90 (10.50) 7.48 (12.60) 7.88 (10.60) 7.48 (12.60) 7.28 (13.60)
(iii) Standard deviation of tariff rates 0.28 (24.30) 6.96 (7.60) 7.00 (7.50) 6.00 (10.00) 5.77 (10.58) 6.14 (9.66)
B. Regulatory trade barriers 7.17 6.42 5.69 5.33 4.62
(i) Non-tariff trade barriers 7.17 6.18 3.81 2.58 2.04
(ii) Compliance costs of importing and exporting 6.66 7.57 8.08 7.20
C. Black-market exchange rates 9.80 2.00 10.00 10.00 10.00 10.00 10.00 8.99
D. Controls of the movement of capital and people 0.00 0.00 0.00 9.53 6.58 3.55 3.63 3.41
(i) Foreign ownership/investment restrictions 9.06 9.31 5.88 5.36 4.70
(ii) Capital controls 0.00 0.00 0.00 10.00 3.85 0.00 0.77 0.77
(iii) Freedom of foreigners to visit 4.76 4.76 4.76

Area 5. Regulation 4.09 3.95 3.58 6.28 6.49 6.31 5.55 5.62
A. Credit market regulations 4.45 4.20 3.70 7.54 7.32 8.26 6.57 6.83
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 8.34 7.61 6.09 7.61 6.95 9.78 5.72 6.50
(iii) Interest rate controls/negative real interest rates 0.00 0.00 0.00 10.00 10.00 10.00 9.00 9.00
B. Labor market regulations 3.73 3.70 3.46 5.94 6.11 5.12 5.36 5.34
(i) Hiring regulations and minimum wage 5.95 4.42 5.60 3.90 3.90
(ii) Hiring and firing regulations 3.00 3.00 5.28 2.50 2.82 2.85
(iii) Centralized collective bargaining 5.18 5.18 5.18 5.18 4.83 4.60 2.91 2.75
(iv) Hours regulations 5.01 4.93 4.66 5.55 6.01 8.00 10.00 10.00
(v) Mandated cost of worker dismissal 0.00 2.52 2.52
(vi) Conscription 1.00 1.00 1.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.36 6.05 5.54 4.72 4.70
(i) Administrative requirements 6.78 2.48 2.43 2.42
(ii) Bureaucracy costs 6.70 7.50 7.09 3.50 3.50
(iii) Starting a business 6.22 4.83 8.87 9.04 9.02
(iv) Extra payments/bribes/favoritism 3.16 5.07 4.98 3.20 2.95
(v) Licensing restrictions 4.91 4.81 4.87
(vi) Cost of tax compliance 4.92 5.35 5.46

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30 E Economic Freedom of the World: 2013 Annual Report

Armenia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 7.31 (47) 7.42 (36) 7.62 (23)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 7.75 7.64 8.32
A. Government consumption 8.16 (12.26) 7.51 (14.46) 8.21 (12.10)
B. Transfers and subsidies 8.33 (6.62) 8.05 (7.67) 8.09 (7.53)
C. Government enterprises and investment 6.00 6.00 8.00 (18.58)
D. Top marginal tax rate 8.50 9.00 9.00
(i) Top marginal income tax rate 9.00 10.00 (20) 10.00 (20)
(ii) Top marginal income and payroll tax rate 8.00 8.00 (26) 8.00 (26)

Area 2. Legal System and Property Rights 5.56 5.56 5.82

A. Judicial independence 2.11 3.01 3.00
B. Impartial courts 2.97 3.88 4.28
C. Protection of property rights 5.53 4.62 5.58
D. Military interference in rule of law and politics 5.83 5.83 5.83
E. Integrity of the legal system 5.00 5.00 5.00
F. Legal enforcement of contracts 7.16 5.99 5.99
G. Regulatory restrictions on sale of real property 9.79 9.77 9.80
H. Reliability of police 4.63 4.10 4.65
I. Business costs of crime 7.00 7.82 8.22

Area 3. Sound Money 9.21 9.18 9.15

A. Money growth 7.56 (12.20) 9.64 (1.82) 9.42 (-2.90)
B. Standard deviation of inflation 9.41 (1.48) 8.72 (3.21) 8.70 (3.24)
C. Inflation: most recent year 9.87 (0.64) 8.36 (8.18) 8.47 (7.65)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.08 7.62 7.39

A. Tariffs 7.71 8.90 8.89
(i) Revenue from trade taxes (% of trade sector) 9.37 (0.95) 9.15 (1.28) 9.11 (1.33)
(ii) Mean tariff rate 9.40 (3.00) 9.44 (2.80) 9.44 (2.80)
(iii) Standard deviation of tariff rates 4.36 (14.10) 8.11 (4.73) 8.11 (4.73)
B. Regulatory trade barriers 5.16 6.60 6.47
(i) Non-tariff trade barriers 5.31 5.25 4.99
(ii) Compliance costs of importing and exporting 5.00 7.95 7.95
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.45 4.96 4.20
(i) Foreign ownership/investment restrictions 6.76 5.42 5.63
(ii) Capital controls 8.46 8.33 5.83
(iii) Freedom of foreigners to visit 1.13 1.13 1.13

Area 5. Regulation 6.95 7.10 7.40

A. Credit market regulations 9.55 8.80 9.19
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 9.66 7.39 8.58
(iii) Interest rate controls/negative real interest rates 9.00 9.00 9.00
B. Labor market regulations 6.05 6.55 6.66
(i) Hiring regulations and minimum wage 6.70 6.67 6.67
(ii) Hiring and firing regulations 5.15 6.31 6.64
(iii) Centralized collective bargaining 7.64 7.36 7.67
(iv) Hours regulations 8.00 10.00 10.00
(v) Mandated cost of worker dismissal 8.79 8.99 8.99
(vi) Conscription 0.00 0.00 0.00
C. Business regulations 5.25 5.94 6.35
(i) Administrative requirements 3.04 4.12 4.68
(ii) Bureaucracy costs 2.93 4.04 4.04
(iii) Starting a business 9.36 9.71 9.72
(iv) Extra payments/bribes/favoritism 5.19 3.85 4.32
(v) Licensing restrictions 7.47 9.53 9.57
(vi) Cost of tax compliance 3.49 4.40 5.74

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 Chapter 2: Country Data Tables E 31

Australia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.86 (13) 7.17 (10) 7.57 (12) 7.98 (9) 8.07 (10) 8.24 (7) 8.07 (6) 8.05 (5)
Area 1. Size of Government 5.08 (48) 4.42 (73) 5.35 (65) 5.68 (73) 5.47 (81) 6.38 (73) 6.17 (71) 6.20 (72)
Area 2. Legal System and Property Rights 7.26 (14) 7.88 (11) 7.86 (15) 8.96 (11) 9.49 (3) 9.13 (7) 8.70 (13) 8.62 (12)
Area 3. Sound Money 9.00 (9) 9.35 (10) 9.15 (18) 9.40 (28) 9.40 (27) 9.44 (31) 9.47 (25) 9.41 (28)
Area 4. Freedom to Trade Internationally 5.90 (35) 6.97 (22) 7.87 (19) 8.28 (24) 8.33 (34) 7.89 (34) 7.92 (32) 8.07 (25)
Area 5. Regulation 7.11 (9) 7.20 (11) 7.54 (9) 7.56 (10) 7.63 (12) 8.32 (8) 8.04 (10) 7.91 (11)

Unadjusted
Summary Ratings Rank) h 6.85 (12) 7.16 (12) 7.73 (10) 7.95 (9) 8.07 (10) 8.07 (10) 7.90 (9) 7.88 (10)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.08 4.42 5.35 5.68 5.47 6.38 6.17 6.20
A. Government consumption 4.93 (23.23) 4.77 (23.79) 5.20 (22.33) 5.47 (21.40) 4.79 (23.70) 4.72 (23.95) 4.36 (25.18) 4.44 (24.90)
B. Transfers and subsidies 7.38 (10.10) 6.89 (11.90) 7.22 (10.70) 6.27 (14.20) 7.09 (11.17) 6.80 (12.26) 6.80 (12.23) 6.86 (12.03)
C. Government enterprises and investment 6.00 (28.40) 4.00 (30.20) 6.00 (25.20) 7.00 (21.50) 7.00 (21.50) 10.00 (10.61) 8.00 (15.62) 8.00 (15.62)
D. Top marginal tax rate 2.00 2.00 3.00 4.00 3.00 4.00 5.50 5.50
(i) Top marginal income tax rate 2.00 (62) 2.00 (60) 3.00 (49) 4.00 (47) 3.00 (47) 4.00 (47) 6.00 (45) 6.00 (45)
(ii) Top marginal income and payroll tax rate 3.00 (49) 4.00 (48) 3.00 (49) 4.00 (49) 5.00 (47) 5.00 (48)

Area 2. Legal System and Property Rights 7.26 7.88 7.86 8.96 9.49 8.48 8.09 8.01
A. Judicial independence 9.05 9.52 8.80 8.53 8.34
B. Impartial courts 9.00 9.69 8.31 6.62 6.37
C. Protection of property rights 7.32 8.27 8.97 7.59 7.42
D. Military interference in rule of law and politics 9.46 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 9.79 9.17 9.17
F. Legal enforcement of contracts 6.23 6.16 6.16
G. Regulatory restrictions on sale of real property 8.33 8.26 8.23
H. Reliability of police 8.07 8.24 8.44
I. Business costs of crime 7.82 8.19 7.92

Area 3. Sound Money 9.00 9.35 9.15 9.40 9.40 9.44 9.47 9.41
A. Money growth 8.57 (7.17) 9.50 (2.50) 8.06 (9.70) 8.43 (7.83) 9.19 (4.04) 8.61 (6.94) 9.13 (4.37) 9.09 (4.57)
B. Standard deviation of inflation 9.40 (1.51) 9.13 (2.17) 9.19 (2.02) 9.74 (0.64) 9.31 (1.72) 9.68 (0.79) 9.33 (1.67) 9.22 (1.95)
C. Inflation: most recent year 8.03 (9.84) 8.79 (6.06) 9.35 (3.26) 9.42 (2.90) 9.10 (4.48) 9.47 (2.67) 9.43 (2.85) 9.32 (3.39)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.38 7.53 8.15 8.10 8.33 7.48 7.52 7.66
A. Tariffs 7.35 7.60 6.46 7.71 8.43 8.43 8.83 8.80
(i) Revenue from trade taxes (% of trade sector) 7.60 (3.60) 7.87 (3.20) 7.93 (3.10) 8.80 (1.80) 9.06 (1.41) 8.97 (1.55) 9.25 (1.13) 9.32 (1.02)
(ii) Mean tariff rate 7.10 (14.50) 7.34 (13.30) 7.16 (14.20) 8.36 (8.20) 8.84 (5.80) 9.14 (4.30) 9.44 (2.80) 9.44 (2.80)
(iii) Standard deviation of tariff rates 4.28 (14.30) 5.96 (10.10) 7.40 (6.50) 7.17 (7.07) 7.80 (5.49) 7.65 (5.88)
B. Regulatory trade barriers 6.42 8.78 8.18 8.28 8.33
(i) Non-tariff trade barriers 6.42 8.07 7.44 7.65 7.75
(ii) Compliance costs of importing and exporting 9.50 8.91 8.91 8.91
C. Black-market exchange rates 9.80 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 5.00 8.00 8.27 6.11 3.33 2.97 3.51
(i) Foreign ownership/investment restrictions 8.53 9.14 7.57 7.26 7.34
(ii) Capital controls 2.00 5.00 8.00 8.00 3.08 2.31 1.54 3.08
(iii) Freedom of foreigners to visit 0.11 0.11 0.11

Area 5. Regulation 6.53 6.62 8.12 7.63 7.63 8.55 8.26 8.13
A. Credit market regulations 8.38 8.67 9.68 9.73 10.00 10.00 9.44 9.44
(i) Ownership of banks 8.00 8.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 7.14 8.00 9.03 9.19 10.00 10.00 8.33 8.33
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 6.56 5.43 5.57 8.36 7.74 7.27
(i) Hiring regulations and minimum wage 3.58 4.55 10.00 8.90 8.90
(ii) Hiring and firing regulations 4.50 4.50 3.08 4.60 4.14 3.72
(iii) Centralized collective bargaining 5.18 5.18 5.18 5.18 5.52 5.93 5.44 5.09
(iv) Hours regulations 3.88 4.68 10.00 10.00 8.00
(v) Mandated cost of worker dismissal 9.63 7.93 7.93
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 7.72 7.33 7.29 7.60 7.66
(i) Administrative requirements 6.73 3.49 3.64 3.43
(ii) Bureaucracy costs 7.21 6.20 5.32 7.12 7.12
(iii) Starting a business 6.80 7.37 9.92 9.93 9.93
(iv) Extra payments/bribes/favoritism 9.16 9.01 8.94 7.64 7.65
(v) Licensing restrictions 7.29 8.50 9.07
(vi) Cost of tax compliance 8.80 8.78 8.78

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32 E Economic Freedom of the World: 2013 Annual Report

Austria
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.33 (22) 6.34 (24) 6.98 (23) 7.16 (32) 7.55 (25) 7.84 (16) 7.60 (26) 7.58 (28)
Area 1. Size of Government 2.71 (97) 2.63 (106) 3.11 (106) 2.82 (115) 2.77 (122) 5.23 (96) 4.90 (106) 4.99 (104)
Area 2. Legal System and Property Rights 8.04 (6) 7.88 (10) 8.35 (8) 8.85 (14) 9.34 (5) 9.04 (10) 8.42 (16) 8.34 (16)
Area 3. Sound Money 8.40 (13) 8.31 (23) 9.63 (10) 9.55 (19) 9.63 (9) 9.55 (17) 9.64 (13) 9.59 (14)
Area 4. Freedom to Trade Internationally 6.60 (26) 6.66 (27) 7.65 (25) 8.92 (17) 9.11 (13) 8.07 (24) 7.83 (37) 7.77 (35)
Area 5. Regulation 6.02 (36) 6.35 (32) 6.26 (39) 5.70 (68) 6.91 (38) 7.30 (30) 7.20 (38) 7.18 (43)

Unadjusted
Summary Ratings Rank) h 6.45 (19) 6.46 (21) 6.95 (24) 7.14 (32) 7.55 (22) 7.85 (15) 7.61 (21) 7.59 (27)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.14 3.05 3.11 2.82 2.77 5.23 4.90 4.99
A. Government consumption 4.46 (24.82) 4.35 (25.22) 4.40 (25.03) 4.01 (26.37) 4.16 (25.86) 4.58 (24.44) 4.07 (26.16) 4.21 (25.70)
B. Transfers and subsidies 4.11 (22.10) 3.84 (23.10) 4.03 (22.40) 3.27 (25.20) 2.93 (26.44) 2.84 (26.78) 2.02 (29.78) 2.24 (28.99)
C. Government enterprises and investment 2.00 (44.50) 2.00 (42.00) 2.00 (42.00) 2.00 (42.00) 2.00 (42.00) 10.00 (5.21) 10.00 (5.31) 10.00 (4.56)
D. Top marginal tax rate 2.00 2.00 2.00 2.00 2.00 3.50 3.50 3.50
(i) Top marginal income tax rate 2.00 (62) 2.00 (62) 4.00 (50) 4.00 (50) 4.00 (50) 4.00 (50) 4.00 (50) 4.00 (50)
(ii) Top marginal income and payroll tax rate 0.00 (62) 0.00 (66) 0.00 (66) 3.00 (54) 3.00 (54) 3.00 (54)

Area 2. Legal System and Property Rights 8.04 7.88 8.35 8.85 9.34 8.68 8.08 8.00
A. Judicial independence 8.82 9.02 8.15 7.57 6.99
B. Impartial courts 7.72 9.02 8.56 6.51 6.15
C. Protection of property rights 7.73 8.65 9.08 8.23 8.08
D. Military interference in rule of law and politics 9.97 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 10.00 10.00 10.00
F. Legal enforcement of contracts 6.70 6.38 6.38
G. Regulatory restrictions on sale of real property 7.92 8.09 8.09
H. Reliability of police 8.63 8.21 8.31
I. Business costs of crime 9.04 7.74 8.04

Area 3. Sound Money 8.40 8.31 9.63 9.55 9.63 9.55 9.64 9.59
A. Money growth 9.97 (-0.17) 9.36 (3.22) 9.46 (2.69) 8.92 (5.39) 9.18 (4.10) 8.77 (6.15) 9.19 (4.06) 9.26 (3.71)
B. Standard deviation of inflation 9.64 (0.90) 9.51 (1.23) 9.75 (0.63) 9.69 (0.78) 9.80 (0.50) 9.91 (0.23) 9.74 (0.64) 9.74 (0.65)
C. Inflation: most recent year 9.00 (5.00) 9.38 (3.08) 9.31 (3.45) 9.57 (2.13) 9.53 (2.35) 9.54 (2.30) 9.64 (1.81) 9.35 (3.27)
D. Freedom to own foreign currency bank accounts 5.00 5.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.87 6.93 7.64 8.84 9.11 8.16 7.92 7.85
A. Tariffs 8.61 8.80 7.92 8.72 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.53 (0.70) 9.60 (0.60) 9.53 (0.70) 9.87 (0.20) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 7.68 (11.60) 8.00 (10.00) 8.26 (8.70) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 5.96 (10.10) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 8.13 9.15 8.39 7.93 7.73
(i) Non-tariff trade barriers 8.13 8.80 7.84 6.77 6.47
(ii) Compliance costs of importing and exporting 9.50 8.93 9.08 8.99
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 5.00 8.50 8.11 5.86 5.41 5.41
(i) Foreign ownership/investment restrictions 9.00 9.30 7.93 6.57 6.57
(ii) Capital controls 2.00 2.00 5.00 8.00 6.92 3.08 3.08 3.08
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 5.79 6.11 6.05 5.67 6.91 7.62 7.51 7.49
A. Credit market regulations 6.96 7.59 7.46 6.82 9.72 9.75 8.89 9.04
(i) Ownership of banks 5.00 5.00 5.00 5.00 10.00 10.00 8.00 8.00
(ii) Private sector credit 7.88 7.78 7.39 7.47 9.16 9.24 8.68 9.13
(iii) Interest rate controls/negative real interest rates 8.00 10.00 10.00 8.00 10.00 10.00 10.00 10.00
B. Labor market regulations 4.63 4.63 4.63 4.28 3.86 5.91 6.33 6.29
(i) Hiring regulations and minimum wage 4.58 4.56 8.90 10.00 10.00
(ii) Hiring and firing regulations 4.82 4.82 3.05 4.25 4.26 4.19
(iii) Centralized collective bargaining 4.49 4.49 4.49 4.49 3.50 2.77 2.71 2.53
(iv) Hours regulations 4.40 4.40 4.22 4.50 5.18 6.70 8.00 8.00
(v) Mandated cost of worker dismissal 9.81 10.00 10.00
(vi) Conscription 5.00 5.00 5.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 5.90 7.16 7.21 7.31 7.16
(i) Administrative requirements 7.53 4.27 4.21 3.79
(ii) Bureaucracy costs 6.52 7.43 5.54 7.40 7.40
(iii) Starting a business 3.72 5.42 8.85 8.88 8.99
(iv) Extra payments/bribes/favoritism 7.48 8.27 8.92 7.65 7.01
(v) Licensing restrictions 7.61 7.65 7.65
(vi) Cost of tax compliance 8.09 8.09 8.09

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 Chapter 2: Country Data Tables E 33

Azerbaijan
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.05 (106) 6.06 (125) 6.30 (117)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.02 4.70 5.44
A. Government consumption 6.00 (19.61) 4.12 (26.00) 6.00 (19.61)
B. Transfers and subsidies 7.09 (11.19) 7.09 (11.19) 9.67 (1.71) 9.76 (1.39)
C. Government enterprises and investment 2.00 0.00 (65.42) 0.00 (77.11)
D. Top marginal tax rate 5.00 5.00 6.00
(i) Top marginal income tax rate 7.00 (35) 7.00 (35) 8.00 (30)
(ii) Top marginal income and payroll tax rate 3.00 (49) 3.00 (49) 4.00 (45)

Area 2. Legal System and Property Rights 5.87 5.97 6.05

A. Judicial independence 2.98 4.05 4.01
B. Impartial courts 3.40 4.23 4.60
C. Protection of property rights 4.39 4.73 4.93
D. Military interference in rule of law and politics 6.67 5.83 5.83
E. Integrity of the legal system 6.04 5.83 5.83
F. Legal enforcement of contracts 7.33 7.55 7.55
G. Regulatory restrictions on sale of real property 8.85 9.73 9.63
H. Reliability of police 5.75 4.64 5.00
I. Business costs of crime 7.44 7.14 7.10

Area 3. Sound Money 7.25 6.25 6.54

A. Money growth 8.57 (7.17) 7.01 (14.97) 8.78 (6.09)
B. Standard deviation of inflation 7.77 (5.58) 4.14 (14.66) 3.95 (15.11)
C. Inflation: most recent year 7.68 (11.59) 8.87 (5.67) 8.43 (7.85)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 5.92 6.48 6.54

A. Tariffs 6.91 8.13 8.04
(i) Revenue from trade taxes (% of trade sector) 9.39 (0.92) 9.34 (0.99)
(ii) Mean tariff rate 7.92 (10.40) 8.22 (8.90) 8.20 (9.00)
(iii) Standard deviation of tariff rates 5.89 (10.27) 6.80 (8.01) 6.58 (8.55)
B. Regulatory trade barriers 3.51 4.47 4.72
(i) Non-tariff trade barriers 4.38 4.59 4.83
(ii) Compliance costs of importing and exporting 2.64 4.36 4.61
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 3.25 3.33 3.41
(i) Foreign ownership/investment restrictions 6.68 5.38 5.61
(ii) Capital controls 3.08 4.62 4.62
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 6.19 6.87 6.93

A. Credit market regulations 7.33 7.98 8.00
(i) Ownership of banks 5.00 5.00 5.00
(ii) Private sector credit 7.66 6.52 7.99 9.93 10.00
(iii) Interest rate controls/negative real interest rates 9.00 9.00 9.00
B. Labor market regulations 6.51 6.69 6.65
(i) Hiring regulations and minimum wage 6.70 8.33 8.33
(ii) Hiring and firing regulations 7.78 7.24 7.39
(iii) Centralized collective bargaining 7.60 7.82 7.41
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.96 7.76 7.76
(vi) Conscription 1.00 1.00 1.00
C. Business regulations 4.74 5.95 6.13
(i) Administrative requirements 3.96 4.48 5.11
(ii) Bureaucracy costs 5.89 3.68 3.68
(iii) Starting a business 8.27 9.72 9.72
(iv) Extra payments/bribes/favoritism 4.65 3.46 3.76
(v) Licensing restrictions 5.67 6.85 6.93
(vi) Cost of tax compliance 0.00 7.48 7.60

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34 E Economic Freedom of the World: 2013 Annual Report

Bahamas
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.26 (23) 6.33 (25) 6.43 (33) 6.41 (54) 6.69 (60) 6.85 (67) 6.65 (77) 6.63 (77)
Area 1. Size of Government 8.45 (6) 8.47 (2) 8.51 (3) 8.19 (11) 7.79 (16) 8.06 (19) 8.13 (13) 8.15 (15)
Area 2. Legal System and Property Rights 5.72 (43) 5.70 (48) 5.19 (79) 6.35 (55) 6.79 (43) 6.08 (57) 6.12 (56)
Area 3. Sound Money 6.25 (54) 6.48 (66) 7.02 (44) 7.05 (55) 6.87 (87) 6.82 (92) 7.30 (84) 7.11 (90)
Area 4. Freedom to Trade Internationally 3.40 (61) 3.78 (63) 3.59 (82) 4.15 (104) 4.96 (113) 5.20 (112) 4.84 (117) 4.81 (118)
Area 5. Regulation 6.98 (13) 7.27 (10) 7.41 (12) 7.51 (11) 7.51 (13) 7.36 (26) 7.10 (44) 7.11 (52)

Unadjusted
Summary Ratings Rank) h 6.28 (24) 6.35 (26) 6.46 (33) 6.44 (52) 6.69 (58) 7.43 (35) 7.43 (35) 7.40 (39)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 8.45 8.47 8.51 8.19 7.79 8.06 8.13 8.15
A. Government consumption 6.81 (16.85) 6.90 (16.54) 7.18 (15.60) 6.21 (18.90) 5.18 (22.40) 6.46 (18.04) 6.56 (17.70) 6.62 (17.50)
B. Transfers and subsidies 10.00 (0.50) 10.00 (0.10) 9.86 (1.00) 9.56 (2.10) 8.97 (4.29) 8.78 (4.96) 8.97 (4.28) 9.00 (4.18)
C. Government enterprises and investment 7.00 (24.20) 7.00 (24.20) 7.00 (24.20) 7.00 7.00 7.00 7.00 7.00
D. Top marginal tax rate 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(i) Top marginal income tax rate 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0)
(ii) Top marginal income and payroll tax rate 10.00 (5-9) 10.00 (5-9) 10.00 (10) 10.00 (10)

Area 2. Legal System and Property Rights 5.72 5.70 5.19 6.35 8.47 6.57 6.61
A. Judicial independence 5.00 5.00
B. Impartial courts 6.56 7.07 7.90 6.80 6.80
C. Protection of property rights 3.00 3.00
D. Military interference in rule of law and politics 7.30 10.00 10.00 10.00 10.00
E. Integrity of the legal system 4.11 6.67 7.50 7.50 7.50
F. Legal enforcement of contracts 5.49 5.49
G. Regulatory restrictions on sale of real property 3.06 3.26
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 6.25 6.48 7.02 7.05 6.87 6.82 7.30 7.11
A. Money growth 8.43 (7.84) 9.72 (1.41) 9.38 (3.08) 9.40 (2.99) 8.05 (9.74) 8.61 (6.95) 9.93 (0.34) 9.76 (1.20)
B. Standard deviation of inflation 8.58 (3.54) 7.88 (5.29) 9.32 (1.70) 9.35 (1.63) 9.64 (0.90) 8.97 (2.57) 9.53 (1.18) 9.32 (1.71)
C. Inflation: most recent year 8.00 (10.01) 8.31 (8.46) 9.37 (3.16) 9.44 (2.81) 9.79 (1.04) 9.68 (1.59) 9.73 (1.34) 9.37 (3.17)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 3.44 3.82 3.67 4.24 4.96 6.37 6.38 6.34
A. Tariffs 4.32 3.67 3.60 3.13 3.33 4.26 3.27 3.15
(i) Revenue from trade taxes (% of trade sector) 4.60 (8.10) 3.80 (9.30) 3.60 (9.60) 3.13 (10.30) 3.67 (9.50) 4.14 (8.79) 4.04 (8.94) 3.67 (9.50)
(ii) Mean tariff rate 4.04 (29.80) 3.54 (32.30) 3.00 (35.00) 3.96 (30.20) 2.82 (35.90) 2.82 (35.90)
(iii) Standard deviation of tariff rates 4.68 (13.29) 2.96 (17.59) 2.96 (17.59)
B. Regulatory trade barriers 7.76 7.76
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting 7.76 7.76
C. Black-market exchange rates 6.00 7.80 7.40 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 1.54 4.85 4.47 4.47
(i) Foreign ownership/investment restrictions
(ii) Capital controls 0.00 0.00 0.00 0.00 1.54 1.54 0.77 0.77
(iii) Freedom of foreigners to visit 8.16 8.16 8.16

Area 5. Regulation 6.98 7.27 7.41 7.51 7.51 7.41 8.79 8.80
A. Credit market regulations 8.62 9.38 9.73 10.00 10.00 9.76 8.79 8.79
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 7.86 8.13 9.20 10.00 10.00 9.28 6.36 6.36
(iii) Interest rate controls/negative real interest rates 8.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 8.86 8.86
(i) Hiring regulations and minimum wage 8.90 8.90
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 6.55 6.55
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 8.73 8.74
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business 8.92 8.90
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions 7.91 7.97
(vi) Cost of tax compliance 9.35 9.35

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 Chapter 2: Country Data Tables E 35

Bahrain
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 7.42 (7) 6.92 (15) 6.91 (25) 7.21 (30) 7.74 (16) 7.39 (38) 7.75 (15) 7.88 (11)
Area 1. Size of Government 7.26 (10) 6.00 (26) 5.91 (46) 6.18 (59) 6.80 (43) 6.48 (69) 6.88 (45) 6.89 (42)
Area 2. Legal System and Property Rights 5.72 (41) 5.70 (47) 6.60 (41) 6.54 (49) 5.84 (62) 6.94 (39) 6.76 (46)
Area 3. Sound Money 8.10 (18) 8.61 (19) 8.79 (22) 9.43 (27) 9.12 (35) 8.82 (49) 8.39 (66) 9.33 (32)
Area 4. Freedom to Trade Internationally 7.13 (18) 7.18 (19) 7.09 (30) 7.02 (55) 8.71 (23) 8.57 (11) 8.92 (3) 8.81 (4)
Area 5. Regulation 7.23 (7) 7.11 (14) 7.05 (18) 6.79 (31) 7.51 (13) 7.23 (37) 7.60 (23) 7.60 (26)

Unadjusted
Summary Ratings Rank) h 7.39 (7) 6.87 (14) 6.91 (26) 7.07 (33) 7.60 (20) 7.20 (53) 7.80 (13) 7.93 (8)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 7.26 6.00 5.91 6.18 6.80 6.48 6.88 6.89
A. Government consumption 3.25 (28.95) 0.00 (43.46) 0.00 (43.78) 1.41 (35.20) 3.78 (27.15) 2.94 (29.99) 4.09 (26.10) 4.27 (25.49)
B. Transfers and subsidies 9.81 (1.20) 10.00 (0.00) 9.64 (1.80) 9.30 (3.06) 9.43 (2.59) 8.99 (4.21) 9.44 (2.56) 9.30 (3.06)
C. Government enterprises and investment 6.00 (29.80) 4.00 (31.70) 4.00 (31.70) 4.00 (31.70) 4.00 (31.70) 4.00 4.00 4.00
D. Top marginal tax rate 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(i) Top marginal income tax rate 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0)
(ii) Top marginal income and payroll tax rate 10.00 (0) 10.00 (0) 10.00 (17) 10.00 (17)

Area 2. Legal System and Property Rights 5.72 5.70 5.90 5.86 5.76 7.00 6.81
A. Judicial independence 4.07 7.18 6.79
B. Impartial courts 6.74 6.30 4.12 6.02 5.91
C. Protection of property rights 6.62 7.86 7.78
D. Military interference in rule of law and politics 6.11 5.00 5.00 5.00 5.00
E. Integrity of the legal system 6.96 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 4.79 4.79
G. Regulatory restrictions on sale of real property 8.53 8.53
H. Reliability of police 5.70 7.96 7.60
I. Business costs of crime 6.48 7.31 6.58

Area 3. Sound Money 8.10 8.61 8.79 9.43 9.12 8.82 8.39 9.33
A. Money growth 6.38 (18.10) 8.46 (7.70) 9.60 (1.99) 9.24 (-3.82) 9.71 (1.46) 8.40 (7.99) 8.56 (7.20) 8.86 (5.68)
B. Standard deviation of inflation 6.81 (7.98) 6.33 (9.17) 6.92 (7.71) 8.70 (3.26) 6.91 (7.73) 7.38 (6.54) 5.40 (11.50) 8.54 (3.65)
C. Inflation: most recent year 9.22 (3.90) 9.64 (-1.82) 8.63 (6.84) 9.80 (1.00) 9.86 (-0.70) 9.48 (2.59) 9.61 (1.96) 9.93 (-0.36)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.13 7.06 7.09 7.02 8.71 7.65 7.99 7.89
A. Tariffs 9.39 9.17 9.27 9.07 9.19 8.37 8.26 8.40
(i) Revenue from trade taxes (% of trade sector) 9.39 (0.91) 9.53 (0.70) 9.27 (1.10) 9.07 (1.40) 9.19 (1.21) 8.83 (1.75) 9.53 (0.70) 9.53 (0.70)
(ii) Mean tariff rate 8.80 (6.00) 8.98 (5.10) 8.98 (5.10) 8.98 (5.10)
(iii) Standard deviation of tariff rates 7.31 (6.73) 6.26 (9.36) 6.67 (8.31)
B. Regulatory trade barriers 7.59 8.29 7.78
(i) Non-tariff trade barriers 7.59 8.28 7.26
(ii) Compliance costs of importing and exporting 8.31 8.31
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 6.92 4.62 5.40 5.39
(i) Foreign ownership/investment restrictions 7.14 8.15 8.10
(ii) Capital controls 2.00 2.00 2.00 2.00 6.92 6.15 7.50 7.50
(iii) Freedom of foreigners to visit 0.57 0.57 0.57

Area 5. Regulation 7.07 6.95 7.05 6.79 7.51 7.29 8.73 8.74
A. Credit market regulations 8.71 8.35 8.80 8.11 10.00 10.00 9.00 9.00
(i) Ownership of banks 8.00 8.00 8.00 8.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 9.42 8.71 8.41 8.32 10.00 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 10.00 8.00 10.00 10.00 7.00 7.00
B. Labor market regulations 7.03 8.87 8.90
(i) Hiring regulations and minimum wage 10.00 10.00
(ii) Hiring and firing regulations 3.25 4.79 5.02
(iii) Centralized collective bargaining 7.85 8.42 8.38
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 10.00 10.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.83 8.33 8.31
(i) Administrative requirements 4.04 6.45 6.31
(ii) Bureaucracy costs 2.93 7.36 7.36
(iii) Starting a business 8.85 8.95
(iv) Extra payments/bribes/favoritism 7.51 7.72 7.64
(v) Licensing restrictions 9.98 9.98
(vi) Cost of tax compliance 9.60 9.60

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36 E Economic Freedom of the World: 2013 Annual Report

Bangladesh
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.38 (96) 3.68 (94) 4.57 (91) 5.49 (82) 6.02 (86) 6.17 (90) 6.43 (87) 6.42 (88)
Area 1. Size of Government 4.52 (70) 4.56 (68) 7.37 (11) 8.07 (13) 8.07 (11) 8.62 (7) 8.84 (4) 8.82 (5)
Area 2. Legal System and Property Rights 2.26 (79) 2.19 (103) 2.17 (107) 4.78 (92) 3.23 (115) 3.35 (109) 4.09 (100) 4.04 (102)
Area 3. Sound Money 4.64 (95) 6.10 (84) 6.95 (49) 6.42 (67) 7.02 (79) 6.65 (97) 6.48 (108) 6.49 (108)
Area 4. Freedom to Trade Internationally 0.00 (91) 0.00 (97) 0.24 (103) 2.19 (108) 5.71 (96) 5.77 (94) 6.04 (94) 6.06 (93)
Area 5. Regulation 4.87 (74) 5.15 (70) 5.72 (57) 5.49 (79) 6.06 (79) 6.44 (80) 6.77 (67) 6.72 (74)

Unadjusted
Summary Ratings Rank) h 3.34 (101) 3.64 (99) 4.50 (92) 5.34 (85) 6.07 (82) 6.08 (104) 6.34 (112) 6.33 (114)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.30 4.33 7.00 7.67 8.07 8.62 8.84 8.82
A. Government consumption 9.89 (6.38) 10.00 (5.39) 10.00 (4.82) 10.00 (5.33) 10.00 (5.60) 9.69 (7.04) 9.79 (6.70) 9.65 (7.20)
B. Transfers and subsidies 9.28 (3.15) 9.78 (1.29) 9.56 (2.10) 9.62 (1.90)
C. Government enterprises and investment 2.00 (44.40) 2.00 (46.60) 2.00 (47.10) 4.00 (34.00) 4.00 (30.03) 6.00 (25.30) 7.00 (20.54) 7.00 (22.42)
D. Top marginal tax rate 1.00 1.00 9.00 9.00 9.00 9.00 9.00 9.00
(i) Top marginal income tax rate 1.00 (60) 1.00 (60) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25)
(ii) Top marginal income and payroll tax rate 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25)

Area 2. Legal System and Property Rights 2.54 2.46 2.44 5.02 3.47 2.96 3.61 3.56
A. Judicial independence 2.48 3.70 3.07
B. Impartial courts 3.91 4.22 2.97 3.70 4.04
C. Protection of property rights 2.02 4.70 4.44 4.38
D. Military interference in rule of law and politics 5.25 3.33 4.58 4.17 4.17
E. Integrity of the legal system 6.96 3.33 3.33 3.33 3.33
F. Legal enforcement of contracts 1.15 1.15 1.15
G. Regulatory restrictions on sale of real property 1.61 3.20 3.13
H. Reliability of police 2.27 3.44 3.27
I. Business costs of crime 3.52 5.32 5.53

Area 3. Sound Money 4.64 6.10 6.95 6.42 7.02 6.65 6.48 6.49
A. Money growth 7.03 (14.86) 7.84 (10.82) 9.62 (1.89) 7.99 (10.03) 9.07 (4.64) 8.55 (7.24) 8.08 (9.61) 8.48 (7.58)
B. Standard deviation of inflation 4.23 (14.43) 8.76 (3.10) 9.16 (2.10) 9.05 (2.38) 9.46 (1.36) 9.45 (1.38) 9.48 (1.30) 9.61 (0.97)
C. Inflation: most recent year 7.32 (13.39) 7.79 (11.07) 9.03 (4.87) 8.65 (6.73) 9.56 (2.21) 8.59 (7.04) 8.37 (8.13) 7.86 (10.71)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 0.18 0.00 0.21 1.94 5.71 5.77 6.04 6.05
A. Tariffs 0.53 0.00 0.64 1.42 5.19 5.76 6.41 6.59
(i) Revenue from trade taxes (% of trade sector) 1.07 (13.40) 0.00 (17.90) 1.93 (12.10) 4.27 (8.60) 5.33 (7.00) 4.12 (8.82) 5.65 (6.52) 6.29 (5.56)
(ii) Mean tariff rate 0.00 (99.90) 0.00 (86.00) 0.00 (102.20) 0.00 (81.20) 5.68 (21.60) 6.64 (16.80) 7.06 (14.70) 7.12 (14.40)
(iii) Standard deviation of tariff rates 0.00 (50.40) 0.00 (26.10) 4.56 (13.60) 6.53 (8.66) 6.53 (8.67) 6.37 (9.07)
B. Regulatory trade barriers 4.73 4.54 5.72 5.64
(i) Non-tariff trade barriers 4.73 5.40 5.32 5.33
(ii) Compliance costs of importing and exporting 3.67 6.13 5.95
C. Black-market exchange rates 0.00 0.00 0.00 4.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 2.93 2.76 2.00 1.98
(i) Foreign ownership/investment restrictions 5.86 7.52 6.01 5.94
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.77 0.00 0.00
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 5.03 5.31 5.91 5.66 6.06 6.42 6.75 6.70
A. Credit market regulations 3.44 4.19 5.76 5.12 6.68 8.21 8.25 8.25
(i) Ownership of banks 0.00 0.00 0.00 0.00 2.00 5.00 5.00 5.00
(ii) Private sector credit 4.31 6.56 7.28 7.37 8.05 9.64 9.76 9.75
(iii) Interest rate controls/negative real interest rates 6.00 6.00 10.00 8.00 10.00 10.00 10.00 10.00
B. Labor market regulations 6.55 6.76 6.68 6.58
(i) Hiring regulations and minimum wage 4.60 6.70 5.57 5.57
(ii) Hiring and firing regulations 4.97 6.00 6.23 6.19
(iii) Centralized collective bargaining 6.63 7.52 6.94 6.35
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 0.36 1.37 1.37
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.94 4.29 5.32 5.28
(i) Administrative requirements 7.55 2.40 3.40 3.66
(ii) Bureaucracy costs 5.73 2.40 2.88 2.88
(iii) Starting a business 4.58 7.85 9.07 9.13
(iv) Extra payments/bribes/favoritism 1.91 2.35 2.58 2.00
(v) Licensing restrictions 5.22 7.36 7.41
(vi) Cost of tax compliance 5.52 6.61 6.61

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 Chapter 2: Country Data Tables E 37

Barbados
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.66 (38) 6.10 (31) 6.15 (38) 6.14 (63) 6.20 (78) 6.39 (81) 6.56 (82) 6.53 (83)
Area 1. Size of Government 6.04 (22) 6.14 (21) 6.42 (32) 6.40 (47) 6.85 (39) 6.59 (65) 6.66 (53) 6.74 (53)
Area 2. Legal System and Property Rights 5.92 (33) 5.90 (41) 4.76 (94) 5.20 (76) 6.52 (51) 6.54 (48) 6.26 (55)
Area 3. Sound Money 5.06 (90) 6.67 (52) 6.67 (57) 7.19 (50) 6.70 (91) 6.29 (107) 6.57 (104) 6.33 (112)
Area 4. Freedom to Trade Internationally 4.87 (44) 4.93 (49) 4.96 (59) 5.53 (85) 5.33 (103) 5.56 (104) 5.67 (103) 6.00 (95)
Area 5. Regulation 6.45 (24) 6.89 (17) 6.84 (22) 6.83 (28) 6.89 (40) 6.80 (64) 7.15 (42) 7.12 (51)

Unadjusted
Summary Ratings Rank) h 5.72 (36) 6.13 (30) 6.06 (41) 6.07 (63) 6.20 (75) 6.81 (74) 7.01 (70) 6.96 (77)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.27 6.38 6.42 6.40 6.85 6.59 6.66 6.74
A. Government consumption 6.09 (19.28) 4.52 (24.62) 4.69 (24.07) 5.09 (22.70) 3.91 (26.70) 4.44 (24.92) 5.41 (21.60) 5.72 (20.55)
B. Transfers and subsidies 10.00 (0.20) 10.00 (0.00) 10.00 (0.50) 10.00 (0.00) 10.00 (0.00) 8.43 (6.28) 6.23 (14.35) 6.23 (14.35)
C. Government enterprises and investment 8.00 (19.00) 10.00 (11.90) 8.00 (18.30) 7.00 (22.78) 10.00 (12.00) 10.00 (3.68) 10.00 (3.68) 10.00 (3.68)
D. Top marginal tax rate 1.00 1.00 3.00 3.50 3.50 3.50 5.00 5.00
(i) Top marginal income tax rate 1.00 (60) 1.00 (60) 4.00 (50) 5.00 (40) 5.00 (40) 5.00 (40) 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate 2.00 (54) 2.00 (53) 2.00 (53) 2.00 (53) 3.00 (47) 3.00 (47)

Area 2. Legal System and Property Rights 5.72 5.70 4.60 5.20 7.65 7.79 6.66
A. Judicial independence 5.00 5.00 8.12 8.20 7.89
B. Impartial courts 6.29 7.61 7.15 6.26 5.97
C. Protection of property rights 3.00 3.00 7.35 8.04 7.30
D. Military interference in rule of law and politics 9.40 9.20 9.20
E. Integrity of the legal system 4.11
F. Legal enforcement of contracts 3.80
G. Regulatory restrictions on sale of real property 4.71
H. Reliability of police 7.22 8.34 8.11
I. Business costs of crime 6.64 6.70 6.31

Area 3. Sound Money 5.06 6.67 6.67 7.19 6.70 6.29 6.57 6.33
A. Money growth 7.17 (14.16) 8.92 (5.41) 9.12 (4.38) 9.32 (-3.38) 7.89 (10.55) 7.66 (11.68) 8.22 (8.88) 8.22 (8.88)
B. Standard deviation of inflation 7.59 (6.03) 8.59 (3.52) 8.64 (3.39) 9.49 (1.28) 9.40 (1.50) 8.70 (3.26) 9.22 (1.96) 8.99 (2.52)
C. Inflation: most recent year 5.49 (22.56) 9.18 (4.12) 8.91 (5.45) 9.95 (0.25) 9.51 (2.44) 8.78 (6.08) 8.84 (5.82) 8.11 (9.43)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 5.11 4.99 4.69 5.33 5.33 6.66 6.80 7.58
A. Tariffs 7.53 7.17 6.06 6.58 6.20 5.63 5.80 7.20
(i) Revenue from trade taxes (% of trade sector) 7.53 (3.70) 7.73 (3.40) 7.60 (3.60) 7.80 (3.30) 7.90 (3.16) 8.35 (2.47) 8.35 (2.47)
(ii) Mean tariff rate 6.60 (17.00) 7.18 (14.10) 6.20 (19.00) 7.30 (13.50) 7.30 (13.50) 7.86 (10.70)
(iii) Standard deviation of tariff rates 4.52 (13.70) 4.76 (13.10) 1.68 (20.79) 1.74 (20.66) 5.38 (11.56)
B. Regulatory trade barriers 5.21 5.79 7.34
(i) Non-tariff trade barriers 5.21 5.79 5.77
(ii) Compliance costs of importing and exporting 8.91
C. Black-market exchange rates 7.80 7.80 8.00 9.40 9.80 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 5.81 5.62 5.77
(i) Foreign ownership/investment restrictions 7.42 6.85 7.31
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 10.00 10.00 10.00

Area 5. Regulation 6.45 6.89 6.84 6.83 6.89 6.86 7.21 7.48
A. Credit market regulations 7.19 8.36 8.25 8.21 8.37 8.34 7.89 7.89
(i) Ownership of banks 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 7.58 7.08 6.74 6.62 7.11 7.02 5.66 5.66
(iii) Interest rate controls/negative real interest rates 6.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 7.21 6.93 7.69
(i) Hiring regulations and minimum wage 8.90
(ii) Hiring and firing regulations 5.03 4.85 5.40
(iii) Centralized collective bargaining 6.61 5.94 6.15
(iv) Hours regulations 10.00
(v) Mandated cost of worker dismissal 5.68
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.03 6.81 6.86
(i) Administrative requirements 4.01 6.13 5.64
(ii) Bureaucracy costs 3.43 7.06 7.06
(iii) Starting a business 9.35
(iv) Extra payments/bribes/favoritism 7.64 7.24 6.76
(v) Licensing restrictions 4.98
(vi) Cost of tax compliance 7.34

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38 E Economic Freedom of the World: 2013 Annual Report

Belgium
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 7.06 (10) 7.03 (12) 7.35 (14) 7.43 (24) 7.89 (15) 7.53 (33) 7.52 (30) 7.48 (33)
Area 1. Size of Government 3.42 (92) 3.40 (96) 4.19 (91) 4.04 (102) 4.57 (102) 4.34 (114) 3.99 (117) 3.93 (116)
Area 2. Legal System and Property Rights 7.83 (9) 7.88 (13) 8.35 (13) 7.52 (27) 8.29 (19) 7.93 (21) 8.05 (21) 8.07 (20)
Area 3. Sound Money 9.58 (2) 9.58 (3) 9.74 (3) 9.73 (6) 9.62 (10) 9.53 (21) 9.69 (5) 9.67 (6)
Area 4. Freedom to Trade Internationally 9.12 (3) 9.16 (5) 9.15 (7) 9.23 (9) 9.30 (9) 8.30 (16) 8.22 (19) 8.16 (21)
Area 5. Regulation 5.48 (52) 5.26 (65) 5.43 (70) 6.63 (35) 7.65 (11) 7.55 (20) 7.61 (22) 7.57 (27)

Unadjusted
Summary Ratings Rank) h 7.35 (9) 7.32 (10) 7.56 (12) 7.39 (23) 7.89 (15) 7.41 (38) 7.40 (40) 7.36 (42)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.62 3.60 4.19 4.04 4.57 4.34 3.99 3.93
A. Government consumption 5.43 (21.55) 5.79 (20.30) 6.44 (18.10) 6.20 (18.93) 3.45 (28.26) 2.95 (29.96) 2.53 (31.39) 2.47 (31.60)
B. Transfers and subsidies 3.05 (26.00) 2.62 (27.60) 3.32 (25.00) 2.97 (26.30) 3.81 (23.21) 3.39 (24.77) 2.43 (28.29) 2.23 (29.00)
C. Government enterprises and investment 6.00 (26.80) 6.00 (25.30) 6.00 (27.00) 6.00 (27.00) 10.00 (11.86) 10.00 (8.70) 10.00 (8.11) 10.00 (8.29)
D. Top marginal tax rate 0.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00
(i) Top marginal income tax rate 0.00 (76) 0.00 (76) 2.00 (55-61) 1.00 (58-64) 2.00 (58-62.7) 2.00 (50-55) 2.00 (50-55) 2.00 (50-55)
(ii) Top marginal income and payroll tax rate 0.00 (70) 1.00 (58-64) 0.00 (71) 0.00 (67-71) 0.00 (68-71) 0.00 (68-71)

Area 2. Legal System and Property Rights 7.83 7.88 8.35 7.52 8.29 6.97 7.08 7.10
A. Judicial independence 5.78 7.35 6.98 7.11 7.06
B. Impartial courts 6.42 8.18 6.32 5.22 5.28
C. Protection of property rights 6.90 7.57 8.20 7.28 7.10
D. Military interference in rule of law and politics 8.49 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 5.65 5.58 5.58
G. Regulatory restrictions on sale of real property 3.33 4.62 4.62
H. Reliability of police 7.03 7.70 7.92
I. Business costs of crime 6.91 7.87 7.98

Area 3. Sound Money 9.58 9.58 9.74 9.73 9.62 9.53 9.69 9.67
A. Money growth 9.78 (1.10) 9.78 (1.11) 9.97 (0.17) 9.63 (1.85) 9.10 (4.48) 8.79 (6.06) 9.35 (3.25) 9.51 (2.43)
B. Standard deviation of inflation 9.38 (1.56) 9.76 (0.59) 9.62 (0.95) 9.64 (0.90) 9.89 (0.28) 9.89 (0.28) 9.87 (0.34) 9.86 (0.35)
C. Inflation: most recent year 9.16 (4.18) 8.79 (6.05) 9.37 (3.14) 9.67 (1.67) 9.49 (2.54) 9.44 (2.78) 9.56 (2.19) 9.29 (3.53)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 9.67 9.72 9.49 9.07 9.30 8.29 8.21 8.14
A. Tariffs 9.02 9.15 8.46 8.68 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.80 (0.30) 9.80 (0.30) 9.73 (0.40) 9.73 (0.40) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 8.28 8.86 8.07 8.34 8.08
(i) Non-tariff trade barriers 8.28 8.22 7.21 7.69 7.32
(ii) Compliance costs of importing and exporting 9.50 8.93 8.99 8.85
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 10.00 10.00 10.00 9.31 9.17 6.69 6.15 6.21
(i) Foreign ownership/investment restrictions 8.61 9.87 8.10 7.25 7.45
(ii) Capital controls 10.00 10.00 10.00 10.00 8.46 5.38 4.62 4.62
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 6.05 5.80 6.02 6.60 7.65 7.94 8.00 7.96
A. Credit market regulations 8.60 8.11 8.40 9.47 10.00 9.61 9.52 9.46
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 5.80 4.33 5.21 8.41 10.00 8.84 8.57 8.39
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.49 3.49 3.63 4.93 5.01 6.64 7.38 7.40
(i) Hiring regulations and minimum wage 3.87 5.12 8.90 8.90 8.90
(ii) Hiring and firing regulations 3.77 3.77 3.10 2.59 3.17 3.20
(iii) Centralized collective bargaining 4.49 4.49 4.49 4.49 4.17 3.84 4.23 4.33
(iv) Hours regulations 2.99 2.99 3.25 2.55 2.67 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 8.52 10.00 10.00
(vi) Conscription 3.00 3.00 3.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.40 7.95 7.57 7.11 7.01
(i) Administrative requirements 8.20 3.04 2.49 2.64
(ii) Bureaucracy costs 6.49 8.88 7.94 6.72 6.72
(iii) Starting a business 4.60 6.42 9.00 9.76 9.76
(iv) Extra payments/bribes/favoritism 5.11 8.28 8.09 7.37 7.25
(v) Licensing restrictions 8.04 8.07 7.48
(vi) Cost of tax compliance 9.33 8.25 8.25

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 Chapter 2: Country Data Tables E 39

Belize
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.69 (35) 5.42 (49) 6.10 (40) 6.86 (41) 6.54 (66) 6.93 (61) 6.72 (72) 6.69 (73)
Area 1. Size of Government 5.19 (46) 5.38 (43) 5.20 (69) 6.79 (34) 6.68 (48) 6.84 (54) 6.28 (69) 6.20 (71)
Area 2. Legal System and Property Rights 7.01 (40) 6.48 (54) 5.67 (70) 5.66 (67)
Area 3. Sound Money 6.18 (57) 6.56 (60) 7.01 (45) 7.16 (52) 6.65 (93) 8.27 (62) 8.48 (61) 8.38 (66)
Area 4. Freedom to Trade Internationally 4.13 (52) 2.58 (76) 4.27 (68) 5.71 (81) 5.19 (110) 5.58 (101) 5.57 (106) 5.61 (103)
Area 5. Regulation 6.88 (15) 6.79 (18) 7.48 (10) 7.31 (14) 7.19 (30) 7.25 (34) 7.25 (35) 7.24 (40)

Unadjusted
Summary Ratings Rank) h 5.59 (42) 5.40 (53) 5.90 (47) 6.36 (55) 6.38 (70) 7.35 (45) 6.71 (91) 6.82 (86)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.18 5.03 4.86 6.34 6.68 6.84 6.28 6.90
A. Government consumption 6.10 (19.25) 4.96 (23.15) 5.62 (20.90) 6.56 (17.70) 6.35 (18.42) 6.82 (16.81) 5.63 (20.87) 5.40 (21.65)
B. Transfers and subsidies 9.43 (2.60) 9.16 (3.60) 9.81 (1.20) 9.81 (1.20) 9.69 (1.64) 9.69 (1.64) 9.20 (3.42) 9.20 (3.42)
C. Government enterprises and investment 0.00 (51.00) 2.00 (49.80) 0.00 (55.40) 4.00 (36.10) 4.00 (36.10) 4.00 (36.10) 4.00 4.00
D. Top marginal tax rate 4.00 4.00 5.00 9.00
(i) Top marginal income tax rate 4.00 (50) 4.00 (45) 5.00 (45) 9.00 (25)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 5.26 6.19 5.84 4.36 4.35
A. Judicial independence 3.43 3.43
B. Impartial courts 5.72 6.87 5.60 3.48 3.48
C. Protection of property rights 4.73 4.73
D. Military interference in rule of law and politics 7.15 7.10 6.30 6.30
E. Integrity of the legal system
F. Legal enforcement of contracts 3.33 3.33 3.33
G. Regulatory restrictions on sale of real property 7.32 7.32 7.29
H. Reliability of police 3.24 3.24
I. Business costs of crime 3.03 3.03

Area 3. Sound Money 6.18 6.56 7.01 7.16 6.65 8.27 8.48 8.38
A. Money growth 8.50 (7.48) 9.12 (4.39) 9.29 (3.53) 9.83 (-0.84) 8.46 (7.70) 9.74 (-1.28) 9.80 (1.01) 9.67 (1.67)
B. Standard deviation of inflation 8.50 (3.76) 7.50 (6.25) 8.81 (2.98) 9.61 (0.98) 8.28 (4.30) 9.07 (2.31) 9.30 (1.74) 9.34 (1.64)
C. Inflation: most recent year 7.72 (11.40) 9.62 (-1.88) 9.95 (0.26) 9.21 (3.94) 9.88 (0.61) 9.27 (3.64) 9.82 (0.89) 9.50 (-2.52)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 4.13 3.22 4.27 5.71 5.19 6.62 6.41 6.45
A. Tariffs 4.20 4.67 2.80 2.73 5.61 6.32 6.64 6.71
(i) Revenue from trade taxes (% of trade sector) 4.20 (8.70) 2.73 (10.90) 2.80 (10.80) 2.73 (10.90) 5.61 (6.59) 5.97 (6.04) 7.13 (4.30) 7.13 (4.30)
(ii) Mean tariff rate 6.60 (17.00) 7.84 (10.80) 7.80 (11.00) 7.80 (11.00)
(iii) Standard deviation of tariff rates 5.16 (12.10) 4.98 (12.54) 5.20 (11.99)
B. Regulatory trade barriers 7.09 5.49 5.61
(i) Non-tariff trade barriers 3.90 3.90
(ii) Compliance costs of importing and exporting 7.09 7.09 7.32
C. Black-market exchange rates 3.20 0.00 5.00 9.40 9.20 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 5.00 5.00 0.77 3.05 3.50 3.50
(i) Foreign ownership/investment restrictions 5.16 5.16
(ii) Capital controls 5.00 5.00 5.00 5.00 0.77 0.77 0.00 0.00
(iii) Freedom of foreigners to visit 5.33 5.33 5.33

Area 5. Regulation 6.87 6.78 7.48 7.31 7.19 9.20 8.01 8.01
A. Credit market regulations 8.11 7.83 9.94 9.48 9.15 9.74 10.00 10.00
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 8.22 7.67 9.82 8.44 8.46 9.22 10.00 10.00
(iii) Interest rate controls/negative real interest rates 8.00 8.00 10.00 10.00 9.00 10.00 10.00 10.00
B. Labor market regulations 9.17 8.20 8.20
(i) Hiring regulations and minimum wage 8.90 7.77 7.77
(ii) Hiring and firing regulations 6.03 6.03
(iii) Centralized collective bargaining 7.12 7.12
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 7.78 8.27 8.27
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 8.70 5.84 5.82
(i) Administrative requirements 3.16 3.16
(ii) Bureaucracy costs 3.26 3.26
(iii) Starting a business 7.96 8.05 8.05
(iv) Extra payments/bribes/favoritism 2.84 2.84
(v) Licensing restrictions 9.81 9.38 9.26
(vi) Cost of tax compliance 8.35 8.35 8.35

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40 E Economic Freedom of the World: 2013 Annual Report

Benin
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.23 (56) 4.98 (66) 5.25 (69) 4.92 (101) 5.49 (103) 5.59 (111) 5.73 (108) 5.60 (113)
Area 1. Size of Government 4.67 (64) 3.60 (92) 4.17 (92) 4.04 (103) 4.72 (98) 5.17 (98) 5.04 (100) 4.61 (111)
Area 2. Legal System and Property Rights 4.67 (46) 4.25 (68) 4.42 (69) 4.60 (96) 4.42 (94) 5.25 (75) 5.95 (60) 5.88 (61)
Area 3. Sound Money 6.23 (55) 6.40 (70) 6.57 (62) 5.26 (86) 6.62 (95) 6.56 (102) 6.80 (98) 6.89 (94)
Area 4. Freedom to Trade Internationally 5.87 (90) 5.74 (97) 5.69 (102) 5.53 (105)
Area 5. Regulation 5.01 (69) 5.31 (62) 5.45 (69) 5.43 (80) 5.80 (92) 5.45 (107) 5.55 (112) 5.54 (110)

Unadjusted
Summary Ratings Rank) h 4.98 (60) 4.64 (82) 5.03 (74) 4.67 (103) 5.47 (104) 5.99 (110) 6.09 (122) 5.95 (130)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.67 3.60 4.17 4.04 4.72 7.00 6.62 6.05
A. Government consumption 9.35 (8.22) 7.21 (15.50) 8.34 (11.66) 8.08 (12.53) 7.45 (14.68) 6.99 (16.23) 7.82 (13.40) 7.70 (13.81)
B. Transfers and subsidies 10.00 (0.20) 9.64 (1.83) 9.50 (2.35)
C. Government enterprises and investment 0.00 (53.70) 0.00 (53.50) 0.00 (55.20) 0.00 (60.10) 2.00 (40.31) 4.00 (35.40) 2.00 (43.40) 0.00 (60.25)
D. Top marginal tax rate 7.00 7.00
(i) Top marginal income tax rate 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.67 4.25 4.42 4.46 4.33 3.99 4.52 4.47
A. Judicial independence 4.59 3.47 3.17
B. Impartial courts 4.81 4.55 4.07 3.93 4.20
C. Protection of property rights 4.39 5.55 4.80
D. Military interference in rule of law and politics 3.82 4.70 7.10 7.10 7.10
E. Integrity of the legal system 5.18 4.00
F. Legal enforcement of contracts 1.07 1.07 1.07
G. Regulatory restrictions on sale of real property 2.73 3.85 3.85
H. Reliability of police 3.87 6.04 5.73
I. Business costs of crime 4.06 5.17 5.83

Area 3. Sound Money 6.23 6.40 6.57 5.26 6.62 6.56 6.80 6.89
A. Money growth 8.22 (8.91) 9.32 (3.38) 9.18 (4.08) 9.11 (4.44) 8.05 (9.76) 8.42 (-7.91) 8.73 (6.35) 9.04 (4.78)
B. Standard deviation of inflation 8.74 (3.15) 7.24 (6.89) 8.34 (4.16) 4.98 (12.54) 9.26 (1.86) 8.89 (2.79) 8.95 (2.64) 9.06 (2.34)
C. Inflation: most recent year 7.96 (10.19) 9.02 (-4.88) 8.78 (6.11) 6.93 (15.37) 9.17 (4.17) 8.93 (5.36) 9.54 (2.31) 9.46 (2.71)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.18 4.11 5.87 5.92 5.86 5.70
A. Tariffs 2.93 2.52 7.60 6.37 5.85 6.26
(i) Revenue from trade taxes (% of trade sector) 2.93 (10.60) 4.72 (7.92) 2.63 (11.05) 3.86 (9.21)
(ii) Mean tariff rate 2.52 (37.40) 7.60 (12.00) 7.12 (14.40) 7.62 (11.90) 7.62 (11.90)
(iii) Standard deviation of tariff rates 7.26 (6.84) 7.29 (6.78) 7.29 (6.78)
B. Regulatory trade barriers 5.31 5.35 4.85
(i) Non-tariff trade barriers 5.67 5.05 3.83
(ii) Compliance costs of importing and exporting 4.94 5.65 5.86
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 1.99 2.24 1.68
(i) Foreign ownership/investment restrictions 5.97 5.94 4.27
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 0.77 0.77
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 5.15 4.83 4.96 4.94 5.80 6.51 6.63 6.62
A. Credit market regulations 5.31 5.92 6.25 6.20 9.42 9.13 9.07 9.07
(i) Ownership of banks 0.00 0.00 2.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 9.94 9.76 8.76 6.60 8.84 9.38 9.21 9.21
(iii) Interest rate controls/negative real interest rates 6.00 8.00 8.00 2.00 8.00 8.00 8.00
B. Labor market regulations 5.38 5.95 5.88
(i) Hiring regulations and minimum wage 6.10 6.10 6.10
(ii) Hiring and firing regulations 5.70 5.61 5.04
(iii) Centralized collective bargaining 6.83 7.42 7.56
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 6.66 7.57 7.57
(vi) Conscription 1.00 1.00 1.00 1.00 1.00 1.00 1.00
C. Business regulations 5.03 4.87 4.92
(i) Administrative requirements 2.40 4.12 3.34
(ii) Bureaucracy costs 6.51 3.54 3.54
(iii) Starting a business 5.57 6.58 6.97
(iv) Extra payments/bribes/favoritism 3.85 3.23 2.69
(v) Licensing restrictions 4.89 4.76 6.02
(vi) Cost of tax compliance 6.97 6.97 6.97

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 Chapter 2: Country Data Tables E 41

Bolivia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.18 (81) 3.44 (102) 5.42 (64) 6.60 (46) 6.97 (45) 6.38 (82) 6.36 (91) 6.33 (93)
Area 1. Size of Government 4.95 (56) 7.06 (6) 6.94 (21) 6.68 (37) 7.97 (13) 6.14 (82) 6.31 (64) 6.30 (65)
Area 2. Legal System and Property Rights 1.79 (86) 1.29 (108) 2.45 (99) 4.59 (97) 3.43 (111) 3.40 (107) 3.59 (107) 3.79 (104)
Area 3. Sound Money 0.00 (107) 0.00 (111) 5.59 (84) 8.10 (39) 9.32 (28) 8.90 (43) 8.70 (59) 8.49 (65)
Area 4. Freedom to Trade Internationally 4.03 (54) 5.05 (48) 6.02 (42) 7.35 (47) 7.97 (38) 7.41 (48) 7.13 (63) 7.09 (63)
Area 5. Regulation 6.22 (40) 5.93 (56) 6.18 (72) 6.03 (94) 6.04 (100) 5.90 (104)

Unadjusted
Summary Ratings Rank) h 4.10 (84) 3.47 (103) 5.65 (52) 6.80 (39) 6.97 (42) 6.41 (96) 6.39 (109) 6.36 (108)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.86 6.93 6.81 6.56 7.97 6.14 6.31 6.30
A. Government consumption 6.75 (17.05) 8.08 (12.52) 7.86 (13.27) 7.28 (15.24) 7.12 (15.80) 6.03 (19.51) 6.42 (18.17) 6.35 (18.40)
B. Transfers and subsidies 9.70 (1.60) 9.65 (1.80) 9.37 (2.80) 9.46 (2.50) 8.76 (5.04) 8.54 (5.86) 8.84 (4.77) 8.84 (4.77)
C. Government enterprises and investment 0.00 (50.10) 2.00 (42.50) 0.00 (60.60) 0.00 (51.20) 6.00 (28.30) 0.00 (50.70) 0.00 (57.02) 0.00 (55.55)
D. Top marginal tax rate 3.00 8.00 10.00 9.50 10.00 10.00 10.00 10.00
(i) Top marginal income tax rate 3.00 (48) 8.00 (30) 10.00 (10) 10.00 (13) 10.00 (13) 10.00 (13) 10.00 (13) 10.00 (13)
(ii) Top marginal income and payroll tax rate 10.00 (16) 9.00 (22) 10.00 (13) 10.00 (13) 10.00 (13)

Area 2. Legal System and Property Rights 2.32 1.67 3.17 5.43 3.43 3.88 4.09 4.32
A. Judicial independence 2.17 2.49 3.37 3.57
B. Impartial courts 4.93 3.34 2.48 3.20 3.67
C. Protection of property rights 1.65 3.48 2.80 3.63
D. Military interference in rule of law and politics 5.93 5.00 5.00 5.00 5.00
E. Integrity of the legal system 6.96 5.00 5.00 4.17 4.17
F. Legal enforcement of contracts 3.99 3.99 3.99
G. Regulatory restrictions on sale of real property 6.62 6.68 6.72
H. Reliability of police 2.17 2.85 3.37
I. Business costs of crime 3.65 4.77 4.74

Area 3. Sound Money 5.38 0.00 5.59 8.10 9.32 8.90 8.70 8.49
A. Money growth 7.19 (14.07) 0.00 (546.64) 5.62 (21.92) 6.28 (18.59) 9.54 (2.28) 7.69 (11.54) 7.58 (12.10) 8.44 (7.82)
B. Standard deviation of inflation 3.81 (15.47) 0.00 (4769.22) 0.00 (85.90) 8.42 (3.95) 8.66 (3.36) 9.00 (2.50) 7.72 (5.71) 7.49 (6.29)
C. Inflation: most recent year 0.54 (47.30) 0.00 (12336.70) 6.75 (16.26) 7.71 (11.43) 9.08 (4.60) 8.92 (5.40) 9.50 (2.50) 8.04 (9.81)
D. Freedom to own foreign currency bank accounts 10.00 0.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 4.13 5.30 6.32 7.85 7.97 7.29 7.01 6.97
A. Tariffs 4.80 5.69 7.56 8.74 8.62 8.84 7.92 7.92
(i) Revenue from trade taxes (% of trade sector) 4.80 (7.80) 5.33 (7.00) 8.47 (2.30) 8.60 (2.10) 8.41 (2.38) 9.16 (1.26) 9.24 (1.14) 9.24 (1.14)
(ii) Mean tariff rate 6.04 (19.80) 6.66 (16.70) 8.06 (9.70) 8.10 (9.50) 8.56 (7.20) 7.76 (11.20) 7.76 (11.20)
(iii) Standard deviation of tariff rates 9.56 (1.10) 9.36 (1.60) 8.80 (2.99) 6.77 (8.06) 6.77 (8.06)
B. Regulatory trade barriers 5.49 4.90 5.76 5.57
(i) Non-tariff trade barriers 4.82 3.90 4.38 4.01
(ii) Compliance costs of importing and exporting 6.16 5.90 7.14 7.14
C. Black-market exchange rates 5.60 8.20 9.40 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 5.00 7.78 5.42 4.35 4.39
(i) Foreign ownership/investment restrictions 8.63 4.91 4.02 4.13
(ii) Capital controls 2.00 2.00 2.00 5.00 6.92 6.92 4.62 4.62
(iii) Freedom of foreigners to visit 4.42 4.42 4.42

Area 5. Regulation 3.81 6.37 6.08 6.18 5.84 5.85 5.71

A. Credit market regulations 2.49 0.00 9.33 8.55 9.21 8.69 9.00 8.67
(i) Ownership of banks 10.00 8.00 10.00 8.00 8.00 8.00
(ii) Private sector credit 4.97 10.00 9.65 9.63 9.06 10.00 10.00
(iii) Interest rate controls/negative real interest rates 0.00 0.00 8.00 8.00 8.00 9.00 9.00 8.00
B. Labor market regulations 4.73 4.57 4.54 4.46
(i) Hiring regulations and minimum wage 3.09 2.20 2.23 2.23
(ii) Hiring and firing regulations 4.90 5.45 4.12 4.40
(iii) Centralized collective bargaining 7.13 7.50 5.37 4.65
(iv) Hours regulations 5.51 4.70 8.00 8.00
(v) Mandated cost of worker dismissal
(vi) Conscription 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 4.59 4.26 4.02 4.02
(i) Administrative requirements 5.50 2.55 3.65 4.12
(ii) Bureaucracy costs 3.85 4.00 3.25 3.25
(iii) Starting a business 3.87 6.81 7.44 7.61
(iv) Extra payments/bribes/favoritism 5.14 4.72 3.05 2.37
(v) Licensing restrictions 7.51 6.72 6.74
(vi) Cost of tax compliance 0.00 0.00 0.00

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42 E Economic Freedom of the World: 2013 Annual Report

Bosnia and Herzegovina

1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.20 (101) 6.59 (96) 6.67 (91)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.48 5.53 5.32
A. Government consumption 5.76 (20.42) 5.64 (20.82) 5.65 (20.78)
B. Transfers and subsidies 5.65 (16.46) 6.00 (15.19) 5.12 (18.42)
C. Government enterprises and investment 4.00 (33.18) 4.00 (37.09) 4.00 (34.71)
D. Top marginal tax rate 6.50 6.50 6.50
(i) Top marginal income tax rate 10.00 (15) 10.00 (10) 10.00 (10)
(ii) Top marginal income and payroll tax rate 3.00 (50) 3.00 (47) 3.00 (47)

Area 2. Legal System and Property Rights 3.58 4.57 5.24

A. Judicial independence 3.54 3.44 4.18
B. Impartial courts 3.26 3.09 3.78
C. Protection of property rights 3.26 3.22 3.90
D. Military interference in rule of law and politics 4.20 4.50 4.50
E. Integrity of the legal system
F. Legal enforcement of contracts 3.65 3.53 3.91
G. Regulatory restrictions on sale of real property 3.36 7.63 7.79
H. Reliability of police 2.83 5.40 6.44
I. Business costs of crime 4.51 5.76 7.38

Area 3. Sound Money 8.42 8.27 8.09

A. Money growth 9.80 (1.00) 9.88 (0.58) 9.45 (-2.77)
B. Standard deviation of inflation 9.32 (1.70) 8.62 (3.46) 8.66 (3.35)
C. Inflation: most recent year 9.57 (2.13) 9.56 (2.19) 9.27 (3.67)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 6.75 7.57 7.54

A. Tariffs 5.93 8.44 8.33
(i) Revenue from trade taxes (% of trade sector) 3.89 (9.16) 10.00 (0.00) 10.00 (0.00)
(ii) Mean tariff rate 8.56 (7.20) 8.70 (6.50) 8.68 (6.60)
(iii) Standard deviation of tariff rates 5.33 (11.66) 6.62 (8.45) 6.30 (9.24)
B. Regulatory trade barriers 6.22 6.78 6.69
(i) Non-tariff trade barriers 5.67 5.66 5.28
(ii) Compliance costs of importing and exporting 6.76 7.91 8.10
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 4.85 5.06 5.15
(i) Foreign ownership/investment restrictions 5.25 5.12 5.39
(ii) Capital controls 3.85 4.62 4.62
(iii) Freedom of foreigners to visit 5.44 5.44 5.44

Area 5. Regulation 6.77 7.03 7.14

A. Credit market regulations 9.33 9.49 9.70
(i) Ownership of banks 8.00 10.00 10.00
(ii) Private sector credit 10.00 8.48 9.10
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00
B. Labor market regulations 6.09 6.46 6.30
(i) Hiring regulations and minimum wage 3.30 3.33 3.33
(ii) Hiring and firing regulations 4.57 5.87 5.69
(iii) Centralized collective bargaining 7.87 7.03 6.28
(iv) Hours regulations 8.70 10.00 10.00
(v) Mandated cost of worker dismissal 7.13 7.51 7.51
(vi) Conscription 5.00 5.00 5.00
C. Business regulations 4.90 5.13 5.43
(i) Administrative requirements 1.99 2.97 3.70
(ii) Bureaucracy costs 6.16 4.00 4.00
(iii) Starting a business 7.72 8.44 8.56
(iv) Extra payments/bribes/favoritism 5.22 4.13 4.89
(v) Licensing restrictions 2.41 5.95 5.99
(vi) Cost of tax compliance 5.87 5.27 5.44

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 Chapter 2: Country Data Tables E 43

Botswana
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.25 (55) 5.57 (44) 5.92 (45) 6.40 (56) 7.42 (32) 7.31 (45) 7.20 (46) 7.46 (35)
Area 1. Size of Government 3.62 (89) 3.78 (88) 4.74 (82) 4.29 (99) 4.76 (96) 5.54 (94) 5.05 (98) 6.23 (67)
Area 2. Legal System and Property Rights 6.31 (28) 6.28 (32) 7.23 (31) 7.81 (27) 7.83 (24) 8.16 (19) 8.03 (22)
Area 3. Sound Money 5.49 (80) 5.46 (90) 5.84 (76) 7.85 (43) 9.09 (37) 8.80 (50) 8.33 (67) 8.53 (62)
Area 4. Freedom to Trade Internationally 5.81 (36) 5.76 (37) 6.63 (39) 6.26 (71) 7.92 (42) 7.15 (60) 7.06 (66) 6.99 (70)
Area 5. Regulation 5.96 (37) 6.46 (29) 6.12 (43) 6.37 (43) 7.51 (13) 7.21 (38) 7.49 (28) 7.53 (31)

Unadjusted
Summary Ratings Rank) h 5.34 (51) 5.66 (41) 5.92 (45) 6.23 (58) 7.21 (39) 7.10 (57) 7.00 (71) 7.25 (52)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.62 3.78 4.74 4.29 4.76 5.54 5.05 6.23
A. Government consumption 3.68 (27.50) 0.97 (36.71) 1.63 (34.45) 0.00 (45.92) 0.00 (49.02) 0.00 (43.91) 2.03 (33.10) 2.76 (30.60)
B. Transfers and subsidies 8.80 (4.90) 8.15 (7.30) 8.34 (6.60) 8.17 (7.20) 8.04 (7.70) 7.16 (10.91) 7.16 (10.91) 7.16 (10.91)
C. Government enterprises and investment 2.00 (44.90) 4.00 (39.40) 6.00 (26.50) 2.00 (46.20) 2.00 (46.20) 6.00 (29.41) 2.00 (41.41) 6.00 (27.62)
D. Top marginal tax rate 0.00 2.00 3.00 7.00 9.00 9.00 9.00 9.00
(i) Top marginal income tax rate 0.00 (75) 2.00 (60) 3.00 (50) 7.00 (35) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25)
(ii) Top marginal income and payroll tax rate 3.00 (50) 7.00 (35) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25)

Area 2. Legal System and Property Rights 6.31 6.28 6.35 6.77 6.53 6.81 6.70
A. Judicial independence 7.22 7.27 7.52
B. Impartial courts 6.45 6.76 6.57 6.32 6.61
C. Protection of property rights 6.43 6.86 6.44
D. Military interference in rule of law and politics 8.29 10.00 10.00 10.00 8.33
E. Integrity of the legal system 6.96 6.67 6.67 5.83 5.83
F. Legal enforcement of contracts 3.30 4.05 4.05
G. Regulatory restrictions on sale of real property 8.18 8.05 8.02
H. Reliability of police 5.22 6.45 6.61
I. Business costs of crime 5.15 6.41 6.84

Area 3. Sound Money 5.49 5.46 5.84 7.85 9.09 8.80 8.33 8.53
A. Money growth 9.32 (3.41) 9.91 (0.44) 8.00 (9.98) 9.98 (-0.09) 9.86 (0.72) 8.55 (-7.27) 8.37 (8.14) 9.49 (2.54)
B. Standard deviation of inflation 6.44 (8.90) 6.46 (8.86) 6.55 (8.62) 8.28 (4.30) 8.24 (4.40) 8.40 (4.01) 6.36 (9.11) 6.42 (8.95)
C. Inflation: most recent year 6.18 (19.08) 5.47 (22.67) 8.79 (6.03) 8.14 (9.31) 8.28 (8.60) 8.28 (8.61) 8.61 (6.95) 8.22 (8.88)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.93 5.88 6.63 6.26 7.92 7.17 7.08 7.01
A. Tariffs 4.79 7.03 6.29 4.18 6.84 6.27 5.98 5.90
(i) Revenue from trade taxes (% of trade sector) 1.47 (12.80) 5.27 (7.10) 5.60 (6.60) 5.25 (7.13) 5.96 (6.06) 5.96 (6.06) 4.40 (8.40) 4.32 (8.52)
(ii) Mean tariff rate 8.12 (9.40) 8.80 (6.00) 7.80 (11.00) 6.06 (19.70) 8.56 (7.20) 8.02 (9.90) 8.46 (7.70) 8.46 (7.70)
(iii) Standard deviation of tariff rates 5.48 (11.30) 1.24 (21.90) 6.00 (10.00) 4.82 (12.96) 5.07 (12.32) 4.92 (12.71)
B. Regulatory trade barriers 5.52 5.81 5.82
(i) Non-tariff trade barriers 6.33 6.36 6.05
(ii) Compliance costs of importing and exporting 4.71 5.26 5.59
C. Black-market exchange rates 8.00 5.60 8.60 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 5.00 5.00 6.92 6.88 6.52 6.32
(i) Foreign ownership/investment restrictions 6.90 7.37 6.78
(ii) Capital controls 5.00 5.00 5.00 5.00 6.92 6.92 5.38 5.38
(iii) Freedom of foreigners to visit 6.80 6.80 6.80

Area 5. Regulation 6.32 6.86 6.12 6.37 7.51 7.44 7.72 7.76
A. Credit market regulations 6.47 8.07 6.33 7.00 10.00 9.18 8.87 9.07
(i) Ownership of banks 5.00 5.00 10.00 8.00 8.00 8.00
(ii) Private sector credit 8.95 8.14 10.00 10.00 10.00 9.55 9.60 9.21
(iii) Interest rate controls/negative real interest rates 4.00 8.00 4.00 6.00 10.00 10.00 9.00 10.00
B. Labor market regulations 7.09 7.35 7.27
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 4.14 4.12 3.56
(iii) Centralized collective bargaining 6.72 6.21 6.27
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 1.66 3.78 3.78
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 6.04 6.94 6.94
(i) Administrative requirements 3.55 4.71 4.65
(ii) Bureaucracy costs 3.41 5.99 5.99
(iii) Starting a business 6.56 8.03 8.03
(iv) Extra payments/bribes/favoritism 6.91 6.44 6.43
(v) Licensing restrictions 7.41 8.19 8.24
(vi) Cost of tax compliance 8.43 8.30 8.30

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44 E Economic Freedom of the World: 2013 Annual Report

Brazil
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.83 (89) 3.28 (104) 4.46 (93) 4.72 (103) 5.93 (89) 6.27 (86) 6.52 (84) 6.56 (82)
Area 1. Size of Government 4.61 (68) 4.44 (72) 6.07 (44) 6.13 (60) 5.98 (71) 6.73 (58) 7.00 (39) 7.02 (38)
Area 2. Legal System and Property Rights 5.86 (34) 5.72 (42) 6.19 (36) 5.76 (59) 5.35 (74) 4.77 (83) 5.24 (77) 5.36 (75)
Area 3. Sound Money 0.00 (107) 0.00 (111) 0.00 (118) 0.00 (121) 6.14 (106) 7.64 (76) 7.97 (78) 8.20 (70)
Area 4. Freedom to Trade Internationally 1.36 (82) 1.13 (90) 5.14 (53) 6.83 (59) 6.67 (74) 7.13 (61) 7.13 (62) 7.10 (61)
Area 5. Regulation 5.16 (63) 4.58 (81) 4.74 (89) 4.99 (90) 5.53 (97) 5.05 (117) 5.23 (114) 5.10 (114)

Unadjusted
Summary Ratings Rank) h 4.18 (82) 3.22 (105) 4.18 (98) 4.65 (104) 5.93 (86) 6.22 (100) 6.47 (106) 6.51 (102)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.27 5.08 6.07 6.13 5.98 6.73 7.00 7.02
A. Government consumption 8.34 (11.65) 7.93 (13.05) 4.55 (24.55) 4.51 (24.66) 4.44 (24.90) 4.43 (24.94) 4.15 (25.90) 4.26 (25.50)
B. Transfers and subsidies 6.76 (12.40) 7.41 (10.00) 7.22 (10.70) 6.52 (13.27) 5.96 (15.33) 8.98 (4.24) 7.86 (8.34) 7.82 (8.51)
C. Government enterprises and investment 2.00 (49.20) 4.00 (36.00) 7.00 (24.90) 8.00 (17.80) 8.00 (17.80) 8.00 (17.80) 8.00 (15.15) 8.00 (15.15)
D. Top marginal tax rate 4.00 1.00 5.50 5.50 5.50 5.50 8.00 8.00
(i) Top marginal income tax rate 4.00 (55) 1.00 (60) 9.00 (25) 8.00 (35) 8.00 (28) 8.00 (28) 8.00 (28) 8.00 (28)
(ii) Top marginal income and payroll tax rate 2.00 (53) 3.00 (60) 3.00 (50) 3.00 (50) 8.00 (28) 8.00 (28)

Area 2. Legal System and Property Rights 5.86 5.72 6.19 5.76 5.35 4.69 5.16 5.28
A. Judicial independence 5.55 5.51 3.03 4.56 4.58
B. Impartial courts 6.67 6.18 3.42 4.30 4.42
C. Protection of property rights 4.15 5.08 6.02 5.69 6.11
D. Military interference in rule of law and politics 5.45 6.67 6.67 6.67 6.67
E. Integrity of the legal system 6.96 3.33 4.17 3.33 3.33
F. Legal enforcement of contracts 4.82 4.00 4.00
G. Regulatory restrictions on sale of real property 8.19 8.51 8.50
H. Reliability of police 3.11 5.42 5.75
I. Business costs of crime 2.76 3.97 4.13

Area 3. Sound Money 1.66 0.00 0.00 0.00 6.14 7.64 7.97 8.20
A. Money growth 3.26 (33.71) 0.00 (111.36) 0.00 (458.38) 0.00 (479.01) 8.07 (9.63) 7.92 (10.39) 8.55 (7.27) 9.76 (1.19)
B. Standard deviation of inflation 3.37 (16.57) 0.00 (53.14) 0.00 (878.93) 0.00 (851.49) 7.88 (5.29) 9.02 (2.45) 9.33 (1.67) 9.38 (1.55)
C. Inflation: most recent year 0.00 (87.47) 0.00 (231.72) 0.00 (2509.47) 0.00 (77.59) 8.59 (7.04) 8.63 (6.87) 8.99 (5.04) 8.67 (6.64)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 3.24 0.94 4.28 6.49 6.67 7.16 7.16 7.12
A. Tariffs 3.33 2.62 4.84 7.66 7.18 7.20 7.20 7.16
(i) Revenue from trade taxes (% of trade sector) 3.33 (10.00) 7.87 (3.20) 7.53 (3.70) 8.13 (2.81) 7.21 (4.18) 7.21 (4.18) 8.29 (2.57) 8.17 (2.75)
(ii) Mean tariff rate 0.00 (55.60) 4.00 (30.00) 7.60 (12.00) 7.12 (14.40) 7.54 (12.30) 7.26 (13.70) 7.26 (13.70)
(iii) Standard deviation of tariff rates 0.00 (26.20) 3.00 (17.50) 7.24 (6.90) 7.20 (7.00) 6.85 (7.87) 6.05 (9.86) 6.05 (9.86)
B. Regulatory trade barriers 5.27 5.34 6.14 6.48 6.43
(i) Non-tariff trade barriers 5.27 4.02 5.12 4.95 4.86
(ii) Compliance costs of importing and exporting 6.66 7.16 8.01 8.01
C. Black-market exchange rates 6.40 0.20 8.00 9.40 10.00 9.04 9.78 9.73
D. Controls of the movement of capital and people 0.00 0.00 0.00 3.64 4.17 6.26 5.18 5.16
(i) Foreign ownership/investment restrictions 7.29 7.56 6.16 5.99 5.94
(ii) Capital controls 0.00 0.00 0.00 0.00 0.77 6.15 3.08 3.08
(iii) Freedom of foreigners to visit 6.46 6.46 6.46

Area 5. Regulation 4.89 4.33 4.37 4.88 5.53 4.90 5.07 4.94
A. Credit market regulations 5.26 3.43 3.95 4.41 5.29 6.67 6.99 6.50
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 6.79 5.30 6.85 8.23 5.87 10.00 8.96 8.50
(iii) Interest rate controls/negative real interest rates 4.00 0.00 0.00 0.00 5.00 5.00 7.00 6.00
B. Labor market regulations 4.78 5.30 4.65 3.84 4.50 4.59
(i) Hiring regulations and minimum wage 6.67 3.46 2.20 2.23 2.23
(ii) Hiring and firing regulations 6.18 6.18 5.25 2.85 3.19 3.84
(iii) Centralized collective bargaining 5.18 5.18 5.18 5.18 5.52 5.25 5.46 5.36
(iv) Hours regulations 5.47 6.01 4.00 6.00 6.00
(v) Mandated cost of worker dismissal 5.74 7.13 7.13
(vi) Conscription 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 4.94 6.64 4.20 3.73 3.73
(i) Administrative requirements 7.70 1.46 1.74 1.70
(ii) Bureaucracy costs 5.61 7.38 5.26 4.39 4.39
(iii) Starting a business 5.95 5.73 6.56 6.61 6.62
(iv) Extra payments/bribes/favoritism 3.27 5.73 6.28 4.69 4.77
(v) Licensing restrictions 5.65 4.93 4.93
(vi) Cost of tax compliance 0.00 0.00 0.00

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 Chapter 2: Country Data Tables E 45

Brunei Darussalam
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 7.20 (54) 7.05 (71)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.00 5.00
A. Government consumption 0.00 (49.20) 0.00 (46.60)
B. Transfers and subsidies
C. Government enterprises and investment
D. Top marginal tax rate 10.00 10.00
(i) Top marginal income tax rate 10.00 (0) 10.00 (0)
(ii) Top marginal income and payroll tax rate 10.00 (8) 10.00 (8)

Area 2. Legal System and Property Rights 6.52 6.55

A. Judicial independence 6.28 6.77
B. Impartial courts 5.28 5.37
C. Protection of property rights 6.06 5.92
D. Military interference in rule of law and politics 8.33 8.33
E. Integrity of the legal system 8.33 8.33
F. Legal enforcement of contracts 4.17 4.17
G. Regulatory restrictions on sale of real property 4.80 4.80
H. Reliability of police 7.01 6.90
I. Business costs of crime 8.38 8.33

Area 3. Sound Money 8.31 8.18

A. Money growth 8.86 (-5.68) 9.44 (-2.82)
B. Standard deviation of inflation 4.45 (13.87) 3.68 (15.81)
C. Inflation: most recent year 9.93 (0.36) 9.60 (2.02)
D. Freedom to own foreign currency bank accounts 10.00 10.00

Area 4. Freedom to Trade Internationally 7.74 7.73

A. Tariffs 8.70 8.66
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 9.50 (2.50) 9.50 (2.50)
(iii) Standard deviation of tariff rates 7.89 (5.28) 7.82 (5.45)
B. Regulatory trade barriers 6.87 6.77
(i) Non-tariff trade barriers 6.11 5.91
(ii) Compliance costs of importing and exporting 7.63 7.63
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 5.38 5.47
(i) Foreign ownership/investment restrictions 5.89 6.19
(ii) Capital controls 6.15 6.15
(iii) Freedom of foreigners to visit 4.08 4.08

Area 5. Regulation 8.41 7.79

A. Credit market regulations 9.30 7.08
(i) Ownership of banks
(ii) Private sector credit 9.60 9.17
(iii) Interest rate controls/negative real interest rates 9.00 5.00
B. Labor market regulations 9.01 8.98
(i) Hiring regulations and minimum wage 10.00 10.00
(ii) Hiring and firing regulations 6.07 5.78
(iii) Centralized collective bargaining 7.98 8.13
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 10.00 10.00
(vi) Conscription 10.00 10.00
C. Business regulations 6.93 7.31
(i) Administrative requirements 4.60 5.20
(ii) Bureaucracy costs 6.34 6.34
(iii) Starting a business 6.64 6.65
(iv) Extra payments/bribes/favoritism 6.82 7.36
(v) Licensing restrictions 8.25 9.36
(vi) Cost of tax compliance 8.92 8.92

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46 E Economic Freedom of the World: 2013 Annual Report

Bulgaria
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.02 (64) 3.90 (101) 4.60 (105) 5.37 (108) 6.85 (68) 7.20 (47) 7.16 (55)
Area 1. Size of Government 3.73 (91) 2.11 (112) 3.63 (109) 4.51 (105) 6.30 (78) 6.46 (57) 6.64 (55)
Area 2. Legal System and Property Rights 6.03 (32) 6.03 (38) 5.47 (72) 5.41 (72) 4.84 (81) 4.85 (80) 4.89 (78)
Area 3. Sound Money 8.29 (24) 4.45 (98) 1.99 (112) 3.23 (118) 8.89 (44) 9.51 (23) 9.32 (34)
Area 4. Freedom to Trade Internationally 1.99 (80) 2.83 (90) 7.13 (52) 7.33 (59) 7.09 (64) 7.80 (38) 7.45 (46)
Area 5. Regulation 3.90 (101) 4.69 (100) 6.37 (58) 7.15 (43) 7.40 (31) 7.53 (29)

Unadjusted
Summary Ratings Rank) h 5.65 (43) 4.17 (99) 4.65 (104) 5.37 (107) 6.95 (68) 7.30 (47) 7.26 (49)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.74 2.54 4.03 4.51 6.30 6.46 6.64
A. Government consumption 9.04 (9.26) 8.12 (12.40) 4.91 (23.31) 6.54 (17.77) 5.24 (22.20) 5.60 (20.96) 5.73 (20.53) 5.76 (20.40)
B. Transfers and subsidies 5.37 (17.50) 2.72 (27.20) 6.59 (13.00) 5.81 (15.90) 5.60 (16.63) 5.61 (16.63) 5.30 (17.74)
C. Government enterprises and investment 0.00 (96.40) 0.00 (55.60) 4.00 (38.95) 8.00 (19.02) 7.00 (22.68) 8.00 (19.53)
D. Top marginal tax rate 3.00 3.00 6.00 7.50 7.50
(i) Top marginal income tax rate 3.00 (50) 5.00 (38) 9.00 (24) 10.00 (10) 10.00 (10)
(ii) Top marginal income and payroll tax rate 1.00 (56) 3.00 (50) 5.00 (38) 5.00 (38)

Area 2. Legal System and Property Rights 7.25 7.25 5.88 5.41 4.98 4.99 5.03
A. Judicial independence 4.18 2.51 3.23 3.14
B. Impartial courts 5.29 4.51 2.55 2.91 3.14
C. Protection of property rights 3.35 4.58 3.82 4.17
D. Military interference in rule of law and politics 7.46 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.96 6.67 6.67 4.17 4.17
F. Legal enforcement of contracts 4.77 4.77 4.77
G. Regulatory restrictions on sale of real property 8.88 8.73 8.76
H. Reliability of police 2.90 3.99 4.05
I. Business costs of crime 3.64 4.94 4.71

Area 3. Sound Money 6.47 4.45 1.99 3.23 8.89 9.51 9.32
A. Money growth 7.38 (13.10) 2.97 (35.15) 0.00 (76.68) 7.29 (13.53) 9.89 (-0.57) 9.46 (-2.69)
B. Standard deviation of inflation 9.44 (1.39) 5.64 (10.90) 0.00 (66.37) 0.00 (409.71) 9.28 (1.80) 8.64 (3.39) 8.64 (3.39)
C. Inflation: most recent year 9.95 (0.23) 4.76 (26.19) 0.00 (62.85) 7.94 (10.32) 8.99 (5.04) 9.51 (2.44) 9.16 (4.22)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 2.13 2.81 6.79 7.33 7.23 7.95 7.60
A. Tariffs 6.40 8.43 6.37 7.85 7.75 9.15 8.27
(i) Revenue from trade taxes (% of trade sector) 6.40 (5.40) 9.13 (1.30) 7.87 (3.20) 9.53 (0.71) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 7.72 (11.40) 6.56 (17.20) 7.26 (13.70) 7.86 (10.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 4.68 (13.30) 6.76 (8.11) 5.80 (10.50) 8.84 (2.91) 6.23 (9.43)
B. Regulatory trade barriers 6.42 5.72 6.29 6.05
(i) Non-tariff trade barriers 4.35 5.02 5.23 4.77
(ii) Compliance costs of importing and exporting 8.50 6.42 7.34 7.34
C. Black-market exchange rates 0.00 0.00 0.00 9.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 5.00 5.04 5.47 6.39 6.07
(i) Foreign ownership/investment restrictions 7.01 5.21 4.89 4.72
(ii) Capital controls 0.00 0.00 0.00 5.00 3.08 4.62 7.69 6.92
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 3.80 4.57 6.37 7.33 7.59 7.73

A. Credit market regulations 0.00 0.00 3.52 5.23 8.90 10.00 9.51 9.72
(i) Ownership of banks 0.00 0.00 0.00 2.00 8.00 10.00 10.00 10.00
(ii) Private sector credit 6.55 5.70 9.69 10.00 8.54 9.15
(iii) Interest rate controls/negative real interest rates 4.00 8.00 9.00 10.00 10.00 10.00
B. Labor market regulations 4.92 6.43 7.68 7.70
(i) Hiring regulations and minimum wage 2.57 8.30 6.67 6.67
(ii) Hiring and firing regulations 4.33 4.50 5.23 5.34
(iii) Centralized collective bargaining 7.87 7.62 6.95 6.97
(iv) Hours regulations 6.85 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 9.17 9.25 9.25
(vi) Conscription 0.00 0.00 0.00 1.00 3.00 3.00 10.00 10.00
C. Business regulations 5.29 5.57 5.57 5.77
(i) Administrative requirements 6.10 2.75 3.42 3.28
(ii) Bureaucracy costs 5.95 3.38 3.96 3.96
(iii) Starting a business 2.53 8.68 9.41 9.41
(iv) Extra payments/bribes/favoritism 6.57 7.42 3.87 4.40
(v) Licensing restrictions 8.09 8.39 8.64
(vi) Cost of tax compliance 3.10 4.40 4.91

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 Chapter 2: Country Data Tables E 47

Burkina Faso
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 5.85 (119) 5.91 (131) 5.94 (132)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.69 4.98 5.24
A. Government consumption 5.10 (22.66) 4.97 (23.10) 5.00 (23.00)
B. Transfers and subsidies 9.97 (0.60) 9.96 (0.66) 9.95 (0.69)
C. Government enterprises and investment 2.00 (41.40) 2.00 (46.87) 0.00 (53.57) 2.00 (45.91)
D. Top marginal tax rate 4.00
(i) Top marginal income tax rate 4.00 (45)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.17 4.33 4.26

A. Judicial independence 3.37 2.58 2.44
B. Impartial courts 3.67 3.58 4.21
C. Protection of property rights 5.74 5.49 5.50
D. Military interference in rule of law and politics 5.00 4.17 4.17
E. Integrity of the legal system 5.83 5.83 5.00
F. Legal enforcement of contracts 2.10 2.14 2.14
G. Regulatory restrictions on sale of real property 1.56 4.68 4.74
H. Reliability of police 5.00 4.40 4.62
I. Business costs of crime 5.27 6.12 5.53

Area 3. Sound Money 6.84 6.87 6.86

A. Money growth 9.55 (2.23) 8.41 (7.96) 8.68 (6.58)
B. Standard deviation of inflation 9.11 (2.23) 9.24 (1.91) 9.29 (1.77)
C. Inflation: most recent year 8.72 (6.42) 9.85 (-0.76) 9.45 (2.76)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 6.20 6.06 5.98

A. Tariffs 7.05 7.18 7.28
(i) Revenue from trade taxes (% of trade sector) 6.52 (5.22) 6.63 (5.06) 6.94 (4.59)
(ii) Mean tariff rate 7.38 (13.10) 7.62 (11.90) 7.62 (11.90)
(iii) Standard deviation of tariff rates 7.26 (6.84) 7.29 (6.78) 7.29 (6.78)
B. Regulatory trade barriers 5.03 4.80 4.46
(i) Non-tariff trade barriers 7.04 5.93 5.13
(ii) Compliance costs of importing and exporting 3.02 3.67 3.79
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.72 2.28 2.18
(i) Foreign ownership/investment restrictions 7.40 6.06 5.78
(ii) Capital controls 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 6.36 7.31 7.35

A. Credit market regulations 7.87 8.33 8.33
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 5.62 6.99 6.99
(iii) Interest rate controls/negative real interest rates 8.00 8.00 8.00
B. Labor market regulations 5.89 7.76 7.82
(i) Hiring regulations and minimum wage 1.70 7.77 7.77
(ii) Hiring and firing regulations 4.82 5.94 5.88
(iii) Centralized collective bargaining 5.99 6.94 7.34
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 6.85 7.94 7.94
(vi) Conscription 10.00 10.00 10.00
C. Business regulations 5.30 5.83 5.89
(i) Administrative requirements 4.29 4.23 4.54
(ii) Bureaucracy costs 4.09 3.73 3.73
(iii) Starting a business 6.06 7.86 7.93
(iv) Extra payments/bribes/favoritism 5.04 3.51 3.55
(v) Licensing restrictions 5.35 8.70 8.63
(vi) Cost of tax compliance 6.97 6.97 6.97

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48 E Economic Freedom of the World: 2013 Annual Report

Burundi
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.94 (85) 4.37 (87) 4.58 (90) 3.89 (116) 4.73 (116) 4.84 (118) 5.04 (118) 5.20 (116)
Area 1. Size of Government 6.50 (18) 6.71 (11) 6.26 (39) 5.78 (70) 5.80 (76) 4.98 (100) 4.98 (103) 5.39 (95)
Area 2. Legal System and Property Rights 2.93 (117) 2.61 (116) 2.60 (120) 2.67 (117)
Area 3. Sound Money 5.56 (77) 6.27 (78) 6.50 (65) 5.83 (76) 6.19 (104) 6.71 (95) 6.98 (93) 7.08 (91)
Area 4. Freedom to Trade Internationally 0.35 (90) 1.75 (84) 2.85 (89) 0.93 (112) 4.48 (116) 2.75 (120) 3.65 (120) 3.69 (119)
Area 5. Regulation 4.84 (75) 5.23 (66) 4.96 (77) 4.51 (104) 4.27 (118) 6.83 (59) 6.44 (86) 6.61 (83)

Unadjusted
Summary Ratings Rank) h 3.99 (86) 4.50 (85) 4.72 (89) 4.34 (110) 4.80 (116) 5.10 (132) 5.32 (144) 5.26 (145)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.53 4.68 4.37 5.78 5.80 4.98 4.98 4.29
A. Government consumption 9.07 (9.16) 9.36 (8.17) 8.75 (10.27) 8.08 (12.54) 7.96 (12.92) 5.52 (21.24) 3.50 (28.10) 4.74 (23.90)
B. Transfers and subsidies 9.28 (3.16) 9.43 (2.60) 9.43 (2.60) 9.43 (2.60) 9.43 (2.60)
C. Government enterprises and investment 0.00 (91.90) 0.00 (83.00) 0.00 (82.20) 0.00 (100.00) 0.00 (87.30) 0.00 (53.81) 2.00 (44.59) 2.00 (44.54)
D. Top marginal tax rate 1.00
(i) Top marginal income tax rate 1.00 (60)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.67 4.25 4.42 4.45 3.26 2.99 2.98 3.06
A. Judicial independence 1.40 1.14 1.08
B. Impartial courts 4.00 3.67 2.53 2.64 2.44
C. Protection of property rights 3.31 2.84 2.42
D. Military interference in rule of law and politics 2.20 1.90 2.20 2.20
E. Integrity of the legal system 5.18
F. Legal enforcement of contracts 3.91 2.65 2.65
G. Regulatory restrictions on sale of real property 3.22 6.38 7.71
H. Reliability of police 3.70 1.99 1.62
I. Business costs of crime 3.92 4.01 4.40

Area 3. Sound Money 5.56 6.27 6.50 5.83 6.19 6.71 6.98 7.08
A. Money growth 7.91 (10.45) 9.05 (4.74) 9.97 (0.15) 8.29 (8.56) 7.67 (11.66) 6.83 (15.85) 7.48 (12.61) 7.87 (10.67)
B. Standard deviation of inflation 7.60 (5.99) 7.05 (7.37) 7.22 (6.94) 8.06 (4.86) 6.95 (7.62) 7.72 (5.69) 6.72 (8.21) 7.39 (6.53)
C. Inflation: most recent year 6.72 (16.38) 8.99 (5.07) 8.80 (5.99) 6.96 (15.18) 5.14 (24.31) 7.30 (13.52) 8.72 (6.40) 8.05 (9.74)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 5.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 0.33 2.07 3.37 1.10 4.48 3.73 4.94 5.00
A. Tariffs 0.00 1.21 1.30 2.11 1.13 4.48 4.64 4.64
(i) Revenue from trade taxes (% of trade sector) 0.00 (18.10) 0.00 (17.00) 0.00 (22.90) 1.60 (12.60) 1.13 (13.31) 1.13 (13.31) 1.13 (13.31) 1.13 (13.31)
(ii) Mean tariff rate 2.42 (37.90) 2.60 (37.00) 2.62 (36.90) 6.08 (19.60) 7.50 (12.50) 7.50 (12.50)
(iii) Standard deviation of tariff rates 6.24 (9.40) 5.30 (11.75) 5.30 (11.75)
B. Regulatory trade barriers 2.96 3.97 4.22
(i) Non-tariff trade barriers 4.12 4.08 3.84
(ii) Compliance costs of importing and exporting 1.79 3.86 4.61
C. Black-market exchange rates 1.00 5.00 8.80 1.20 10.00 4.88 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 2.31 2.62 1.16 1.15
(i) Foreign ownership/investment restrictions 5.54 3.49 3.45
(ii) Capital controls 0.00 0.00 0.00 0.00 2.31 2.31 0.00 0.00
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 4.84 5.23 4.96 4.51 4.27 7.10 6.70 6.87
A. Credit market regulations 2.94 3.96 3.26 2.07 1.42 8.79 7.60 7.87
(i) Ownership of banks 2.00 2.00 0.00 0.00 0.00 8.00 5.00 5.00
(ii) Private sector credit 4.81 3.87 5.78 2.21 0.25 8.36 7.80 8.61
(iii) Interest rate controls/negative real interest rates 2.00 6.00 4.00 4.00 4.00 10.00 10.00 10.00
B. Labor market regulations 7.69 7.79 7.69
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 5.75 4.77 4.50
(iii) Centralized collective bargaining 8.07 8.24 7.87
(iv) Hours regulations 4.70 6.00 6.00
(v) Mandated cost of worker dismissal 7.59 7.76 7.76
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.82 4.70 5.06
(i) Administrative requirements 2.76 3.82 2.94
(ii) Bureaucracy costs 4.67 2.83 2.83
(iii) Starting a business 6.64 8.32 9.55
(iv) Extra payments/bribes/favoritism 3.98 2.60 2.24
(v) Licensing restrictions 2.46 3.72 5.84
(vi) Cost of tax compliance 8.43 6.93 6.93

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 Chapter 2: Country Data Tables E 49

Cambodia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 7.11 (65) 7.02 (74)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 7.89 7.88
A. Government consumption 9.65 (7.20) 9.76 (6.80)
B. Transfers and subsidies 9.89 (0.89) 9.74 (1.45)
C. Government enterprises and investment 6.00 (28.52) 2.00 (40.00) 2.00 (47.58)
D. Top marginal tax rate 10.00 10.00
(i) Top marginal income tax rate 10.00 (20) 10.00 (20)
(ii) Top marginal income and payroll tax rate 10.00 (20) 10.00 (20)

Area 2. Legal System and Property Rights 4.61 4.76

A. Judicial independence 3.46 3.76
B. Impartial courts 4.88 5.11
C. Protection of property rights 4.63 4.68
D. Military interference in rule of law and politics 4.70 4.70
E. Integrity of the legal system
F. Legal enforcement of contracts 2.44 2.44
G. Regulatory restrictions on sale of real property 7.53 7.53
H. Reliability of police 3.97 4.19
I. Business costs of crime 5.31 5.72

Area 3. Sound Money 9.26 9.25

A. Money growth 9.43 (-2.86) 9.71 (-1.43)
B. Standard deviation of inflation 8.43 (3.92) 8.38 (4.06)
C. Inflation: most recent year 9.20 (4.00) 8.90 (5.48)
D. Freedom to own foreign currency bank accounts 10.00 10.00

Area 4. Freedom to Trade Internationally 7.29 7.03

A. Tariffs 8.55 7.67
(i) Revenue from trade taxes (% of trade sector) 8.55 (2.17) 8.64 (2.04)
(ii) Mean tariff rate 7.82 (10.90)
(iii) Standard deviation of tariff rates 6.56 (8.61)
B. Regulatory trade barriers 6.09 5.94
(i) Non-tariff trade barriers 5.48 5.18
(ii) Compliance costs of importing and exporting 6.70 6.70
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 4.52 4.49
(i) Foreign ownership/investment restrictions 6.21 6.14
(ii) Capital controls 7.00 7.00
(iii) Freedom of foreigners to visit 0.34 0.34

Area 5. Regulation 6.47 6.20

A. Credit market regulations 7.03 6.02
(i) Ownership of banks
(ii) Private sector credit 10.00 7.03 6.02
(iii) Interest rate controls/negative real interest rates
B. Labor market regulations 7.30 7.38
(i) Hiring regulations and minimum wage 5.57 5.57
(ii) Hiring and firing regulations 5.44 5.68
(iii) Centralized collective bargaining 6.49 6.74
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 6.30 6.30
(vi) Conscription 10.00 10.00
C. Business regulations 5.09 5.20
(i) Administrative requirements 4.42 4.65
(ii) Bureaucracy costs 3.64 3.64
(iii) Starting a business 6.02 6.13
(iv) Extra payments/bribes/favoritism 3.45 3.80
(v) Licensing restrictions 4.93 4.93
(vi) Cost of tax compliance 8.06 8.06

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50 E Economic Freedom of the World: 2013 Annual Report

Cameroon
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.62 (39) 5.73 (41) 5.81 (46) 5.68 (76) 5.92 (90) 6.19 (88) 6.33 (95) 6.23 (96)
Area 1. Size of Government 6.74 (15) 5.40 (41) 5.24 (67) 6.58 (39) 6.89 (37) 7.04 (49) 6.76 (51) 6.16 (73)
Area 2. Legal System and Property Rights 5.78 (35) 5.85 (38) 5.79 (46) 5.04 (83) 4.59 (87) 4.19 (97) 4.76 (85) 4.62 (86)
Area 3. Sound Money 5.66 (74) 6.67 (54) 7.01 (46) 5.92 (75) 6.60 (97) 7.21 (84) 6.74 (99) 6.78 (99)
Area 4. Freedom to Trade Internationally 4.28 (50) 5.49 (42) 5.45 (51) 5.12 (96) 5.28 (105) 5.58 (102) 5.87 (99) 5.85 (98)
Area 5. Regulation 5.22 (61) 5.22 (67) 5.56 (65) 5.74 (66) 6.25 (63) 6.86 (56) 7.63 (21) 7.83 (14)

Unadjusted
Summary Ratings Rank) h 5.81 (33) 5.69 (40) 5.76 (49) 5.50 (79) 5.89 (90) 5.91 (116) 6.04 (128) 5.94 (132)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 8.37 5.53 5.24 6.58 6.89 7.04 6.76 6.16
A. Government consumption 8.18 (12.19) 8.16 (12.27) 7.04 (16.06) 8.61 (10.73) 8.00 (12.80) 8.07 (12.55) 6.97 (16.30) 6.56 (17.70)
B. Transfers and subsidies 9.92 (0.80) 9.97 (0.60) 9.40 (2.70) 9.70 (1.60) 9.57 (2.09) 9.57 (2.09) 9.57 (2.09) 9.57 (2.09)
C. Government enterprises and investment 7.00 (22.20) 2.00 (44.80) 4.00 (31.50) 8.00 (18.10) 10.00 (13.10) 10.00 (6.27) 6.00 (25.49) 4.00 (32.64)
D. Top marginal tax rate 2.00 0.50 0.00 0.00 0.50 4.50 4.50
(i) Top marginal income tax rate 2.00 (60) 1.00 (60) 0.00 (66) 0.00 (65) 1.00 (60) 5.00 (39) 5.00 (39)
(ii) Top marginal income and payroll tax rate 0.00 (63) 0.00 (69) 0.00 (68) 0.00 (68) 4.00 (41) 4.00 (41)

Area 2. Legal System and Property Rights 5.78 5.85 5.79 4.77 4.45 3.53 4.00 3.88
A. Judicial independence 2.06 2.86 2.43
B. Impartial courts 3.76 3.76 2.81 3.83 3.93
C. Protection of property rights 4.14 4.38 4.66
D. Military interference in rule of law and politics 4.38 6.67 6.67 5.83 5.00
E. Integrity of the legal system 6.96 3.33 3.33 3.33 3.33
F. Legal enforcement of contracts 2.17 2.17 2.17
G. Regulatory restrictions on sale of real property 3.24 3.24 3.24
H. Reliability of police 3.83 4.50 4.76
I. Business costs of crime 3.49 5.85 5.42

Area 3. Sound Money 5.66 6.67 7.01 5.92 6.60 7.21 6.74 6.78
A. Money growth 7.83 (10.86) 9.57 (2.14) 8.98 (-5.10) 9.74 (-1.29) 7.36 (13.21) 9.89 (-0.53) 8.32 (8.38) 8.76 (6.18)
B. Standard deviation of inflation 7.65 (5.88) 9.34 (1.66) 9.38 (1.55) 7.34 (6.64) 9.30 (1.75) 9.34 (1.65) 8.88 (2.81) 8.94 (2.65)
C. Inflation: most recent year 7.15 (14.25) 7.76 (11.19) 9.67 (1.64) 6.59 (17.03) 9.75 (1.23) 9.60 (2.01) 9.74 (1.28) 9.41 (2.94)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.09 5.24 5.20 4.50 5.28 5.86 6.16 6.14
A. Tariffs 2.67 5.93 6.40 3.71 5.08 5.50 5.50 5.50
(i) Revenue from trade taxes (% of trade sector) 2.67 (11.00) 5.93 (6.10) 6.40 (5.40) 4.87 (7.70) 3.84 (9.24) 3.84 (9.24) 3.84 (9.24) 3.84 (9.24)
(ii) Mean tariff rate 6.26 (18.70) 6.32 (18.40) 6.32 (18.40) 6.44 (17.80) 6.44 (17.80)
(iii) Standard deviation of tariff rates 0.00 (29.60) 6.33 (9.18) 6.23 (9.43) 6.23 (9.43)
B. Regulatory trade barriers 5.52 6.57 6.29
(i) Non-tariff trade barriers 5.20 6.46 5.90
(ii) Compliance costs of importing and exporting 5.84 6.68 6.68
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.77 2.41 2.58 2.78
(i) Foreign ownership/investment restrictions 6.46 6.19 6.81
(ii) Capital controls 0.00 0.00 0.00 0.00 0.77 0.77 1.54 1.54
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 5.16 5.16 5.56 5.74 6.25 5.91 6.56 6.73
A. Credit market regulations 3.00 3.00 4.85 5.33 6.67 7.31 7.50 7.56
(i) Ownership of banks 0.00 0.00 0.00 2.00 2.00 5.00 5.00 5.00
(ii) Private sector credit 6.54 10.00 10.00 7.93 8.50 8.69
(iii) Interest rate controls/negative real interest rates 6.00 6.00 8.00 4.00 8.00 9.00 9.00 9.00
B. Labor market regulations 7.30 7.56 7.90
(i) Hiring regulations and minimum wage 7.20 7.23 7.23
(ii) Hiring and firing regulations 5.71 6.32 6.44
(iii) Centralized collective bargaining 5.95 6.43 6.33
(iv) Hours regulations 8.00 8.00 10.00
(v) Mandated cost of worker dismissal 6.94 7.38 7.38
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 3.11 4.63 4.74
(i) Administrative requirements 1.75 3.39 3.94
(ii) Bureaucracy costs 3.66 3.45 3.45
(iii) Starting a business 6.54 8.44 8.59
(iv) Extra payments/bribes/favoritism 3.98 3.30 3.09
(v) Licensing restrictions 2.70 6.54 6.70
(vi) Cost of tax compliance 0.00 2.67 2.67

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 Chapter 2: Country Data Tables E 51

Canada
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 7.68 (5) 7.78 (6) 8.09 (5) 8.11 (8) 8.36 (7) 8.34 (6) 8.17 (4) 8.05 (6)
Area 1. Size of Government 5.37 (40) 5.24 (46) 5.81 (54) 5.80 (69) 5.97 (72) 6.88 (52) 6.17 (70) 6.20 (69)
Area 2. Legal System and Property Rights 7.18 (16) 7.88 (9) 8.35 (7) 8.95 (12) 9.27 (8) 8.67 (16) 8.74 (12) 8.71 (11)
Area 3. Sound Money 9.09 (6) 8.93 (16) 9.68 (6) 9.63 (13) 9.53 (19) 9.68 (4) 9.46 (26) 9.12 (45)
Area 4. Freedom to Trade Internationally 8.60 (8) 8.70 (9) 8.79 (10) 8.12 (26) 8.97 (19) 7.90 (32) 7.98 (29) 7.75 (37)
Area 5. Regulation 8.14 (3) 8.11 (4) 7.82 (6) 8.02 (7) 8.06 (4) 8.55 (2) 8.49 (6) 8.45 (6)

Unadjusted
Summary Ratings Rank) h 7.77 (5) 7.87 (5) 8.11 (6) 8.07 (8) 8.36 (7) 8.22 (7) 8.05 (5) 7.93 (8)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.37 5.24 5.81 5.80 5.97 6.88 6.17 6.20
A. Government consumption 3.29 (28.83) 3.28 (28.84) 3.35 (28.63) 3.67 (27.53) 4.54 (24.56) 4.23 (25.61) 3.73 (27.32) 3.76 (27.20)
B. Transfers and subsidies 6.19 (14.50) 5.69 (16.30) 5.89 (15.60) 5.53 (16.89) 6.34 (13.92) 7.31 (10.38) 6.94 (11.72) 7.05 (11.33)
C. Government enterprises and investment 10.00 (12.60) 10.00 (14.80) 10.00 (13.70) 10.00 (14.80) 10.00 (14.80) 10.00 (12.67) 8.00 (18.78) 8.00 (18.78)
D. Top marginal tax rate 2.00 2.00 4.00 4.00 3.00 6.00 6.00 6.00
(i) Top marginal income tax rate 2.00 (60-68) 2.00 (50-63) 4.00 (44-54) 4.00 (44-54) 3.00 (44-51) 6.00 (39-49) 6.00 (39-50) 6.00 (39-50)
(ii) Top marginal income and payroll tax rate 4.00 (44-54) 4.00 (44-54) 3.00 (44-51) 6.00 (39-49) 6.00 (39-50) 6.00 (39-50)

Area 2. Legal System and Property Rights 7.18 7.88 8.35 8.95 9.27 8.08 8.16 8.12
A. Judicial independence 9.52 9.19 7.91 8.88 8.84
B. Impartial courts 8.85 9.19 7.42 7.08 7.07
C. Protection of property rights 7.34 7.98 8.16 8.32 8.39
D. Military interference in rule of law and politics 9.04 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 10.00 9.17 9.17
F. Legal enforcement of contracts 4.81 4.81 4.81
G. Regulatory restrictions on sale of real property 9.14 9.09 8.56
H. Reliability of police 7.95 8.85 8.65
I. Business costs of crime 7.37 7.19 7.61

Area 3. Sound Money 9.09 8.93 9.68 9.63 9.53 9.68 9.46 9.12
A. Money growth 9.24 (3.78) 7.50 (12.48) 9.70 (1.50) 9.33 (3.35) 9.31 (3.46) 9.64 (1.81) 9.55 (2.27) 8.49 (7.55)
B. Standard deviation of inflation 9.32 (1.70) 8.71 (3.22) 9.65 (0.88) 9.72 (0.69) 9.34 (1.65) 9.54 (1.15) 8.64 (3.40) 8.58 (3.54)
C. Inflation: most recent year 7.80 (11.00) 9.52 (2.42) 9.38 (3.11) 9.46 (2.69) 9.45 (2.75) 9.56 (2.21) 9.64 (1.78) 9.42 (2.91)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 8.69 8.79 8.64 7.88 8.97 7.78 7.85 7.63
A. Tariffs 8.08 8.38 7.93 5.94 8.78 6.65 7.25 6.58
(i) Revenue from trade taxes (% of trade sector) 8.40 (2.40) 8.87 (1.70) 9.20 (1.20) 9.53 (0.70) 9.79 (0.31) 9.77 (0.35) 9.77 (0.35) 9.77 (0.34)
(ii) Mean tariff rate 7.76 (11.20) 7.90 (10.50) 8.12 (9.40) 7.98 (10.10) 9.22 (3.90) 9.10 (4.50) 9.26 (3.70) 9.10 (4.50)
(iii) Standard deviation of tariff rates 6.48 (8.80) 0.32 (24.20) 7.32 (6.70) 1.07 (22.33) 2.73 (18.17) 0.86 (22.86)
B. Regulatory trade barriers 7.20 8.48 7.76 7.58 7.39
(i) Non-tariff trade barriers 7.20 7.45 6.63 6.26 5.88
(ii) Compliance costs of importing and exporting 9.50 8.89 8.89 8.89
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 8.00 8.00 8.00 8.39 8.65 6.71 6.56 6.55
(i) Foreign ownership/investment restrictions 8.78 8.83 7.50 7.07 7.04
(ii) Capital controls 8.00 8.00 8.00 8.00 8.46 6.92 6.92 6.92
(iii) Freedom of foreigners to visit 5.70 5.70 5.70

Area 5. Regulation 8.53 8.50 8.09 8.08 8.06 8.66 8.60 8.56
A. Credit market regulations 9.72 9.75 9.13 9.22 10.00 10.00 9.30 9.45
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 9.16 9.25 7.39 7.65 10.00 10.00 8.90 9.36
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 9.00 9.00
B. Labor market regulations 7.33 7.24 7.05 7.13 6.41 8.20 8.51 8.54
(i) Hiring regulations and minimum wage 6.12 4.28 8.90 8.90 8.90
(ii) Hiring and firing regulations 6.47 6.47 5.08 5.44 6.47 6.53
(iii) Centralized collective bargaining 7.24 7.24 7.24 7.24 7.83 7.48 7.43 7.54
(iv) Hours regulations 4.75 4.49 4.49 5.80 4.84 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 7.40 8.27 8.27
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 7.90 7.77 7.79 7.99 7.68
(i) Administrative requirements 7.20 3.87 4.22 4.10
(ii) Bureaucracy costs 7.07 7.23 6.39 7.59 7.59
(iii) Starting a business 7.82 7.55 9.89 9.84 9.84
(iv) Extra payments/bribes/favoritism 8.82 9.08 8.39 8.13 7.90
(v) Licensing restrictions 9.52 9.63 8.14
(vi) Cost of tax compliance 8.67 8.53 8.53

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52 E Economic Freedom of the World: 2013 Annual Report

Cape Verde
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.06 (125) 6.24 (121)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.42 5.36
A. Government consumption 3.32 (28.70) 5.12 (22.60)
B. Transfers and subsidies 9.34 (2.93) 9.34 (2.93)
C. Government enterprises and investment 0.00 (35.88) 0.00 (49.64) 2.00 (40.61)
D. Top marginal tax rate 5.00 5.00
(i) Top marginal income tax rate 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate 3.00 (50) 3.00 (50)

Area 2. Legal System and Property Rights 6.02 6.05

A. Judicial independence 5.27 5.30
B. Impartial courts 4.37 4.53
C. Protection of property rights 4.66 5.00
D. Military interference in rule of law and politics 8.50 8.50
E. Integrity of the legal system
F. Legal enforcement of contracts 6.06 6.06
G. Regulatory restrictions on sale of real property 8.13 8.20
H. Reliability of police 5.79 5.80
I. Business costs of crime 5.36 5.00

Area 3. Sound Money 6.39 6.21

A. Money growth
B. Standard deviation of inflation 9.58 (1.06) 9.54 (1.16)
C. Inflation: most recent year 9.58 (2.08) 9.11 (4.47)
D. Freedom to own foreign currency bank accounts 0.00 0.00

Area 4. Freedom to Trade Internationally 6.58 6.60

A. Tariffs 6.71 6.74
(i) Revenue from trade taxes (% of trade sector) 7.35 (3.97) 7.35 (3.97)
(ii) Mean tariff rate 7.96 (10.20) 7.96 (10.20)
(iii) Standard deviation of tariff rates 4.82 (12.95) 4.90 (12.75)
B. Regulatory trade barriers 6.16 5.99
(i) Non-tariff trade barriers 4.86 4.52
(ii) Compliance costs of importing and exporting 7.45 7.45
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 3.47 3.68
(i) Foreign ownership/investment restrictions 6.10 5.90
(ii) Capital controls 2.50 3.33
(iii) Freedom of foreigners to visit 1.81 1.81

Area 5. Regulation 6.91 6.96

A. Credit market regulations 9.23 9.23
(i) Ownership of banks
(ii) Private sector credit 9.10 8.47 8.47
(iii) Interest rate controls/negative real interest rates 10.00 10.00
B. Labor market regulations 4.63 4.67
(i) Hiring regulations and minimum wage 5.00 5.00
(ii) Hiring and firing regulations 3.95 4.26
(iii) Centralized collective bargaining 7.33 7.22
(iv) Hours regulations 8.00 8.00
(v) Mandated cost of worker dismissal 2.52 2.52
(vi) Conscription 1.00 1.00
C. Business regulations 6.86 6.98
(i) Administrative requirements 4.33 4.73
(ii) Bureaucracy costs 5.55 5.55
(iii) Starting a business 9.34 9.38
(iv) Extra payments/bribes/favoritism 6.04 6.19
(v) Licensing restrictions 7.98 8.10
(vi) Cost of tax compliance 7.92 7.92

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 Chapter 2: Country Data Tables E 53

Central African Republic

1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.35 (88) 4.80 (87) 4.39 (110) 5.27 (110) 5.26 (114) 5.70 (111) 5.75 (108)
Area 1. Size of Government 3.84 (84) 5.58 (37) 4.70 (84) 3.83 (105) 5.28 (87) 3.95 (116) 6.29 (68) 6.76 (52)
Area 2. Legal System and Property Rights 4.35 (96) 5.49 (70) 4.59 (89) 4.59 (88)
Area 3. Sound Money 5.25 (86) 4.53 (96) 7.08 (42) 5.04 (91) 7.03 (78) 7.04 (88) 6.95 (95) 6.76 (100)
Area 4. Freedom to Trade Internationally 4.27 (59) 4.08 (75) 5.12 (95) 5.19 (109) 5.40 (107) 5.78 (101) 5.78 (99)
Area 5. Regulation 4.12 (90) 4.85 (85) 4.31 (108) 4.52 (116) 5.14 (116) 5.07 (115) 5.02 (117)

Unadjusted
Summary Ratings Rank) h 4.48 (75) 4.53 (84) 5.02 (75) 4.68 (102) 5.26 (111) 4.77 (135) 5.21 (148) 5.26 (145)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.84 5.58 4.70 3.83 5.28 3.95 6.49 6.99
A. Government consumption 7.67 (13.91) 7.16 (15.66) 7.41 (14.81) 7.65 (13.98) 8.55 (10.92) 7.91 (13.12) 9.32 (8.30) 9.41 (8.00)
B. Transfers and subsidies 9.65 (1.78) 9.53 (2.21)
C. Government enterprises and investment 0.00 (53.50) 4.00 (35.70) 2.00 (41.30) 0.00 (74.20) 2.00 (49.16) 0.00 (53.60) 2.00 (42.36) 4.00 (32.06)
D. Top marginal tax rate 5.00 5.00
(i) Top marginal income tax rate 5.00 (39-48) 5.00 (39-48)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.67 4.25 4.42 4.88 4.28 2.81 2.34 2.34
A. Judicial independence
B. Impartial courts 3.30 3.30 3.30
C. Protection of property rights
D. Military interference in rule of law and politics 4.70 3.30 0.60 0.60
E. Integrity of the legal system 5.18 4.00
F. Legal enforcement of contracts 0.51 0.51 0.51
G. Regulatory restrictions on sale of real property 4.11 4.97 4.97
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 5.25 4.53 7.08 5.04 7.03 7.04 6.95 6.76
A. Money growth 7.16 (14.22) 9.29 (3.54) 9.90 (-0.50) 6.81 (15.97) 9.12 (-4.39) 9.66 (1.70) 8.69 (6.56) 7.99 (10.06)
B. Standard deviation of inflation 7.50 (6.24) 5.64 (10.90) 8.86 (2.85) 6.02 (9.94) 9.65 (0.88) 9.08 (2.30) 9.39 (1.52) 9.30 (1.74)
C. Inflation: most recent year 6.35 (18.27) 3.17 (34.15) 9.55 (2.27) 7.32 (13.41) 9.36 (3.20) 9.42 (2.88) 9.70 (1.49) 9.74 (1.30)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.18 4.47 4.06 5.34 5.19 4.37 4.68 4.68
A. Tariffs 2.93 3.60 2.97 6.22 5.58 6.21 6.18 6.18
(i) Revenue from trade taxes (% of trade sector) 2.93 (10.60) 2.33 (11.50) 4.27 (8.60) 5.88 (6.18) 5.88 (6.18) 5.88 (6.18)
(ii) Mean tariff rate 3.60 (32.00) 3.60 (32.00) 6.28 (18.60) 6.28 (18.60) 6.42 (17.90) 6.44 (17.80) 6.44 (17.80)
(iii) Standard deviation of tariff rates 6.16 (9.60) 6.20 (9.50) 6.33 (9.18) 6.23 (9.43) 6.23 (9.43)
B. Regulatory trade barriers 1.26 1.77 1.77
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting 1.26 1.77 1.77
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 0.00 0.77 0.77
(i) Foreign ownership/investment restrictions
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 1.54 1.54
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 3.82 4.85 4.31 4.52 5.68 5.60 5.55

A. Credit market regulations 0.00 4.00 6.29 4.87 5.41 7.22 7.43 7.32
(i) Ownership of banks 0.00 0.00 2.00 2.00 2.00 5.00 5.00 5.00
(ii) Private sector credit 6.88 6.60 6.24 7.65 8.30 7.96
(iii) Interest rate controls/negative real interest rates 8.00 10.00 6.00 8.00 9.00 9.00 9.00
B. Labor market regulations 4.47 3.44 3.44
(i) Hiring regulations and minimum wage 3.90 2.77 2.77
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations 6.00 4.00 4.00
(v) Mandated cost of worker dismissal 7.96 7.01 7.01
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 5.35 5.92 5.88
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business 5.22 6.00 6.03
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions 6.48 7.41 7.26
(vi) Cost of tax compliance 4.35 4.35 4.35

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54 E Economic Freedom of the World: 2013 Annual Report

Chad
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.97 (67) 4.97 (81) 4.93 (100) 5.47 (104) 5.30 (113) 5.60 (115) 5.54 (114)
Area 1. Size of Government 6.14 (22) 6.19 (40) 6.33 (50) 6.45 (52) 7.21 (42) 7.57 (27) 7.57 (27)
Area 2. Legal System and Property Rights 4.67 (47) 4.25 (69) 4.42 (70) 4.54 (98) 4.25 (98) 3.39 (108) 4.76 (84) 4.40 (92)
Area 3. Sound Money 6.61 (36) 5.55 (88) 5.68 (82) 5.16 (88) 6.64 (94) 6.03 (111) 6.23 (114) 5.91 (117)
Area 4. Freedom to Trade Internationally 5.41 (102) 4.99 (116) 5.06 (114) 5.08 (113)
Area 5. Regulation 4.65 (79) 4.27 (98) 3.78 (116) 4.62 (113) 4.91 (118) 4.85 (118) 5.07 (115)

Unadjusted
Summary Ratings Rank) h 4.56 (83) 5.22 (67) 5.16 (91) 5.39 (106) 5.08 (133) 5.37 (143) 4.98 (148)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.30 6.19 6.33 6.45 7.21 7.57 5.93
A. Government consumption 4.12 (26.00) 8.60 (10.75) 8.66 (10.54) 9.08 (9.14) 9.44 (7.90) 9.71 (7.00) 6.79 (16.93) 6.79 (16.93)
B. Transfers and subsidies 9.89 (0.90) 9.92 (0.80) 9.92 (0.80) 9.92 (0.80) 9.92 (0.80) 9.92 (0.80)
C. Government enterprises and investment 0.00 (86.30) 0.00 (94.00) 0.00 (63.30) 0.00 (50.00) 2.00 (36.80) 6.00 (28.49) 6.00 (28.49)
D. Top marginal tax rate 1.00
(i) Top marginal income tax rate 1.00 (60)
(ii) Top marginal income and payroll tax rate 1.00 (60)

Area 2. Legal System and Property Rights 4.67 4.25 4.42 4.42 4.20 2.19 3.08 2.85
A. Judicial independence 1.28 2.67 1.96
B. Impartial courts 4.10 4.04 1.97 3.18 2.89
C. Protection of property rights 2.66 2.61 2.63
D. Military interference in rule of law and politics 4.35 4.70 2.80 2.20 2.20
E. Integrity of the legal system 5.18 4.00
F. Legal enforcement of contracts 0.30 2.22 2.22
G. Regulatory restrictions on sale of real property 4.17 4.17 4.17
H. Reliability of police 2.22 2.74 2.40
I. Business costs of crime 2.15 4.83 4.30

Area 3. Sound Money 6.61 5.55 5.68 5.16 6.64 6.03 6.23 5.91
A. Money growth 8.40 (7.98) 6.96 (15.22) 8.81 (-5.93) 9.56 (2.19) 9.67 (-1.66) 9.52 (2.40) 9.44 (2.82) 9.18 (4.10)
B. Standard deviation of inflation 9.76 (0.59) 6.00 (10.00) 6.19 (9.53) 2.84 (17.90) 7.65 (5.87) 6.17 (9.56) 5.91 (10.23) 5.45 (11.39)
C. Inflation: most recent year 8.25 (8.73) 9.25 (3.75) 7.72 (11.41) 8.22 (8.90) 9.24 (3.82) 8.42 (7.89) 9.58 (-2.08) 9.02 (-4.90)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 5.53 6.11 5.41 4.96 5.03 5.04
A. Tariffs 7.40 8.53 6.24 6.44 6.31 6.33
(i) Revenue from trade taxes (% of trade sector) 7.40 (3.90) 8.53 (2.20)
(ii) Mean tariff rate 6.84 (15.80) 6.56 (17.20) 6.42 (17.90) 6.44 (17.80)
(iii) Standard deviation of tariff rates 5.64 (10.90) 6.33 (9.18) 6.21 (9.49) 6.23 (9.43)
B. Regulatory trade barriers 1.82 2.05 1.97
(i) Non-tariff trade barriers 3.64 4.09 3.94
(ii) Compliance costs of importing and exporting 0.00 0.00 0.00
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 1.57 1.77 1.88
(i) Foreign ownership/investment restrictions 4.70 3.76 4.09
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 1.54 1.54
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 4.15 4.27 3.78 4.24 5.03 4.96 5.19

A. Credit market regulations 2.00 5.00 4.76 3.46 4.68 5.68 6.03 6.29
(i) Ownership of banks 2.00 2.00 0.00 0.00 0.00 2.00 2.00 2.00
(ii) Private sector credit 6.29 6.38 6.04 6.03 7.10 7.88
(iii) Interest rate controls/negative real interest rates 8.00 8.00 4.00 8.00 9.00 9.00 9.00
B. Labor market regulations 5.95 5.99 6.23
(i) Hiring regulations and minimum wage 6.10 5.00 5.00
(ii) Hiring and firing regulations 4.26 5.23 6.15
(iii) Centralized collective bargaining 7.70 6.78 7.29
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 6.66 7.94 7.94
(vi) Conscription 10.00 0.00 0.00 0.00 3.00 3.00 3.00 3.00
C. Business regulations 3.47 2.87 3.06
(i) Administrative requirements 2.35 2.70 3.45
(ii) Bureaucracy costs 3.13 2.50 2.50
(iii) Starting a business 3.87 4.57 4.94
(iv) Extra payments/bribes/favoritism 3.69 2.24 2.25
(v) Licensing restrictions 5.97 3.41 3.41
(vi) Cost of tax compliance 1.79 1.79 1.79

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 Chapter 2: Country Data Tables E 55

Chile
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.38 (48) 5.83 (39) 6.78 (27) 7.53 (19) 7.41 (33) 7.92 (14) 7.98 (7) 7.90 (10)
Area 1. Size of Government 5.00 (54) 5.71 (34) 6.51 (28) 7.30 (20) 6.12 (64) 7.43 (37) 7.91 (18) 7.50 (29)
Area 2. Legal System and Property Rights 6.43 (27) 5.02 (55) 6.19 (35) 6.75 (37) 6.53 (51) 6.61 (49) 7.03 (35) 7.03 (36)
Area 3. Sound Money 2.31 (103) 7.06 (34) 7.65 (37) 8.65 (36) 9.30 (32) 9.34 (35) 8.94 (49) 8.88 (55)
Area 4. Freedom to Trade Internationally 6.70 (24) 4.93 (50) 6.93 (33) 7.93 (34) 7.90 (43) 8.63 (10) 8.42 (16) 8.33 (16)
Area 5. Regulation 6.69 (20) 6.53 (25) 6.61 (29) 7.04 (18) 7.19 (29) 7.53 (21) 7.49 (27) 7.67 (21)

Unadjusted
Summary Ratings Rank) h 5.19 (55) 5.66 (41) 6.75 (28) 7.52 (19) 7.41 (30) 7.89 (13) 7.95 (7) 7.87 (11)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.00 5.71 6.51 7.30 6.12 7.43 7.91 7.50
A. Government consumption 7.36 (14.98) 6.86 (16.69) 7.76 (13.62) 7.77 (13.58) 7.02 (16.14) 7.13 (15.76) 6.74 (17.10) 6.94 (16.40)
B. Transfers and subsidies 6.62 (12.90) 5.97 (15.30) 7.28 (10.50) 7.42 (9.97) 6.48 (13.42) 7.60 (9.32) 7.90 (8.20) 8.04 (7.68)
C. Government enterprises and investment 4.00 (32.20) 8.00 (16.10) 7.00 (20.50) 8.00 (16.60) 6.00 (28.21) 10.00 (8.72) 10.00 (10.61) 10.00 (10.61)
D. Top marginal tax rate 2.00 2.00 4.00 6.00 5.00 5.00 7.00 5.00
(i) Top marginal income tax rate 2.00 (58) 2.00 (56) 4.00 (50) 6.00 (45) 5.00 (45) 5.00 (40) 7.00 (40) 5.00 (40)
(ii) Top marginal income and payroll tax rate 4.00 (50) 6.00 (45) 5.00 (45) 5.00 (40) 7.00 (40) 5.00 (40)

Area 2. Legal System and Property Rights 6.43 5.02 6.19 6.75 6.53 6.74 7.17 7.16
A. Judicial independence 6.62 5.85 4.77 7.45 7.20
B. Impartial courts 7.07 6.51 5.99 6.19 6.20
C. Protection of property rights 5.60 5.27 7.47 6.73 6.93
D. Military interference in rule of law and politics 7.51 6.67 6.88 7.50 7.50
E. Integrity of the legal system 6.96 8.33 8.33 7.50 7.50
F. Legal enforcement of contracts 5.11 5.11 5.11
G. Regulatory restrictions on sale of real property 8.99 8.99 8.99
H. Reliability of police 7.07 8.71 8.43
I. Business costs of crime 6.04 6.35 6.63

Area 3. Sound Money 2.31 7.06 7.65 8.65 9.30 9.34 8.94 8.88
A. Money growth 0.00 (52.46) 8.21 (8.95) 6.52 (17.40) 8.07 (9.67) 9.58 (2.08) 8.72 (6.39) 8.37 (8.16) 8.34 (8.28)
B. Standard deviation of inflation 0.00 (80.63) 6.17 (9.58) 8.34 (4.15) 8.40 (4.00) 8.40 (4.01) 9.23 (1.92) 7.68 (5.79) 7.85 (5.38)
C. Inflation: most recent year 4.25 (28.76) 3.86 (30.71) 5.75 (21.24) 8.14 (9.32) 9.23 (3.84) 9.39 (3.05) 9.72 (1.41) 9.33 (3.34)
D. Freedom to own foreign currency bank accounts 5.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.50 4.78 6.73 7.91 7.90 8.46 8.26 8.18
A. Tariffs 8.71 6.73 8.18 8.49 8.91 9.48 9.47 9.47
(i) Revenue from trade taxes (% of trade sector) 8.13 (2.80) 6.20 (5.70) 7.53 (3.70) 7.67 (3.49) 8.53 (2.20) 9.61 (0.58) 9.77 (0.35) 9.78 (0.33)
(ii) Mean tariff rate 8.00 (10.00) 4.00 (30.00) 7.00 (15.00) 7.80 (11.00) 8.20 (9.00) 9.02 (4.90) 8.80 (6.00) 8.80 (6.00)
(iii) Standard deviation of tariff rates 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 9.81 (0.48) 9.83 (0.42) 9.83 (0.42)
B. Regulatory trade barriers 7.05 8.39 7.39 7.78 7.78
(i) Non-tariff trade barriers 7.05 8.28 7.68 8.40 7.40
(ii) Compliance costs of importing and exporting 8.50 7.09 7.16 8.16
C. Black-market exchange rates 8.80 5.60 10.00 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 6.49 4.30 6.99 5.80 5.45
(i) Foreign ownership/investment restrictions 7.98 8.61 8.38 7.89 7.61
(ii) Capital controls 2.00 2.00 2.00 5.00 0.00 6.92 3.85 3.08
(iii) Freedom of foreigners to visit 5.67 5.67 5.67

Area 5. Regulation 5.70 5.74 6.69 7.00 7.19 7.50 7.47 7.65
A. Credit market regulations 7.54 8.19 8.43 9.29 9.23 9.33 8.94 9.33
(i) Ownership of banks 5.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 9.63 8.56 9.28 9.86 9.68 10.00 9.83 10.00
(iii) Interest rate controls/negative real interest rates 8.00 8.00 8.00 10.00 10.00 10.00 9.00 10.00
B. Labor market regulations 4.95 5.27 4.86 6.04 6.24 6.27
(i) Hiring regulations and minimum wage 5.68 3.36 6.70 6.67 6.67
(ii) Hiring and firing regulations 6.91 6.91 5.57 4.92 3.92 4.39
(iii) Centralized collective bargaining 7.93 7.93 7.93 8.85 8.47 7.57 7.30
(iv) Hours regulations 5.85 6.51 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 5.18 8.27 8.27
(vi) Conscription 3.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00
C. Business regulations 6.43 7.50 7.12 7.22 7.34
(i) Administrative requirements 7.88 4.66 4.41 4.89
(ii) Bureaucracy costs 6.18 7.93 6.03 6.88 6.88
(iii) Starting a business 6.52 5.65 9.03 9.72 9.70
(iv) Extra payments/bribes/favoritism 6.58 8.53 8.40 7.61 7.55
(v) Licensing restrictions 8.15 8.25 8.27
(vi) Cost of tax compliance 6.46 6.46 6.74

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56 E Economic Freedom of the World: 2013 Annual Report

China
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.74 (92) 4.74 (78) 4.43 (94) 5.17 (93) 5.75 (100) 5.88 (102) 6.08 (98) 6.03 (101)
Area 1. Size of Government 3.58 (90) 3.91 (84) 3.65 (99) 4.02 (104) 3.43 (115) 3.31 (121) 3.26 (123) 3.27 (122)
Area 2. Legal System and Property Rights 6.78 (24) 5.79 (45) 5.49 (70) 4.95 (79) 5.15 (77) 5.75 (67) 5.56 (71)
Area 3. Sound Money 6.18 (56) 6.19 (80) 6.73 (56) 5.77 (78) 8.12 (56) 8.18 (64) 7.89 (81) 7.90 (77)
Area 4. Freedom to Trade Internationally 2.30 (75) 3.53 (69) 2.74 (91) 5.89 (77) 6.46 (77) 6.93 (68) 6.97 (72) 6.88 (75)
Area 5. Regulation 2.62 (99) 2.62 (104) 2.69 (111) 4.69 (101) 5.79 (93) 5.94 (97) 6.73 (71) 6.76 (72)

Unadjusted
Summary Ratings Rank) h 3.64 (96) 4.82 (76) 4.09 (100) 5.07 (96) 5.75 (100) 6.06 (105) 6.27 (115) 6.22 (123)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.63 3.91 3.65 4.02 3.43 4.54 4.48 4.49
A. Government consumption 5.25 (22.14) 5.73 (20.51) 5.94 (19.81) 6.07 (19.38) 4.28 (25.46) 3.87 (26.84) 3.63 (27.66) 3.65 (27.60)
B. Transfers and subsidies 8.29 (6.76) 8.29 (6.76) 8.29 (6.76)
C. Government enterprises and investment 0.00 (56.40) 0.00 (62.90) 0.00 (61.90) 0.00 (77.07) 0.00 (77.97) 0.00 (69.77) 0.00 (50.91) 0.00 (50.91)
D. Top marginal tax rate 6.00 5.00 6.00 6.00 6.00 6.00 6.00
(i) Top marginal income tax rate 6.00 (45) 5.00 (45) 6.00 (45) 6.00 (45) 6.00 (45) 6.00 (45) 6.00 (45)
(ii) Top marginal income and payroll tax rate 6.00 (45) 6.00 (45)

Area 2. Legal System and Property Rights 6.78 5.79 5.49 4.95 5.60 6.25 6.04
A. Judicial independence 3.80 3.34 3.92 4.89 4.79
B. Impartial courts 4.92 4.18 4.03 5.21 5.14
C. Protection of property rights 4.15 3.22 4.95 6.74 6.43
D. Military interference in rule of law and politics 7.60 7.34 5.00 5.00 5.00
E. Integrity of the legal system 6.96 6.67 7.50 6.67 5.83
F. Legal enforcement of contracts 6.73 6.73 6.73
G. Regulatory restrictions on sale of real property 8.27 8.27 8.27
H. Reliability of police 5.08 5.95 5.78
I. Business costs of crime 4.92 6.77 6.41

Area 3. Sound Money 6.18 6.19 6.73 5.77 8.12 8.18 7.89 7.90
A. Money growth 6.00 (20.00) 8.14 (9.31) 9.18 (4.09) 7.63 (11.83) 8.90 (5.48) 9.05 (4.76) 8.57 (7.14) 9.09 (4.54)
B. Standard deviation of inflation 9.48 (1.31) 8.64 (3.40) 8.86 (2.84) 8.09 (4.77) 8.63 (3.43) 9.04 (2.41) 8.63 (3.42) 8.58 (3.54)
C. Inflation: most recent year 9.24 (3.78) 7.97 (10.14) 8.86 (5.68) 7.36 (13.18) 9.95 (0.26) 9.64 (1.82) 9.34 (3.31) 8.92 (5.41)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 5.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 2.72 4.17 2.72 5.51 6.46 6.64 6.68 6.59
A. Tariffs 3.15 2.72 3.16 3.90 7.11 7.96 8.13 8.13
(i) Revenue from trade taxes (% of trade sector) 6.20 (5.70) 3.33 (10.00) 7.53 (3.70) 9.20 (1.20) 8.86 (1.71) 8.81 (1.78) 9.35 (0.98) 9.35 (0.98)
(ii) Mean tariff rate 0.10 (49.50) 2.10 (39.50) 1.94 (40.30) 2.50 (37.50) 6.74 (16.30) 8.16 (9.20) 8.08 (9.60) 8.08 (9.60)
(iii) Standard deviation of tariff rates 0.00 (32.10) 0.00 (28.00) 5.72 (10.70) 6.91 (7.72) 6.97 (7.58) 6.97 (7.58)
B. Regulatory trade barriers 4.63 6.01 6.02 6.38 6.13
(i) Non-tariff trade barriers 4.63 4.35 5.14 5.86 5.35
(ii) Compliance costs of importing and exporting 7.66 6.91 6.91 6.91
C. Black-market exchange rates 5.00 7.80 0.00 8.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 2.00 5.00 4.91 2.71 2.57 2.19 2.09
(i) Foreign ownership/investment restrictions 4.82 4.66 6.71 6.35 6.06
(ii) Capital controls 0.00 2.00 5.00 5.00 0.77 0.77 0.00 0.00
(iii) Freedom of foreigners to visit 0.23 0.23 0.23

Area 5. Regulation 3.04 3.04 1.58 4.57 5.79 5.36 6.08 6.11
A. Credit market regulations 0.00 0.00 0.00 4.60 6.46 7.23 6.91 6.76
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 2.00 2.00 2.00
(ii) Private sector credit 9.81 9.39 9.68 9.73 9.28
(iii) Interest rate controls/negative real interest rates 0.00 0.00 0.00 4.00 10.00 10.00 9.00 9.00
B. Labor market regulations 3.16 4.54 4.66 4.98 5.66 5.59
(i) Hiring regulations and minimum wage 5.80 4.37 8.90 8.90 8.90
(ii) Hiring and firing regulations 4.30 4.30 5.10 5.27 5.45 5.47
(iii) Centralized collective bargaining 4.49 4.49 5.18 6.21 7.67 7.44 7.10 6.65
(iv) Hours regulations 6.42 6.18 6.70 10.00 10.00
(v) Mandated cost of worker dismissal 1.56 2.52 2.52
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 4.57 6.25 3.88 5.67 5.98
(i) Administrative requirements 7.60 3.96 4.89 5.27
(ii) Bureaucracy costs 4.78 5.40 2.00 5.02 5.02
(iii) Starting a business 6.05 6.52 8.08 8.42 8.64
(iv) Extra payments/bribes/favoritism 2.87 5.49 5.52 5.11 4.89
(v) Licensing restrictions 3.52 5.04 5.84
(vi) Cost of tax compliance 0.23 5.54 6.21

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 Chapter 2: Country Data Tables E 57

Colombia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.74 (67) 5.22 (54) 5.07 (75) 5.59 (79) 5.51 (102) 5.84 (105) 6.35 (93) 6.41 (89)
Area 1. Size of Government 5.35 (41) 5.94 (27) 7.23 (14) 6.83 (30) 4.64 (99) 4.45 (111) 6.16 (72) 6.20 (70)
Area 2. Legal System and Property Rights 3.98 (55) 3.40 (85) 3.41 (87) 2.85 (114) 3.53 (110) 3.72 (102) 3.67 (106) 3.57 (107)
Area 3. Sound Money 4.86 (94) 6.69 (51) 4.90 (92) 5.32 (85) 6.31 (101) 7.81 (73) 8.20 (71) 8.15 (71)
Area 4. Freedom to Trade Internationally 3.83 (56) 4.36 (58) 4.08 (74) 7.21 (51) 6.98 (69) 6.14 (88) 6.58 (81) 6.89 (74)
Area 5. Regulation 5.70 (43) 5.70 (50) 5.70 (58) 5.75 (65) 6.10 (76) 6.94 (50) 7.04 (51) 7.19 (42)

Unadjusted
Summary Ratings Rank) h 4.59 (72) 5.06 (64) 5.02 (75) 5.48 (81) 5.51 (103) 6.02 (108) 6.54 (99) 6.61 (96)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.35 5.94 7.23 6.83 4.64 4.45 6.16 6.20
A. Government consumption 8.07 (12.57) 7.82 (13.43) 7.78 (13.56) 6.31 (18.54) 4.35 (25.20) 2.69 (30.87) 5.53 (21.20) 5.71 (20.60)
B. Transfers and subsidies 9.35 (2.90) 8.94 (4.40) 9.13 (3.70) 9.02 (4.10) 8.71 (5.24) 7.60 (9.32) 8.10 (7.47) 8.60 (5.66)
C. Government enterprises and investment 2.00 (41.50) 2.00 (49.90) 4.00 (38.50) 4.00 (34.10) 0.00 (51.89) 2.00 (51.90) 6.00 6.00
D. Top marginal tax rate 2.00 5.00 8.00 8.00 5.50 5.50 5.00 4.50
(i) Top marginal income tax rate 2.00 (56) 5.00 (49) 8.00 (30) 8.00 (30) 7.00 (35) 7.00 (35) 7.00 (35) 7.00 (33)
(ii) Top marginal income and payroll tax rate 8.00 (30) 8.00 (30) 4.00 (43) 4.00 (45) 3.00 (47) 2.00 (53)

Area 2. Legal System and Property Rights 3.98 3.40 3.41 2.85 3.53 4.42 4.36 4.24
A. Judicial independence 3.72 3.51 4.42 4.17 3.61
B. Impartial courts 3.52 5.85 4.64 3.93 3.85
C. Protection of property rights 4.13 3.28 6.16 4.85 4.67
D. Military interference in rule of law and politics 2.88 3.33 3.33 3.33 3.33
E. Integrity of the legal system 0.00 1.67 1.67 3.33 3.33
F. Legal enforcement of contracts 1.80 2.09 2.09
G. Regulatory restrictions on sale of real property 8.74 9.06 9.06
H. Reliability of police 5.72 5.56 5.27
I. Business costs of crime 3.33 2.93 2.98

Area 3. Sound Money 4.86 6.69 4.90 5.32 6.31 7.81 8.20 8.15
A. Money growth 6.63 (16.85) 7.40 (12.98) 6.21 (18.97) 6.07 (19.64) 8.28 (8.61) 7.69 (11.53) 8.97 (5.17) 9.04 (4.82)
B. Standard deviation of inflation 8.33 (4.17) 9.33 (1.68) 9.09 (2.27) 9.15 (2.12) 8.81 (2.97) 9.57 (1.09) 9.30 (1.75) 9.25 (1.87)
C. Inflation: most recent year 4.48 (27.61) 5.02 (24.90) 4.29 (28.55) 6.04 (19.79) 8.16 (9.22) 8.99 (5.05) 9.54 (2.28) 9.32 (3.41)
D. Freedom to own foreign currency bank accounts 0.00 5.00 0.00 0.00 0.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 3.62 4.11 4.04 6.89 6.98 6.49 6.96 7.29
A. Tariffs 4.05 4.14 5.53 7.81 7.85 7.72 7.31 7.91
(i) Revenue from trade taxes (% of trade sector) 4.80 (7.80) 5.00 (7.50) 5.99 (6.01) 8.04 (2.94) 8.37 (2.44) 8.73 (1.90) 7.97 (3.04) 8.54 (2.19)
(ii) Mean tariff rate 3.30 (33.50) 3.28 (33.60) 3.92 (30.40) 7.34 (13.30) 7.66 (11.70) 7.62 (11.90) 7.50 (12.50) 8.32 (8.40)
(iii) Standard deviation of tariff rates 6.68 (8.30) 8.04 (4.90) 7.52 (6.20) 6.80 (8.00) 6.45 (8.88) 6.88 (7.81)
B. Regulatory trade barriers 5.15 6.11 4.98 6.56 6.34
(i) Non-tariff trade barriers 5.15 4.90 4.83 4.94 4.50
(ii) Compliance costs of importing and exporting 7.33 5.13 8.18 8.18
C. Black-market exchange rates 6.80 8.20 6.60 8.60 10.00 8.07 9.02 9.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 6.02 3.94 5.21 4.95 5.89
(i) Foreign ownership/investment restrictions 7.04 7.87 6.81 6.03 5.76
(ii) Capital controls 0.00 0.00 0.00 5.00 0.00 0.77 0.77 3.85
(iii) Freedom of foreigners to visit 8.05 8.05 8.05

Area 5. Regulation 5.16 5.16 5.50 5.52 6.10 6.91 7.00 7.15
A. Credit market regulations 8.00 8.00 8.20 8.04 8.70 9.33 8.73 9.33
(i) Ownership of banks 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 8.61 8.11 8.10 10.00 8.18 10.00
(iii) Interest rate controls/negative real interest rates 8.00 8.00 8.00 8.00 10.00 10.00 10.00 10.00
B. Labor market regulations 4.75 3.89 5.37 5.92 5.79
(i) Hiring regulations and minimum wage 6.83 2.85 7.80 8.90 8.90
(ii) Hiring and firing regulations 5.50 5.50 4.15 5.05 4.91 4.49
(iii) Centralized collective bargaining 5.93 6.81 6.92 6.54
(iv) Hours regulations 5.68 5.51 8.00 10.00 10.00
(v) Mandated cost of worker dismissal 4.53 4.82 4.82
(vi) Conscription 0.00 0.00 0.00 1.00 1.00 0.00 0.00 0.00
C. Business regulations 3.76 5.71 6.03 6.35 6.32
(i) Administrative requirements 6.43 2.61 3.17 3.26
(ii) Bureaucracy costs 6.20 6.75 5.81 4.12 4.12
(iii) Starting a business 2.63 3.75 8.38 9.47 9.51
(iv) Extra payments/bribes/favoritism 2.44 5.89 6.38 4.12 3.90
(v) Licensing restrictions 8.09 9.39 9.44
(vi) Cost of tax compliance 4.89 7.84 7.72

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58 E Economic Freedom of the World: 2013 Annual Report

Congo, Democratic Republic of

1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 2.60 (102) 3.61 (97) 3.03 (111) 3.28 (123) 3.85 (122) 4.52 (120) 5.07 (117) 5.07 (117)
Area 1. Size of Government 4.42 (71) 6.22 (18) 5.74 (57) 5.63 (76) 7.45 (22) 7.16 (44) 5.94 (75) 5.69 (86)
Area 2. Legal System and Property Rights 2.37 (76) 2.46 (98) 2.44 (102) 1.49 (118) 1.75 (121) 1.42 (123) 1.66 (122) 1.68 (121)
Area 3. Sound Money 0.00 (107) 0.00 (111) 0.00 (118) 0.00 (121) 1.25 (123) 5.04 (117) 7.12 (89) 7.44 (82)
Area 4. Freedom to Trade Internationally 1.91 (80) 4.86 (53) 3.98 (77) 6.32 (68) 4.15 (119) 5.78 (93) 6.10 (92) 6.10 (92)
Area 5. Regulation 2.92 (97) 3.01 (100) 2.91 (108) 2.98 (120) 4.65 (110) 3.15 (123) 4.14 (123) 4.04 (122)

Unadjusted
Summary Ratings Rank) h 2.99 (102) 3.70 (97) 3.28 (108) 3.64 (119) 3.98 (122) 4.71 (137) 5.28 (145) 5.28 (144)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.00 4.71 5.74 5.63 7.45 7.16 5.94 5.69
A. Government consumption 9.04 (9.28) 9.12 (8.98) 8.03 (12.70) 10.00 (5.72) 9.29 (8.41) 9.16 (8.87) 8.41 (11.40) 7.41 (14.80)
B. Transfers and subsidies 9.97 (0.60) 9.92 (0.80) 10.00 (0.49) 10.00 (0.01) 10.00 (0.00) 8.85 (4.72) 8.85 (4.72)
C. Government enterprises and investment 0.00 (58.20) 4.00 (30.50) 4.00 (31.10) 2.00 (45.30) 10.00 (13.10) 7.00 (24.14) 4.00 (36.35) 4.00 (32.42)
D. Top marginal tax rate 1.00 1.00 1.00 0.50 0.50 2.50 2.50 2.50
(i) Top marginal income tax rate 1.00 (60) 1.00 (60) 1.00 (60) 1.00 (60) 1.00 (60) 3.00 (50) 3.00 (50) 3.00 (50)
(ii) Top marginal income and payroll tax rate 1.00 (60) 0.00 (63) 0.00 (63) 2.00 (54) 2.00 (54) 2.00 (55)

Area 2. Legal System and Property Rights 2.37 2.46 2.44 2.22 2.41 2.05 2.40 2.43
A. Judicial independence
B. Impartial courts 3.02 3.59 2.50 2.70 2.70
C. Protection of property rights
D. Military interference in rule of law and politics 1.45 0.00 0.00 0.00 0.00
E. Integrity of the legal system 0.00 1.67 1.67 1.67 1.67
F. Legal enforcement of contracts 0.30 0.87 0.87
G. Regulatory restrictions on sale of real property 5.80 6.74 6.91
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 1.10 1.49 0.00 0.00 1.25 5.04 7.12 7.44
A. Money growth 4.39 (28.06) 1.12 (44.40) 0.00 (62.92) 0.00 (1631.82) 0.00 (2290.00) 4.44 (27.79) 5.55 (22.27) 6.80 (16.02)
B. Standard deviation of inflation 0.00 (25.49) 0.00 (25.25) 0.00 (30.17) 0.00 (9932.53) 0.00 (248.28) 0.00 (163.85) 7.41 (6.46) 7.45 (6.37)
C. Inflation: most recent year 0.00 (51.40) 4.84 (25.82) 0.00 (108.95) 0.00 (466.40) 0.00 (550.01) 5.74 (21.32) 5.51 (22.43) 5.51 (22.43)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 2.07 5.25 4.30 6.32 4.15 4.90 5.17 5.17
A. Tariffs 4.21 4.96 4.90 7.77 8.70 7.40 7.74 7.74
(i) Revenue from trade taxes (% of trade sector) 3.13 (10.30) 4.40 (8.40) 3.93 (9.10) 7.77 (3.34) 8.70 (1.95) 7.03 (4.45) 7.79 (3.32) 7.79 (3.32)
(ii) Mean tariff rate 5.28 (23.60) 5.52 (22.40) 5.86 (20.70) 7.60 (12.00) 7.80 (11.00) 7.80 (11.00)
(iii) Standard deviation of tariff rates 7.55 (6.12) 7.62 (5.94) 7.62 (5.94)
B. Regulatory trade barriers 2.19 2.54 2.54
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting 2.19 2.54 2.54
C. Black-market exchange rates 0.00 8.80 6.00 9.20 1.43 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 2.31 0.00 0.38 0.38
(i) Foreign ownership/investment restrictions
(ii) Capital controls 2.00 2.00 2.00 2.00 2.31 0.00 0.77 0.77
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 4.43 4.57 3.94 4.03 4.65 4.41 5.79 5.66
A. Credit market regulations 4.34 4.75 2.88 3.12 5.00 4.32 6.11 5.48
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Private sector credit 8.69 9.50 8.65 9.35 7.96 9.34 9.44
(iii) Interest rate controls/negative real interest rates 0.00 0.00 10.00 5.00 9.00 7.00
B. Labor market regulations 5.11 5.67 5.67
(i) Hiring regulations and minimum wage 5.00 1.67 1.67
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations 5.30 8.00 8.00
(v) Mandated cost of worker dismissal 7.13 10.00 10.00
(vi) Conscription 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 3.81 5.60 5.84
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business 3.33 4.59 5.15
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions 1.54 5.99 6.15
(vi) Cost of tax compliance 6.55 6.23 6.23

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 Chapter 2: Country Data Tables E 59

Congo, Republic of
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.50 (75) 4.31 (89) 4.97 (82) 5.02 (99) 4.28 (121) 4.71 (119) 4.99 (120) 4.72 (118)
Area 1. Size of Government 3.17 (94) 2.63 (105) 5.77 (56) 6.20 (58) 4.54 (104) 4.66 (106) 5.21 (95) 4.63 (109)
Area 2. Legal System and Property Rights 4.67 (49) 3.05 (92) 3.02 (92) 2.90 (113) 1.73 (122) 1.99 (120) 2.78 (118) 2.36 (119)
Area 3. Sound Money 5.45 (82) 6.42 (68) 5.96 (73) 5.69 (80) 4.29 (114) 5.33 (115) 4.69 (122) 4.59 (121)
Area 4. Freedom to Trade Internationally 4.34 (67) 5.50 (87) 5.81 (94) 5.73 (98) 6.01 (96) 6.01 (94)
Area 5. Regulation 5.12 (66) 5.46 (59) 5.79 (53) 4.82 (98) 5.05 (105) 5.81 (98) 6.07 (98) 5.91 (103)

Unadjusted
Summary Ratings Rank) h 4.76 (68) 4.36 (89) 4.83 (85) 5.09 (94) 4.42 (121) 4.59 (138) 4.83 (150) 4.57 (150)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.86 2.37 4.81 6.20 4.54 4.66 5.08 4.52
A. Government consumption 3.72 (27.34) 4.75 (23.86) 6.42 (18.16) 6.50 (17.89) 1.60 (34.55) 2.33 (32.09) 5.51 (21.28) 5.26 (22.10)
B. Transfers and subsidies 9.30 (3.09) 9.55 (2.15) 9.31 (3.03) 9.31 (3.03) 9.31 (3.03)
C. Government enterprises and investment 2.00 (44.20) 0.00 (61.00) 4.00 (32.60) 6.00 (27.00) 4.00 (33.20) 4.00 (31.67) 2.00 (49.63) 0.00 (63.56)
D. Top marginal tax rate 4.00 3.00 3.00 3.00 3.50 3.50
(i) Top marginal income tax rate 4.00 (50) 3.00 (50) 3.00 (50) 3.00 (50) 4.00 (45) 4.00 (45)
(ii) Top marginal income and payroll tax rate 3.00 (49) 3.00 (49)

Area 2. Legal System and Property Rights 4.67 3.05 3.02 3.24 2.39 2.35 3.28 2.78
A. Judicial independence
B. Impartial courts 1.75 1.86 3.00 3.60 3.60
C. Protection of property rights
D. Military interference in rule of law and politics 0.00 0.00 0.00 2.50 0.00
E. Integrity of the legal system 6.96 3.33 3.33 3.33 3.33
F. Legal enforcement of contracts 3.01 3.01 3.01
G. Regulatory restrictions on sale of real property 2.41 3.96 3.96
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 5.45 6.42 5.96 5.69 4.29 5.33 4.69 4.59
A. Money growth 8.78 (6.12) 9.77 (1.16) 9.81 (0.93) 9.40 (2.99) 7.24 (13.81) 8.60 (7.01) 7.56 (12.19) 6.27 (18.64)
B. Standard deviation of inflation 7.04 (7.41) 6.42 (8.96) 4.20 (14.51) 4.04 (14.90) 0.10 (24.75) 3.79 (15.52) 2.21 (19.48) 2.37 (19.07)
C. Inflation: most recent year 5.97 (20.14) 9.50 (2.50) 9.85 (-0.77) 9.32 (3.38) 9.83 (-0.84) 8.94 (5.28) 9.00 (5.00) 9.73 (1.33)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 5.69 4.47 4.58 5.50 5.81 4.83 5.06 5.06
A. Tariffs 7.47 3.60 4.53 6.70 7.43 7.21 7.36 7.38
(i) Revenue from trade taxes (% of trade sector) 7.47 (3.80) 4.53 (8.20) 7.61 (3.58) 9.25 (1.13) 9.20 (1.20) 9.47 (0.80) 9.47 (0.80)
(ii) Mean tariff rate 3.60 (32.00) 6.28 (18.60) 6.48 (17.60) 6.18 (19.10) 6.42 (17.90) 6.44 (17.80)
(iii) Standard deviation of tariff rates 6.20 (9.50) 6.56 (8.60) 6.25 (9.38) 6.21 (9.49) 6.23 (9.43)
B. Regulatory trade barriers 2.10 2.10 2.10
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting 2.10 2.10 2.10
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 0.00 0.77 0.77
(i) Foreign ownership/investment restrictions
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 1.54 1.54
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 5.16 5.49 5.79 4.82 5.05 5.77 6.03 5.87
A. Credit market regulations 3.00 4.00 5.45 2.88 3.49 5.33 6.18 6.27
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Private sector credit 6.36 6.64 7.48 10.00 9.54 9.80
(iii) Interest rate controls/negative real interest rates 6.00 8.00 10.00 2.00 3.00 6.00 9.00 9.00
B. Labor market regulations 6.29 6.48 6.48
(i) Hiring regulations and minimum wage 2.20 2.23 2.23
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations 6.00 6.00 6.00
(v) Mandated cost of worker dismissal 6.94 7.68 7.68
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.70 5.43 4.86
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business 6.72 5.48 5.82
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions 7.17 7.60 5.56
(vi) Cost of tax compliance 3.21 3.21 3.21

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60 E Economic Freedom of the World: 2013 Annual Report

Costa Rica
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.07 (59) 5.03 (62) 6.64 (28) 6.97 (36) 7.51 (30) 7.66 (23) 7.42 (37) 7.21 (49)
Area 1. Size of Government 5.53 (35) 5.03 (54) 7.20 (15) 6.81 (33) 7.13 (29) 8.57 (9) 7.85 (22) 7.83 (21)
Area 2. Legal System and Property Rights 4.57 (50) 4.60 (61) 4.78 (61) 5.66 (62) 6.87 (44) 7.26 (35) 7.02 (36) 6.98 (37)
Area 3. Sound Money 8.04 (20) 5.41 (91) 8.41 (27) 7.87 (42) 7.88 (62) 8.75 (52) 8.00 (76) 6.85 (96)
Area 4. Freedom to Trade Internationally 1.48 (81) 3.66 (67) 6.29 (40) 7.70 (40) 8.65 (26) 7.81 (38) 8.07 (26) 8.12 (22)
Area 5. Regulation 6.33 (28) 6.62 (21) 6.77 (24) 6.93 (22) 7.03 (35) 6.01 (95) 6.20 (93) 6.31 (95)

Unadjusted
Summary Ratings Rank) h 5.52 (48) 5.33 (58) 6.98 (23) 7.20 (27) 7.51 (25) 7.56 (29) 7.32 (46) 7.11 (63)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.72 5.21 7.20 6.81 7.13 8.57 7.85 7.83
A. Government consumption 5.37 (21.75) 5.66 (20.76) 5.04 (22.85) 5.02 (22.93) 6.94 (16.40) 6.66 (17.36) 5.49 (21.35) 5.38 (21.70)
B. Transfers and subsidies 8.50 (6.00) 8.17 (7.20) 8.77 (5.00) 8.23 (7.00) 8.59 (5.66) 8.64 (5.50) 9.42 (2.63) 9.43 (2.60)
C. Government enterprises and investment 4.00 (36.20) 4.00 (34.10) 7.00 (21.00) 6.00 (27.10) 6.00 (27.10) 10.00 (5.66) 10.00 (9.47) 10.00 (9.47)
D. Top marginal tax rate 5.00 3.00 8.00 8.00 7.00 9.00 6.50 6.50
(i) Top marginal income tax rate 5.00 (50) 3.00 (50) 9.00 (25) 9.00 (25) 9.00 (25) 10.00 (15-25) 9.00 (25) 9.00 (25)
(ii) Top marginal income and payroll tax rate 7.00 (33) 7.00 (33) 5.00 (39) 8.00 (24-33) 4.00 (43) 4.00 (43)

Area 2. Legal System and Property Rights 5.21 5.25 5.46 5.80 6.87 6.32 6.11 6.08
A. Judicial independence 6.35 6.87 6.46 6.11
B. Impartial courts 6.54 6.85 6.51 4.73 4.69
C. Protection of property rights 4.50 6.08 5.51 5.77
D. Military interference in rule of law and politics 8.73 10.00 10.00 10.00 10.00
E. Integrity of the legal system 4.11 6.67 6.67 5.83 5.00
F. Legal enforcement of contracts 3.52 3.52 3.52
G. Regulatory restrictions on sale of real property 8.45 8.50 8.50
H. Reliability of police 5.02 6.13 6.35
I. Business costs of crime 3.74 4.28 4.75

Area 3. Sound Money 8.04 5.41 8.41 7.87 7.88 8.75 8.00 6.85
A. Money growth 7.72 (11.41) 5.53 (22.35) 8.66 (6.72) 8.14 (9.28) 5.16 (24.22) 8.37 (8.14) 8.75 (6.23) 9.54 (2.30)
B. Standard deviation of inflation 8.22 (4.46) 0.23 (24.42) 8.68 (3.29) 7.60 (5.99) 8.55 (3.63) 9.40 (1.49) 9.36 (1.61) 8.84 (2.89)
C. Inflation: most recent year 6.23 (18.83) 5.89 (20.53) 6.29 (18.57) 5.73 (21.34) 7.80 (10.99) 7.24 (13.80) 8.87 (5.66) 9.02 (4.88)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 5.00 0.00

Area 4. Freedom to Trade Internationally 1.74 4.00 6.88 8.42 8.65 7.90 8.17 8.22
A. Tariffs 3.23 1.80 5.63 7.27 8.40 8.08 8.15 8.07
(i) Revenue from trade taxes (% of trade sector) 6.47 (5.30) 5.40 (6.90) 5.33 (7.00) 6.93 (4.60) 9.28 (1.08) 9.24 (1.14) 9.17 (1.25) 8.98 (1.53)
(ii) Mean tariff rate 0.00 (55.00) 0.00 (53.00) 6.72 (16.40) 7.96 (10.20) 8.92 (5.40) 8.60 (7.00) 8.92 (5.40) 8.92 (5.40)
(iii) Standard deviation of tariff rates 0.00 (61.80) 4.84 (12.90) 6.92 (7.70) 7.00 (7.50) 6.39 (9.03) 6.35 (9.13) 6.31 (9.23)
B. Regulatory trade barriers 6.58 4.84 6.71 6.67
(i) Non-tariff trade barriers 5.17 4.70 5.29 5.14
(ii) Compliance costs of importing and exporting 8.00 4.98 8.14 8.20
C. Black-market exchange rates 0.00 5.20 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 5.00 5.00 8.00 9.63 8.68 7.82 8.12
(i) Foreign ownership/investment restrictions 9.26 7.54 7.12 7.27
(ii) Capital controls 2.00 5.00 5.00 8.00 10.00 9.09 6.92 7.69
(iii) Freedom of foreigners to visit 9.41 9.41 9.41

Area 5. Regulation 6.90 6.79 6.94 7.10 7.03 6.26 6.46 6.58
A. Credit market regulations 8.18 8.09 8.50 8.93 9.21 7.50 7.04 7.20
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 5.00 5.00 5.00
(ii) Private sector credit 6.37 8.28 7.51 8.79 8.64 8.49 7.13 7.61
(iii) Interest rate controls/negative real interest rates 6.00 8.00 8.00 9.00 9.00 9.00 9.00
B. Labor market regulations 5.99 5.94 6.21 6.27
(i) Hiring regulations and minimum wage 3.46 1.10 2.23 2.23
(ii) Hiring and firing regulations 4.97 5.51 5.34 5.40
(iii) Centralized collective bargaining 5.00 5.73 6.04 6.35
(iv) Hours regulations 6.51 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.31 5.66 5.66
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.90 5.35 6.13 6.27
(i) Administrative requirements 6.83 2.58 3.45 3.58
(ii) Bureaucracy costs 6.15 2.35 5.23 5.23
(iii) Starting a business 4.70 7.29 7.96 7.96
(iv) Extra payments/bribes/favoritism 5.92 6.91 5.36 5.34
(v) Licensing restrictions 7.48 7.56 8.03
(vi) Cost of tax compliance 5.49 7.24 7.47

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 Chapter 2: Country Data Tables E 61

Côte d’Ivoire
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.39 (47) 6.08 (33) 5.57 (55) 5.20 (91) 5.99 (87) 6.01 (97) 5.91 (103) 5.94 (104)
Area 1. Size of Government 5.99 (24) 7.20 (5) 5.83 (51) 4.95 (87) 8.41 (8) 8.04 (20) 6.95 (41) 7.00 (40)
Area 2. Legal System and Property Rights 5.72 (45) 4.80 (60) 5.96 (53) 3.76 (104) 4.10 (99) 4.13 (99) 4.35 (93)
Area 3. Sound Money 5.00 (91) 6.63 (56) 6.90 (52) 4.87 (96) 6.69 (92) 6.73 (94) 6.56 (105) 6.51 (105)
Area 4. Freedom to Trade Internationally 5.13 (43) 5.52 (41) 5.00 (57) 4.69 (99) 5.26 (107) 5.66 (99) 5.50 (107) 5.41 (108)
Area 5. Regulation 6.21 (31) 5.79 (44) 5.51 (68) 5.53 (77) 5.84 (88) 5.64 (102) 6.61 (82) 6.70 (77)

Unadjusted
Summary Ratings Rank) h 5.20 (54) 5.53 (49) 5.07 (71) 5.09 (94) 6.01 (84) 5.85 (119) 5.73 (136) 5.76 (135)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.39 5.02 4.07 4.95 8.41 8.04 6.45 6.49
A. Government consumption 5.54 (21.17) 6.06 (19.38) 6.20 (18.93) 7.37 (14.95) 8.18 (12.20) 8.82 (10.02) 8.65 (10.59) 8.79 (10.10)
B. Transfers and subsidies 9.01 (4.15) 9.44 (2.55) 9.48 (2.41) 9.35 (2.89) 9.66 (1.75) 9.68 (1.68)
C. Government enterprises and investment 2.00 (46.80) 4.00 (31.80) 2.00 (42.20) 0.00 (62.70) 6.00 (25.30) 4.00 (32.96) 4.00 (33.51) 4.00 (37.19)
D. Top marginal tax rate 5.00 5.00 4.00 3.00 10.00 10.00 3.50 3.50
(i) Top marginal income tax rate 5.00 (45) 5.00 (45) 4.00 (45) 3.00 (49) 10.00 (10) 10.00 (10) 5.00 (39) 5.00 (39)
(ii) Top marginal income and payroll tax rate 2.00 (54) 2.00 (54)

Area 2. Legal System and Property Rights 5.72 4.80 5.44 3.85 3.11 2.95 3.11
A. Judicial independence 1.33 1.84
B. Impartial courts 4.97 4.60 3.00 2.87 3.15
C. Protection of property rights 3.54 3.73
D. Military interference in rule of law and politics 5.94 1.67 1.67 2.50 2.50
E. Integrity of the legal system 6.96 5.00 4.17 4.17 4.17
F. Legal enforcement of contracts 2.47 2.47 2.47
G. Regulatory restrictions on sale of real property 4.23 4.26 4.26
H. Reliability of police 2.35 2.97
I. Business costs of crime 3.09 2.94

Area 3. Sound Money 5.00 6.63 6.90 4.87 6.69 6.73 6.56 6.51
A. Money growth 8.66 (6.69) 9.00 (5.00) 9.18 (-4.12) 7.60 (12.02) 9.79 (1.06) 8.49 (7.54) 7.81 (10.93) 8.23 (8.85)
B. Standard deviation of inflation 6.18 (9.55) 7.58 (6.05) 9.34 (1.64) 3.57 (16.07) 7.48 (6.29) 9.21 (1.98) 8.75 (3.12) 8.78 (3.05)
C. Inflation: most recent year 5.17 (24.14) 9.93 (0.34) 9.10 (-4.52) 8.30 (8.50) 9.51 (2.46) 9.22 (3.89) 9.66 (1.68) 9.02 (4.91)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.19 4.51 4.09 4.69 5.26 5.91 6.25 6.15
A. Tariffs 2.98 3.74 3.07 4.27 5.77 6.51 6.16 6.16
(i) Revenue from trade taxes (% of trade sector) 1.47 (12.80) 2.13 (11.80) 2.73 (10.90) 0.00 (17.32) 3.99 (9.02) 4.80 (7.80) 3.59 (9.62) 3.59 (9.62)
(ii) Mean tariff rate 4.50 (27.50) 5.34 (23.30) 3.40 (33.00) 3.40 (33.00) 7.60 (12.00) 7.48 (12.60) 7.62 (11.90) 7.62 (11.90)
(iii) Standard deviation of tariff rates 9.40 (1.50) 5.72 (10.70) 7.26 (6.84) 7.29 (6.78) 7.29 (6.78)
B. Regulatory trade barriers 5.55 5.49 5.07
(i) Non-tariff trade barriers 5.15 4.20
(ii) Compliance costs of importing and exporting 5.55 5.82 5.95
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 1.58 3.35 3.35
(i) Foreign ownership/investment restrictions 6.91 6.90
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 2.38 2.38 2.38

Area 5. Regulation 6.21 5.79 5.51 5.53 5.84 5.45 6.44 6.53
A. Credit market regulations 6.56 7.12 6.39 6.43 7.26 5.77 9.00 9.00
(i) Ownership of banks 2.00 2.00 2.00 8.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 9.67 9.35 9.17 7.29 7.78 3.31 10.00 10.00
(iii) Interest rate controls/negative real interest rates 8.00 10.00 8.00 4.00 6.00 6.00
B. Labor market regulations 4.61 5.78 5.72
(i) Hiring regulations and minimum wage 6.70 6.67 6.67
(ii) Hiring and firing regulations 5.99 5.95
(iii) Centralized collective bargaining 7.44 7.15
(iv) Hours regulations 5.30 6.00 6.00
(v) Mandated cost of worker dismissal 5.46 7.57 7.57
(vi) Conscription 10.00 5.00 5.00 5.00 5.00 1.00 1.00 1.00
C. Business regulations 5.97 4.54 4.86
(i) Administrative requirements 3.53 4.22
(ii) Bureaucracy costs 2.73 2.73
(iii) Starting a business 6.41 6.93 7.00
(iv) Extra payments/bribes/favoritism 2.45 3.50
(v) Licensing restrictions 4.54 4.63 4.72
(vi) Cost of tax compliance 6.97 6.97 6.97

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62 E Economic Freedom of the World: 2013 Annual Report

Croatia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.06 (98) 6.35 (73) 6.75 (71) 7.05 (57) 7.29 (45)
Area 1. Size of Government 4.52 (95) 4.03 (108) 4.55 (109) 5.15 (97) 5.28 (96)
Area 2. Legal System and Property Rights 6.95 (35) 7.58 (31) 7.11 (39) 7.67 (27) 7.52 (26)
Area 3. Sound Money 1.25 (112) 3.35 (104) 7.88 (61) 8.20 (63) 8.42 (65) 9.51 (21)
Area 4. Freedom to Trade Internationally 5.85 (78) 6.16 (83) 6.54 (80) 6.65 (79) 6.59 (80)
Area 5. Regulation 4.49 (105) 6.11 (75) 7.44 (24) 7.56 (24) 7.62 (25)

Unadjusted
Summary Ratings Rank) h 4.96 (99) 6.16 (78) 6.49 (86) 6.78 (86) 7.01 (75)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.28 4.03 4.55 5.15 5.28
A. Government consumption 1.94 (33.42) 2.45 (31.66) 4.86 (23.49) 4.32 (25.30) 4.35 (25.20)
B. Transfers and subsidies 5.91 (15.50) 4.65 (20.13) 4.35 (21.23) 4.79 (19.63) 4.77 (19.69)
C. Government enterprises and investment 8.00 (17.70) 7.00 (22.99) 8.00 (18.43) 10.00 (9.82) 10.00 (10.25)
D. Top marginal tax rate 2.00 1.00 1.50 2.00
(i) Top marginal income tax rate 4.00 (35-53) 2.00 (45-63) 3.00 (44-51) 4.00 (40-47)
(ii) Top marginal income and payroll tax rate 0.00 (55.9-68) 0.00 (62-75) 0.00 (62-67) 0.00 (59-64)

Area 2. Legal System and Property Rights 5.90 6.60 5.34 5.76 5.65
A. Judicial independence 3.69 3.42 3.05
B. Impartial courts 5.82 6.07 4.04 2.81 2.61
C. Protection of property rights 4.98 4.88 4.59
D. Military interference in rule of law and politics 7.39 8.33 8.33 8.33 8.33
E. Integrity of the legal system 8.33 8.33 7.50 7.50
F. Legal enforcement of contracts 5.40 5.40 5.32
G. Regulatory restrictions on sale of real property 3.36 6.39 6.39
H. Reliability of police 4.53 6.16 6.14
I. Business costs of crime 5.43 6.97 6.96

Area 3. Sound Money 2.50 3.35 7.88 8.20 8.42 9.51

A. Money growth 0.00 (62.40) 8.28 (8.60) 8.62 (6.89) 9.64 (-1.78) 9.31 (-3.46)
B. Standard deviation of inflation 0.00 (573.30) 9.15 (2.11) 9.87 (0.34) 9.23 (1.92) 9.19 (2.03)
C. Inflation: most recent year 0.00 (500.00) 8.40 (8.00) 9.07 (4.63) 9.33 (3.34) 9.79 (1.05) 9.55 (2.26)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00 5.00 5.00 10.00

Area 4. Freedom to Trade Internationally 5.79 6.16 7.52 7.64 7.58

A. Tariffs 6.97 8.47 8.82 8.73 8.70
(i) Revenue from trade taxes (% of trade sector) 6.97 (4.55) 8.29 (2.57) 9.56 (0.66) 9.52 (0.72) 9.58 (0.63)
(ii) Mean tariff rate 8.66 (6.70) 9.52 (2.40) 9.04 (4.80) 9.02 (4.90)
(iii) Standard deviation of tariff rates 7.37 (6.57) 7.64 (5.90) 7.51 (6.22)
B. Regulatory trade barriers 6.43 6.56 6.40
(i) Non-tariff trade barriers 6.00 5.63 5.31
(ii) Compliance costs of importing and exporting 6.86 7.49 7.49
C. Black-market exchange rates 0.00 8.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 2.00 0.00 4.84 5.28 5.20
(i) Foreign ownership/investment restrictions 6.17 4.44 4.18
(ii) Capital controls 0.00 2.00 0.00 1.54 4.62 4.62
(iii) Freedom of foreigners to visit 6.80 6.80 6.80

Area 5. Regulation 4.49 6.11 6.84 6.95 7.01

A. Credit market regulations 0.00 4.34 8.64 9.27 9.01 9.23
(i) Ownership of banks 0.00 0.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 9.01 6.92 8.82 8.03 7.68
(iii) Interest rate controls/negative real interest rates 4.00 9.00 9.00 9.00 10.00
B. Labor market regulations 5.58 6.39 6.36
(i) Hiring regulations and minimum wage 3.90 2.23 2.23
(ii) Hiring and firing regulations 5.13 3.66 3.56
(iii) Centralized collective bargaining 7.07 6.92 6.85
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 6.38 7.51 7.51
(vi) Conscription 3.00 3.00 5.00 10.00 10.00
C. Business regulations 5.66 5.45 5.43
(i) Administrative requirements 3.22 2.05 2.22
(ii) Bureaucracy costs 5.70 4.20 4.20
(iii) Starting a business 9.01 9.64 9.59
(iv) Extra payments/bribes/favoritism 5.73 4.33 4.07
(v) Licensing restrictions 2.51 4.68 4.71
(vi) Cost of tax compliance 7.80 7.80 7.80

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 Chapter 2: Country Data Tables E 63

Cyprus
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.53 (42) 5.53 (46) 6.04 (43) 6.41 (55) 6.51 (68) 7.55 (31) 7.65 (23) 7.63 (22)
Area 1. Size of Government 5.89 (27) 5.71 (33) 5.39 (64) 6.21 (57) 6.19 (59) 7.45 (36) 7.20 (35) 7.24 (35)
Area 2. Legal System and Property Rights 3.99 (72) 6.67 (29) 7.16 (32) 7.98 (26) 8.35 (17) 8.41 (17) 8.28 (18)
Area 3. Sound Money 5.69 (73) 6.84 (41) 7.03 (43) 7.25 (49) 6.88 (85) 9.35 (33) 9.44 (28) 9.50 (23)
Area 4. Freedom to Trade Internationally 5.39 (41) 5.52 (40) 5.32 (52) 5.58 (84) 6.00 (86) 7.29 (55) 7.22 (56) 7.18 (53)
Area 5. Regulation 5.15 (65) 5.61 (55) 5.81 (52) 5.84 (59) 5.52 (98) 5.22 (114) 5.79 (108) 5.77 (109)

Unadjusted
Summary Ratings Rank) h 5.56 (46) 5.56 (48) 5.94 (44) 6.24 (57) 6.30 (74) 7.53 (30) 7.74 (16) 7.72 (18)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.03 5.85 5.39 6.21 6.19 7.45 7.20 7.24
A. Government consumption 6.77 (16.97) 6.45 (18.06) 5.17 (22.43) 5.53 (21.20) 6.02 (19.53) 5.32 (21.92) 5.18 (22.39) 4.95 (23.16)
B. Transfers and subsidies 8.34 (6.60) 7.93 (8.10) 7.87 (8.30) 7.33 (10.30) 6.73 (12.51) 6.47 (13.47) 6.13 (14.71) 6.02 (15.10)
C. Government enterprises and investment 8.00 (18.10) 8.00 (17.40) 8.00 (17.40) 8.00 (17.40) 8.00 (17.40) 10.00 (3.07) 10.00 (3.07) 10.00 (3.07)
D. Top marginal tax rate 1.00 1.00 0.50 4.00 4.00 8.00 7.50 8.00
(i) Top marginal income tax rate 1.00 (60) 1.00 (60) 1.00 (60) 5.00 (40) 5.00 (40) 8.00 (30) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 0.00 (62) 3.00 (48) 3.00 (48) 8.00 (30) 7.00 (35) 8.00 (30)

Area 2. Legal System and Property Rights 3.99 6.67 6.30 6.89 7.43 6.88 6.77
A. Judicial independence 6.99 7.15 6.28
B. Impartial courts 7.20 7.27 6.77 6.07 6.06
C. Protection of property rights 7.53 7.36 7.07
D. Military interference in rule of law and politics 7.32 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.96 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 4.00 4.00
G. Regulatory restrictions on sale of real property 5.82 6.28
H. Reliability of police 6.57 7.08 6.83
I. Business costs of crime 7.47 7.81 7.75

Area 3. Sound Money 5.69 6.84 7.03 7.25 6.88 9.35 9.44 9.50
A. Money growth 6.40 (18.00) 9.60 (1.99) 9.45 (2.75) 9.91 (0.45) 8.65 (6.77) 8.48 (7.62) 9.03 (4.84) 9.47 (2.64)
B. Standard deviation of inflation 9.06 (2.36) 8.89 (2.77) 9.71 (0.72) 9.62 (0.94) 9.70 (0.75) 9.42 (1.45) 9.19 (2.03) 9.17 (2.08)
C. Inflation: most recent year 7.30 (13.50) 8.87 (5.67) 8.95 (5.27) 9.48 (2.62) 9.17 (4.14) 9.49 (2.56) 9.52 (2.38) 9.34 (3.29)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.39 5.52 4.82 5.58 6.00 8.05 8.18 8.13
A. Tariffs 6.96 6.77 5.47 7.73 7.99 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 7.33 (4.00) 7.07 (4.40) 7.20 (4.20) 8.27 (2.60) 9.27 (1.10) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 6.58 (17.10) 6.48 (17.60) 6.70 (16.50) 7.20 (14.00) 6.72 (16.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 2.52 (18.70) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 7.10 8.00 7.85
(i) Non-tariff trade barriers 7.10 6.73 6.43
(ii) Compliance costs of importing and exporting 9.27 9.27
C. Black-market exchange rates 9.20 9.80 9.00 9.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 6.73 6.37 6.39
(i) Foreign ownership/investment restrictions 6.68 6.37 6.44
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 6.92 6.15 6.15
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 5.15 5.61 5.81 5.84 5.52 5.39 6.99 6.97
A. Credit market regulations 7.09 8.30 8.83 8.92 8.08 7.81 8.12 8.12
(i) Ownership of banks 8.00 8.00 8.00 8.00 8.00 10.00 10.00 10.00
(ii) Private sector credit 9.28 8.90 8.50 8.75 6.23 3.43 4.35 4.35
(iii) Interest rate controls/negative real interest rates 4.00 8.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 2.87 6.17 6.10
(i) Hiring regulations and minimum wage 6.67 6.67
(ii) Hiring and firing regulations 3.59 4.78 4.71
(iii) Centralized collective bargaining 5.02 5.59 5.22
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 10.00 10.00
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 5.50 6.69 6.68
(i) Administrative requirements 4.24 4.88 5.12
(ii) Bureaucracy costs 5.12 6.11 6.11
(iii) Starting a business 9.61 9.61
(iv) Extra payments/bribes/favoritism 7.14 6.29 6.00
(v) Licensing restrictions 4.91 4.91
(vi) Cost of tax compliance 8.33 8.35

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64 E Economic Freedom of the World: 2013 Annual Report

Czech Republic
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.84 (72) 6.53 (67) 6.92 (62) 7.13 (52) 7.17 (54)
Area 1. Size of Government 2.81 (116) 3.13 (118) 3.30 (122) 3.87 (118) 3.91 (117)
Area 2. Legal System and Property Rights 6.78 (22) 7.25 (24) 6.55 (43) 6.89 (43) 6.61 (48) 6.74 (45) 6.76 (45)
Area 3. Sound Money 5.95 (74) 8.13 (55) 9.05 (41) 9.45 (27) 9.48 (24)
Area 4. Freedom to Trade Internationally 8.05 (28) 8.28 (35) 8.00 (27) 7.77 (42) 7.70 (41)
Area 5. Regulation 4.20 (100) 5.85 (57) 6.22 (66) 7.69 (17) 7.70 (17) 7.87 (12)

Unadjusted
Summary Ratings Rank) h 5.79 (73) 6.53 (63) 7.00 (64) 7.21 (53) 7.25 (52)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.81 3.13 4.45 5.21 5.27
A. Government consumption 3.04 (29.66) 3.02 (29.73) 2.64 (31.03) 2.93 (30.04) 3.26 (28.91)
B. Transfers and subsidies 0.00 (37.20) 2.40 (28.40) 2.35 (28.56) 3.17 (25.58) 2.91 (26.52) 2.81 (26.90)
C. Government enterprises and investment 8.00 (19.75) 8.00 (17.58) 8.00 (15.27)
D. Top marginal tax rate 3.00 4.00 4.00 7.00 7.00
(i) Top marginal income tax rate 5.00 (43) 7.00 (32) 7.00 (32) 10.00 (15) 10.00 (15)
(ii) Top marginal income and payroll tax rate 1.00 (64) 1.00 (56) 1.00 (58) 4.00 (45) 4.00 (45)

Area 2. Legal System and Property Rights 6.78 7.25 6.55 6.89 6.04 6.16 6.18
A. Judicial independence 6.17 6.01 4.73 4.51 4.46
B. Impartial courts 3.58 4.51 4.12 3.16 3.27
C. Protection of property rights 4.54 5.58 6.00 5.14 5.13
D. Military interference in rule of law and politics 8.45 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 3.54 3.85 3.85
G. Regulatory restrictions on sale of real property 6.69 8.54 8.56
H. Reliability of police 4.67 4.38 4.67
I. Business costs of crime 6.30 7.50 7.35

Area 3. Sound Money 5.95 8.13 9.05 9.45 9.48

A. Money growth 6.00 (20.00) 9.87 (0.65) 7.45 (12.76) 8.80 (6.00) 9.14 (4.28)
B. Standard deviation of inflation 4.88 (12.79) 8.43 (3.93) 9.11 (2.23) 9.28 (1.80) 9.15 (2.12)
C. Inflation: most recent year 7.92 (10.41) 9.22 (3.90) 9.63 (1.85) 9.72 (1.41) 9.61 (1.94)
D. Freedom to own foreign currency bank accounts 5.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.90 8.28 8.04 7.80 7.73

A. Tariffs 8.45 8.22 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.25 (1.13) 9.68 (0.48) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.66 (6.70) 8.70 (6.50) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.44 (6.40) 6.28 (9.30) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 7.42 7.88 7.48 7.39 7.03
(i) Non-tariff trade barriers 7.42 7.27 7.27 7.29 6.31
(ii) Compliance costs of importing and exporting 8.50 7.70 7.49 7.76
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 5.72 7.03 6.28 5.49 5.63
(i) Foreign ownership/investment restrictions 6.44 7.92 8.42 6.80 7.22
(ii) Capital controls 0.00 0.00 0.00 5.00 6.15 3.85 3.08 3.08
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 3.42 5.72 6.22 7.40 7.41 7.58

A. Credit market regulations 0.00 0.00 0.00 6.89 6.85 9.52 9.22 9.32
(i) Ownership of banks 0.00 0.00 0.00 5.00 2.00 10.00 10.00 10.00
(ii) Private sector credit 9.68 8.56 8.57 7.67 7.96
(iii) Interest rate controls/negative real interest rates 6.00 10.00 10.00 10.00 10.00
B. Labor market regulations 5.03 5.22 7.61 7.50 7.57
(i) Hiring regulations and minimum wage 6.58 5.09 6.70 6.67 6.67
(ii) Hiring and firing regulations 5.62 5.62 5.30 3.26 3.59 3.94
(iii) Centralized collective bargaining 5.18 7.70 7.75 6.97 7.03
(iv) Hours regulations 4.75 5.01 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 7.96 7.76 7.76
(vi) Conscription 0.00 0.00 0.00 3.00 3.00 10.00 10.00 10.00
C. Business regulations 5.25 6.59 5.07 5.51 5.85
(i) Administrative requirements 7.80 2.22 2.70 2.86
(ii) Bureaucracy costs 5.89 8.10 5.51 4.32 4.32
(iii) Starting a business 5.97 5.53 9.02 9.17 9.18
(iv) Extra payments/bribes/favoritism 3.89 4.92 6.56 4.16 4.40
(v) Licensing restrictions 7.13 8.94 8.94
(vi) Cost of tax compliance 0.00 3.76 5.37

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 Chapter 2: Country Data Tables E 65

Denmark
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.39 (20) 6.53 (21) 7.26 (16) 7.73 (12) 7.92 (13) 7.94 (13) 7.94 (10) 7.83 (14)
Area 1. Size of Government 3.06 (95) 3.14 (98) 3.17 (105) 3.07 (114) 3.48 (114) 3.81 (118) 4.28 (113) 4.34 (114)
Area 2. Legal System and Property Rights 7.18 (15) 7.88 (7) 8.35 (3) 9.09 (9) 9.54 (2) 9.46 (1) 9.12 (3) 8.59 (13)
Area 3. Sound Money 6.68 (34) 6.51 (64) 9.46 (13) 9.77 (2) 9.71 (4) 9.49 (24) 9.60 (16) 9.67 (5)
Area 4. Freedom to Trade Internationally 7.91 (12) 8.10 (12) 8.12 (16) 9.23 (8) 9.40 (6) 8.67 (8) 8.51 (12) 8.42 (13)
Area 5. Regulation 7.21 (8) 7.04 (15) 7.20 (15) 7.46 (12) 7.46 (17) 8.24 (9) 8.14 (9) 8.05 (9)

Unadjusted
Summary Ratings Rank) h 6.24 (25) 6.37 (25) 7.16 (17) 7.72 (14) 7.92 (13) 7.89 (13) 7.89 (11) 7.78 (14)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.06 3.14 3.17 3.07 3.48 3.81 4.28 4.34
A. Government consumption 1.76 (34.01) 1.99 (33.23) 1.69 (34.25) 1.87 (33.63) 1.74 (34.08) 1.55 (34.74) 0.74 (37.48) 0.97 (36.70)
B. Transfers and subsidies 4.47 (20.80) 4.58 (20.40) 3.98 (22.60) 2.92 (26.50) 3.67 (23.72) 3.18 (25.54) 3.39 (24.76) 4.37 (21.15)
C. Government enterprises and investment 6.00 (25.00) 6.00 (26.00) 7.00 (20.30) 7.00 (24.90) 7.00 (24.90) 10.00 (9.07) 10.00 (12.45) 10.00 (12.71)
D. Top marginal tax rate 0.00 0.00 0.00 0.50 1.50 0.50 3.00 2.00
(i) Top marginal income tax rate 0.00 (66) 0.00 (73) 0.00 (68) 1.00 (64) 2.00 (59) 1.00 (59) 3.00 (52) 2.00 (60)
(ii) Top marginal income and payroll tax rate 0.00 (69) 0.00 (67) 1.00 (63) 0.00 (63) 3.00 (55) 2.00 (60)

Area 2. Legal System and Property Rights 7.18 7.88 8.35 9.09 9.54 8.99 8.67 8.16
A. Judicial independence 8.82 9.35 8.78 9.26 8.36
B. Impartial courts 9.52 9.52 9.25 7.24 6.43
C. Protection of property rights 7.38 8.82 9.34 8.42 7.51
D. Military interference in rule of law and politics 9.73 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 10.00 10.00 10.00
F. Legal enforcement of contracts 6.19 5.96 5.96
G. Regulatory restrictions on sale of real property 9.01 9.50 9.61
H. Reliability of police 9.17 8.89 8.65
I. Business costs of crime 9.17 8.73 6.94

Area 3. Sound Money 6.68 6.51 9.46 9.77 9.71 9.49 9.60 9.67
A. Money growth 8.70 (6.51) 7.86 (10.71) 8.80 (6.01) 9.75 (1.27) 9.75 (1.27) 8.56 (7.20) 9.48 (2.58) 9.97 (-0.14)
B. Standard deviation of inflation 9.67 (0.82) 9.03 (2.42) 9.72 (0.71) 9.76 (0.60) 9.69 (0.76) 9.77 (0.58) 9.36 (1.60) 9.28 (1.81)
C. Inflation: most recent year 8.35 (8.23) 9.13 (4.33) 9.32 (3.40) 9.57 (2.14) 9.42 (2.92) 9.64 (1.81) 9.54 (2.30) 9.45 (2.76)
D. Freedom to own foreign currency bank accounts 0.00 0.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.85 8.04 7.83 9.13 9.40 8.55 8.39 8.31
A. Tariffs 8.95 9.12 8.48 8.70 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.67 (0.50) 9.73 (0.40) 9.80 (0.30) 9.80 (0.30) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 9.05 9.43 8.39 8.24 8.02
(i) Non-tariff trade barriers 9.05 9.04 7.35 7.05 6.60
(ii) Compliance costs of importing and exporting 9.83 9.43 9.43 9.43
C. Black-market exchange rates 9.60 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 5.00 8.77 8.97 7.42 6.99 6.93
(i) Foreign ownership/investment restrictions 9.54 9.48 8.08 6.79 6.60
(ii) Capital controls 5.00 5.00 5.00 8.00 8.46 7.69 7.69 7.69
(iii) Freedom of foreigners to visit 6.50 6.50 6.50

Area 5. Regulation 6.44 6.28 7.00 7.53 7.46 8.60 8.50 8.41
A. Credit market regulations 9.41 9.08 9.34 9.39 10.00 10.00 9.63 9.72
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 8.24 7.25 8.03 8.16 10.00 10.00 8.90 9.15
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.46 3.49 4.66 4.83 4.62 7.43 7.46 7.36
(i) Hiring regulations and minimum wage 3.68 4.76 10.00 10.00 10.00
(ii) Hiring and firing regulations 8.10 8.10 6.47 7.39 8.51 7.12
(iii) Centralized collective bargaining 5.18 5.18 5.18 5.18 4.85 6.18 5.28 6.06
(iv) Hours regulations 2.20 2.29 2.37 4.17 4.01 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 10.00 10.00 10.00
(vi) Conscription 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 8.39 7.76 8.38 8.41 8.15
(i) Administrative requirements 7.05 4.56 5.03 4.01
(ii) Bureaucracy costs 8.87 8.23 8.44 8.37 8.37
(iii) Starting a business 6.32 6.45 9.66 9.73 9.73
(iv) Extra payments/bribes/favoritism 9.99 9.29 9.49 9.15 8.56
(v) Licensing restrictions 9.67 9.72 9.71
(vi) Cost of tax compliance 8.49 8.49 8.54

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66 E Economic Freedom of the World: 2013 Annual Report

Dominican Republic
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.16 (57) 4.91 (70) 4.34 (98) 5.99 (69) 6.76 (55) 6.42 (80) 7.01 (62) 7.02 (61)
Area 1. Size of Government 5.71 (30) 6.20 (19) 6.68 (25) 8.14 (12) 8.88 (3) 8.43 (12) 8.20 (10) 8.21 (11)
Area 2. Legal System and Property Rights 5.14 (43) 4.78 (58) 4.72 (64) 5.03 (84) 4.62 (86) 4.42 (88) 4.28 (96) 4.27 (95)
Area 3. Sound Money 7.34 (28) 3.82 (100) 2.05 (111) 4.48 (99) 6.82 (89) 5.87 (112) 9.24 (42) 9.31 (35)
Area 4. Freedom to Trade Internationally 2.32 (72) 4.27 (60) 2.25 (95) 5.25 (92) 6.41 (78) 6.80 (74) 7.16 (60) 7.10 (60)
Area 5. Regulation 5.51 (49) 5.38 (61) 5.83 (49) 6.93 (23) 7.08 (34) 6.59 (76) 6.18 (95) 6.23 (97)

Unadjusted
Summary Ratings Rank) h 5.66 (39) 5.39 (55) 4.48 (95) 6.10 (61) 6.73 (55) 6.52 (84) 7.12 (61) 7.13 (61)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.71 6.20 6.68 8.14 8.88 8.43 8.20 8.21
A. Government consumption 9.12 (8.98) 9.35 (8.20) 10.00 (6.00) 9.87 (6.43) 9.03 (9.29) 9.57 (7.48) 9.40 (8.04) 9.47 (7.80)
B. Transfers and subsidies 9.70 (1.60) 9.46 (2.50) 9.73 (1.50) 9.67 (1.70) 9.49 (2.36) 9.17 (3.54) 9.38 (2.76) 9.38 (2.76)
C. Government enterprises and investment 4.00 (31.60) 6.00 (25.10) 7.00 (23.70) 4.00 (33.70) 8.00 (18.00) 7.00 (24.30) 6.00 (25.10) 6.00 (25.10)
D. Top marginal tax rate 0.00 0.00 0.00 9.00 9.00 8.00 8.00 8.00
(i) Top marginal income tax rate 0.00 (73) 0.00 (73) 0.00 (73) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25)
(ii) Top marginal income and payroll tax rate 0.00 (73) 9.00 (25) 9.00 (25) 7.00 (32) 7.00 (33) 7.00 (33)

Area 2. Legal System and Property Rights 5.78 5.38 5.30 5.22 4.47 4.36 4.22 4.22
A. Judicial independence 4.17 2.82 2.64
B. Impartial courts 6.23 5.57 3.75 3.41 3.47
C. Protection of property rights 2.90 5.27 4.79 4.82
D. Military interference in rule of law and politics 6.63 5.00 5.00 5.00 5.00
E. Integrity of the legal system 4.11 5.00 3.33 4.17 4.17
F. Legal enforcement of contracts 4.51 4.51 4.51
G. Regulatory restrictions on sale of real property 6.30 7.65 7.65
H. Reliability of police 3.43 1.62 1.73
I. Business costs of crime 3.50 4.05 3.96

Area 3. Sound Money 7.34 3.82 2.05 4.48 6.82 5.87 9.24 9.31
A. Money growth 8.96 (5.18) 7.26 (13.69) 4.70 (26.49) 8.44 (7.82) 9.39 (3.06) 7.40 (13.00) 9.26 (3.72) 9.94 (-0.29)
B. Standard deviation of inflation 8.14 (4.64) 3.00 (17.49) 3.48 (16.30) 1.99 (20.03) 9.42 (1.45) 1.91 (20.22) 8.97 (2.58) 9.00 (2.50)
C. Inflation: most recent year 7.26 (13.70) 0.00 (50.50) 0.00 (51.05) 7.49 (12.56) 8.46 (7.72) 9.16 (4.19) 8.73 (6.33) 8.31 (8.46)
D. Freedom to own foreign currency bank accounts 5.00 5.00 0.00 0.00 0.00 5.00 10.00 10.00

Area 4. Freedom to Trade Internationally 2.69 4.96 2.37 5.53 6.41 7.27 7.65 7.59
A. Tariffs 3.47 5.67 5.11 5.00 5.78 7.03 7.54 7.54
(i) Revenue from trade taxes (% of trade sector) 3.47 (9.80) 5.67 (6.50) 5.83 (6.26) 4.01 (8.99) 5.23 (7.16) 6.03 (5.96) 7.60 (3.60) 7.60 (3.60)
(ii) Mean tariff rate 4.40 (28.00) 6.00 (20.00) 6.10 (19.50) 8.20 (9.00) 8.58 (7.10) 8.58 (7.10)
(iii) Standard deviation of tariff rates 6.00 (10.00) 6.87 (7.82) 6.45 (8.88) 6.45 (8.88)
B. Regulatory trade barriers 3.33 6.04 6.83 6.70
(i) Non-tariff trade barriers 3.33 4.40 4.79 4.54
(ii) Compliance costs of importing and exporting 7.68 8.87 8.87
C. Black-market exchange rates 2.60 7.20 0.00 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 6.52 6.00 6.22 6.10
(i) Foreign ownership/investment restrictions 8.42 7.70 6.81 6.46
(ii) Capital controls 2.00 2.00 2.00 2.00 4.62 3.85 5.38 5.38
(iii) Freedom of foreigners to visit 6.46 6.46 6.46

Area 5. Regulation 6.76 6.61 5.99 7.12 7.08 6.69 6.27 6.32
A. Credit market regulations 7.79 7.34 5.99 8.97 9.39 7.88 7.00 7.00
(i) Ownership of banks 8.00 8.00 10.00 10.00 10.00 5.00 5.00 5.00
(ii) Private sector credit 7.58 6.68 7.97 8.90 9.17 9.63 6.01 6.01
(iii) Interest rate controls/negative real interest rates 0.00 8.00 9.00 9.00 10.00 10.00
B. Labor market regulations 5.92 6.47 6.40 6.40
(i) Hiring regulations and minimum wage 2.93 4.40 5.57 5.57
(ii) Hiring and firing regulations 5.17 7.10 4.77 4.95
(iii) Centralized collective bargaining 5.58 7.50 7.26 7.13
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 1.84 2.78 2.78
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.94 5.71 5.42 5.55
(i) Administrative requirements 7.37 3.55 3.12 3.74
(ii) Bureaucracy costs 5.18 4.44 3.46 3.46
(iii) Starting a business 5.48 7.38 9.02 9.05
(iv) Extra payments/bribes/favoritism 5.73 5.11 3.31 3.44
(v) Licensing restrictions 7.02 7.25 7.26
(vi) Cost of tax compliance 6.79 6.37 6.37

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 Chapter 2: Country Data Tables E 67

Ecuador
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.29 (53) 4.38 (86) 5.35 (66) 6.15 (61) 5.82 (96) 5.85 (104) 5.72 (109) 5.76 (107)
Area 1. Size of Government 5.29 (44) 4.94 (55) 8.25 (4) 8.22 (8) 8.93 (2) 8.03 (21) 5.63 (84) 5.57 (91)
Area 2. Legal System and Property Rights 5.35 (42) 4.80 (57) 4.76 (62) 4.10 (103) 3.30 (113) 3.08 (112) 3.26 (109) 3.27 (109)
Area 3. Sound Money 8.15 (17) 6.89 (40) 3.98 (101) 6.47 (65) 4.90 (113) 4.73 (121) 6.38 (110) 6.50 (106)
Area 4. Freedom to Trade Internationally 3.32 (62) 1.88 (83) 4.86 (63) 6.43 (65) 7.39 (56) 7.15 (59) 6.78 (76) 6.89 (73)
Area 5. Regulation 4.26 (85) 3.66 (94) 4.82 (87) 5.54 (76) 4.59 (115) 6.13 (91) 6.35 (89) 6.34 (94)

Unadjusted
Summary Ratings Rank) h 5.77 (34) 4.66 (81) 5.53 (58) 6.34 (56) 5.82 (94) 5.95 (113) 5.81 (134) 5.85 (134)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.45 5.09 8.25 8.22 8.93 8.03 5.63 5.57
A. Government consumption 6.01 (19.57) 7.32 (15.10) 8.48 (11.16) 7.15 (15.68) 7.86 (13.27) 7.53 (14.41) 7.42 (14.77) 7.20 (15.51)
B. Transfers and subsidies 8.80 (4.90) 9.05 (4.00) 9.51 (2.30) 9.73 (1.50) 9.86 (1.02) 9.59 (2.00) 9.59 (2.00) 9.59 (2.00)
C. Government enterprises and investment 2.00 (40.20) 2.00 (41.30) 7.00 (21.70) 8.00 (18.30) 10.00 (3.15) 7.00 (22.42) 0.00 (51.80) 0.00 (51.80)
D. Top marginal tax rate 5.00 2.00 8.00 8.00 8.00 8.00 5.50 5.50
(i) Top marginal income tax rate 5.00 (50) 2.00 (58) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25) 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate 7.00 (32) 7.00 (32) 7.00 (32) 7.00 (35) 4.00 (47) 4.00 (47)

Area 2. Legal System and Property Rights 5.86 5.25 5.21 4.38 3.30 3.75 3.97 3.98
A. Judicial independence 2.67 1.90 2.17 2.42
B. Impartial courts 4.28 2.51 2.20 2.41 2.61
C. Protection of property rights 2.98 4.05 3.68 3.92
D. Military interference in rule of law and politics 5.07 3.33 2.50 2.50 2.50
E. Integrity of the legal system 4.11 5.00 4.38 4.17 4.17
F. Legal enforcement of contracts 4.38 4.38 4.38
G. Regulatory restrictions on sale of real property 8.49 9.01 8.57
H. Reliability of police 3.07 3.57 3.65
I. Business costs of crime 2.76 3.84 3.55

Area 3. Sound Money 8.15 6.89 3.98 6.47 4.90 4.73 6.38 6.50
A. Money growth 8.13 (9.33) 7.90 (10.48) 2.62 (36.92) 4.76 (26.19) 4.25 (28.73) 2.73 (36.33) 7.48 (12.61) 8.17 (9.13)
B. Standard deviation of inflation 8.38 (4.06) 5.85 (10.37) 3.29 (16.77) 5.78 (10.54) 5.36 (11.61) 6.69 (8.29) 8.75 (3.13) 8.72 (3.21)
C. Inflation: most recent year 6.10 (19.51) 3.82 (30.90) 0.00 (54.01) 5.35 (23.23) 0.00 (96.09) 9.52 (2.41) 9.29 (3.56) 9.11 (4.47)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.87 2.19 5.10 6.75 7.39 7.25 6.87 6.99
A. Tariffs 5.20 4.16 3.30 7.66 7.14 7.14 6.37 6.57
(i) Revenue from trade taxes (% of trade sector) 5.20 (7.20) 5.87 (6.20) 7.33 (4.00) 7.67 (3.50) 6.53 (5.20) 6.53 (5.20) 6.53 (5.20) 6.53 (5.20)
(ii) Mean tariff rate 2.46 (37.70) 2.58 (37.10) 7.54 (12.30) 7.42 (12.90) 7.64 (11.80) 7.76 (11.20) 7.98 (10.10)
(iii) Standard deviation of tariff rates 0.00 (27.00) 7.76 (5.60) 7.48 (6.30) 7.24 (6.90) 4.80 (12.99) 5.19 (12.02)
B. Regulatory trade barriers 4.73 4.74 5.18 5.32
(i) Non-tariff trade barriers 3.13 3.91 3.43 3.72
(ii) Compliance costs of importing and exporting 6.33 5.57 6.93 6.93
C. Black-market exchange rates 7.40 0.40 10.00 7.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 5.00 7.69 7.12 5.95 6.06
(i) Foreign ownership/investment restrictions 9.23 4.95 4.01 4.33
(ii) Capital controls 2.00 2.00 2.00 5.00 6.15 8.46 3.85 3.85
(iii) Freedom of foreigners to visit 7.94 10.00 10.00

Area 5. Regulation 4.52 3.88 5.12 5.87 4.59 5.99 6.20 6.19
A. Credit market regulations 5.42 3.74 6.00 8.00 5.33 9.23 9.30 9.30
(i) Ownership of banks 5.00 5.00 8.00 8.00 2.00 8.00 8.00 8.00
(ii) Private sector credit 7.27 6.21 10.00 10.00 10.00 9.69 9.90 9.90
(iii) Interest rate controls/negative real interest rates 4.00 0.00 0.00 6.00 4.00 10.00 10.00 10.00
B. Labor market regulations 3.57 3.93 4.31 4.31
(i) Hiring regulations and minimum wage 3.49 5.60 5.57 5.57
(ii) Hiring and firing regulations 3.43 3.24 3.21 3.53
(iii) Centralized collective bargaining 4.25 5.74 5.47 5.13
(iv) Hours regulations 3.67 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 0.00 0.65 0.65
(vi) Conscription 0.00 0.00 3.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 4.86 4.81 4.97 4.96
(i) Administrative requirements 5.33 2.41 3.23 3.36
(ii) Bureaucracy costs 5.25 3.28 3.76 3.76
(iii) Starting a business 3.97 7.53 7.89 7.88
(iv) Extra payments/bribes/favoritism 4.87 4.54 3.78 3.65
(v) Licensing restrictions 7.81 8.50 8.45
(vi) Cost of tax compliance 3.27 2.67 2.67

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68 E Economic Freedom of the World: 2013 Annual Report

Egypt
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.40 (79) 4.86 (72) 4.60 (89) 5.99 (68) 6.81 (51) 6.59 (74) 6.79 (68) 6.65 (76)
Area 1. Size of Government 3.95 (82) 4.54 (69) 4.37 (88) 4.73 (91) 6.13 (63) 6.34 (75) 7.27 (34) 7.47 (31)
Area 2. Legal System and Property Rights 2.76 (70) 5.38 (49) 3.50 (81) 4.88 (87) 5.87 (63) 5.63 (67) 5.40 (76) 4.69 (84)
Area 3. Sound Money 7.70 (23) 8.85 (18) 8.16 (30) 7.61 (45) 9.53 (18) 8.85 (46) 8.81 (56) 9.07 (49)
Area 4. Freedom to Trade Internationally 2.18 (77) 0.40 (96) 1.12 (102) 6.27 (69) 6.66 (76) 6.67 (78) 6.76 (78) 6.70 (79)
Area 5. Regulation 4.76 (79) 5.16 (69) 5.68 (59) 6.49 (40) 5.84 (89) 5.37 (111) 5.72 (110) 5.38 (113)

Unadjusted
Summary Ratings Rank) h 4.38 (79) 4.83 (74) 4.49 (94) 5.90 (70) 6.81 (50) 6.42 (93) 6.50 (103) 6.36 (108)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.95 4.54 4.37 4.73 6.13 6.34 6.58 6.75
A. Government consumption 6.33 (18.47) 5.83 (20.18) 7.77 (13.60) 8.12 (12.40) 8.29 (11.80) 7.32 (15.11) 7.94 (13.00) 7.76 (13.60)
B. Transfers and subsidies 5.45 (17.20) 6.35 (13.90) 7.71 (8.90) 7.81 (8.53) 9.22 (3.38) 8.06 (7.62) 6.87 (11.97) 7.75 (8.74)
C. Government enterprises and investment 4.00 (39.70) 4.00 (30.70) 0.00 (54.50) 0.00 (76.40) 0.00 (52.10) 0.00 (51.90) 4.00 (34.52) 4.00 (37.73)
D. Top marginal tax rate 0.00 2.00 2.00 3.00 7.00 10.00 7.50 7.50
(i) Top marginal income tax rate 0.00 (80) 2.00 (65) 2.00 (65) 3.00 (50) 7.00 (34) 10.00 (20) 10.00 (20) 10.00 (25)
(ii) Top marginal income and payroll tax rate 5.00 (40) 5.00 (40)

Area 2. Legal System and Property Rights 2.76 5.38 3.50 4.88 5.87 5.47 5.24 4.55
A. Judicial independence 5.93 6.85 6.37 6.28 5.24
B. Impartial courts 3.33 5.68 5.09 4.24 3.84
C. Protection of property rights 4.90 5.17 6.22 5.21 5.03
D. Military interference in rule of law and politics 6.13 5.00 5.00 4.17 2.50
E. Integrity of the legal system 4.11 6.67 6.67 5.83 5.00
F. Legal enforcement of contracts 3.41 3.41 3.41
G. Regulatory restrictions on sale of real property 4.25 8.38 8.41
H. Reliability of police 5.88 4.82 4.17
I. Business costs of crime 6.31 4.84 3.30

Area 3. Sound Money 7.70 8.85 8.16 7.61 9.53 8.85 8.81 9.07
A. Money growth 6.29 (18.55) 8.57 (7.17) 8.93 (5.33) 9.12 (4.42) 9.46 (2.69) 7.94 (10.31) 8.31 (8.47) 8.65 (6.73)
B. Standard deviation of inflation 8.12 (4.71) 8.63 (3.42) 7.38 (6.56) 8.20 (4.51) 9.20 (2.01) 8.42 (3.94) 9.19 (2.02) 9.62 (0.96)
C. Inflation: most recent year 6.39 (18.03) 8.19 (9.04) 6.31 (18.44) 8.12 (9.41) 9.46 (2.68) 9.03 (4.87) 7.75 (11.27) 7.99 (10.05)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 5.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.03 0.56 1.04 6.02 6.66 6.23 6.32 6.26
A. Tariffs 0.89 1.69 3.12 3.06 3.74 4.90 4.96 5.12
(i) Revenue from trade taxes (% of trade sector) 1.27 (13.10) 1.93 (12.10) 6.07 (5.90) 4.83 (7.75) 5.33 (7.00) 8.48 (2.28) 8.29 (2.57) 8.73 (1.90)
(ii) Mean tariff rate 0.52 (47.40) 1.44 (42.80) 3.30 (33.50) 4.34 (28.30) 5.90 (20.50) 6.22 (18.90) 6.60 (17.00) 6.64 (16.80)
(iii) Standard deviation of tariff rates 0.00 (425.80) 0.00 (28.90) 0.00 (39.50) 0.00 (141.08) 0.00 (149.47) 0.00 (143.30)
B. Regulatory trade barriers 4.52 5.58 5.74 6.75 6.42
(i) Non-tariff trade barriers 4.52 4.50 4.55 5.09 4.49
(ii) Compliance costs of importing and exporting 6.66 6.93 8.41 8.35
C. Black-market exchange rates 8.20 0.00 0.00 9.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 7.10 7.31 4.30 3.57 3.48
(i) Foreign ownership/investment restrictions 9.21 9.23 5.94 5.29 5.05
(ii) Capital controls 0.00 0.00 0.00 5.00 5.38 6.15 4.62 4.62
(iii) Freedom of foreigners to visit 0.79 0.79 0.79

Area 5. Regulation 4.46 4.84 5.39 6.24 5.84 5.19 5.52 5.19
A. Credit market regulations 3.93 5.20 6.79 8.33 8.03 6.35 5.88 5.00
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 2.00 2.00 2.00
(ii) Private sector credit 2.80 4.60 9.37 10.00 9.08 7.05 5.65 4.00
(iii) Interest rate controls/negative real interest rates 4.00 6.00 6.00 10.00 10.00 10.00 10.00 9.00
B. Labor market regulations 3.98 5.57 4.01 4.98 5.01 4.91
(i) Hiring regulations and minimum wage 8.33 4.17 10.00 10.00 10.00
(ii) Hiring and firing regulations 4.02 4.02 3.05 3.44 4.47 3.78
(iii) Centralized collective bargaining 7.93 7.93 7.93 7.93 7.50 8.44 6.91 7.05
(iv) Hours regulations 7.55 5.34 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 0.00 0.65 0.65
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 4.81 5.47 4.23 5.68 5.66
(i) Administrative requirements 7.50 3.10 3.32 3.22
(ii) Bureaucracy costs 4.70 2.75 1.13 4.48 4.48
(iii) Starting a business 6.02 5.83 6.39 9.72 9.67
(iv) Extra payments/bribes/favoritism 3.72 5.80 6.39 4.36 3.88
(v) Licensing restrictions 5.08 7.08 7.12
(vi) Cost of tax compliance 3.32 5.15 5.61

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 Chapter 2: Country Data Tables E 69

El Salvador
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.57 (72) 4.29 (90) 4.80 (86) 7.65 (14) 7.57 (22) 7.54 (32) 7.29 (43) 7.22 (48)
Area 1. Size of Government 6.59 (17) 6.41 (15) 6.89 (22) 8.59 (5) 8.67 (4) 8.58 (8) 8.58 (7) 8.53 (7)
Area 2. Legal System and Property Rights 2.43 (75) 1.90 (106) 1.87 (109) 5.61 (66) 4.51 (90) 4.39 (90) 3.84 (104) 3.88 (103)
Area 3. Sound Money 5.63 (75) 5.48 (89) 5.25 (89) 8.88 (34) 9.42 (26) 9.63 (10) 9.25 (41) 9.13 (44)
Area 4. Freedom to Trade Internationally 2.30 (74) 2.13 (79) 4.24 (71) 6.97 (58) 8.51 (29) 7.99 (29) 7.79 (40) 7.67 (43)
Area 5. Regulation 6.13 (37) 6.12 (42) 8.45 (4) 6.71 (47) 7.13 (44) 7.04 (50) 6.92 (61)

Unadjusted
Summary Ratings Rank) h 4.12 (83) 4.34 (90) 4.81 (87) 7.20 (27) 7.69 (17) 7.37 (41) 7.10 (66) 7.03 (73)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.59 6.41 6.89 8.59 8.67 8.58 8.46 8.41
A. Government consumption 6.97 (16.30) 7.05 (16.02) 8.81 (10.03) 9.11 (9.02) 8.70 (10.42) 9.01 (9.38) 8.69 (10.46) 8.67 (10.53)
B. Transfers and subsidies 9.40 (2.70) 9.59 (2.00) 9.75 (1.40) 9.24 (3.30) 10.00 (0.32) 9.32 (3.00) 9.16 (3.58) 8.99 (4.22)
C. Government enterprises and investment 7.00 (20.20) 6.00 (28.40) 7.00 (20.00) 8.00 (19.00) 8.00 (19.89) 8.00 (15.40) 8.00 (16.00) 8.00 (16.37)
D. Top marginal tax rate 3.00 3.00 2.00 8.00 8.00 8.00 8.00 8.00
(i) Top marginal income tax rate 3.00 (60) 3.00 (48) 2.00 (60) 8.00 (30) 8.00 (30) 8.00 (30) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 8.00 (30) 8.00 (30)

Area 2. Legal System and Property Rights 2.54 1.99 1.95 5.37 4.51 4.40 3.84 3.88
A. Judicial independence 4.34 3.07 3.14 2.78
B. Impartial courts 4.40 4.18 3.37 3.14 3.10
C. Protection of property rights 4.05 5.78 4.60 4.62
D. Military interference in rule of law and politics 6.25 5.00 5.00 4.17 4.17
E. Integrity of the legal system 6.96 5.00 4.58 2.50 3.33
F. Legal enforcement of contracts 3.83 3.83 3.83
G. Regulatory restrictions on sale of real property 8.19 8.20 8.17
H. Reliability of police 4.26 3.57 3.52
I. Business costs of crime 1.47 1.42 1.44

Area 3. Sound Money 5.63 5.48 5.25 8.88 9.42 9.63 9.25 9.13
A. Money growth 8.52 (7.40) 7.74 (11.29) 8.48 (7.60) 8.20 (8.98) 9.03 (-4.83) 9.98 (0.10) 8.39 (8.03) 8.80 (6.02)
B. Standard deviation of inflation 7.39 (6.53) 8.23 (4.43) 7.02 (7.45) 9.39 (1.52) 9.09 (2.29) 9.48 (1.29) 8.85 (2.87) 8.76 (3.09)
C. Inflation: most recent year 6.61 (16.95) 5.97 (20.17) 5.51 (22.47) 7.91 (10.44) 9.55 (2.27) 9.06 (4.69) 9.76 (1.18) 8.97 (5.13)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 1.71 2.42 4.57 7.44 8.51 7.64 7.45 7.34
A. Tariffs 3.13 5.27 6.52 7.51 8.02 8.29 8.17 8.21
(i) Revenue from trade taxes (% of trade sector) 5.87 (6.20) 5.27 (7.10) 7.27 (4.10) 7.60 (3.60) 8.99 (1.51) 9.01 (1.48) 9.00 (1.50) 9.17 (1.24)
(ii) Mean tariff rate 0.40 (48.00) 5.78 (21.10) 7.96 (10.20) 8.52 (7.40) 8.72 (6.40) 8.82 (5.90) 8.82 (5.90)
(iii) Standard deviation of tariff rates 6.96 (7.60) 6.56 (8.60) 7.14 (7.14) 6.70 (8.26) 6.63 (8.44)
B. Regulatory trade barriers 7.11 6.12 6.94 6.61
(i) Non-tariff trade barriers 5.72 5.80 5.51 4.85
(ii) Compliance costs of importing and exporting 8.50 6.45 8.37 8.37
C. Black-market exchange rates 0.00 0.00 5.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 5.00 8.93 6.16 4.71 4.54
(i) Foreign ownership/investment restrictions 8.62 7.38 6.10 5.61
(ii) Capital controls 2.00 2.00 2.00 5.00 9.23 7.69 4.62 4.62
(iii) Freedom of foreigners to visit 3.40 3.40 3.40

Area 5. Regulation 5.38 5.38 5.74 7.31 6.58 6.50 6.39

A. Credit market regulations 9.85 8.66 8.65 9.74 9.70 8.73 8.52 8.50
(i) Ownership of banks 10.00 8.00 8.00
(ii) Private sector credit 9.85 9.32 9.30 9.48 9.39 6.18 7.56 7.49
(iii) Interest rate controls/negative real interest rates 8.00 8.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 6.24 5.02 4.97 4.77
(i) Hiring regulations and minimum wage 3.12 6.70 6.67 6.67
(ii) Hiring and firing regulations 4.85 6.31 5.81 4.79
(iii) Centralized collective bargaining 7.73 8.08 7.75 7.58
(iv) Hours regulations 5.51 6.00 6.00 6.00
(v) Mandated cost of worker dismissal 2.03 2.60 2.60
(vi) Conscription 3.00 0.00 0.00 10.00 1.00 1.00 1.00 1.00
C. Business regulations 6.01 6.00 6.01 5.89
(i) Administrative requirements 7.27 3.76 3.93 3.82
(ii) Bureaucracy costs 5.40 2.98 4.38 4.38
(iii) Starting a business 5.78 7.98 8.97 8.96
(iv) Extra payments/bribes/favoritism 5.57 6.86 4.29 3.71
(v) Licensing restrictions 8.01 8.05 8.06
(vi) Cost of tax compliance 6.41 6.41 6.41

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70 E Economic Freedom of the World: 2013 Annual Report

Estonia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.08 (65) 7.61 (20) 7.97 (12) 7.80 (13) 7.77 (17)
Area 1. Size of Government 6.40 (46) 6.43 (54) 6.99 (50) 5.94 (77) 6.29 (66)
Area 2. Legal System and Property Rights 6.56 (42) 6.73 (45) 7.34 (31) 7.39 (29) 7.36 (31)
Area 3. Sound Money 6.98 (37) 3.36 (107) 2.30 (111) 8.67 (44) 9.43 (32) 9.43 (29) 8.94 (53)
Area 4. Freedom to Trade Internationally 3.38 (85) 9.66 (2) 9.04 (15) 8.64 (9) 8.58 (10) 8.48 (10)
Area 5. Regulation 5.65 (72) 7.17 (33) 7.51 (23) 7.70 (15) 7.80 (15)

Unadjusted
Summary Ratings Rank) h 5.97 (65) 7.46 (28) 7.96 (11) 7.79 (14) 7.76 (16)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.22 6.43 6.99 5.94 6.29
A. Government consumption 5.74 (20.48) 3.22 (29.06) 3.73 (27.33) 4.38 (25.12) 3.50 (28.09) 3.63 (27.64)
B. Transfers and subsidies 6.43 (13.60) 5.98 (15.25) 7.08 (11.23) 6.74 (12.45) 7.02 (11.42)
C. Government enterprises and investment 10.00 (14.28) 10.00 (4.81) 7.00 (20.28) 8.00 (19.34)
D. Top marginal tax rate 6.00 6.00 6.50 6.50 6.50
(i) Top marginal income tax rate 8.00 (26) 8.00 (26) 9.00 (24) 9.00 (21) 9.00 (21)
(ii) Top marginal income and payroll tax rate 4.00 (44) 4.00 (44) 4.00 (45) 4.00 (44) 4.00 (44)

Area 2. Legal System and Property Rights 6.50 6.00 7.24 7.29 7.26
A. Judicial independence 7.12 7.51 7.57
B. Impartial courts 6.46 6.94 6.84 5.52 5.42
C. Protection of property rights 5.00 7.68 7.17 6.99
D. Military interference in rule of law and politics 8.42 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 6.11 5.91 5.91
G. Regulatory restrictions on sale of real property 8.81 9.53 9.53
H. Reliability of police 6.50 7.52 7.44
I. Business costs of crime 7.09 7.48 7.51

Area 3. Sound Money 8.77 4.48 2.30 8.67 9.43 9.43 8.94
A. Money growth 0.00 (67.37) 8.32 (8.39) 9.34 (3.30) 9.98 (-0.10) 8.41 (7.94)
B. Standard deviation of inflation 8.65 (3.37) 5.18 (12.06) 0.00 (323.00) 7.15 (7.13) 9.20 (1.99) 8.35 (4.12) 8.36 (4.09)
C. Inflation: most recent year 8.88 (-5.61) 3.27 (33.65) 4.20 (29.00) 9.19 (4.03) 9.18 (4.09) 9.41 (2.97) 9.00 (4.98)
D. Freedom to own foreign currency bank accounts 5.00 5.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.26 9.27 9.04 8.48 8.42 8.33
A. Tariffs 9.77 9.81 9.99 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.77 (0.34) 9.94 (0.09) 9.99 (0.02) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 9.98 (0.10) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 9.52 (1.20) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 8.34 8.34 8.50 8.35
(i) Non-tariff trade barriers 8.34 7.24 7.56 7.26
(ii) Compliance costs of importing and exporting 9.43 9.43 9.43
C. Black-market exchange rates 0.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 8.00 7.82 7.18 6.85 6.69
(i) Foreign ownership/investment restrictions 9.49 8.04 7.04 7.34
(ii) Capital controls 0.00 8.00 6.15 6.92 6.92 6.15
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 6.58 7.17 7.68 7.88 7.98

A. Credit market regulations 0.00 4.30 9.33 9.67 10.00 10.00
(i) Ownership of banks 0.00 5.00 8.00 10.00 10.00 10.00
(ii) Private sector credit 7.90 10.00 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 0.00 10.00 9.00 10.00 10.00
B. Labor market regulations 4.74 5.76 5.91 6.17
(i) Hiring regulations and minimum wage 2.94 6.70 5.00 6.67
(ii) Hiring and firing regulations 4.57 5.33 5.87 5.78
(iii) Centralized collective bargaining 8.45 8.75 8.32 8.32
(iv) Hours regulations 4.00 4.00 4.00
(v) Mandated cost of worker dismissal 6.76 9.25 9.25
(vi) Conscription 0.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 8.85 7.43 7.63 7.74 7.76
(i) Administrative requirements 7.62 5.34 5.55 5.48
(ii) Bureaucracy costs 8.47 7.15 6.18 6.69 6.69
(iii) Starting a business 8.52 8.03 8.71 9.68 9.69
(iv) Extra payments/bribes/favoritism 9.57 6.91 7.51 6.98 7.16
(v) Licensing restrictions 8.95 8.47 8.48
(vi) Cost of tax compliance 9.09 9.05 9.05

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 Chapter 2: Country Data Tables E 71

Ethiopia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 5.51 (128) 5.73 (136) 5.47 (142)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.09 6.13 6.21
A. Government consumption 7.37 (14.95) 9.09 (9.10) 9.18 (8.80)
B. Transfers and subsidies 10.00 (0.03) 8.45 (6.20) 8.65 (5.45)
C. Government enterprises and investment 0.00 (64.00) 0.00 (64.83) 0.00 (73.01)
D. Top marginal tax rate 7.00 7.00 7.00
(i) Top marginal income tax rate 7.00 (35) 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.70 5.44 5.42

A. Judicial independence 1.97 3.53 3.04
B. Impartial courts 2.68 4.47 4.47
C. Protection of property rights 4.34 5.73 5.11
D. Military interference in rule of law and politics 1.67 1.67 1.67
E. Integrity of the legal system 8.33 7.50 7.50
F. Legal enforcement of contracts 4.34 4.87 5.55
G. Regulatory restrictions on sale of real property 7.97 8.53 8.53
H. Reliability of police 5.32 5.21 4.95
I. Business costs of crime 5.66 7.47 7.97

Area 3. Sound Money 5.67 5.58 4.40

A. Money growth 8.20 (8.99) 8.15 (9.24) 8.15 (9.24)
B. Standard deviation of inflation 6.79 (8.03) 5.80 (10.50) 6.10 (9.76)
C. Inflation: most recent year 7.68 (11.61) 8.37 (8.14) 3.36 (33.22)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.98 5.21 5.08

A. Tariffs 4.97 5.11 5.25
(i) Revenue from trade taxes (% of trade sector) 2.85 (10.73) 3.44 (9.84) 3.84 (9.24)
(ii) Mean tariff rate 6.64 (16.80) 6.54 (17.30) 6.54 (17.30)
(iii) Standard deviation of tariff rates 5.43 (11.42) 5.36 (11.59) 5.36 (11.59)
B. Regulatory trade barriers 4.54 4.09 3.56
(i) Non-tariff trade barriers 5.39 4.28 3.22
(ii) Compliance costs of importing and exporting 3.69 3.90 3.90
C. Black-market exchange rates 8.00 10.00 10.00
D. Controls of the movement of capital and people 2.42 1.65 1.52
(i) Foreign ownership/investment restrictions 5.50 4.73 4.34
(ii) Capital controls 1.54 0.00 0.00
(iii) Freedom of foreigners to visit 0.23 0.23 0.23

Area 5. Regulation 6.10 6.30 6.23

A. Credit market regulations 5.76 5.11 5.50
(i) Ownership of banks 2.00 2.00 2.00
(ii) Private sector credit 6.29 8.34 9.50
(iii) Interest rate controls/negative real interest rates 9.00 5.00 5.00
B. Labor market regulations 7.16 7.58 7.45
(i) Hiring regulations and minimum wage 6.70 6.67 6.67
(ii) Hiring and firing regulations 4.56 4.81 4.73
(iii) Centralized collective bargaining 7.43 6.97 6.27
(iv) Hours regulations 8.00 10.00 10.00
(v) Mandated cost of worker dismissal 6.29 7.04 7.04
(vi) Conscription 10.00 10.00 10.00
C. Business regulations 5.37 6.21 5.72
(i) Administrative requirements 3.33 4.29 4.06
(ii) Bureaucracy costs 3.66 4.29 4.29
(iii) Starting a business 5.67 8.48 7.28
(iv) Extra payments/bribes/favoritism 5.18 4.28 3.80
(v) Licensing restrictions 6.60 8.16 8.33
(vi) Cost of tax compliance 7.78 7.78 6.57

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72 E Economic Freedom of the World: 2013 Annual Report

Fiji
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.58 (40) 5.98 (36) 5.73 (50) 6.12 (64) 6.24 (76) 6.54 (75) 6.39 (90) 6.37 (90)
Area 1. Size of Government 4.75 (61) 5.22 (50) 4.69 (85) 5.92 (66) 6.56 (50) 8.02 (22) 7.51 (30) 7.88 (19)
Area 2. Legal System and Property Rights 5.51 (69) 5.99 (60) 6.05 (58) 5.50 (72) 5.49 (73)
Area 3. Sound Money 6.02 (66) 6.67 (53) 6.53 (63) 6.94 (57) 6.90 (84) 6.56 (101) 6.67 (101) 6.47 (109)
Area 4. Freedom to Trade Internationally 5.93 (34) 6.14 (31) 5.73 (49) 6.23 (73) 5.56 (98) 5.39 (109) 5.41 (108) 5.34 (109)
Area 5. Regulation 5.65 (45) 5.96 (42) 6.00 (46) 6.07 (51) 6.21 (67) 6.67 (71) 6.72 (72) 6.63 (82)

Unadjusted
Summary Ratings Rank) h 5.57 (44) 5.97 (34) 5.72 (51) 6.03 (64) 6.14 (80) 7.29 (49) 7.12 (61) 7.10 (64)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.75 5.22 4.69 5.92 6.56 8.02 7.51 7.88
A. Government consumption 5.56 (21.09) 4.96 (23.12) 5.90 (19.93) 5.48 (21.38) 5.88 (20.00) 6.47 (17.99) 6.34 (18.45) 7.83 (13.37)
B. Transfers and subsidies 9.46 (2.50) 8.91 (4.50) 9.86 (1.00) 9.18 (3.50) 9.35 (2.90) 8.59 (5.68) 8.69 (5.32) 8.69 (5.32)
C. Government enterprises and investment 2.00 (46.20) 4.00 (32.90) 0.00 (55.40) 2.00 (40.40) 4.00 (33.30) 10.00 (14.82) 8.00 (18.02) 8.00 (18.02)
D. Top marginal tax rate 2.00 3.00 3.00 7.00 7.00 7.00 7.00 7.00
(i) Top marginal income tax rate 2.00 (53) 3.00 (50) 3.00 (50) 7.00 (35) 7.00 (34) 7.00 (31) 7.00 (31) 7.00 (31)
(ii) Top marginal income and payroll tax rate 3.00 (50) 7.00 (35) 7.00 (34) 7.00 (31) 7.00 (31) 7.00 (31)

Area 2. Legal System and Property Rights 5.12 5.46 6.34 5.77 5.76
A. Judicial independence
B. Impartial courts 4.68 4.63 5.10 4.00 4.00
C. Protection of property rights
D. Military interference in rule of law and politics 6.34 7.34 7.10 5.90 5.90
E. Integrity of the legal system
F. Legal enforcement of contracts 5.11 5.11 5.11
G. Regulatory restrictions on sale of real property 8.06 8.06 8.04
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 6.02 6.67 6.53 6.94 6.90 6.56 6.67 6.47
A. Money growth 9.82 (-0.89) 9.73 (1.34) 8.40 (8.00) 9.02 (4.92) 9.41 (2.93) 7.62 (11.91) 9.15 (4.25) 9.16 (4.19)
B. Standard deviation of inflation 7.72 (5.71) 8.44 (3.89) 9.16 (2.10) 9.06 (2.36) 8.42 (3.95) 9.11 (2.22) 8.63 (3.44) 8.43 (3.91)
C. Inflation: most recent year 6.54 (17.31) 8.50 (7.49) 8.58 (7.10) 9.68 (1.59) 9.78 (1.09) 9.53 (2.37) 8.89 (5.54) 8.27 (8.67)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 5.84 6.04 5.64 6.13 5.56 6.62 6.65 6.55
A. Tariffs 6.13 4.73 5.73 6.60 7.27 5.23 5.12 4.73
(i) Revenue from trade taxes (% of trade sector) 6.13 (5.80) 4.73 (7.90) 5.73 (6.40) 6.60 (5.10) 7.03 (4.46) 7.73 (3.40) 7.73 (3.40) 7.73 (3.40)
(ii) Mean tariff rate 7.52 (12.40) 7.96 (10.20) 7.62 (11.90) 6.46 (17.70)
(iii) Standard deviation of tariff rates 0.00 (43.04) 0.00 (35.11) 0.00 (77.35)
B. Regulatory trade barriers 6.65 6.88 6.88
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting 6.65 6.88 6.88
C. Black-market exchange rates 6.40 8.40 9.20 9.80 9.40 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 2.00 2.00 0.00 4.59 4.59 4.59
(i) Foreign ownership/investment restrictions
(ii) Capital controls 5.00 5.00 2.00 2.00 0.00 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 9.18 9.18 9.18

Area 5. Regulation 5.65 5.96 6.00 6.07 6.21 8.92 8.99 8.86
A. Credit market regulations 5.09 5.91 6.00 6.19 6.56 8.92 9.67 9.42
(i) Ownership of banks 2.00 2.00 2.00 2.00 2.00 10.00 10.00 10.00
(ii) Private sector credit 7.27 7.73 10.00 8.56 7.67 6.77 10.00 9.25
(iii) Interest rate controls/negative real interest rates 6.00 8.00 6.00 8.00 10.00 10.00 9.00 9.00
B. Labor market regulations 9.40 9.01 9.01
(i) Hiring regulations and minimum wage 7.80 7.77 7.77
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 9.81 8.27 8.27
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 8.42 8.30 8.16
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business 8.26 8.30 7.89
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions 8.58 8.42 8.43
(vi) Cost of tax compliance 8.43 8.17 8.17

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 Chapter 2: Country Data Tables E 73

Finland
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.65 (15) 6.92 (14) 7.24 (17) 7.50 (20) 7.73 (17) 7.97 (11) 7.91 (11) 7.99 (8)
Area 1. Size of Government 4.53 (69) 4.28 (76) 4.15 (93) 2.69 (117) 3.00 (119) 4.97 (101) 4.98 (102) 5.02 (102)
Area 2. Legal System and Property Rights 6.83 (20) 7.88 (6) 8.35 (1) 9.28 (1) 9.49 (4) 9.32 (3) 9.09 (4) 9.15 (2)
Area 3. Sound Money 7.78 (22) 7.94 (29) 9.27 (17) 9.55 (18) 9.55 (15) 9.58 (14) 9.62 (15) 9.48 (25)
Area 4. Freedom to Trade Internationally 6.71 (23) 6.93 (23) 6.88 (34) 9.19 (10) 9.25 (10) 8.32 (15) 8.10 (24) 8.42 (12)
Area 5. Regulation 7.53 (5) 7.72 (6) 7.66 (8) 6.77 (33) 7.35 (21) 7.65 (18) 7.71 (14) 7.85 (13)

Unadjusted
Summary Ratings Rank) h 6.50 (17) 6.77 (17) 6.99 (21) 7.51 (20) 7.73 (16) 7.96 (11) 7.90 (9) 7.98 (7)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.67 4.41 4.15 2.69 3.00 4.97 4.98 5.02
A. Government consumption 4.43 (24.93) 3.82 (27.02) 3.33 (28.69) 3.34 (28.66) 3.08 (29.54) 2.94 (30.00) 2.71 (30.77) 2.82 (30.40)
B. Transfers and subsidies 6.24 (14.30) 5.83 (15.80) 5.78 (16.00) 3.92 (22.80) 4.93 (19.11) 4.44 (20.92) 3.72 (23.54) 3.76 (23.39)
C. Government enterprises and investment 7.00 (23.30) 7.00 (24.20) 6.00 (29.30) 2.00 (42.20) 2.00 (42.20) 10.00 (12.53) 10.00 (13.17) 10.00 (12.52)
D. Top marginal tax rate 1.00 1.00 1.50 1.50 2.00 2.50 3.50 3.50
(i) Top marginal income tax rate 1.00 (65-71) 1.00 (64-70) 2.00 (57-63) 2.00 (54-59) 3.00 (51-57) 3.00 (50-56) 4.00 (46-51) 4.00 (46-52)
(ii) Top marginal income and payroll tax rate 1.00 (61-69) 1.00 (60-66) 1.00 (53.5-60.5) 2.00 (54-60) 3.00 (52-57) 3.00 (51-56)

Area 2. Legal System and Property Rights 6.83 7.88 8.35 9.28 9.49 9.07 8.85 8.91
A. Judicial independence 9.82 9.69 8.59 9.02 9.16
B. Impartial courts 9.35 8.85 8.57 7.92 8.21
C. Protection of property rights 7.23 8.92 9.03 9.08 9.09
D. Military interference in rule of law and politics 10.00 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 10.00 10.00 10.00
F. Legal enforcement of contracts 8.06 6.83 6.83
G. Regulatory restrictions on sale of real property 8.42 8.42 8.42
H. Reliability of police 9.38 9.51 9.41
I. Business costs of crime 9.54 8.87 9.06

Area 3. Sound Money 7.78 7.94 9.27 9.55 9.55 9.58 9.62 9.48
A. Money growth 8.82 (5.92) 8.58 (7.12) 8.62 (6.91) 8.98 (5.08) 9.48 (2.58) 9.01 (4.96) 9.11 (4.45) 9.06 (4.69)
B. Standard deviation of inflation 9.27 (1.82) 9.26 (1.86) 9.63 (0.92) 9.71 (0.72) 9.38 (1.54) 9.48 (1.31) 9.60 (1.00) 9.53 (1.19)
C. Inflation: most recent year 8.05 (9.75) 8.93 (5.33) 8.84 (5.82) 9.52 (2.42) 9.33 (3.37) 9.83 (0.86) 9.76 (1.22) 9.32 (3.42)
D. Freedom to own foreign currency bank accounts 5.00 5.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.83 7.06 6.67 9.18 9.25 8.37 8.14 8.46
A. Tariffs 8.69 9.17 8.01 8.72 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.47 (0.80) 9.73 (0.40) 9.60 (0.60) 9.87 (0.20) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 7.92 (10.40) 8.60 (7.00) 8.46 (7.70) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 5.96 (10.10) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 9.30 9.76 8.86 8.73 8.50
(i) Non-tariff trade barriers 9.30 9.69 8.72 8.47 7.93
(ii) Compliance costs of importing and exporting 9.83 8.99 8.99 9.06
C. Black-market exchange rates 9.80 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 8.68 8.08 6.22 5.50 7.08
(i) Foreign ownership/investment restrictions 9.36 10.00 8.23 6.83 6.98
(ii) Capital controls 2.00 2.00 2.00 8.00 6.15 3.85 3.08 7.69
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 6.38 6.54 6.52 6.84 7.35 7.83 7.90 8.04
A. Credit market regulations 8.63 9.30 9.32 8.18 10.00 10.00 9.58 9.92
(i) Ownership of banks 8.00 8.00 8.00 8.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 9.89 9.91 9.97 6.54 10.00 10.00 8.75 9.76
(iii) Interest rate controls/negative real interest rates 8.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 4.14 3.79 3.71 3.49 3.33 4.84 5.63 5.57
(i) Hiring regulations and minimum wage 4.12 4.72 5.60 3.90 3.90
(ii) Hiring and firing regulations 3.86 3.86 3.23 3.79 4.99 4.79
(iii) Centralized collective bargaining 4.49 4.49 4.49 4.49 2.87 3.07 3.88 3.70
(iv) Hours regulations 4.93 3.87 3.52 2.02 2.84 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.59 10.00 10.00
(vi) Conscription 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 8.85 8.71 8.66 8.49 8.64
(i) Administrative requirements 7.97 6.42 5.62 6.31
(ii) Bureaucracy costs 8.47 8.48 9.94 8.31 8.31
(iii) Starting a business 8.52 8.80 9.45 9.52 9.52
(iv) Extra payments/bribes/favoritism 9.57 9.59 9.41 8.82 8.99
(v) Licensing restrictions 9.76 9.72 9.76
(vi) Cost of tax compliance 6.98 8.96 8.96

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74 E Economic Freedom of the World: 2013 Annual Report

France
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.09 (25) 5.99 (35) 7.07 (22) 7.02 (34) 7.31 (37) 7.38 (39) 7.49 (34) 7.45 (36)
Area 1. Size of Government 3.94 (83) 2.92 (102) 3.53 (101) 3.22 (111) 2.56 (123) 4.11 (115) 4.66 (109) 4.69 (108)
Area 2. Legal System and Property Rights 6.83 (22) 7.25 (18) 7.73 (20) 7.49 (28) 8.09 (22) 7.70 (27) 7.96 (24) 7.78 (25)
Area 3. Sound Money 6.40 (44) 6.69 (50) 9.69 (5) 9.83 (1) 9.59 (11) 9.58 (13) 9.67 (8) 9.63 (9)
Area 4. Freedom to Trade Internationally 7.00 (22) 6.99 (21) 8.30 (15) 8.39 (23) 8.99 (17) 8.24 (18) 8.10 (23) 8.01 (26)
Area 5. Regulation 6.13 (32) 6.03 (40) 6.08 (44) 6.16 (48) 7.30 (25) 7.19 (41) 7.00 (53) 7.09 (53)

Unadjusted
Summary Ratings Rank) h 6.13 (27) 6.03 (32) 7.04 (20) 6.99 (37) 7.31 (35) 7.31 (47) 7.42 (36) 7.38 (40)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.22 3.13 3.53 3.22 2.56 4.11 4.66 4.69
A. Government consumption 4.84 (23.55) 4.68 (24.07) 4.85 (23.52) 2.85 (30.29) 1.86 (33.69) 3.13 (29.36) 2.96 (29.92) 3.00 (29.80)
B. Transfers and subsidies 3.02 (26.10) 2.83 (26.80) 3.27 (25.20) 2.53 (27.90) 3.40 (24.71) 3.33 (24.98) 2.67 (27.41) 2.75 (27.10)
C. Government enterprises and investment 6.00 (27.40) 4.00 (33.20) 4.00 (35.00) 4.00 (30.00) 4.00 (30.00) 8.00 (16.54) 8.00 (16.03) 8.00 (15.29)
D. Top marginal tax rate 3.00 1.00 2.00 3.50 1.00 2.00 5.00 5.00
(i) Top marginal income tax rate 3.00 (60) 1.00 (65) 3.00 (53) 4.00 (51) 2.00 (54) 3.00 (52) 6.00 (43) 7.00 (44)
(ii) Top marginal income and payroll tax rate 1.00 (61) 3.00 (60) 0.00 (62-65) 1.00 (62-64) 4.00 (54-56) 3.00 (55-57)

Area 2. Legal System and Property Rights 6.83 7.25 7.73 7.49 8.09 7.19 7.43 7.26
A. Judicial independence 6.62 6.35 6.77 6.50 6.51
B. Impartial courts 5.55 8.02 6.78 6.38 5.79
C. Protection of property rights 7.28 9.40 8.47 8.25 7.88
D. Military interference in rule of law and politics 8.03 8.33 8.82 9.17 9.17
E. Integrity of the legal system 10.00 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 6.91 6.91 6.47
G. Regulatory restrictions on sale of real property 4.34 6.88 6.88
H. Reliability of police 7.69 7.33 7.16
I. Business costs of crime 6.59 7.15 7.15

Area 3. Sound Money 6.40 6.69 9.69 9.83 9.59 9.58 9.67 9.63
A. Money growth 8.19 (9.06) 8.83 (5.85) 9.72 (1.38) 9.89 (0.57) 8.84 (5.82) 8.79 (6.03) 9.35 (3.23) 9.29 (3.55)
B. Standard deviation of inflation 9.69 (0.77) 9.08 (2.29) 9.64 (0.89) 9.74 (0.65) 9.85 (0.38) 9.88 (0.30) 9.61 (0.96) 9.63 (0.92)
C. Inflation: most recent year 7.72 (11.38) 8.85 (5.76) 9.38 (3.09) 9.69 (1.57) 9.66 (1.69) 9.64 (1.81) 9.69 (1.53) 9.58 (2.12)
D. Freedom to own foreign currency bank accounts 0.00 0.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.78 6.77 7.82 8.30 8.99 8.23 8.10 8.00
A. Tariffs 8.95 9.12 8.46 8.70 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.67 (0.50) 9.73 (0.40) 9.73 (0.40) 9.80 (0.30) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 7.70 8.79 7.95 7.68 7.48
(i) Non-tariff trade barriers 7.70 8.42 7.40 6.64 6.24
(ii) Compliance costs of importing and exporting 9.17 8.49 8.72 8.72
C. Black-market exchange rates 9.40 9.20 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 5.00 6.81 8.01 6.59 6.38 6.26
(i) Foreign ownership/investment restrictions 8.62 9.09 7.05 7.18 6.82
(ii) Capital controls 2.00 2.00 5.00 5.00 6.92 6.15 5.38 5.38
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 6.42 6.32 6.42 6.10 7.30 7.44 7.25 7.34
A. Credit market regulations 8.91 8.82 9.01 9.46 9.74 9.51 8.66 9.04
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 8.73 8.46 9.03 8.37 9.23 8.53 5.97 7.12
(iii) Interest rate controls/negative real interest rates 8.00 8.00 8.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.93 3.81 3.83 3.35 4.98 5.51 5.94 5.89
(i) Hiring regulations and minimum wage 2.55 4.55 3.30 3.33 3.33
(ii) Hiring and firing regulations 4.16 4.16 1.67 2.35 2.76 2.58
(iii) Centralized collective bargaining 4.49 4.49 4.49 4.49 5.53 6.41 7.03 6.90
(iv) Hours regulations 4.31 3.96 3.69 2.58 3.17 4.00 4.00 4.00
(v) Mandated cost of worker dismissal 7.03 8.50 8.50
(vi) Conscription 3.00 3.00 3.00 3.00 10.00 10.00 10.00 10.00
C. Business regulations 5.50 7.17 7.31 7.14 7.10
(i) Administrative requirements 7.73 2.75 2.74 2.82
(ii) Bureaucracy costs 6.30 8.08 5.87 6.78 6.78
(iii) Starting a business 3.43 5.15 9.76 9.77 9.77
(iv) Extra payments/bribes/favoritism 6.76 7.71 8.29 7.16 6.90
(v) Licensing restrictions 8.64 7.89 7.80
(vi) Cost of tax compliance 8.52 8.52 8.52

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 Chapter 2: Country Data Tables E 75

Gabon
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.50 (74) 5.08 (59) 5.47 (60) 5.38 (86) 5.81 (97) 5.60 (110) 5.63 (114) 5.52 (115)
Area 1. Size of Government 5.47 (37) 4.63 (64) 6.08 (43) 5.54 (79) 7.61 (19) 6.01 (86) 5.97 (74) 5.97 (78)
Area 2. Legal System and Property Rights 3.94 (56) 4.46 (64) 4.96 (59) 5.47 (71) 4.37 (95) 4.34 (91) 4.34 (94) 4.12 (98)
Area 3. Sound Money 4.09 (99) 6.20 (79) 5.43 (88) 5.44 (83) 5.81 (109) 5.85 (113) 5.65 (119) 5.39 (118)
Area 4. Freedom to Trade Internationally 5.33 (103) 5.39 (108) 5.58 (105) 5.59 (104)
Area 5. Regulation 5.12 (67) 5.45 (60) 5.78 (54) 5.52 (78) 5.94 (85) 6.44 (81) 6.63 (81) 6.57 (84)

Unadjusted
Summary Ratings Rank) h 4.48 (75) 5.40 (53) 5.52 (59) 5.35 (84) 5.80 (98) 5.82 (123) 5.85 (133) 5.73 (136)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.94 5.93 6.08 5.54 7.61 5.77 5.73 5.73
A. Government consumption 1.88 (33.60) 0.38 (38.72) 5.52 (21.23) 4.33 (25.26) 7.65 (14.00) 4.28 (25.45) 5.62 (20.88) 5.62 (20.90)
B. Transfers and subsidies 9.40 (2.70) 9.81 (1.20) 9.81 (1.20) 9.81 (1.20) 9.81 (1.20) 9.81 (1.20) 9.81 (1.20)
C. Government enterprises and investment 8.00 (19.90) 8.00 (17.30) 8.00 (18.00) 7.00 (24.20) 10.00 (13.30) 8.00 (19.90) 4.00 (34.62) 4.00 (39.45)
D. Top marginal tax rate 1.00 1.00 3.00 1.00 3.50 3.50
(i) Top marginal income tax rate 1.00 (60) 1.00 (60) 3.00 (50) 1.00 (56) 5.00 (40) 5.00 (40)
(ii) Top marginal income and payroll tax rate 1.00 (56) 2.00 (52-57) 2.00 (52)

Area 2. Legal System and Property Rights 3.94 4.46 4.96 5.09 4.29 4.35 4.35 4.60
A. Judicial independence 2.75
B. Impartial courts 4.63 4.78 4.70 4.70 4.81
C. Protection of property rights 6.45
D. Military interference in rule of law and politics 4.82 3.33 3.33 3.33 3.33
E. Integrity of the legal system 6.96 5.00 5.00 5.00 5.00
F. Legal enforcement of contracts 2.92 2.92 2.92
G. Regulatory restrictions on sale of real property 5.81 5.81 4.58
H. Reliability of police 4.43
I. Business costs of crime 7.13

Area 3. Sound Money 4.09 6.20 5.43 5.44 5.81 5.85 5.65 5.39
A. Money growth 8.28 (-8.59) 7.68 (11.59) 9.61 (1.96) 9.97 (0.13) 9.75 (1.27) 6.92 (15.39) 8.81 (5.93) 8.09 (9.55)
B. Standard deviation of inflation 5.43 (11.42) 7.39 (6.53) 5.17 (12.08) 1.88 (20.31) 3.60 (16.00) 6.47 (8.83) 4.09 (14.78) 3.71 (15.74)
C. Inflation: most recent year 2.64 (36.78) 9.74 (-1.28) 6.93 (15.36) 9.89 (-0.54) 9.90 (0.50) 10.00 (-0.01) 9.71 (1.46) 9.75 (1.27)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.28 4.90 5.33 5.20 5.33 5.84 6.05 6.14
A. Tariffs 3.24 4.91 6.80 5.80 6.00 6.17 6.30 6.33
(i) Revenue from trade taxes (% of trade sector) 5.13 (7.30) 5.73 (6.40) 6.80 (4.80) 5.80 (6.30)
(ii) Mean tariff rate 1.34 (43.30) 4.08 (29.60) 5.92 (20.40) 6.02 (19.90) 6.44 (17.80) 6.44 (17.80)
(iii) Standard deviation of tariff rates 6.08 (9.80) 6.33 (9.18) 6.16 (9.61) 6.23 (9.43)
B. Regulatory trade barriers 7.20 7.11 5.47
(i) Non-tariff trade barriers 3.82
(ii) Compliance costs of importing and exporting 7.20 7.11 7.11
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 0.00 0.77 2.77
(i) Foreign ownership/investment restrictions 6.79
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 1.54 1.54
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 5.16 5.49 5.78 5.52 5.94 7.27 7.49 6.80
A. Credit market regulations 3.00 4.00 5.43 4.73 5.85 7.35 7.10 7.13
(i) Ownership of banks 0.00 0.00 2.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 6.30 5.20 7.56 8.06 7.29 7.39
(iii) Interest rate controls/negative real interest rates 6.00 8.00 8.00 4.00 5.00 9.00 9.00 9.00
B. Labor market regulations 7.08 8.71 7.45
(i) Hiring regulations and minimum wage 8.30 8.33 8.33
(ii) Hiring and firing regulations 3.74
(iii) Centralized collective bargaining 6.12
(iv) Hours regulations 4.00 8.00 8.00
(v) Mandated cost of worker dismissal 6.01 8.50 8.50
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 7.39 6.67 5.82
(i) Administrative requirements 5.36
(ii) Bureaucracy costs
(iii) Starting a business 7.77 7.87 7.92
(iv) Extra payments/bribes/favoritism 4.49
(v) Licensing restrictions 7.44 7.60 6.81
(vi) Cost of tax compliance 6.95 4.53 4.53

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76 E Economic Freedom of the World: 2013 Annual Report

Gambia, The
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.86 (81) 6.98 (76)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.44 5.97
A. Government consumption 8.88 (9.80) 8.91 (9.70)
B. Transfers and subsidies
C. Government enterprises and investment 4.00 (36.97) 2.00 (42.14) 2.00 (45.09)
D. Top marginal tax rate 7.00
(i) Top marginal income tax rate 7.00 (35)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 5.80 5.83

A. Judicial independence 5.75 5.54
B. Impartial courts 5.98 6.15
C. Protection of property rights 6.82 6.44
D. Military interference in rule of law and politics 3.33 3.33
E. Integrity of the legal system 5.83 5.83
F. Legal enforcement of contracts 4.89 5.09
G. Regulatory restrictions on sale of real property 6.22 6.25
H. Reliability of police 6.44 6.58
I. Business costs of crime 6.93 7.22

Area 3. Sound Money 7.92 8.11

A. Money growth 8.91 (-5.44) 9.69 (-1.53)
B. Standard deviation of inflation 8.79 (3.04) 8.72 (3.19)
C. Inflation: most recent year 8.99 (5.05) 9.04 (4.80)
D. Freedom to own foreign currency bank accounts 5.00 5.00

Area 4. Freedom to Trade Internationally 7.67 7.70

A. Tariffs 7.09 7.10
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 7.20 (14.00) 7.18 (14.10)
(iii) Standard deviation of tariff rates 6.98 (7.56) 7.01 (7.47)
B. Regulatory trade barriers 6.52 6.48
(i) Non-tariff trade barriers 6.12 6.03
(ii) Compliance costs of importing and exporting 6.92 6.92
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 7.07 7.21
(i) Foreign ownership/investment restrictions 6.61 7.02
(ii) Capital controls 7.69 7.69
(iii) Freedom of foreigners to visit 6.92 6.92

Area 5. Regulation 7.44 7.28

A. Credit market regulations 7.91 7.29
(i) Ownership of banks 10.00 10.00
(ii) Private sector credit 4.73 3.87
(iii) Interest rate controls/negative real interest rates 9.00 8.00
B. Labor market regulations 8.10 8.11
(i) Hiring regulations and minimum wage 10.00 10.00
(ii) Hiring and firing regulations 5.66 5.65
(iii) Centralized collective bargaining 6.92 7.03
(iv) Hours regulations 6.00 6.00
(v) Mandated cost of worker dismissal 10.00 10.00
(vi) Conscription 10.00 10.00
C. Business regulations 6.32 6.43
(i) Administrative requirements 5.62 5.70
(ii) Bureaucracy costs 5.59 5.59
(iii) Starting a business 6.97 7.47
(iv) Extra payments/bribes/favoritism 5.71 5.65
(v) Licensing restrictions 8.24 8.36
(vi) Cost of tax compliance 5.79 5.79

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 Chapter 2: Country Data Tables E 77

Georgia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 7.42 (36) 7.38 (41) 7.61 (25)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.70 7.38 6.24 6.92
A. Government consumption 9.40 (8.03) 5.72 (20.56) 5.45 (21.46) 5.91 (19.90)
B. Transfers and subsidies 7.79 (8.60) 7.49 (9.71) 7.78 (8.65)
C. Government enterprises and investment 0.00 7.00 (21.00) 2.00 (42.54) 4.00 (34.62)
D. Top marginal tax rate 9.00 10.00 10.00
(i) Top marginal income tax rate 10.00 (12) 10.00 (20) 10.00 (20)
(ii) Top marginal income and payroll tax rate 8.00 (27) 10.00 (20) 10.00 (20)

Area 2. Legal System and Property Rights 5.08 5.71 5.68

A. Judicial independence 1.88 3.63 3.63
B. Impartial courts 2.38 3.78 3.69
C. Protection of property rights 4.23 3.71 3.45
D. Military interference in rule of law and politics 4.20 4.50 4.50
E. Integrity of the legal system
F. Legal enforcement of contracts 6.50 6.50 6.50
G. Regulatory restrictions on sale of real property 9.67 9.93 9.93
H. Reliability of police 5.73 6.63 6.82
I. Business costs of crime 6.04 7.02 6.92

Area 3. Sound Money 8.64 8.80 9.03

A. Money growth 6.24 (18.80) 7.01 (14.97) 8.66 (6.68) 9.89 (0.56)
B. Standard deviation of inflation 9.19 (2.02) 7.97 (5.07) 7.95 (5.14)
C. Inflation: most recent year 8.35 (8.23) 8.58 (7.10) 8.29 (8.54)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 8.20 8.50 8.52

A. Tariffs 8.51 9.16 9.11
(i) Revenue from trade taxes (% of trade sector) 9.23 (1.16) 9.17 (1.25) 9.74 (0.39) 9.72 (0.42)
(ii) Mean tariff rate 8.60 (7.00) 9.74 (1.30) 9.70 (1.50)
(iii) Standard deviation of tariff rates 7.76 (5.60) 7.99 (5.03) 7.91 (5.24)
B. Regulatory trade barriers 6.75 7.51 7.69
(i) Non-tariff trade barriers 5.22 6.50 6.59
(ii) Compliance costs of importing and exporting 8.28 8.51 8.79
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 7.54 7.34 7.27
(i) Foreign ownership/investment restrictions 5.81 5.84 5.62
(ii) Capital controls 8.33 7.69 7.69
(iii) Freedom of foreigners to visit 8.49 8.49 8.49

Area 5. Regulation 7.81 7.62 7.89

A. Credit market regulations 9.67 8.18 9.04
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 9.11 10.00 5.53 9.13
(iii) Interest rate controls/negative real interest rates 10.00 9.00 9.00 8.00
B. Labor market regulations 7.62 7.41 7.03
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 6.78 6.74 6.68
(iii) Centralized collective bargaining 8.31 7.46 7.27
(iv) Hours regulations 8.00 10.00 8.00
(v) Mandated cost of worker dismissal 9.63 9.25 9.25
(vi) Conscription 3.00 1.00 1.00
C. Business regulations 6.13 7.28 7.59
(i) Administrative requirements 4.74 5.89 5.92
(ii) Bureaucracy costs 3.22 6.13 6.13
(iii) Starting a business 9.36 9.89 9.90
(iv) Extra payments/bribes/favoritism 5.00 6.44 7.07
(v) Licensing restrictions 8.79 9.68 9.68
(vi) Cost of tax compliance 5.66 5.66 6.86

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78 E Economic Freedom of the World: 2013 Annual Report

Germany
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 7.16 (9) 7.25 (9) 7.65 (9) 7.63 (15) 7.67 (18) 7.76 (18) 7.58 (27) 7.69 (20)
Area 1. Size of Government 4.34 (73) 4.26 (78) 5.15 (70) 4.36 (98) 3.96 (109) 5.74 (90) 5.46 (90) 5.58 (90)
Area 2. Legal System and Property Rights 7.70 (12) 7.48 (14) 8.35 (5) 9.13 (5) 9.14 (10) 9.14 (5) 8.28 (18) 8.30 (17)
Area 3. Sound Money 9.43 (3) 9.47 (6) 9.67 (8) 9.76 (4) 9.55 (16) 9.53 (20) 9.59 (18) 9.56 (16)
Area 4. Freedom to Trade Internationally 8.50 (11) 9.17 (4) 9.18 (6) 9.25 (7) 9.39 (7) 8.20 (20) 7.86 (35) 7.84 (33)
Area 5. Regulation 5.93 (38) 5.93 (43) 5.97 (47) 5.67 (69) 6.33 (60) 6.24 (90) 6.70 (75) 7.17 (44)

Unadjusted
Summary Ratings Rank) h 7.18 (11) 7.27 (11) 7.64 (11) 7.60 (16) 7.67 (18) 7.75 (17) 7.57 (24) 7.68 (19)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.34 4.26 5.15 4.36 3.96 5.74 5.46 5.58
A. Government consumption 4.03 (26.30) 4.09 (26.10) 4.35 (25.20) 4.19 (25.75) 4.55 (24.52) 4.67 (24.11) 4.24 (25.57) 4.38 (25.10)
B. Transfers and subsidies 5.34 (17.60) 4.96 (19.00) 5.26 (17.90) 4.25 (21.60) 2.29 (28.81) 2.29 (28.78) 2.59 (27.71) 2.92 (26.48)
C. Government enterprises and investment 6.00 (25.70) 7.00 (24.40) 7.00 (24.00) 6.00 (25.50) 6.00 (25.50) 10.00 (7.75) 10.00 (9.61) 10.00 (9.08)
D. Top marginal tax rate 2.00 1.00 4.00 3.00 3.00 6.00 5.00 5.00
(i) Top marginal income tax rate 2.00 (65) 1.00 (65) 4.00 (53) 3.00 (57) 3.00 (56) 6.00 (44) 5.00 (47) 5.00 (47)
(ii) Top marginal income and payroll tax rate 4.00 (53) 3.00 (57) 3.00 (56) 6.00 (44) 5.00 (47) 5.00 (47)

Area 2. Legal System and Property Rights 7.70 7.48 8.35 9.13 9.14 8.80 7.97 7.99
A. Judicial independence 9.27 9.35 9.18 8.89 8.74
B. Impartial courts 8.60 9.19 8.95 6.61 6.62
C. Protection of property rights 7.99 8.84 9.61 7.88 8.05
D. Military interference in rule of law and politics 9.81 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 6.62 6.62 6.62
G. Regulatory restrictions on sale of real property 7.86 7.53 7.37
H. Reliability of police 9.22 8.15 8.19
I. Business costs of crime 9.38 7.72 7.99

Area 3. Sound Money 9.43 9.47 9.67 9.76 9.55 9.53 9.59 9.56
A. Money growth 9.18 (4.10) 8.80 (6.01) 9.68 (1.60) 9.90 (0.48) 8.77 (6.13) 8.64 (6.81) 8.86 (5.69) 8.87 (5.65)
B. Standard deviation of inflation 9.64 (0.89) 9.52 (1.20) 9.52 (1.20) 9.54 (1.16) 9.71 (0.72) 9.88 (0.31) 9.73 (0.67) 9.79 (0.52)
C. Inflation: most recent year 8.90 (5.50) 9.56 (2.18) 9.46 (2.70) 9.58 (2.10) 9.71 (1.47) 9.61 (1.95) 9.77 (1.14) 9.58 (2.08)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 8.98 9.69 9.48 9.14 9.39 8.25 7.90 7.88
A. Tariffs 8.95 9.08 8.44 8.66 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.67 (0.50) 9.67 (0.50) 9.67 (0.50) 9.67 (0.50) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 8.28 8.89 8.39 7.68 7.63
(i) Non-tariff trade barriers 8.28 8.45 7.65 6.21 6.11
(ii) Compliance costs of importing and exporting 9.33 9.14 9.14 9.14
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 8.00 10.00 10.00 9.61 9.48 6.21 5.60 5.63
(i) Foreign ownership/investment restrictions 9.23 9.72 8.22 6.39 6.47
(ii) Capital controls 8.00 10.00 10.00 10.00 9.23 3.85 3.85 3.85
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 5.45 5.45 5.56 5.63 6.33 6.44 6.91 7.40
A. Credit market regulations 7.61 7.58 7.65 6.98 8.33 7.99 7.88 8.28
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 7.83 7.74 7.94 5.93 10.00 8.96 8.63 9.83
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.29 3.32 3.48 3.56 2.85 3.94 5.40 6.34
(i) Hiring regulations and minimum wage 3.38 4.63 6.70 6.67 6.67
(ii) Hiring and firing regulations 3.94 3.94 1.82 2.42 3.01 3.49
(iii) Centralized collective bargaining 4.49 4.49 4.49 4.49 2.32 3.20 3.45 3.60
(iv) Hours regulations 4.40 4.49 4.49 2.97 2.51 4.70 8.00 8.00
(v) Mandated cost of worker dismissal 3.60 6.26 6.26
(vi) Conscription 1.00 1.00 1.00 3.00 3.00 3.00 5.00 10.00
C. Business regulations 6.37 7.79 7.39 7.46 7.58
(i) Administrative requirements 8.18 3.43 3.42 3.97
(ii) Bureaucracy costs 6.47 8.53 5.80 7.31 7.31
(iii) Starting a business 4.97 6.40 9.03 9.47 9.47
(iv) Extra payments/bribes/favoritism 7.68 8.04 9.10 7.78 7.78
(v) Licensing restrictions 9.17 9.25 9.25
(vi) Cost of tax compliance 7.80 7.52 7.68

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 Chapter 2: Country Data Tables E 79

Ghana
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.05 (101) 3.20 (105) 5.06 (77) 5.53 (81) 5.66 (101) 6.49 (76) 6.89 (65) 6.83 (68)
Area 1. Size of Government 5.42 (39) 5.13 (52) 4.82 (80) 5.61 (77) 6.09 (66) 6.49 (68) 7.28 (33) 7.34 (33)
Area 2. Legal System and Property Rights 2.76 (71) 2.69 (96) 5.79 (44) 6.18 (50) 4.59 (88) 4.85 (80) 5.74 (68) 5.67 (66)
Area 3. Sound Money 1.60 (105) 2.38 (107) 4.58 (95) 4.13 (100) 5.82 (108) 7.38 (82) 7.13 (88) 7.15 (89)
Area 4. Freedom to Trade Internationally 0.00 (91) 0.68 (95) 4.41 (66) 5.23 (93) 6.03 (85) 6.70 (75) 7.45 (49) 7.27 (50)
Area 5. Regulation 4.77 (78) 5.06 (71) 5.65 (60) 6.50 (38) 5.80 (91) 7.09 (46) 7.04 (49) 6.94 (59)

Unadjusted
Summary Ratings Rank) h 2.89 (103) 3.16 (106) 4.95 (81) 5.31 (88) 5.64 (101) 6.42 (93) 6.77 (87) 6.71 (90)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.70 5.40 4.82 5.61 6.09 6.49 7.28 7.34
A. Government consumption 8.31 (11.74) 8.80 (10.07) 8.87 (9.85) 7.72 (13.77) 7.12 (15.80) 7.09 (15.90) 8.48 (11.16) 8.71 (10.40)
B. Transfers and subsidies 9.48 (2.40) 9.78 (1.30) 9.43 (2.60) 9.24 (3.30) 9.24 (3.30) 9.87 (0.98) 9.65 (1.78) 9.64 (1.83)
C. Government enterprises and investment 4.00 (35.40) 2.00 (43.60) 0.00 (51.90) 0.00 (66.50) 2.00 (45.00) 2.00 (40.10) 4.00 (32.89) 4.00 (33.67)
D. Top marginal tax rate 1.00 1.00 1.00 5.50 6.00 7.00 7.00 7.00
(i) Top marginal income tax rate 1.00 (60) 1.00 (60) 2.00 (55) 7.00 (35) 8.00 (30) 9.00 (25) 9.00 (25) 9.00 (25)
(ii) Top marginal income and payroll tax rate 0.00 (62) 4.00 (45) 4.00 (41) 5.00 (37) 5.00 (37) 5.00 (37)

Area 2. Legal System and Property Rights 2.76 2.69 5.79 5.60 4.45 4.88 5.58 5.51
A. Judicial independence 5.12 5.08
B. Impartial courts 5.54 5.42 5.20 4.99 4.63
C. Protection of property rights 5.03 4.77
D. Military interference in rule of law and politics 6.04 5.00 4.44 5.00 5.00
E. Integrity of the legal system 6.96 3.33 3.61 4.17 4.17
F. Legal enforcement of contracts 4.91 5.40 5.40
G. Regulatory restrictions on sale of real property 6.25 9.13 8.96
H. Reliability of police 5.83 5.92
I. Business costs of crime 5.57 5.68

Area 3. Sound Money 1.60 2.38 4.58 4.13 5.82 7.38 7.13 7.15
A. Money growth 3.23 (33.84) 3.64 (31.78) 4.46 (27.69) 4.51 (27.44) 7.46 (12.72) 6.06 (19.71) 6.15 (19.24) 6.13 (19.33)
B. Standard deviation of inflation 3.17 (17.07) 0.00 (38.34) 8.00 (4.99) 5.65 (10.88) 5.85 (10.37) 6.47 (8.83) 9.50 (1.24) 9.20 (1.99)
C. Inflation: most recent year 0.00 (51.13) 5.87 (20.65) 5.87 (20.66) 1.37 (43.17) 4.96 (25.19) 6.98 (15.12) 7.86 (10.71) 8.25 (8.73)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 10.00 5.00 5.00

Area 4. Freedom to Trade Internationally 0.00 0.67 4.33 5.23 6.03 5.80 6.95 6.79
A. Tariffs 0.00 2.00 4.38 6.09 6.54 5.48 7.15 7.29
(i) Revenue from trade taxes (% of trade sector) 0.00 (17.30) 0.00 (21.70) 2.27 (11.60) 4.60 (8.10) 6.93 (4.60) 6.86 (4.71) 6.86 (4.71) 7.29 (4.07)
(ii) Mean tariff rate 4.00 (30.00) 6.50 (17.50) 7.00 (15.00) 6.96 (15.20) 7.36 (13.20) 7.40 (13.00) 7.40 (13.00)
(iii) Standard deviation of tariff rates 6.68 (8.30) 5.72 (10.70) 2.23 (19.43) 7.19 (7.02) 7.19 (7.02)
B. Regulatory trade barriers 5.78 6.64 5.88
(i) Non-tariff trade barriers 6.52 5.30
(ii) Compliance costs of importing and exporting 5.78 6.76 6.45
C. Black-market exchange rates 0.00 0.00 8.60 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 1.54 1.95 4.02 3.99
(i) Foreign ownership/investment restrictions 6.62 6.54
(ii) Capital controls 0.00 0.00 0.00 0.00 1.54 2.31 3.85 3.85
(iii) Freedom of foreigners to visit 1.59 1.59 1.59

Area 5. Regulation 4.40 4.67 5.21 5.99 5.80 7.56 6.88 6.78
A. Credit market regulations 1.76 2.48 3.93 6.00 4.93 9.09 8.17 7.84
(i) Ownership of banks 2.00 2.00 2.00 5.00 5.00 8.00 8.00 8.00
(ii) Private sector credit 3.29 5.45 7.79 8.99 4.85 9.27 6.50 5.53
(iii) Interest rate controls/negative real interest rates 0.00 0.00 2.00 4.00 10.00 10.00 10.00
B. Labor market regulations 7.00 6.52 6.64
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 5.28 5.91
(iii) Centralized collective bargaining 5.83 5.92
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 0.00 0.00 0.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 6.60 5.96 5.86
(i) Administrative requirements 4.32 4.04
(ii) Bureaucracy costs 4.21 4.21
(iii) Starting a business 6.81 9.42 9.41
(iv) Extra payments/bribes/favoritism 3.98 3.53
(v) Licensing restrictions 6.41 6.35 6.49
(vi) Cost of tax compliance 6.59 7.49 7.49

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80 E Economic Freedom of the World: 2013 Annual Report

Greece
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.76 (33) 5.14 (58) 5.99 (44) 6.44 (52) 6.91 (48) 7.31 (44) 6.88 (66) 6.77 (71)
Area 1. Size of Government 5.76 (29) 3.74 (90) 4.81 (81) 5.23 (86) 4.95 (92) 6.77 (55) 6.51 (55) 6.23 (68)
Area 2. Legal System and Property Rights 5.57 (38) 5.61 (46) 6.76 (27) 6.69 (39) 5.70 (65) 7.03 (40) 5.75 (66) 5.57 (70)
Area 3. Sound Money 7.12 (29) 6.96 (38) 6.89 (53) 7.34 (48) 9.32 (29) 9.56 (16) 9.67 (9) 9.60 (12)
Area 4. Freedom to Trade Internationally 6.13 (31) 5.26 (46) 6.72 (36) 8.03 (29) 9.05 (14) 7.64 (45) 7.46 (48) 7.45 (47)
Area 5. Regulation 4.11 (88) 4.05 (91) 4.68 (90) 4.85 (96) 5.51 (99) 5.60 (104) 5.06 (117) 5.05 (116)

Unadjusted
Summary Ratings Rank) h 5.72 (36) 5.10 (62) 5.95 (43) 6.37 (54) 6.91 (45) 7.37 (41) 6.94 (74) 6.83 (85)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.76 3.74 4.81 5.23 4.95 6.77 6.51 6.23
A. Government consumption 7.44 (14.69) 6.63 (17.46) 6.69 (17.25) 6.95 (16.38) 6.57 (17.67) 6.71 (17.17) 6.00 (19.61) 6.21 (18.90)
B. Transfers and subsidies 8.59 (5.69) 5.31 (17.70) 4.55 (20.50) 4.96 (19.00) 5.23 (18.00) 5.35 (17.55) 4.05 (22.33) 3.70 (23.63)
C. Government enterprises and investment 4.00 (32.00) 2.00 (41.00) 4.00 (37.50) 4.00 (35.80) 4.00 (35.80) 10.00 (13.64) 10.00 (12.84) 10.00 (10.81)
D. Top marginal tax rate 3.00 1.00 4.00 5.00 4.00 5.00 6.00 5.00
(i) Top marginal income tax rate 3.00 (60) 1.00 (63) 4.00 (50) 5.00 (45) 5.00 (42) 5.00 (40) 6.00 (40) 5.00 (49)
(ii) Top marginal income and payroll tax rate 4.00 (50) 5.00 (45) 3.00 (50) 5.00 (40) 6.00 (40) 5.00 (49)

Area 2. Legal System and Property Rights 5.57 5.61 6.76 6.69 5.70 6.74 5.51 5.34
A. Judicial independence 5.45 6.35 5.63 3.89 3.43
B. Impartial courts 5.70 5.68 5.45 2.98 2.60
C. Protection of property rights 5.44 4.83 7.24 5.77 5.29
D. Military interference in rule of law and politics 6.86 6.67 7.64 8.33 8.33
E. Integrity of the legal system 10.00 5.00 7.50 7.50 7.50
F. Legal enforcement of contracts 4.13 4.13 4.13
G. Regulatory restrictions on sale of real property 8.27 5.72 5.78
H. Reliability of police 6.69 5.03 4.87
I. Business costs of crime 8.12 6.26 6.12

Area 3. Sound Money 7.12 6.96 6.89 7.34 9.32 9.56 9.67 9.60
A. Money growth 7.94 (10.30) 7.39 (13.06) 7.05 (14.74) 7.67 (11.66) 8.70 (6.52) 9.10 (4.49) 9.99 (-0.07) 9.48 (-2.61)
B. Standard deviation of inflation 9.06 (2.35) 9.00 (2.51) 9.05 (2.37) 8.47 (3.82) 9.21 (1.97) 9.85 (0.37) 9.62 (0.96) 9.59 (1.03)
C. Inflation: most recent year 6.46 (17.69) 6.47 (17.67) 6.47 (17.67) 8.22 (8.88) 9.37 (3.17) 9.29 (3.56) 9.06 (4.71) 9.33 (3.33)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00 5.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.22 5.34 6.60 7.86 9.05 7.76 7.58 7.56
A. Tariffs 8.05 9.02 8.41 8.68 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 7.87 (3.20) 9.53 (0.70) 9.60 (0.60) 9.73 (0.40) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 6.25 8.73 7.01 6.87 6.96
(i) Non-tariff trade barriers 6.25 7.95 7.10 6.82 6.28
(ii) Compliance costs of importing and exporting 9.50 6.93 6.93 7.63
C. Black-market exchange rates 8.60 5.00 9.40 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 6.52 8.30 5.64 5.10 5.02
(i) Foreign ownership/investment restrictions 8.03 8.91 6.49 4.89 4.63
(ii) Capital controls 2.00 2.00 2.00 5.00 7.69 3.85 3.85 3.85
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 3.93 3.87 4.66 4.73 5.51 6.01 5.43 5.43
A. Credit market regulations 4.24 4.13 5.63 5.97 7.36 7.89 6.00 6.00
(i) Ownership of banks 2.00 2.00 5.00 5.00 5.00 8.00 8.00 8.00
(ii) Private sector credit 4.73 4.38 3.90 4.90 7.08 5.68 0.00 0.00
(iii) Interest rate controls/negative real interest rates 6.00 6.00 8.00 8.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.61 3.61 3.69 3.99 3.38 4.01 4.52 4.29
(i) Hiring regulations and minimum wage 5.23 4.07 5.60 5.57 5.57
(ii) Hiring and firing regulations 4.81 4.81 2.33 2.93 3.27 3.89
(iii) Centralized collective bargaining 4.49 4.49 4.49 4.49 4.17 3.48 3.51 3.79
(iv) Hours regulations 6.33 6.33 5.45 5.45 6.35 3.30 4.00 4.00
(v) Mandated cost of worker dismissal 7.78 7.76 5.51
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 1.00 3.00 3.00
C. Business regulations 4.23 5.78 6.13 5.78 5.99
(i) Administrative requirements 6.98 2.79 2.24 2.03
(ii) Bureaucracy costs 4.79 6.40 4.51 3.65 3.65
(iii) Starting a business 4.20 4.08 8.20 9.39 9.35
(iv) Extra payments/bribes/favoritism 3.71 5.65 6.22 3.77 3.73
(v) Licensing restrictions 8.04 8.16 9.42
(vi) Cost of tax compliance 7.04 7.49 7.74

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 Chapter 2: Country Data Tables E 81

Guatemala
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.87 (30) 4.68 (79) 5.62 (52) 6.96 (37) 6.57 (64) 7.15 (51) 7.13 (51) 7.14 (57)
Area 1. Size of Government 7.49 (9) 6.85 (8) 8.07 (6) 9.12 (3) 8.53 (5) 8.08 (18) 8.00 (16) 8.00 (16)
Area 2. Legal System and Property Rights 2.30 (78) 1.81 (107) 2.21 (104) 4.50 (99) 3.16 (116) 4.61 (84) 3.87 (102) 4.07 (101)
Area 3. Sound Money 8.95 (10) 8.02 (28) 6.83 (54) 8.08 (40) 7.64 (66) 9.17 (39) 9.37 (32) 9.30 (37)
Area 4. Freedom to Trade Internationally 4.25 (51) 1.94 (81) 5.57 (50) 7.30 (49) 7.38 (57) 7.12 (62) 7.59 (46) 7.59 (45)
Area 5. Regulation 7.05 (10) 5.75 (46) 5.60 (64) 5.77 (63) 6.15 (73) 6.57 (77) 6.60 (83) 6.53 (86)

Unadjusted
Summary Ratings Rank) h 6.33 (22) 5.05 (65) 5.86 (48) 7.21 (26) 6.63 (60) 7.22 (50) 7.20 (54) 7.21 (56)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 7.72 7.07 8.07 9.12 8.53 8.08 8.00 8.00
A. Government consumption 9.07 (9.16) 9.48 (7.77) 9.62 (7.30) 9.99 (6.05) 9.66 (7.14) 9.17 (8.81) 8.61 (10.73) 8.59 (10.80)
B. Transfers and subsidies 9.81 (1.20) 9.78 (1.30) 9.65 (1.80) 10.00 (0.50) 9.47 (2.46) 9.65 (1.79) 9.88 (0.93) 9.90 (0.88)
C. Government enterprises and investment 4.00 (37.40) 4.00 (32.10) 7.00 (21.00) 8.00 (17.30) 8.00 (16.43) 8.00 (15.07) 8.00 (15.41) 8.00 (18.91)
D. Top marginal tax rate 8.00 5.00 6.00 8.50 7.00 5.50 5.50 5.50
(i) Top marginal income tax rate 8.00 (40) 5.00 (48) 7.00 (34) 9.00 (25) 7.00 (31) 7.00 (31) 7.00 (31) 7.00 (31)
(ii) Top marginal income and payroll tax rate 5.00 (37) 8.00 (28) 7.00 (34) 4.00 (42) 4.00 (42) 4.00 (42)

Area 2. Legal System and Property Rights 2.54 1.99 2.44 4.72 3.42 4.68 3.93 4.13
A. Judicial independence 3.80 2.75 3.10
B. Impartial courts 3.60 3.79 3.82 3.13 3.57
C. Protection of property rights 2.18 5.30 4.31 4.54
D. Military interference in rule of law and politics 4.31 3.33 8.33 6.67 6.67
E. Integrity of the legal system 6.96 3.33 3.89 2.50 2.50
F. Legal enforcement of contracts 3.39 3.39 3.39
G. Regulatory restrictions on sale of real property 8.94 9.27 9.30
H. Reliability of police 2.94 2.14 2.69
I. Business costs of crime 1.67 1.18 1.43

Area 3. Sound Money 8.95 8.02 6.83 8.08 7.64 9.17 9.37 9.30
A. Money growth 9.26 (3.72) 7.97 (10.14) 7.15 (14.24) 7.69 (11.54) 7.47 (12.64) 8.64 (6.82) 9.14 (4.28) 9.31 (3.45)
B. Standard deviation of inflation 8.56 (3.61) 7.88 (5.31) 3.94 (15.15) 6.37 (9.07) 9.28 (1.79) 9.73 (0.68) 9.11 (2.23) 9.12 (2.20)
C. Inflation: most recent year 8.00 (10.00) 6.24 (18.78) 6.24 (18.78) 8.27 (8.67) 8.80 (5.98) 8.32 (8.42) 9.23 (3.86) 8.76 (6.22)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.47 2.50 6.44 8.45 7.38 7.67 8.17 8.17
A. Tariffs 3.40 2.50 4.33 7.36 7.93 6.74 8.54 8.56
(i) Revenue from trade taxes (% of trade sector) 6.80 (4.80) 5.00 (7.50) 7.60 (3.60) 7.07 (4.40) 8.36 (2.46) 8.19 (2.71) 9.17 (1.25) 9.23 (1.16)
(ii) Mean tariff rate 0.00 (50.00) 0.00 (50.00) 5.40 (23.00) 7.96 (10.20) 8.56 (7.20) 9.46 (2.70) 8.88 (5.60) 8.90 (5.50)
(iii) Standard deviation of tariff rates 0.00 (26.70) 7.04 (7.40) 6.88 (7.80) 2.57 (18.57) 7.58 (6.05) 7.56 (6.11)
B. Regulatory trade barriers 4.13 6.11 6.65 6.63
(i) Non-tariff trade barriers 4.13 5.56 5.62 5.57
(ii) Compliance costs of importing and exporting 6.66 7.68 7.68
C. Black-market exchange rates 8.00 0.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 5.00 8.00 7.46 7.82 7.49 7.51
(i) Foreign ownership/investment restrictions 7.23 6.84 5.84 5.90
(ii) Capital controls 5.00 5.00 5.00 8.00 7.69 8.46 8.46 8.46
(iii) Freedom of foreigners to visit 8.16 8.16 8.16

Area 5. Regulation 6.95 5.67 5.52 5.69 6.15 6.50 6.52 6.46
A. Credit market regulations 8.53 8.46 8.07 8.53 8.52 9.30 9.14 8.79
(i) Ownership of banks 8.00 8.00 8.00 8.00 8.00 10.00 10.00 10.00
(ii) Private sector credit 9.58 9.38 8.22 9.58 8.56 8.91 7.43 7.38
(iii) Interest rate controls/negative real interest rates 8.00 8.00 8.00 8.00 9.00 9.00 10.00 9.00
B. Labor market regulations 4.77 4.66 4.68 4.73
(i) Hiring regulations and minimum wage 4.62 5.60 5.57 5.57
(ii) Hiring and firing regulations 5.25 5.91 5.18 5.28
(iii) Centralized collective bargaining 6.22 6.84 7.06 7.26
(iv) Hours regulations 6.00 6.00 6.00
(v) Mandated cost of worker dismissal 0.64 1.27 1.27
(vi) Conscription 10.00 0.00 0.00 0.00 3.00 3.00 3.00 3.00
C. Business regulations 5.17 5.54 5.74 5.84
(i) Administrative requirements 6.10 3.86 4.33 4.32
(ii) Bureaucracy costs 4.53 4.64 4.37 4.37
(iii) Starting a business 5.12 8.41 8.19 8.15
(iv) Extra payments/bribes/favoritism 4.94 6.00 4.18 4.50
(v) Licensing restrictions 4.16 7.25 7.44
(vi) Cost of tax compliance 6.14 6.14 6.28

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82 E Economic Freedom of the World: 2013 Annual Report

Guinea-Bissau
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.24 (108) 3.45 (121) 4.43 (120) 5.20 (116) 5.68 (113) 5.75 (109)
Area 1. Size of Government 4.32 (89) 4.95 (89) 4.56 (103) 2.87 (123) 4.46 (111) 4.42 (113)
Area 2. Legal System and Property Rights 1.99 (105) 2.93 (95) 1.94 (117) 2.63 (119) 3.47 (106) 3.11 (114) 3.12 (112)
Area 3. Sound Money 4.07 (100) 1.47 (108) 0.88 (114) 1.82 (115) 3.26 (117) 6.59 (100) 6.26 (113) 6.09 (115)
Area 4. Freedom to Trade Internationally 5.87 (90) 6.41 (82) 6.23 (89) 6.23 (88)
Area 5. Regulation 3.77 (102) 3.97 (115) 5.83 (90) 6.76 (65) 8.68 (3) 9.36 (1)

Unadjusted
Summary Ratings Rank) h 2.98 (110) 3.32 (121) 4.51 (120) 4.86 (134) 5.25 (147) 5.68 (138)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.32 4.95 4.56 2.87 4.46 6.28
A. Government consumption 7.46 (14.64) 8.65 (10.59) 9.90 (6.33) 9.11 (9.02) 5.74 (20.48) 8.93 (9.64) 8.84 (9.93)
B. Transfers and subsidies
C. Government enterprises and investment 0.00 (91.40) 0.00 (67.60) 0.00 (88.30) 0.00 (54.56) 0.00 (55.61) 0.00 (55.61)
D. Top marginal tax rate 10.00
(i) Top marginal income tax rate 10.00 (20)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 1.99 2.93 2.54 3.04 3.17 2.85 2.85
A. Judicial independence
B. Impartial courts 2.70 2.90 3.20 3.20 3.20
C. Protection of property rights
D. Military interference in rule of law and politics 3.11 3.33 2.50 0.83 0.83
E. Integrity of the legal system 0.00 1.67 5.00 4.17 4.17
F. Legal enforcement of contracts 3.48 3.48 3.48
G. Regulatory restrictions on sale of real property 1.67 2.55 2.58
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 5.43 1.96 0.88 1.82 3.26 6.59 6.26 6.09
A. Money growth 0.00 (105.63) 2.67 (36.64) 1.65 (41.76) 9.11 (-4.45) 7.40 (13.00) 6.62 (16.92)
B. Standard deviation of inflation 8.61 (3.48) 2.33 (19.18) 0.00 (28.57) 3.58 (16.06) 3.10 (17.24) 7.93 (5.17) 8.16 (4.60) 8.77 (3.09)
C. Inflation: most recent year 7.67 (11.63) 3.54 (32.31) 3.54 (32.31) 1.05 (44.74) 8.27 (8.64) 9.33 (3.33) 9.50 (2.52) 8.99 (5.05)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 3.01 5.87 6.35 6.18 6.18

A. Tariffs 4.84 7.60 8.44 7.45 7.45
(i) Revenue from trade taxes (% of trade sector) 4.84 (7.74)
(ii) Mean tariff rate 7.60 (12.00) 7.22 (13.90) 7.62 (11.90) 7.62 (11.90)
(iii) Standard deviation of tariff rates 9.66 (0.84) 7.29 (6.78) 7.29 (6.78)
B. Regulatory trade barriers 6.57 6.86 6.86
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting 6.57 6.86 6.86
C. Black-market exchange rates 4.20 8.20 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 5.00 5.00 0.00 0.38 0.38 0.38
(i) Foreign ownership/investment restrictions
(ii) Capital controls 0.00 0.00 5.00 5.00 0.00 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 3.77 3.97 5.83 5.32 6.49 7.00

A. Credit market regulations 3.87 4.46 10.00 9.08 8.74 9.98
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 7.75 8.92 10.00 7.23 7.49 9.96
(iii) Interest rate controls/negative real interest rates 0.00 0.00 10.00 10.00
B. Labor market regulations 3.13 3.46 3.46
(i) Hiring regulations and minimum wage 3.30 3.33 3.33
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations 7.30 8.00 8.00
(v) Mandated cost of worker dismissal 1.93 2.52 2.52
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 3.76 7.28 7.56
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business 0.00 7.88 8.16
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions 3.62 6.28 6.84
(vi) Cost of tax compliance 7.67 7.67 7.67

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 Chapter 2: Country Data Tables E 83

Guyana
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.20 (92) 6.72 (57) 6.36 (85) 6.75 (71) 6.85 (66)
Area 1. Size of Government 3.08 (99) 4.04 (94) 4.38 (97) 3.85 (112) 3.79 (119) 4.28 (114) 5.00 (103)
Area 2. Legal System and Property Rights 2.23 (81) 2.11 (104) 3.41 (86) 5.07 (82) 7.48 (34) 5.36 (74) 6.09 (56) 6.08 (57)
Area 3. Sound Money 5.82 (72) 5.24 (92) 2.19 (110) 4.94 (94) 7.87 (63) 7.72 (75) 7.96 (80) 7.69 (80)
Area 4. Freedom to Trade Internationally 7.51 (54) 7.85 (36) 7.90 (34) 7.91 (32)
Area 5. Regulation 5.79 (62) 6.91 (39) 7.16 (42) 7.65 (18) 7.71 (19)

Unadjusted
Summary Ratings Rank) h 3.29 (104) 4.98 (97) 6.53 (63) 5.88 (117) 6.24 (118) 6.34 (111)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.48 4.04 4.38 3.85 3.79 4.28 5.00
A. Government consumption 2.82 (30.41) 4.96 (23.14) 7.11 (15.83) 5.64 (20.81) 5.54 (21.15) 3.87 (26.83) 7.34 (15.04) 7.50 (14.50)
B. Transfers and subsidies
C. Government enterprises and investment 2.00 (49.30) 2.00 (47.90) 2.00 (48.90) 0.00 (58.07) 2.00 (41.15) 0.00 (53.56) 2.00 (48.86)
D. Top marginal tax rate 3.00 5.50 6.00 5.50 5.50 5.50
(i) Top marginal income tax rate 3.00 (50) 7.00 (33) 7.00 (33) 7.00 (33) 7.00 (33) 7.00 (33)
(ii) Top marginal income and payroll tax rate 3.00 (50) 4.00 (41) 5.00 (39) 4.00 (41) 4.00 (41) 4.00 (44)

Area 2. Legal System and Property Rights 2.23 2.11 3.41 4.80 6.54 3.91 4.44 4.43
A. Judicial independence 3.01 3.77 3.65
B. Impartial courts 5.31 5.79 2.40 3.75 3.90
C. Protection of property rights 3.95 4.42 4.37
D. Military interference in rule of law and politics 5.79 10.00 6.67 6.67 6.67
E. Integrity of the legal system 4.11 6.67 4.17 2.50 2.50
F. Legal enforcement of contracts 4.55 4.55 4.55
G. Regulatory restrictions on sale of real property 7.85 7.07 7.07
H. Reliability of police 1.47 3.69 3.07
I. Business costs of crime 1.11 3.54 4.10

Area 3. Sound Money 5.82 5.24 2.19 4.94 7.87 7.72 7.96 7.69
A. Money growth 8.55 (7.26) 6.21 (18.95) 1.87 (40.67) 6.98 (15.12) 9.25 (3.74) 8.47 (7.64) 8.44 (7.79) 8.43 (7.86)
B. Standard deviation of inflation 7.07 (7.32) 7.66 (5.86) 0.00 (53.12) 0.00 (48.31) 8.47 (3.83) 8.80 (3.01) 8.81 (2.97) 8.33 (4.18)
C. Inflation: most recent year 7.64 (11.78) 7.10 (14.51) 6.90 (15.51) 7.77 (11.17) 8.77 (6.15) 8.61 (6.93) 9.58 (2.09) 9.00 (4.98)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 2.93 2.34 7.51 6.97 7.02 7.02
A. Tariffs 8.80 7.01 6.60 6.49 6.47 6.55
(i) Revenue from trade taxes (% of trade sector) 8.80 (1.80) 7.41 (3.88)
(ii) Mean tariff rate 6.60 (17.00) 6.60 (17.00) 7.78 (11.10) 7.82 (10.90) 7.80 (11.00)
(iii) Standard deviation of tariff rates 5.20 (11.99) 5.12 (12.21) 5.29 (11.77)
B. Regulatory trade barriers 6.38 6.35 6.25
(i) Non-tariff trade barriers 5.99 5.49 5.29
(ii) Compliance costs of importing and exporting 6.78 7.20 7.20
C. Black-market exchange rates 0.00 0.00 8.20 9.20 9.00 9.49 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 5.00 5.00 6.92 5.50 5.26 5.29
(i) Foreign ownership/investment restrictions 5.85 5.36 5.46
(ii) Capital controls 0.00 0.00 5.00 5.00 6.92 6.92 6.67 6.67
(iii) Freedom of foreigners to visit 3.74 3.74 3.74

Area 5. Regulation 5.79 6.91 7.02 7.49 7.55

A. Credit market regulations 3.02 2.38 4.61 4.90 8.21 8.21 8.43 8.47
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 3.02 2.38 4.61 5.80 7.42 5.62 6.29 6.42
(iii) Interest rate controls/negative real interest rates 4.00 9.00 9.00 9.00 9.00
B. Labor market regulations 7.12 8.13 8.24
(i) Hiring regulations and minimum wage 6.70 10.00 10.00
(ii) Hiring and firing regulations 6.00 6.31 6.58
(iii) Centralized collective bargaining 6.50 6.79 7.19
(iv) Hours regulations 8.70 10.00 10.00
(v) Mandated cost of worker dismissal 4.81 5.68 5.68
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.73 5.92 5.94
(i) Administrative requirements 2.54 4.29 4.57
(ii) Bureaucracy costs 5.21 3.89 3.89
(iii) Starting a business 7.47 9.01 9.21
(iv) Extra payments/bribes/favoritism 4.26 3.54 3.20
(v) Licensing restrictions 8.11 7.71 7.71
(vi) Cost of tax compliance 6.77 7.05 7.05

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84 E Economic Freedom of the World: 2013 Annual Report

Haiti
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.51 (18) 5.76 (40) 5.61 (53) 5.59 (78) 6.89 (50) 6.77 (70) 6.70 (73) 6.82 (69)
Area 1. Size of Government 9.13 (4) 5.66 (35) 6.37 (34) 6.49 (43) 8.34 (9) 9.20 (2) 8.77 (5) 8.98 (3)
Area 2. Legal System and Property Rights 2.23 (82) 2.93 (94) 1.95 (108) 3.88 (106) 3.78 (103) 2.46 (119) 2.04 (121) 2.07 (120)
Area 3. Sound Money 7.70 (24) 8.92 (17) 8.46 (26) 6.34 (68) 8.37 (49) 7.99 (69) 8.03 (75) 8.01 (75)
Area 4. Freedom to Trade Internationally 6.67 (75) 7.33 (53) 7.80 (39) 7.83 (34)
Area 5. Regulation 5.82 (51) 5.83 (60) 7.32 (22) 6.74 (67) 6.79 (66) 7.16 (47)

Unadjusted
Summary Ratings Rank) h 5.38 (50) 5.01 (67) 4.99 (79) 5.50 (79) 6.91 (45) 6.72 (76) 6.44 (108) 6.56 (98)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 8.27 6.14 6.85 5.88 8.34 8.90 8.48 8.68
A. Government consumption 8.54 (10.96) 8.26 (11.92) 9.54 (7.58) 9.76 (6.82) 5.10 (22.65) 9.69 (7.05) 9.01 (9.35) 9.82 (6.62)
B. Transfers and subsidies 8.15 (7.30) 9.92 (0.81) 9.92 (0.81) 9.92 (0.81) 9.92 (0.81)
C. Government enterprises and investment 8.00 (19.00) 2.00 (48.80) 2.00 (42.00) 2.00 (47.00) 10.00 (11.50) 8.00 (18.70) 7.00 (24.90) 7.00 (24.90)
D. Top marginal tax rate 9.00 8.00 8.00 8.00
(i) Top marginal income tax rate 9.00 (30) 8.00 (30) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 2.23 2.93 1.95 3.94 3.86 2.66 2.12 2.15
A. Judicial independence 1.23 1.36
B. Impartial courts 2.91 2.99 2.70 1.83 1.85
C. Protection of property rights 1.96 1.76
D. Military interference in rule of law and politics 1.76 5.00 0.00 0.00 0.00
E. Integrity of the legal system 6.96 3.33 3.75 2.50 2.50
F. Legal enforcement of contracts 4.05 3.88 3.88
G. Regulatory restrictions on sale of real property 2.80 2.83 2.83
H. Reliability of police 2.64 2.71
I. Business costs of crime 2.26 2.49

Area 3. Sound Money 7.70 8.92 8.46 6.34 8.37 7.99 8.03 8.01
A. Money growth 8.40 (7.99) 9.02 (4.91) 8.94 (5.30) 5.26 (23.72) 7.87 (10.67) 7.07 (14.63) 6.46 (17.68) 7.10 (14.51)
B. Standard deviation of inflation 6.67 (8.33) 8.75 (3.13) 7.00 (7.50) 6.32 (9.19) 8.38 (4.06) 8.05 (4.88) 6.78 (8.05) 6.62 (8.44)
C. Inflation: most recent year 5.72 (21.39) 7.92 (10.41) 7.92 (10.41) 3.80 (31.00) 7.26 (13.71) 6.85 (15.73) 8.86 (5.70) 8.32 (8.41)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.31 2.06 1.84 6.67 6.69 6.85 6.88
A. Tariffs 3.93 6.17 5.53 8.00 8.81 8.40 8.40
(i) Revenue from trade taxes (% of trade sector) 3.40 (9.90) 4.67 (8.00) 5.53 (6.70)
(ii) Mean tariff rate 4.46 (27.70) 7.68 (11.60) 8.00 (10.00) 9.44 (2.80) 9.06 (4.70) 9.06 (4.70)
(iii) Standard deviation of tariff rates 8.17 (4.56) 7.74 (5.64) 7.74 (5.64)
B. Regulatory trade barriers 3.42 4.81 4.85
(i) Non-tariff trade barriers 4.15 4.23
(ii) Compliance costs of importing and exporting 3.42 5.46 5.46
C. Black-market exchange rates 6.00 0.00 0.00 0.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 2.00 2.00 4.55 4.18 4.27
(i) Foreign ownership/investment restrictions 3.32 3.59
(ii) Capital controls 0.00 0.00 0.00 2.00 2.00 9.09 9.23 9.23
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 5.82 5.83 7.32 7.36 6.72 7.07

A. Credit market regulations 10.00 9.71 4.97 4.99 9.44 8.30 8.17 8.98
(i) Ownership of banks
(ii) Private sector credit 10.00 9.71 9.94 9.99 9.88 8.61 8.33 8.96
(iii) Interest rate controls/negative real interest rates 0.00 0.00 9.00 8.00 8.00 9.00
B. Labor market regulations 8.56 8.20 8.28
(i) Hiring regulations and minimum wage 7.80 6.67 6.67
(ii) Hiring and firing regulations 5.09 5.28
(iii) Centralized collective bargaining 7.46 7.71
(iv) Hours regulations 8.00 10.00 10.00
(v) Mandated cost of worker dismissal 8.42 10.00 10.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.23 3.78 3.97
(i) Administrative requirements 2.70 3.15
(ii) Bureaucracy costs 2.65 2.65
(iii) Starting a business 3.91 3.29 3.59
(iv) Extra payments/bribes/favoritism 2.49 2.73
(v) Licensing restrictions 3.57 3.62 3.75
(vi) Cost of tax compliance 8.21 7.94 7.94

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 Chapter 2: Country Data Tables E 85

Honduras
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.97 (29) 5.38 (50) 5.45 (62) 6.26 (59) 6.68 (62) 6.86 (65) 7.03 (59) 7.00 (62)
Area 1. Size of Government 8.52 (5) 5.48 (40) 6.38 (33) 6.51 (42) 8.12 (10) 8.46 (11) 8.21 (9) 8.28 (10)
Area 2. Legal System and Property Rights 2.46 (74) 2.73 (95) 3.13 (88) 4.87 (88) 3.58 (109) 3.70 (103) 4.30 (95) 4.09 (99)
Area 3. Sound Money 8.76 (11) 9.51 (5) 8.38 (28) 7.17 (51) 8.22 (53) 8.85 (45) 9.35 (35) 9.30 (38)
Area 4. Freedom to Trade Internationally 4.91 (61) 6.99 (56) 6.94 (70) 6.93 (69) 6.92 (74) 6.98 (71)
Area 5. Regulation 5.55 (48) 4.53 (83) 4.55 (94) 5.61 (73) 6.55 (49) 6.41 (82) 6.41 (87) 6.40 (92)

Unadjusted
Summary Ratings Rank) h 5.47 (49) 5.77 (38) 5.74 (50) 6.50 (47) 6.71 (57) 7.07 (59) 7.24 (52) 7.21 (56)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.43 5.48 6.38 6.51 8.12 8.46 8.21 8.28
A. Government consumption 7.28 (15.25) 7.40 (14.83) 7.00 (16.21) 8.00 (12.80) 7.43 (14.75) 7.32 (15.11) 6.34 (18.44) 6.62 (17.50)
B. Transfers and subsidies 9.51 (2.30) 9.54 (2.20) 9.05 (4.00) 9.05 (4.00) 10.00 (0.47) 10.00 (0.30) 10.00 (0.34)
C. Government enterprises and investment 4.00 (37.90) 0.00 (52.40) 4.00 (32.50) 2.00 (41.80) 7.00 (21.30) 8.00 (17.90) 8.00 (16.89) 8.00 (16.10)
D. Top marginal tax rate 8.00 5.00 5.00 7.00 9.00 8.50 8.50 8.50
(i) Top marginal income tax rate 8.00 (40) 5.00 (46) 5.00 (46) 7.00 (40) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25)
(ii) Top marginal income and payroll tax rate 5.00 (46) 7.00 (40) 9.00 (25) 8.00 (28) 8.00 (28) 8.00 (28)

Area 2. Legal System and Property Rights 2.76 3.05 3.50 5.07 3.72 3.69 4.29 4.08
A. Judicial independence 2.44 4.33 4.61
B. Impartial courts 3.98 3.68 3.02 4.06 3.97
C. Protection of property rights 2.30 4.15 4.55 4.34
D. Military interference in rule of law and politics 5.42 5.00 5.56 5.83 5.00
E. Integrity of the legal system 6.96 3.33 2.50 2.50 3.33
F. Legal enforcement of contracts 2.86 2.86 2.86
G. Regulatory restrictions on sale of real property 7.41 7.69 7.69
H. Reliability of police 3.44 4.34 3.29
I. Business costs of crime 1.87 2.44 1.63

Area 3. Sound Money 8.76 9.51 8.38 7.17 8.22 8.85 9.35 9.30
A. Money growth 8.89 (5.56) 9.67 (1.66) 7.23 (13.85) 7.09 (14.57) 7.66 (11.70) 7.74 (11.28) 9.20 (4.02) 9.46 (2.72)
B. Standard deviation of inflation 8.81 (2.97) 9.42 (1.45) 7.34 (6.64) 6.88 (7.81) 7.42 (6.44) 9.41 (1.49) 9.15 (2.12) 9.08 (2.31)
C. Inflation: most recent year 7.35 (13.27) 8.95 (5.25) 8.95 (5.25) 4.73 (26.34) 7.79 (11.06) 8.24 (8.81) 9.06 (4.70) 8.65 (6.76)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.22 5.33 7.50 6.94 7.56 7.55 7.62
A. Tariffs 3.67 6.00 7.69 7.83 8.52 8.44 8.49
(i) Revenue from trade taxes (% of trade sector) 5.53 (6.70) 8.07 (2.90) 9.42 (0.87) 9.39 (0.92) 9.55 (0.68)
(ii) Mean tariff rate 1.80 (41.00) 6.00 (20.00) 7.98 (10.10) 8.42 (7.90) 8.66 (6.70) 8.90 (5.50) 8.88 (5.60)
(iii) Standard deviation of tariff rates 7.40 (6.50) 7.00 (7.50) 7.49 (6.27) 7.04 (7.39) 7.04 (7.39)
B. Regulatory trade barriers 3.35 5.76 6.34 6.60
(i) Non-tariff trade barriers 3.35 4.47 5.39 5.03
(ii) Compliance costs of importing and exporting 7.05 7.28 8.16
C. Black-market exchange rates 6.00 0.00 10.00 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 5.00 6.57 5.97 5.44 5.40
(i) Foreign ownership/investment restrictions 8.53 6.23 6.18 6.07
(ii) Capital controls 0.00 0.00 0.00 5.00 4.61 3.85 2.31 2.31
(iii) Freedom of foreigners to visit 7.82 7.82 7.82

Area 5. Regulation 6.20 5.06 5.08 6.26 6.55 6.81 6.80 6.79
A. Credit market regulations 6.10 7.70 7.77 6.30 9.43 9.89 9.04 9.18
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 8.20 7.41 7.54 8.60 9.86 9.68 8.11 8.54
(iii) Interest rate controls/negative real interest rates 4.00 8.00 8.00 4.00 9.00 10.00 9.00 9.00
B. Labor market regulations 5.72 5.42 5.07 4.99
(i) Hiring regulations and minimum wage 2.72 0.00 0.00 0.00
(ii) Hiring and firing regulations 4.50 5.10 4.14 3.71
(iii) Centralized collective bargaining 5.67 6.27 5.77 5.72
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 3.14 2.52 2.52
(vi) Conscription 10.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.49 5.11 6.29 6.21
(i) Administrative requirements 5.80 3.00 4.10 3.49
(ii) Bureaucracy costs 4.88 3.25 4.24 4.24
(iii) Starting a business 2.85 7.86 9.01 9.02
(iv) Extra payments/bribes/favoritism 4.42 4.57 4.10 4.11
(v) Licensing restrictions 6.72 8.83 8.89
(vi) Cost of tax compliance 5.25 7.49 7.49

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86 E Economic Freedom of the World: 2013 Annual Report

Hong Kong
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 9.02 (1) 8.63 (1) 8.59 (1) 9.14 (1) 8.86 (1) 8.95 (1) 8.92 (1) 8.87 (1)
Area 1. Size of Government 9.75 (2) 8.89 (1) 9.31 (1) 9.47 (1) 9.35 (1) 9.08 (3) 8.93 (2) 8.94 (4)
Area 2. Legal System and Property Rights 8.13 (4) 6.31 (29) 5.94 (40) 8.17 (19) 7.23 (37) 7.99 (20) 7.97 (23) 7.85 (24)
Area 3. Sound Money 8.51 (12) 9.33 (13) 9.02 (19) 9.44 (26) 9.11 (36) 9.48 (26) 9.31 (37) 9.21 (43)
Area 4. Freedom to Trade Internationally 9.69 (1) 9.68 (1) 9.70 (1) 9.71 (1) 9.72 (1) 9.41 (1) 9.26 (1) 9.25 (1)
Area 5. Regulation 8.99 (1) 8.99 (1) 8.99 (1) 8.96 (1) 8.89 (1) 8.80 (1) 9.10 (1) 9.09 (2)

Unadjusted
Summary Ratings Rank) h 8.72 (1) 8.34 (2) 8.73 (1) 9.11 (1) 8.86 (1) 9.05 (1) 9.02 (1) 8.97 (1)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 9.75 8.89 9.31 9.47 9.35 9.08 8.93 8.94
A. Government consumption 9.02 (9.34) 8.66 (10.57) 8.36 (11.58) 8.03 (12.70) 7.58 (14.22) 7.92 (13.07) 8.25 (11.94) 8.26 (11.90)
B. Transfers and subsidies 9.97 (0.60) 9.89 (0.90) 9.89 (0.90) 9.84 (1.10) 9.84 (1.10) 8.41 (6.34) 9.48 (2.42) 9.48 (2.42)
C. Government enterprises and investment 10.00 (14.80) 8.00 (15.20) 10.00 (12.70) 10.00 (14.00) 10.00 (14.00) 10.00 (1.38) 8.00 (15.40) 8.00 (15.40)
D. Top marginal tax rate 10.00 9.00 9.00 10.00 10.00 10.00 10.00 10.00
(i) Top marginal income tax rate 10.00 (15) 9.00 (25c) 9.00 (25) 10.00 (20) 10.00 (17) 10.00 (20) 10.00 (17) 10.00 (17)
(ii) Top marginal income and payroll tax rate 9.00 (25) 10.00 (20) 10.00 (17) 10.00 (20) 10.00 (17) 10.00 (17)

Area 2. Legal System and Property Rights 8.13 6.31 5.94 8.17 7.23 8.20 8.18 8.05
A. Judicial independence 8.07 7.68 8.17 8.47 8.41
B. Impartial courts 7.93 8.85 8.31 7.70 7.46
C. Protection of property rights 6.07 6.30 8.73 8.54 8.50
D. Military interference in rule of law and politics 8.76 5.00 8.33 8.33 8.33
E. Integrity of the legal system 10.00 8.33 7.71 8.33 8.33
F. Legal enforcement of contracts 7.69 7.07 6.46
G. Regulatory restrictions on sale of real property 7.34 7.97 8.00
H. Reliability of police 8.59 8.71 8.60
I. Business costs of crime 8.94 8.51 8.38

Area 3. Sound Money 8.51 9.33 9.02 9.44 9.11 9.48 9.31 9.21
A. Money growth 9.04 (4.80) 9.48 (2.60) 8.36 (8.20) 9.33 (3.37) 9.46 (-2.71) 8.98 (5.08) 8.21 (8.97) 8.53 (7.34)
B. Standard deviation of inflation 7.99 (5.03) 8.97 (2.57) 8.86 (2.85) 8.96 (2.59) 7.73 (5.68) 9.10 (2.25) 9.50 (1.24) 9.38 (1.56)
C. Inflation: most recent year 7.01 (14.96) 8.86 (5.71) 8.86 (5.71) 9.49 (2.56) 9.25 (-3.76) 9.82 (0.91) 9.53 (2.34) 8.95 (5.26)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 9.94 9.93 9.97 9.60 9.72 9.52 9.37 9.36
A. Tariffs 9.83 9.80 9.91 9.93 9.93 10.00 10.00 10.00
(i) Revenue from trade taxes (% of trade sector) 9.67 (0.50) 9.60 (0.60) 9.73 (0.40) 9.80 (0.30) 9.80 (0.30) 10.00 (0.00) 9.99 (0.02) 9.99 (0.02)
(ii) Mean tariff rate 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00)
(iii) Standard deviation of tariff rates 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00)
B. Regulatory trade barriers 8.75 9.38 8.94 8.84 8.77
(i) Non-tariff trade barriers 8.75 8.94 8.60 8.25 8.10
(ii) Compliance costs of importing and exporting 9.83 9.29 9.43 9.43
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 10.00 10.00 10.00 9.70 9.57 9.14 8.63 8.66
(i) Foreign ownership/investment restrictions 9.40 9.92 8.96 8.19 8.29
(ii) Capital controls 10.00 10.00 10.00 10.00 9.23 8.46 7.69 7.69
(iii) Freedom of foreigners to visit 10.00 10.00 10.00

Area 5. Regulation 7.25 7.25 9.43 8.89 8.89 8.98 9.29 9.28
A. Credit market regulations 10.00 10.00 9.94 9.89 9.70 10.00 10.00 10.00
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 9.82 9.68 9.10 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 8.92 8.14 8.55 9.15 9.29 9.29
(i) Hiring regulations and minimum wage 7.40 10.00 10.00 10.00
(ii) Hiring and firing regulations 8.83 8.83 7.55 6.90 7.78 7.95
(iii) Centralized collective bargaining 7.93 7.93 7.93 7.94 8.99 8.90 8.46 8.31
(iv) Hours regulations 6.53 7.68 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 9.07 9.50 9.50
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 8.63 8.40 7.80 8.57 8.54
(i) Administrative requirements 8.54 6.38 6.70 6.67
(ii) Bureaucracy costs 9.55 7.25 4.57 7.84 7.84
(iii) Starting a business 9.08 9.02 9.61 9.88 9.88
(iv) Extra payments/bribes/favoritism 7.27 8.81 8.80 8.09 7.93
(v) Licensing restrictions 8.35 9.79 9.80
(vi) Cost of tax compliance 9.10 9.10 9.13

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 Chapter 2: Country Data Tables E 87

Hungary
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.94 (86) 4.67 (80) 5.04 (79) 6.19 (60) 6.56 (65) 7.23 (50) 7.32 (40) 7.61 (24)
Area 1. Size of Government 2.58 (99) 2.64 (104) 2.94 (109) 3.73 (108) 3.85 (111) 4.64 (107) 4.94 (105) 6.72 (54)
Area 2. Legal System and Property Rights 6.78 (20) 7.25 (23) 7.60 (26) 7.01 (39) 6.89 (41) 6.56 (47) 6.39 (51)
Area 3. Sound Money 6.48 (41) 6.82 (43) 5.75 (81) 6.24 (70) 7.16 (74) 9.44 (30) 9.60 (17) 9.61 (10)
Area 4. Freedom to Trade Internationally 2.31 (73) 2.61 (75) 4.22 (72) 7.62 (41) 7.59 (52) 7.92 (30) 7.90 (33) 7.68 (42)
Area 5. Regulation 4.13 (87) 4.27 (88) 4.88 (83) 5.74 (67) 7.18 (31) 7.29 (31) 7.63 (20) 7.70 (20)

Unadjusted
Summary Ratings Rank) h 4.07 (85) 4.48 (87) 4.89 (82) 6.16 (59) 6.56 (61) 7.21 (52) 7.30 (47) 7.59 (27)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.77 2.92 2.94 3.73 3.85 4.64 4.94 6.72
A. Government consumption 7.53 (14.40) 7.69 (13.87) 7.43 (14.75) 7.58 (14.23) 7.86 (13.27) 3.19 (29.15) 3.21 (29.07) 7.76 (13.60)
B. Transfers and subsidies 1.06 (33.30) 2.32 (28.70) 3.32 (25.00) 5.04 (18.71) 4.86 (19.36) 4.55 (20.52) 4.62 (20.23)
C. Government enterprises and investment 0.00 (92.60) 0.00 (83.50) 0.00 (68.50) 0.00 (68.50) 0.00 (68.50) 8.00 (17.23) 8.00 (18.43) 8.00 (16.99)
D. Top marginal tax rate 2.00 4.00 2.50 2.50 4.00 6.50
(i) Top marginal income tax rate 3.00 (50) 4.00 (44) 5.00 (40) 5.00 (38) 7.00 (32) 10.00 (16)
(ii) Top marginal income and payroll tax rate 1.00 (60) 4.00 (44) 0.00 (62) 0.00 (64) 1.00 (56) 3.00 (46)

Area 2. Legal System and Property Rights 6.78 7.25 7.60 7.01 6.66 6.34 6.18
A. Judicial independence 6.68 6.51 5.38 4.87 4.49
B. Impartial courts 6.77 6.35 5.36 3.42 2.96
C. Protection of property rights 4.93 5.53 7.44 5.54 4.70
D. Military interference in rule of law and politics 9.62 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 7.15 6.58 6.58
G. Regulatory restrictions on sale of real property 4.91 8.04 8.04
H. Reliability of police 5.94 5.41 5.40
I. Business costs of crime 7.07 6.52 6.75

Area 3. Sound Money 6.48 6.82 5.75 6.24 7.16 9.44 9.60 9.61
A. Money growth 8.26 (8.70) 8.66 (6.70) 7.33 (13.34) 7.67 (11.67) 7.62 (11.91) 9.49 (2.55) 9.76 (1.19) 9.66 (1.69)
B. Standard deviation of inflation 8.87 (2.82) 9.80 (0.50) 6.87 (7.83) 7.64 (5.90) 7.97 (5.08) 8.98 (2.54) 9.60 (1.01) 9.59 (1.03)
C. Inflation: most recent year 8.79 (6.03) 8.82 (5.91) 8.82 (5.91) 4.65 (26.73) 8.04 (9.80) 9.29 (3.55) 9.02 (4.88) 9.21 (3.96)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 2.22 2.51 3.90 7.55 7.59 7.98 7.96 7.74
A. Tariffs 6.67 7.53 6.09 6.67 7.31 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 6.67 (5.00) 7.53 (3.70) 6.57 (5.14) 6.09 (5.86) 9.45 (0.83) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 7.80 (11.00) 8.36 (8.20) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 5.60 (11.00) 6.12 (9.70) 4.12 (14.70) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 7.13 8.52 7.45 7.66 6.93
(i) Non-tariff trade barriers 7.13 8.20 7.30 7.62 6.30
(ii) Compliance costs of importing and exporting 8.83 7.59 7.70 7.55
C. Black-market exchange rates 0.00 0.00 5.60 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 6.38 4.53 6.10 5.86 5.75
(i) Foreign ownership/investment restrictions 7.76 8.29 7.86 7.16 6.82
(ii) Capital controls 0.00 0.00 0.00 5.00 0.77 3.85 3.85 3.85
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 3.82 3.37 4.61 5.71 7.18 7.31 7.65 7.72
A. Credit market regulations 3.56 2.66 4.40 6.43 8.87 8.64 9.41 10.00
(i) Ownership of banks 0.00 0.00 2.00 8.00 8.00 10.00 10.00 10.00
(ii) Private sector credit 4.68 5.33 5.21 5.28 8.62 5.92 8.24 10.00
(iii) Interest rate controls/negative real interest rates 6.00 6.00 6.00 10.00 10.00 10.00 10.00
B. Labor market regulations 5.41 5.59 6.84 7.28 6.84
(i) Hiring regulations and minimum wage 6.67 4.65 8.90 7.23 7.23
(ii) Hiring and firing regulations 7.07 7.07 5.50 4.62 5.29 5.32
(iii) Centralized collective bargaining 5.18 6.97 7.49 7.38 6.73
(iv) Hours regulations 5.15 5.85 3.30 6.00 4.00
(v) Mandated cost of worker dismissal 6.76 7.76 7.76
(vi) Conscription 0.00 0.00 1.00 3.00 5.00 10.00 10.00 10.00
C. Business regulations 5.29 7.08 6.46 6.27 6.32
(i) Administrative requirements 7.42 3.03 2.23 2.24
(ii) Bureaucracy costs 6.14 6.18 6.58 4.67 4.67
(iii) Starting a business 6.40 7.37 8.32 9.76 9.72
(iv) Extra payments/bribes/favoritism 3.32 7.35 7.27 4.84 5.16
(v) Licensing restrictions 7.36 9.25 9.25
(vi) Cost of tax compliance 6.19 6.90 6.90

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88 E Economic Freedom of the World: 2013 Annual Report

Iceland
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.25 (54) 5.53 (47) 6.95 (24) 7.69 (13) 8.04 (11) 8.09 (10) 7.05 (56) 7.33 (41)
Area 1. Size of Government 5.02 (52) 5.24 (48) 5.91 (47) 5.60 (78) 6.07 (69) 6.90 (51) 4.83 (107) 4.98 (105)
Area 2. Legal System and Property Rights 6.83 (21) 7.88 (12) 8.35 (12) 8.30 (18) 9.03 (12) 9.27 (4) 8.53 (15) 8.44 (15)
Area 3. Sound Money 2.62 (101) 2.84 (104) 7.08 (40) 9.45 (25) 9.18 (34) 8.75 (53) 8.42 (63) 9.27 (40)
Area 4. Freedom to Trade Internationally 5.65 (39) 5.49 (43) 6.72 (37) 8.00 (30) 8.24 (36) 7.00 (67) 6.33 (87) 6.46 (83)
Area 5. Regulation 6.34 (27) 6.35 (33) 6.72 (26) 7.16 (17) 7.69 (10) 8.54 (4) 7.16 (41) 7.53 (30)

Unadjusted
Summary Ratings Rank) h 5.15 (57) 5.42 (52) 6.92 (25) 7.73 (13) 8.04 (11) 8.13 (9) 7.09 (67) 7.37 (41)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.12 5.35 6.03 5.72 6.07 6.90 4.83 4.98
A. Government consumption 5.23 (22.21) 5.45 (21.48) 4.74 (23.87) 4.22 (25.65) 3.44 (28.31) 3.22 (29.04) 1.88 (33.60) 2.15 (32.70)
B. Transfers and subsidies 7.25 (10.60) 6.95 (11.70) 7.38 (10.10) 7.65 (9.12) 8.34 (6.60) 7.86 (8.35) 7.42 (9.95) 7.26 (10.54)
C. Government enterprises and investment 8.00 (15.30) 8.00 (16.10) 7.00 (22.20) 7.00 (24.80) 7.00 (24.80) 10.00 (10.92) 7.00 (20.00) 7.00 (20.00)
D. Top marginal tax rate 0.00 1.00 5.00 4.00 5.50 6.50 3.00 3.50
(i) Top marginal income tax rate 0.00 (63) 1.00 (56) 5.00 (40) 4.00 (47) 6.00 (45) 7.00 (39) 4.00 (46) 4.00 (46)
(ii) Top marginal income and payroll tax rate 5.00 (48) 6.00 (42) 2.00 (56) 3.00 (52)

Area 2. Legal System and Property Rights 6.83 7.88 8.35 8.30 9.03 9.05 8.33 8.24
A. Judicial independence 7.78 8.52 8.39 8.05 7.91
B. Impartial courts 8.28 9.02 8.94 6.30 6.01
C. Protection of property rights 5.80 7.62 9.44 6.96 6.86
D. Military interference in rule of law and politics 9.64 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 10.00 10.00 10.00
F. Legal enforcement of contracts 7.13 6.82 6.82
G. Regulatory restrictions on sale of real property 9.14 9.14 9.14
H. Reliability of police 8.83 8.79 8.62
I. Business costs of crime 9.60 8.94 8.83

Area 3. Sound Money 2.62 2.84 7.08 9.45 9.18 8.75 8.42 9.27
A. Money growth 3.57 (32.16) 4.81 (25.96) 5.77 (21.13) 9.18 (4.12) 8.16 (9.21) 7.06 (14.68) 5.78 (21.09) 9.22 (3.92)
B. Standard deviation of inflation 6.92 (7.70) 2.82 (17.95) 8.81 (2.97) 9.16 (2.09) 9.61 (0.97) 8.76 (3.11) 9.00 (2.51) 8.65 (3.37)
C. Inflation: most recent year 0.00 (52.48) 3.74 (31.30) 3.74 (31.30) 9.45 (2.75) 8.97 (5.16) 9.17 (4.16) 8.92 (5.40) 9.20 (4.00)
D. Freedom to own foreign currency bank accounts 0.00 0.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.69 5.53 6.62 7.89 8.24 7.13 6.45 6.58
A. Tariffs 6.87 7.80 7.86 8.65 8.02 6.05 6.51 6.48
(i) Revenue from trade taxes (% of trade sector) 5.67 (6.50) 6.93 (4.60) 7.34 (3.99) 9.61 (0.58) 9.65 (0.53) 9.69 (0.46) 9.75 (0.38) 9.73 (0.41)
(ii) Mean tariff rate 8.08 (9.60) 8.66 (6.70) 9.24 (3.80) 9.26 (3.70) 9.62 (1.90) 8.46 (7.70) 8.88 (5.60) 8.88 (5.60)
(iii) Standard deviation of tariff rates 7.00 (7.50) 7.08 (7.30) 4.80 (13.00) 0.00 (38.65) 0.91 (22.74) 0.84 (22.90)
B. Regulatory trade barriers 6.62 8.71 6.95 6.21 6.29
(i) Non-tariff trade barriers 6.62 8.25 5.86 4.73 4.88
(ii) Compliance costs of importing and exporting 9.17 8.03 7.70 7.70
C. Black-market exchange rates 8.20 6.80 10.00 10.00 10.00 10.00 9.48 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 6.28 6.25 5.52 3.61 3.54
(i) Foreign ownership/investment restrictions 7.56 8.65 6.15 3.47 3.29
(ii) Capital controls 2.00 2.00 2.00 5.00 3.85 3.85 0.77 0.77
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 5.50 5.51 6.54 7.31 7.69 8.84 7.41 7.80
A. Credit market regulations 5.20 5.23 6.28 7.14 8.00 9.67 6.33 7.57
(i) Ownership of banks 2.00 2.00 2.00 2.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 9.61 9.69 8.83 9.42 10.00 10.00 0.00 2.71
(iii) Interest rate controls/negative real interest rates 4.00 4.00 8.00 10.00 9.00 9.00 9.00 10.00
B. Labor market regulations 6.80 6.38 6.66 7.97 7.72 7.63
(i) Hiring regulations and minimum wage 6.20 4.76 6.70 5.57 5.57
(ii) Hiring and firing regulations 5.92 5.92 6.03 7.67 7.23 7.08
(iii) Centralized collective bargaining 4.49 4.49 4.49 4.49 5.48 6.67 5.51 5.11
(iv) Hours regulations 5.28 7.01 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 8.79 10.00 10.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 8.41 8.41 8.89 8.19 8.21
(i) Administrative requirements 6.98 7.24 5.24 5.34
(ii) Bureaucracy costs 8.06 8.43 8.57 7.77 7.77
(iii) Starting a business 7.67 8.25 9.76 9.76 9.77
(iv) Extra payments/bribes/favoritism 9.50 9.99 9.69 8.28 8.35
(v) Licensing restrictions 9.64 9.68 9.61
(vi) Cost of tax compliance 8.43 8.43 8.43

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 Chapter 2: Country Data Tables E 89

India
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.35 (50) 5.02 (63) 5.05 (78) 5.80 (73) 6.32 (75) 6.89 (64) 6.40 (89) 6.50 (85)
Area 1. Size of Government 5.00 (53) 4.50 (70) 4.88 (76) 6.26 (55) 6.83 (41) 7.42 (38) 6.37 (62) 6.35 (63)
Area 2. Legal System and Property Rights 5.78 (36) 4.92 (56) 4.39 (72) 5.87 (58) 5.99 (59) 7.29 (32) 6.22 (53) 6.37 (52)
Area 3. Sound Money 6.29 (51) 6.61 (57) 6.63 (60) 6.50 (64) 6.88 (86) 6.84 (91) 6.42 (109) 6.67 (101)
Area 4. Freedom to Trade Internationally 4.41 (48) 3.53 (68) 3.92 (78) 4.56 (102) 5.51 (99) 6.35 (84) 6.54 (82) 6.55 (81)
Area 5. Regulation 5.28 (57) 5.29 (63) 5.35 (71) 5.76 (64) 6.40 (56) 6.65 (72) 6.51 (85) 6.66 (79)

Unadjusted
Summary Ratings Rank) h 5.15 (57) 4.83 (74) 4.89 (82) 5.76 (75) 6.32 (73) 6.72 (76) 6.24 (118) 6.34 (111)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.00 4.50 4.88 6.26 6.83 7.42 6.37 6.35
A. Government consumption 8.34 (11.65) 7.62 (14.11) 7.15 (15.68) 7.31 (15.16) 6.74 (17.10) 6.95 (16.38) 6.82 (16.81) 6.74 (17.10)
B. Transfers and subsidies 8.66 (5.40) 8.37 (6.50) 8.37 (6.50) 8.72 (5.20) 8.59 (5.66) 8.74 (5.14) 7.68 (9.02) 7.68 (9.02)
C. Government enterprises and investment 2.00 (46.70) 2.00 (49.50) 2.00 (42.30) 4.00 (31.40) 4.00 (31.40) 7.00 (24.22) 4.00 (24.50) 4.00 (24.10)
D. Top marginal tax rate 1.00 0.00 2.00 5.00 8.00 7.00 7.00 7.00
(i) Top marginal income tax rate 1.00 (60) 0.00 (62) 2.00 (53) 5.00 (40) 8.00 (30) 7.00 (34) 7.00 (31) 7.00 (31)
(ii) Top marginal income and payroll tax rate 2.00 (53) 5.00 (40) 8.00 (30) 7.00 (34) 7.00 (31) 7.00 (31)

Area 2. Legal System and Property Rights 5.78 4.92 4.39 5.87 5.99 6.51 5.55 5.68
A. Judicial independence 7.33 7.01 8.16 5.57 5.87
B. Impartial courts 7.60 8.02 6.87 4.69 4.82
C. Protection of property rights 4.10 3.27 7.88 5.49 5.64
D. Military interference in rule of law and politics 6.21 5.00 6.67 6.67 6.67
E. Integrity of the legal system 4.11 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 2.59 2.59 2.59
G. Regulatory restrictions on sale of real property 6.28 6.77 6.77
H. Reliability of police 5.83 5.15 5.45
I. Business costs of crime 7.60 6.36 6.66

Area 3. Sound Money 6.29 6.61 6.63 6.50 6.88 6.84 6.42 6.67
A. Money growth 9.36 (3.22) 8.38 (8.10) 8.58 (7.08) 8.56 (7.22) 9.03 (4.86) 8.41 (7.97) 8.93 (5.35) 9.30 (3.52)
B. Standard deviation of inflation 8.10 (4.76) 9.56 (1.11) 9.42 (1.45) 9.06 (2.34) 9.29 (1.77) 9.79 (0.53) 9.13 (2.17) 9.15 (2.13)
C. Inflation: most recent year 7.69 (11.54) 8.50 (7.52) 8.50 (7.52) 8.37 (8.16) 9.20 (4.01) 9.15 (4.25) 7.60 (11.99) 8.23 (8.86)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 3.00 2.40 2.67 4.50 5.51 6.07 6.25 6.26
A. Tariffs 0.00 0.00 0.00 0.91 4.34 5.59 6.38 6.47
(i) Revenue from trade taxes (% of trade sector) 0.00 (15.50) 0.00 (24.20) 0.00 (21.10) 2.16 (11.76) 4.49 (8.26) 7.15 (4.27) 7.67 (3.50) 7.92 (3.12)
(ii) Mean tariff rate 0.00 (74.30) 0.00 (98.80) 0.00 (79.20) 0.00 (55.20) 3.50 (32.50) 6.60 (17.00) 7.48 (12.60) 7.48 (12.60)
(iii) Standard deviation of tariff rates 0.00 (45.20) 0.56 (23.60) 5.04 (12.40) 3.01 (17.47) 4.00 (14.99) 4.00 (14.99)
B. Regulatory trade barriers 6.35 5.67 6.13 6.45 6.48
(i) Non-tariff trade barriers 6.35 5.35 6.91 5.33 5.39
(ii) Compliance costs of importing and exporting 5.99 5.34 7.57 7.57
C. Black-market exchange rates 9.00 7.20 8.00 8.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 2.33 2.02 2.58 2.16 2.10
(i) Foreign ownership/investment restrictions 4.67 4.05 7.40 6.13 5.97
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 0.34 0.34 0.34

Area 5. Regulation 5.68 5.70 5.87 5.66 6.40 6.74 6.60 6.76
A. Credit market regulations 5.22 5.28 5.49 6.39 6.82 7.01 6.64 6.97
(i) Ownership of banks 0.00 0.00 0.00 2.00 2.00 2.00 2.00 2.00
(ii) Private sector credit 7.67 7.84 8.46 9.17 8.45 9.04 8.91 8.91
(iii) Interest rate controls/negative real interest rates 8.00 8.00 8.00 8.00 10.00 10.00 9.00 10.00
B. Labor market regulations 6.26 6.11 6.05 7.27 8.05 8.02
(i) Hiring regulations and minimum wage 6.23 4.35 10.00 10.00 10.00
(ii) Hiring and firing regulations 2.56 2.56 1.70 3.31 4.98 4.93
(iii) Centralized collective bargaining 6.21 6.21 6.21 6.21 7.72 7.47 7.02 6.90
(iv) Hours regulations 5.55 6.50 8.00 10.00 10.00
(v) Mandated cost of worker dismissal 4.81 6.30 6.30
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.48 6.32 5.94 5.13 5.29
(i) Administrative requirements 7.37 3.23 3.29 3.40
(ii) Bureaucracy costs 6.06 7.40 5.17 4.04 4.04
(iii) Starting a business 4.95 5.93 7.03 8.09 8.15
(iv) Extra payments/bribes/favoritism 2.42 4.57 6.62 3.92 3.88
(v) Licensing restrictions 6.58 4.26 4.96
(vi) Cost of tax compliance 7.04 7.15 7.28

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90 E Economic Freedom of the World: 2013 Annual Report

Indonesia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.06 (60) 6.14 (28) 6.52 (31) 6.62 (45) 6.07 (84) 6.63 (73) 7.05 (58) 7.06 (59)
Area 1. Size of Government 5.27 (45) 6.35 (17) 7.13 (16) 7.96 (14) 7.57 (21) 7.59 (30) 7.90 (19) 7.79 (24)
Area 2. Legal System and Property Rights 3.41 (61) 4.46 (66) 4.72 (63) 3.55 (109) 3.36 (112) 4.19 (98) 4.38 (93) 4.49 (91)
Area 3. Sound Money 6.54 (38) 9.27 (14) 8.76 (23) 9.09 (32) 6.20 (103) 7.39 (81) 8.99 (47) 9.08 (48)
Area 4. Freedom to Trade Internationally 5.62 (40) 5.81 (35) 6.13 (41) 6.34 (67) 7.15 (65) 7.30 (54) 7.07 (64) 7.08 (64)
Area 5. Regulation 4.42 (83) 4.57 (82) 5.73 (56) 6.06 (53) 6.04 (81) 6.70 (69) 6.89 (58) 6.88 (65)

Unadjusted
Summary Ratings Rank) h 4.90 (62) 5.94 (35) 6.23 (37) 6.45 (51) 6.07 (82) 6.48 (87) 6.89 (79) 6.90 (80)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.27 6.35 7.13 7.96 7.57 7.59 7.90 7.79
A. Government consumption 6.84 (16.75) 6.95 (16.36) 7.93 (13.04) 8.45 (11.28) 8.98 (9.47) 8.47 (11.19) 7.72 (13.75) 7.62 (14.10)
B. Transfers and subsidies 9.24 (3.30) 9.46 (2.50) 9.59 (2.00) 9.89 (0.90) 8.30 (6.73) 8.90 (4.55) 9.36 (2.84) 9.03 (4.06)
C. Government enterprises and investment 2.00 (49.50) 2.00 (43.00) 4.00 (32.50) 7.00 (20.70) 7.00 (20.70) 7.00 (20.70) 7.00 7.00
D. Top marginal tax rate 3.00 7.00 7.00 6.50 6.00 6.00 7.50 7.50
(i) Top marginal income tax rate 3.00 (50) 7.00 (35) 7.00 (35) 8.00 (30) 7.00 (35) 7.00 (35) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 7.00 (35) 5.00 (40) 5.00 (40) 5.00 (40) 7.00 (35) 7.00 (35)

Area 2. Legal System and Property Rights 3.41 4.46 4.72 3.55 3.36 4.29 4.48 4.59
A. Judicial independence 2.33 3.01 3.01 4.33 4.28
B. Impartial courts 4.22 4.01 3.92 4.53 4.62
C. Protection of property rights 4.20 3.13 4.59 4.94 5.09
D. Military interference in rule of law and politics 2.88 3.33 4.17 4.17 4.17
E. Integrity of the legal system 4.11 3.33 5.00 5.00 5.00
F. Legal enforcement of contracts 1.17 1.17 1.71
G. Regulatory restrictions on sale of real property 5.81 6.03 6.03
H. Reliability of police 3.51 4.56 4.85
I. Business costs of crime 7.40 5.57 5.52

Area 3. Sound Money 6.54 9.27 8.76 9.09 6.20 7.39 8.99 9.08
A. Money growth 6.30 (18.49) 9.36 (3.20) 8.03 (9.87) 8.97 (5.17) 5.56 (22.19) 8.45 (7.76) 8.66 (6.70) 9.14 (4.28)
B. Standard deviation of inflation 6.07 (9.82) 8.59 (3.52) 7.86 (5.35) 9.38 (1.54) 0.00 (27.72) 8.21 (4.48) 8.32 (4.21) 8.27 (4.34)
C. Inflation: most recent year 3.80 (30.99) 9.14 (4.28) 9.14 (4.28) 8.02 (9.89) 9.26 (3.72) 7.91 (10.45) 8.97 (5.13) 8.93 (5.36)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 5.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.24 5.42 5.29 5.88 7.15 6.99 6.77 6.78
A. Tariffs 6.13 7.66 5.88 6.43 7.88 7.93 7.89 7.80
(i) Revenue from trade taxes (% of trade sector) 8.07 (2.90) 8.93 (1.60) 8.39 (2.41) 9.13 (1.31) 9.65 (0.53) 9.38 (0.93) 9.48 (0.78) 9.05 (1.42)
(ii) Mean tariff rate 4.20 (29.00) 6.38 (18.10) 5.94 (20.30) 6.60 (17.00) 8.32 (8.40) 8.70 (6.50) 8.64 (6.80) 8.60 (7.00)
(iii) Standard deviation of tariff rates 3.32 (16.70) 3.56 (16.10) 5.68 (10.80) 5.72 (10.70) 5.54 (11.15) 5.74 (10.64)
B. Regulatory trade barriers 3.33 5.91 6.30 6.29 6.39
(i) Non-tariff trade barriers 3.33 3.82 6.41 5.53 5.48
(ii) Compliance costs of importing and exporting 8.00 6.20 7.05 7.30
C. Black-market exchange rates 9.60 8.60 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 3.76 4.83 3.72 2.92 2.93
(i) Foreign ownership/investment restrictions 7.53 8.12 8.36 5.98 5.99
(ii) Capital controls 0.00 0.00 0.00 0.00 1.54 1.54 1.54 1.54
(iii) Freedom of foreigners to visit 1.25 1.25 1.25

Area 5. Regulation 4.05 4.18 5.25 5.79 6.04 6.12 6.29 6.29
A. Credit market regulations 3.18 4.53 7.33 8.33 7.71 8.11 8.27 8.21
(i) Ownership of banks 0.00 2.00 2.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 7.53 7.58 10.00 10.00 8.13 9.34 9.82 9.64
(iii) Interest rate controls/negative real interest rates 2.00 4.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 4.22 4.97 4.93 4.66 4.70
(i) Hiring regulations and minimum wage 5.12 4.62 2.80 2.23 2.23
(ii) Hiring and firing regulations 5.56 5.56 3.20 4.49 5.28 5.29
(iii) Centralized collective bargaining 6.18 7.30 5.47 5.66
(iv) Hours regulations 6.22 5.85 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 0.00 0.00 0.00
(vi) Conscription 3.00 0.00 0.00 0.00 5.00 5.00 5.00 5.00
C. Business regulations 4.81 5.45 5.31 5.93 5.95
(i) Administrative requirements 6.95 6.26 4.28 4.54
(ii) Bureaucracy costs 6.30 5.30 5.85 3.97 3.97
(iii) Starting a business 5.22 5.63 5.85 8.22 8.12
(iv) Extra payments/bribes/favoritism 2.91 3.91 3.13 3.95 3.81
(v) Licensing restrictions 7.24 8.15 8.17
(vi) Cost of tax compliance 3.54 7.02 7.10

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 Chapter 2: Country Data Tables E 91

Iran
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.36 (97) 3.83 (93) 4.39 (96) 4.31 (113) 5.90 (91) 6.47 (77) 6.56 (81) 6.28 (94)
Area 1. Size of Government 3.42 (91) 4.33 (75) 5.06 (72) 5.35 (82) 4.92 (93) 6.32 (77) 6.42 (60) 6.08 (76)
Area 2. Legal System and Property Rights 1.76 (88) 2.26 (99) 2.20 (105) 6.18 (49) 6.62 (48) 6.44 (55) 6.40 (51) 6.47 (49)
Area 3. Sound Money 6.90 (30) 8.10 (27) 8.99 (21) 3.87 (102) 8.00 (59) 8.06 (68) 8.83 (55) 7.70 (79)
Area 4. Freedom to Trade Internationally 0.98 (86) 1.07 (91) 2.05 (97) 2.43 (107) 5.73 (95) 5.80 (92) 5.15 (110) 5.19 (110)
Area 5. Regulation 3.86 (90) 3.38 (97) 3.65 (104) 3.73 (117) 4.23 (119) 5.71 (100) 5.95 (104) 5.96 (101)

Unadjusted
Summary Ratings Rank) h 3.61 (97) 3.83 (94) 4.39 (97) 4.20 (115) 5.76 (99) 6.36 (97) 6.32 (113) 6.05 (127)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.56 4.33 5.06 5.35 4.92 6.32 6.42 6.08
A. Government consumption 3.44 (28.29) 6.00 (19.59) 7.30 (15.17) 6.12 (19.19) 4.68 (24.10) 5.51 (21.28) 6.68 (17.28) 5.35 (21.82)
B. Transfers and subsidies 8.23 (7.00) 9.32 (3.00) 8.94 (4.40) 9.29 (3.10) 9.52 (2.26) 8.27 (6.85) 7.99 (7.88) 7.99 (7.88)
C. Government enterprises and investment 2.00 (44.50) 2.00 (40.40) 4.00 (32.50) 2.00 (49.70) 4.00 (33.60) 4.00 (33.70) 4.00 (35.30) 4.00 (35.30)
D. Top marginal tax rate 0.00 0.00 4.00 1.50 7.50 7.00 7.00
(i) Top marginal income tax rate 0.00 (90) 0.00 (75) 4.00 (54) 2.00 (54) 8.00 (35) 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate 0.00 (75) 4.00 (54) 1.00 (57) 7.00 (37) 7.00 (37) 7.00 (37)

Area 2. Legal System and Property Rights 1.76 2.26 2.20 5.60 5.91 6.11 5.78 5.85
A. Judicial independence 4.69 4.94
B. Impartial courts 4.92 4.86 4.20 3.76 3.95
C. Protection of property rights 5.63 5.98
D. Military interference in rule of law and politics 6.67 8.33 8.33 8.33 7.50
E. Integrity of the legal system 6.96 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 5.51 5.63 5.63
G. Regulatory restrictions on sale of real property 5.84 5.87 5.87
H. Reliability of police 5.77 5.85
I. Business costs of crime 5.70 6.23

Area 3. Sound Money 6.90 8.10 8.99 3.87 8.00 8.06 8.83 7.70
A. Money growth 4.64 (26.80) 5.94 (20.30) 8.19 (9.07) 6.09 (19.57) 7.15 (14.27) 7.69 (11.57) 9.80 (-1.02) 9.80 (-1.02)
B. Standard deviation of inflation 7.66 (5.85) 7.40 (6.51) 8.73 (3.17) 7.31 (6.72) 7.73 (5.67) 7.23 (6.93) 7.56 (6.11) 6.81 (7.98)
C. Inflation: most recent year 5.32 (23.41) 9.05 (4.73) 9.05 (4.73) 2.10 (39.50) 7.10 (14.48) 7.31 (13.43) 7.97 (10.14) 4.20 (29.00)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 0.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 0.98 1.07 2.05 2.43 5.73 5.62 5.07 5.11
A. Tariffs 2.93 3.20 6.15 7.30 8.34 6.92 4.17 4.13
(i) Revenue from trade taxes (% of trade sector) 0.00 (17.00) 0.53 (14.20) 6.43 (5.35) 8.74 (1.89) 7.67 (3.49) 7.59 (3.62) 7.72 (3.42) 7.72 (3.42)
(ii) Mean tariff rate 5.86 (20.70) 5.86 (20.70) 5.86 (20.70) 5.86 (20.70) 9.02 (4.90) 6.26 (18.70) 4.80 (26.00) 4.68 (26.60)
(iii) Standard deviation of tariff rates 8.32 (4.20) 0.00 (28.08) 0.00 (28.20)
B. Regulatory trade barriers 5.55 5.06 5.25
(i) Non-tariff trade barriers 4.05 4.44
(ii) Compliance costs of importing and exporting 5.55 6.07 6.07
C. Black-market exchange rates 0.00 0.00 0.00 0.00 8.86 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 0.00 1.04 1.04
(i) Foreign ownership/investment restrictions 3.11 3.13
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 3.86 3.38 3.65 3.73 4.23 5.69 5.49 5.49
A. Credit market regulations 2.68 2.40 3.13 3.33 4.67 6.22 6.31 6.23
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Private sector credit 8.03 7.19 9.38 10.00 10.00 9.65 8.92 8.70
(iii) Interest rate controls/negative real interest rates 0.00 0.00 0.00 0.00 4.00 9.00 10.00 10.00
B. Labor market regulations 4.53 4.63 4.65
(i) Hiring regulations and minimum wage 8.90 7.77 7.77
(ii) Hiring and firing regulations 4.39 4.48
(iii) Centralized collective bargaining 4.11 4.14
(iv) Hours regulations 7.30 8.00 8.00
(v) Mandated cost of worker dismissal 1.93 2.52 2.52
(vi) Conscription 3.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00
C. Business regulations 6.32 5.52 5.59
(i) Administrative requirements 3.04 3.10
(ii) Bureaucracy costs 4.47 4.47
(iii) Starting a business 9.04 9.70 9.55
(iv) Extra payments/bribes/favoritism 4.71 5.06
(v) Licensing restrictions 3.76 5.06 5.22
(vi) Cost of tax compliance 6.14 6.14 6.14

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92 E Economic Freedom of the World: 2013 Annual Report

Ireland
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.47 (19) 6.54 (20) 7.13 (20) 8.29 (5) 8.20 (9) 8.41 (4) 7.78 (14) 7.82 (15)
Area 1. Size of Government 4.67 (66) 4.26 (79) 5.56 (61) 5.76 (71) 6.13 (62) 6.64 (63) 4.77 (108) 4.75 (107)
Area 2. Legal System and Property Rights 7.08 (17) 6.65 (26) 7.73 (17) 9.09 (7) 8.97 (14) 8.75 (14) 8.85 (8) 8.99 (6)
Area 3. Sound Money 5.93 (69) 6.65 (55) 6.80 (55) 9.60 (15) 9.43 (25) 9.65 (7) 9.48 (24) 9.60 (11)
Area 4. Freedom to Trade Internationally 7.80 (13) 7.70 (15) 7.84 (22) 9.11 (13) 9.18 (11) 8.92 (4) 8.81 (5) 8.74 (5)
Area 5. Regulation 6.85 (17) 7.41 (7) 7.71 (7) 7.86 (8) 7.30 (24) 8.01 (12) 7.08 (46) 7.14 (49)

Unadjusted
Summary Ratings Rank) h 6.46 (18) 6.53 (20) 7.06 (18) 8.26 (5) 8.20 (9) 8.23 (6) 7.62 (20) 7.66 (20)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.67 4.26 5.56 5.76 6.13 6.64 4.77 4.75
A. Government consumption 5.31 (21.96) 5.15 (22.49) 5.80 (20.27) 5.44 (21.52) 5.33 (21.88) 5.12 (22.58) 3.80 (27.08) 3.71 (27.40)
B. Transfers and subsidies 5.37 (17.50) 4.88 (19.30) 5.42 (17.30) 5.10 (18.50) 4.20 (21.78) 6.94 (11.73) 5.27 (17.87) 5.31 (17.73)
C. Government enterprises and investment 7.00 (24.60) 7.00 (24.70) 10.00 (11.10) 10.00 (14.30) 10.00 (14.30) 10.00 (13.33) 6.00 (29.20) 6.00 (25.66)
D. Top marginal tax rate 1.00 0.00 1.00 2.50 5.00 4.50 4.00 4.00
(i) Top marginal income tax rate 1.00 (60) 0.00 (65) 1.00 (56) 3.00 (48) 5.00 (42) 5.00 (42) 5.00 (41) 5.00 (41)
(ii) Top marginal income and payroll tax rate 1.00 (57) 2.00 (51) 5.00 (42) 4.00 (49) 3.00 (55) 3.00 (53)

Area 2. Legal System and Property Rights 7.08 6.65 7.73 9.09 8.97 7.71 7.79 7.92
A. Judicial independence 9.30 8.68 8.57 8.78 8.88
B. Impartial courts 8.88 9.19 7.10 5.81 5.91
C. Protection of property rights 7.29 7.00 9.00 8.31 7.97
D. Military interference in rule of law and politics 10.00 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 10.00 10.00 10.00
F. Legal enforcement of contracts 4.95 3.93 3.93
G. Regulatory restrictions on sale of real property 5.90 7.15 8.46
H. Reliability of police 7.19 8.39 8.36
I. Business costs of crime 6.71 7.79 7.73

Area 3. Sound Money 5.93 6.65 6.80 9.60 9.43 9.65 9.48 9.60
A. Money growth 8.07 (9.64) 9.56 (2.19) 9.25 (3.75) 9.03 (4.87) 9.39 (-3.05) 9.73 (1.34) 9.23 (3.87) 9.76 (1.19)
B. Standard deviation of inflation 8.61 (3.48) 8.09 (4.78) 8.97 (2.57) 9.47 (1.32) 9.42 (1.44) 9.37 (1.57) 8.89 (2.78) 9.17 (2.09)
C. Inflation: most recent year 7.06 (14.71) 8.96 (5.18) 8.96 (5.18) 9.91 (0.43) 8.89 (5.56) 9.51 (2.43) 9.81 (-0.95) 9.48 (2.58)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.65 7.55 7.56 8.93 9.18 8.93 8.82 8.75
A. Tariffs 7.95 8.25 7.88 8.37 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 7.67 (3.50) 8.00 (3.00) 8.00 (3.00) 8.80 (1.80) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 8.88 8.93 8.51 8.35 8.04
(i) Non-tariff trade barriers 8.88 8.18 8.19 7.88 7.25
(ii) Compliance costs of importing and exporting 9.67 8.83 8.83 8.83
C. Black-market exchange rates 10.00 9.40 9.80 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 5.00 8.46 8.61 8.84 8.60 8.70
(i) Foreign ownership/investment restrictions 8.91 8.76 9.10 8.37 8.68
(ii) Capital controls 5.00 5.00 5.00 8.00 8.46 8.46 8.46 8.46
(iii) Freedom of foreigners to visit 8.96 8.96 8.96

Area 5. Regulation 6.95 7.52 7.65 7.91 7.30 8.19 7.23 7.30
A. Credit market regulations 7.35 8.46 8.77 9.00 9.00 9.33 6.00 6.12
(i) Ownership of banks 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 8.04 7.37 8.32 9.01 10.00 10.00 0.00 0.36
(iii) Interest rate controls/negative real interest rates 6.00 10.00 10.00 10.00 9.00 10.00 10.00 10.00
B. Labor market regulations 6.55 6.58 6.53 6.68 5.35 7.48 7.94 8.12
(i) Hiring regulations and minimum wage 6.95 4.69 8.90 8.90 8.90
(ii) Hiring and firing regulations 5.52 5.52 3.77 3.95 4.56 4.86
(iii) Centralized collective bargaining 5.18 5.18 6.21 6.21 2.93 4.24 5.06 5.80
(iv) Hours regulations 4.49 4.57 4.40 4.72 5.34 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 7.78 9.13 9.13
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 8.04 7.56 7.76 7.75 7.66
(i) Administrative requirements 7.20 4.80 4.01 4.59
(ii) Bureaucracy costs 7.61 7.93 6.72 7.31 7.31
(iii) Starting a business 7.63 6.92 9.58 9.58 9.68
(iv) Extra payments/bribes/favoritism 8.87 8.17 8.42 7.90 8.03
(v) Licensing restrictions 7.86 8.56 7.24
(vi) Cost of tax compliance 9.15 9.15 9.10

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 Chapter 2: Country Data Tables E 93

Israel
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.48 (95) 4.03 (92) 4.66 (88) 6.04 (67) 6.77 (54) 7.37 (40) 7.31 (41) 7.27 (46)
Area 1. Size of Government 1.61 (106) 2.41 (108) 3.72 (98) 3.10 (113) 2.87 (121) 4.45 (110) 4.64 (110) 4.75 (106)
Area 2. Legal System and Property Rights 4.06 (54) 6.78 (23) 4.39 (71) 6.98 (34) 8.01 (25) 7.26 (34) 6.96 (38) 7.05 (35)
Area 3. Sound Money 2.03 (104) 1.25 (109) 3.95 (102) 7.43 (47) 8.09 (58) 9.34 (34) 8.88 (52) 8.84 (58)
Area 4. Freedom to Trade Internationally 6.26 (30) 6.35 (29) 7.01 (32) 7.43 (45) 8.70 (24) 8.97 (3) 8.72 (7) 8.42 (11)
Area 5. Regulation 3.69 (93) 3.49 (96) 4.34 (97) 5.29 (85) 6.19 (70) 6.83 (58) 7.29 (34) 7.16 (46)

Unadjusted
Summary Ratings Rank) h 3.51 (99) 4.07 (92) 4.50 (92) 5.93 (68) 6.77 (54) 7.08 (58) 7.30 (47) 7.26 (49)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 1.82 2.74 3.72 3.10 2.87 4.45 6.10 6.24
A. Government consumption 0.00 (43.15) 0.45 (38.48) 2.09 (32.90) 2.24 (32.38) 2.18 (32.58) 2.11 (32.82) 3.12 (29.39) 3.21 (29.10)
B. Transfers and subsidies 4.47 (20.80) 4.77 (19.70) 5.59 (16.70) 5.07 (18.60) 3.92 (22.80) 7.25 (10.58) 7.26 (10.55) 7.26 (10.55)
C. Government enterprises and investment 10.00 (10.57) 10.00 (10.57)
D. Top marginal tax rate 1.00 3.00 3.50 2.00 2.50 4.00 4.00 4.50
(i) Top marginal income tax rate 1.00 (66) 3.00 (60) 5.00 (48) 4.00 (50) 4.00 (50) 4.00 (49) 5.00 (46) 6.00 (45)
(ii) Top marginal income and payroll tax rate 2.00 (64) 0.00 (66) 1.00 (62) 4.00 (49) 3.00 (60) 3.00 (59)

Area 2. Legal System and Property Rights 4.06 6.78 4.39 6.98 8.01 6.42 6.16 6.23
A. Judicial independence 8.68 9.19 8.87 8.63 8.09
B. Impartial courts 7.02 9.35 7.14 5.19 5.05
C. Protection of property rights 7.15 6.53 7.94 7.15 7.14
D. Military interference in rule of law and politics 5.10 6.67 4.17 4.17 4.17
E. Integrity of the legal system 6.96 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 3.46 3.46 3.46
G. Regulatory restrictions on sale of real property 4.81 5.63 6.07
H. Reliability of police 6.06 6.02 6.27
I. Business costs of crime 7.02 6.83 7.53

Area 3. Sound Money 2.03 1.25 3.95 7.43 8.09 9.34 8.88 8.84
A. Money growth 3.13 (34.36) 0.00 (136.22) 5.48 (22.59) 7.80 (10.98) 9.07 (4.64) 8.44 (7.80) 6.86 (15.71) 6.86 (15.71)
B. Standard deviation of inflation 0.00 (37.42) 0.00 (103.70) 5.32 (11.71) 8.59 (3.53) 8.50 (3.74) 9.17 (2.08) 9.20 (2.00) 9.20 (2.00)
C. Inflation: most recent year 0.00 (134.74) 0.00 (260.00) 0.00 (260.00) 8.33 (8.36) 9.77 (1.14) 9.73 (1.33) 9.46 (2.69) 9.31 (3.46)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00 5.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.13 6.22 6.86 6.89 8.70 8.48 8.25 7.96
A. Tariffs 6.60 8.07 9.39 7.95 9.68 7.86 7.40 7.40
(i) Revenue from trade taxes (% of trade sector) 6.60 (5.10) 8.07 (2.90) 9.39 (0.92) 9.84 (0.24) 9.75 (0.37) 9.77 (0.34) 9.69 (0.46) 9.70 (0.45)
(ii) Mean tariff rate 8.34 (8.30) 9.60 (2.00) 9.46 (2.70) 8.72 (6.40) 8.72 (6.40)
(iii) Standard deviation of tariff rates 5.68 (10.80) 4.36 (14.11) 3.79 (15.54) 3.79 (15.54)
B. Regulatory trade barriers 5.38 8.11 7.84 8.03 7.39
(i) Non-tariff trade barriers 5.38 6.88 7.27 7.36 6.08
(ii) Compliance costs of importing and exporting 9.33 8.41 8.70 8.70
C. Black-market exchange rates 9.80 8.60 9.20 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 4.21 7.02 8.23 7.55 7.06
(i) Foreign ownership/investment restrictions 6.42 9.42 7.70 7.14 7.19
(ii) Capital controls 2.00 2.00 2.00 2.00 4.61 9.17 7.69 6.15
(iii) Freedom of foreigners to visit 7.82 7.82 7.82

Area 5. Regulation 3.52 3.34 3.58 5.27 6.19 6.70 7.14 7.02
A. Credit market regulations 1.75 1.14 3.81 5.38 6.30 8.03 9.27 9.00
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 5.00 10.00 10.00
(ii) Private sector credit 5.25 3.43 5.43 8.14 8.89 9.10 7.80 7.00
(iii) Interest rate controls/negative real interest rates 0.00 0.00 6.00 8.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.35 3.84 4.26 4.87 5.28 5.19
(i) Hiring regulations and minimum wage 4.75 4.20 8.90 8.90 8.90
(ii) Hiring and firing regulations 4.87 4.87 5.43 5.74 5.07 5.08
(iii) Centralized collective bargaining 5.18 5.18 5.18 5.18 6.17 6.99 7.21 6.62
(iv) Hours regulations 4.38 5.51 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 1.56 2.52 2.52
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 6.60 8.01 7.20 6.88 6.87
(i) Administrative requirements 8.18 4.36 3.81 3.55
(ii) Bureaucracy costs 6.34 7.73 7.30 6.76 6.76
(iii) Starting a business 5.77 7.68 8.86 8.87 9.29
(iv) Extra payments/bribes/favoritism 7.69 8.44 8.40 7.21 6.94
(v) Licensing restrictions 6.85 7.30 7.31
(vi) Cost of tax compliance 7.42 7.37 7.37

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94 E Economic Freedom of the World: 2013 Annual Report

Italy
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.37 (49) 5.57 (43) 6.60 (29) 6.66 (43) 7.36 (36) 7.33 (42) 6.79 (69) 6.81 (70)
Area 1. Size of Government 4.10 (76) 2.96 (101) 3.33 (103) 3.75 (107) 4.62 (100) 5.92 (88) 3.68 (120) 3.74 (119)
Area 2. Legal System and Property Rights 5.70 (37) 6.78 (21) 7.73 (21) 6.47 (46) 7.66 (29) 6.23 (56) 5.95 (61) 5.92 (60)
Area 3. Sound Money 5.55 (78) 6.29 (76) 9.28 (16) 9.58 (17) 9.47 (21) 9.52 (23) 9.66 (10) 9.66 (7)
Area 4. Freedom to Trade Internationally 7.52 (15) 7.57 (16) 7.58 (26) 8.62 (20) 9.01 (16) 8.05 (25) 7.85 (36) 7.76 (36)
Area 5. Regulation 4.00 (89) 4.24 (89) 5.10 (75) 4.91 (94) 6.03 (82) 6.81 (62) 6.68 (76) 6.89 (64)

Unadjusted
Summary Ratings Rank) h 5.58 (43) 5.78 (37) 6.75 (28) 6.61 (43) 7.36 (34) 7.37 (41) 6.83 (83) 6.85 (83)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.10 2.96 3.33 3.75 4.62 5.92 3.68 3.74
A. Government consumption 5.96 (19.75) 5.48 (21.37) 5.22 (22.26) 5.67 (20.71) 4.84 (23.54) 4.20 (25.71) 4.17 (25.83) 4.41 (25.00)
B. Transfers and subsidies 4.44 (20.90) 2.37 (28.50) 3.11 (25.80) 2.32 (28.70) 4.64 (20.17) 4.47 (20.79) 3.56 (24.15) 3.53 (24.24)
C. Government enterprises and investment 6.00 (25.90) 4.00 (33.20) 4.00 (30.30) 6.00 (28.30) 6.00 (28.30) 10.00 (11.37) 4.00 (10.61) 4.00 (10.39)
D. Top marginal tax rate 0.00 0.00 1.00 1.00 3.00 5.00 3.00 3.00
(i) Top marginal income tax rate 0.00 (72) 0.00 (81) 1.00 (66) 1.00 (67) 3.00 (51) 6.00 (43-45) 5.00 (43-45) 5.00 (47-48)
(ii) Top marginal income and payroll tax rate 1.00 (66) 1.00 (67) 3.00 (52) 4.00 (51) 1.00 (61-62) 1.00 (61-62)

Area 2. Legal System and Property Rights 5.70 6.78 7.73 6.47 7.66 6.23 5.95 5.91
A. Judicial independence 5.12 4.84 4.31 4.99 4.62
B. Impartial courts 5.43 5.68 3.66 2.73 2.58
C. Protection of property rights 5.43 7.80 6.79 5.42 5.47
D. Military interference in rule of law and politics 9.39 10.00 10.00 10.00 10.00
E. Integrity of the legal system 6.96 10.00 6.67 6.67 6.67
F. Legal enforcement of contracts 3.18 3.18 3.18
G. Regulatory restrictions on sale of real property 9.29 8.01 8.07
H. Reliability of police 6.47 6.77 6.80
I. Business costs of crime 5.67 5.76 5.82

Area 3. Sound Money 5.55 6.29 9.28 9.58 9.47 9.52 9.66 9.66
A. Money growth 7.33 (13.36) 8.40 (7.99) 9.20 (4.00) 9.89 (0.56) 8.94 (5.29) 8.65 (6.76) 9.33 (3.34) 9.56 (2.20)
B. Standard deviation of inflation 9.04 (2.41) 8.54 (3.65) 9.72 (0.69) 9.43 (1.42) 9.43 (1.43) 9.83 (0.41) 9.63 (0.93) 9.61 (0.97)
C. Inflation: most recent year 5.82 (20.91) 8.20 (9.01) 8.20 (9.01) 8.99 (5.06) 9.49 (2.54) 9.60 (1.99) 9.69 (1.54) 9.45 (2.74)
D. Freedom to own foreign currency bank accounts 0.00 0.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 8.00 8.05 7.83 8.42 9.01 8.05 7.85 7.76
A. Tariffs 8.99 9.15 8.48 8.70 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.73 (0.40) 9.80 (0.30) 9.80 (0.30) 9.80 (0.30) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 6.98 8.51 7.18 6.89 6.72
(i) Non-tariff trade barriers 6.98 7.68 7.00 6.41 5.98
(ii) Compliance costs of importing and exporting 9.33 7.36 7.36 7.45
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 5.00 8.00 8.36 6.62 6.16 6.04
(i) Foreign ownership/investment restrictions 8.00 9.04 5.59 4.97 4.62
(ii) Capital controls 5.00 5.00 5.00 8.00 7.69 7.69 6.92 6.92
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 4.57 4.85 5.56 4.86 6.03 7.13 6.99 7.21
A. Credit market regulations 5.02 5.58 6.93 7.18 8.22 8.74 8.91 8.96
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 8.00 10.00 10.00
(ii) Private sector credit 6.06 5.73 5.80 6.55 9.65 8.21 7.74 7.87
(iii) Interest rate controls/negative real interest rates 4.00 6.00 10.00 10.00 10.00 10.00 9.00 9.00
B. Labor market regulations 4.12 4.12 4.20 3.49 3.53 6.49 6.48 6.98
(i) Hiring regulations and minimum wage 3.40 4.01 6.70 3.90 7.23
(ii) Hiring and firing regulations 2.62 2.62 2.10 2.80 3.26 2.99
(iii) Centralized collective bargaining 4.49 4.49 4.49 4.49 3.68 3.59 3.70 3.65
(iv) Hours regulations 6.86 6.86 6.69 3.95 4.84 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 9.81 10.00 10.00
(vi) Conscription 1.00 1.00 3.00 3.00 3.00 10.00 10.00 10.00
C. Business regulations 3.91 6.34 6.17 5.59 5.70
(i) Administrative requirements 6.85 1.73 1.81 1.87
(ii) Bureaucracy costs 4.71 6.05 6.08 4.40 4.40
(iii) Starting a business 4.10 5.08 9.34 9.58 9.60
(iv) Extra payments/bribes/favoritism 2.91 7.39 7.44 4.51 4.56
(v) Licensing restrictions 6.46 6.46 6.77
(vi) Cost of tax compliance 5.96 6.81 6.98

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 Chapter 2: Country Data Tables E 95

Jamaica
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.92 (87) 4.85 (73) 5.48 (58) 6.65 (44) 7.57 (22) 7.63 (25) 7.10 (54) 7.23 (47)
Area 1. Size of Government 2.53 (101) 6.69 (12) 7.49 (8) 7.86 (15) 8.52 (6) 8.66 (6) 7.62 (25) 7.70 (26)
Area 2. Legal System and Property Rights 3.01 (66) 3.24 (86) 3.89 (78) 5.09 (81) 5.58 (68) 5.88 (61) 5.93 (62) 6.02 (58)
Area 3. Sound Money 5.19 (88) 4.10 (99) 4.96 (90) 6.10 (71) 8.72 (43) 8.64 (57) 7.98 (77) 8.55 (60)
Area 4. Freedom to Trade Internationally 2.88 (68) 4.57 (55) 4.07 (76) 7.34 (48) 7.80 (48) 7.26 (57) 6.77 (77) 6.82 (77)
Area 5. Regulation 5.78 (41) 5.76 (45) 7.20 (16) 6.83 (29) 7.21 (27) 7.81 (14) 7.39 (33) 7.26 (39)

Unadjusted
Summary Ratings Rank) h 3.98 (88) 5.09 (63) 5.62 (53) 6.72 (41) 7.48 (26) 7.51 (31) 6.99 (72) 7.12 (62)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.23 6.91 7.49 7.86 8.52 8.66 7.62 7.70
A. Government consumption 4.68 (24.08) 6.64 (17.41) 6.35 (18.40) 6.37 (18.33) 6.09 (19.30) 6.70 (17.23) 6.73 (17.11) 7.15 (15.70)
B. Transfers and subsidies 10.00 (0.50) 9.59 (2.00) 9.07 (3.90) 10.00 (0.00) 9.92 (0.78) 9.76 (1.39) 9.66 (1.74)
C. Government enterprises and investment 2.00 (46.50) 10.00 (13.40) 8.00 (16.50) 8.00 (17.00) 10.00 (10.30) 10.00 (6.10) 7.00 (21.92) 7.00 (21.92)
D. Top marginal tax rate 0.00 1.00 6.00 8.00 8.00 8.00 7.00 7.00
(i) Top marginal income tax rate 0.00 (80) 1.00 (58) 7.00 (33) 9.00 (25) 9.00 (25) 9.00 (25) 8.00 (35) 9.00 (25)
(ii) Top marginal income and payroll tax rate 5.00 (37) 7.00 (31) 7.00 (31) 7.00 (33) 6.00 (44) 5.00 (38)

Area 2. Legal System and Property Rights 3.28 3.52 4.23 5.14 5.17 4.84 4.88 4.95
A. Judicial independence 5.40 5.72 5.68
B. Impartial courts 4.27 4.90 4.67 3.97 4.09
C. Protection of property rights 4.10 6.59 5.52 5.31
D. Military interference in rule of law and politics 5.39 10.00 10.00 10.00 10.00
E. Integrity of the legal system 6.96 3.33 4.17 3.33 3.33
F. Legal enforcement of contracts 3.44 2.76 2.76
G. Regulatory restrictions on sale of real property 4.52 6.84 6.84
H. Reliability of police 2.97 4.23 4.52
I. Business costs of crime 1.78 1.53 2.06

Area 3. Sound Money 5.19 4.10 4.96 6.10 8.72 8.64 7.98 8.55
A. Money growth 6.54 (17.28) 6.93 (15.34) 7.76 (11.21) 4.67 (26.67) 8.62 (6.89) 8.37 (8.13) 8.18 (9.09) 8.04 (9.82)
B. Standard deviation of inflation 7.88 (5.29) 5.61 (10.97) 8.20 (4.49) 5.31 (11.73) 7.90 (5.26) 9.24 (1.89) 6.24 (9.40) 7.69 (5.78)
C. Inflation: most recent year 6.33 (18.34) 3.86 (30.69) 3.86 (30.69) 4.41 (27.93) 8.37 (8.17) 6.94 (15.30) 7.48 (12.61) 8.49 (7.53)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.35 5.31 4.40 7.84 7.80 7.74 7.22 7.27
A. Tariffs 8.05 7.73 6.60 6.92 7.28 7.50 7.50 7.53
(i) Revenue from trade taxes (% of trade sector) 9.40 (0.90) 8.87 (1.70) 8.55 (2.18) 8.49 (2.27) 8.17 (2.75) 8.25 (2.63) 8.41 (2.38)
(ii) Mean tariff rate 6.70 (16.50) 6.60 (17.00) 6.60 (17.00) 7.20 (14.00) 7.88 (10.60) 8.54 (7.30) 8.50 (7.50) 8.48 (7.60)
(iii) Standard deviation of tariff rates 5.00 (12.50) 5.48 (11.30) 5.80 (10.51) 5.74 (10.65) 5.68 (10.79)
B. Regulatory trade barriers 5.73 6.45 6.51 6.68
(i) Non-tariff trade barriers 5.73 5.86 6.00 5.93
(ii) Compliance costs of importing and exporting 7.03 7.03 7.43
C. Black-market exchange rates 0.00 6.20 4.60 8.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 8.00 8.18 7.02 4.87 4.86
(i) Foreign ownership/investment restrictions 8.67 7.63 6.55 6.53
(ii) Capital controls 2.00 2.00 2.00 8.00 7.69 5.38 0.00 0.00
(iii) Freedom of foreigners to visit 8.05 8.05 8.05

Area 5. Regulation 5.85 5.62 7.02 6.66 7.21 7.68 7.27 7.15
A. Credit market regulations 5.06 5.00 8.72 7.76 8.76 9.49 8.19 7.65
(i) Ownership of banks 5.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 6.13 5.99 8.17 7.29 7.27 9.48 5.56 3.94
(iii) Interest rate controls/negative real interest rates 4.00 4.00 8.00 6.00 9.00 9.00 9.00 9.00
B. Labor market regulations 6.45 7.63 7.81 7.87
(i) Hiring regulations and minimum wage 3.98 8.90 8.90 8.90
(ii) Hiring and firing regulations 4.77 5.27 4.86 5.36
(iii) Centralized collective bargaining 7.07 7.35 6.52 6.42
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 4.25 6.55 6.55
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 6.42 5.93 5.83 5.92
(i) Administrative requirements 6.83 2.85 2.68 2.82
(ii) Bureaucracy costs 6.88 5.41 4.61 4.61
(iii) Starting a business 5.70 9.65 9.70 9.71
(iv) Extra payments/bribes/favoritism 6.28 6.10 4.49 4.33
(v) Licensing restrictions 6.22 8.14 8.17
(vi) Cost of tax compliance 5.36 5.36 5.87

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96 E Economic Freedom of the World: 2013 Annual Report

Japan
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.88 (12) 7.05 (11) 7.58 (11) 7.50 (21) 7.90 (14) 7.79 (17) 7.58 (28) 7.48 (32)
Area 1. Size of Government 5.68 (31) 5.83 (29) 5.83 (50) 4.95 (88) 5.71 (79) 5.72 (92) 5.30 (93) 5.26 (97)
Area 2. Legal System and Property Rights 7.91 (8) 7.25 (16) 7.73 (18) 8.13 (20) 8.18 (20) 7.85 (23) 7.49 (28) 7.40 (29)
Area 3. Sound Money 8.28 (15) 8.54 (20) 9.80 (1) 9.72 (8) 9.65 (8) 9.66 (6) 9.89 (1) 9.88 (1)
Area 4. Freedom to Trade Internationally 6.04 (32) 7.00 (20) 7.86 (20) 7.82 (37) 8.55 (28) 7.71 (42) 7.42 (50) 7.16 (55)
Area 5. Regulation 6.56 (21) 6.60 (22) 6.71 (27) 6.81 (30) 7.40 (19) 8.00 (13) 7.79 (13) 7.71 (18)

Unadjusted
Summary Ratings Rank) h 7.37 (8) 7.55 (8) 7.96 (8) 7.42 (21) 7.90 (14) 7.81 (16) 7.60 (22) 7.50 (33)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.80 5.95 5.83 4.95 5.71 5.72 5.30 5.26
A. Government consumption 7.56 (14.29) 7.65 (13.98) 7.80 (13.47) 5.50 (21.32) 5.04 (22.85) 4.76 (23.82) 4.26 (25.50) 4.26 (25.50)
B. Transfers and subsidies 7.63 (9.20) 7.17 (10.90) 7.00 (11.50) 6.81 (12.20) 6.81 (12.20) 5.10 (18.47) 3.95 (22.72) 3.78 (23.31)
C. Government enterprises and investment 8.00 (19.60) 8.00 (17.90) 7.00 (20.40) 6.00 (28.50) 6.00 (28.50) 8.00 (15.33) 8.00 (16.43) 8.00 (16.43)
D. Top marginal tax rate 0.00 1.00 1.50 1.50 5.00 5.00 5.00 5.00
(i) Top marginal income tax rate 0.00 (75) 1.00 (70) 2.00 (65) 2.00 (65) 5.00 (50) 5.00 (50) 5.00 (50) 5.00 (50)
(ii) Top marginal income and payroll tax rate 1.00 (69) 1.00 (69) 5.00 (50) 5.00 (50) 5.00 (50) 5.00 (50)

Area 2. Legal System and Property Rights 7.91 7.25 7.73 8.13 8.18 7.88 7.52 7.43
A. Judicial independence 8.33 8.02 7.60 8.05 8.04
B. Impartial courts 6.13 7.01 7.31 5.92 5.37
C. Protection of property rights 6.83 7.55 8.73 7.81 7.98
D. Military interference in rule of law and politics 9.38 10.00 8.33 8.33 8.33
E. Integrity of the legal system 10.00 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 6.37 5.80 5.80
G. Regulatory restrictions on sale of real property 8.06 7.86 7.83
H. Reliability of police 7.79 8.10 7.82
I. Business costs of crime 8.43 7.45 7.36

Area 3. Sound Money 8.28 8.54 9.80 9.72 9.65 9.66 9.89 9.88
A. Money growth 9.92 (0.39) 9.93 (-0.37) 9.96 (0.22) 9.46 (2.70) 9.09 (4.56) 8.80 (6.00) 9.93 (-0.33) 9.85 (0.74)
B. Standard deviation of inflation 9.28 (1.80) 9.65 (0.87) 9.66 (0.84) 9.53 (1.17) 9.65 (0.89) 9.91 (0.22) 9.76 (0.61) 9.71 (0.73)
C. Inflation: most recent year 8.91 (5.44) 9.58 (2.12) 9.58 (2.12) 9.87 (-0.64) 9.86 (-0.71) 9.95 (-0.27) 9.86 (-0.72) 9.94 (-0.28)
D. Freedom to own foreign currency bank accounts 5.00 5.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.92 8.02 8.74 7.37 8.55 7.67 7.39 7.12
A. Tariffs 8.75 9.06 8.23 8.10 8.43 6.11 7.14 6.27
(i) Revenue from trade taxes (% of trade sector) 9.40 (0.90) 9.47 (0.80) 9.40 (0.90) 8.93 (1.60) 9.00 (1.50) 9.00 (1.50) 9.63 (0.56) 9.60 (0.60)
(ii) Mean tariff rate 8.10 (9.50) 8.66 (6.70) 8.62 (6.90) 8.74 (6.30) 9.10 (4.50) 9.34 (3.30) 9.12 (4.40) 8.94 (5.30)
(iii) Standard deviation of tariff rates 6.68 (8.30) 6.64 (8.40) 7.20 (7.00) 0.00 (25.59) 2.66 (18.35) 0.27 (24.33)
B. Regulatory trade barriers 3.68 7.37 7.33 6.90 6.67
(i) Non-tariff trade barriers 3.68 5.42 6.03 5.16 4.71
(ii) Compliance costs of importing and exporting 9.33 8.64 8.64 8.64
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 5.00 8.00 7.70 8.40 7.23 5.51 5.55
(i) Foreign ownership/investment restrictions 7.40 9.11 6.31 5.78 5.88
(ii) Capital controls 2.00 5.00 8.00 8.00 7.69 8.46 3.85 3.85
(iii) Freedom of foreigners to visit 6.92 6.92 6.92

Area 5. Regulation 7.92 7.97 7.71 6.91 7.40 8.12 7.91 7.82
A. Credit market regulations 7.82 7.88 8.22 8.22 8.22 8.50 8.38 8.06
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 8.00 8.00 8.00
(ii) Private sector credit 8.45 8.65 9.65 9.65 9.65 7.50 7.14 6.17
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 8.03 8.06 7.20 7.46 6.48 8.47 8.30 8.33
(i) Hiring regulations and minimum wage 7.55 3.99 8.90 8.90 8.90
(ii) Hiring and firing regulations 4.82 4.82 4.18 4.62 2.97 3.04
(iii) Centralized collective bargaining 7.93 7.93 7.93 7.93 7.40 8.37 7.96 8.01
(iv) Hours regulations 6.16 6.25 6.07 6.98 6.85 9.30 10.00 10.00
(v) Mandated cost of worker dismissal 9.63 10.00 10.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.06 7.50 7.39 7.04 7.09
(i) Administrative requirements 6.50 4.29 3.66 3.65
(ii) Bureaucracy costs 5.86 9.13 7.14 7.29 7.29
(iii) Starting a business 4.72 5.85 9.18 9.18 9.18
(iv) Extra payments/bribes/favoritism 4.60 8.50 8.94 8.06 8.37
(v) Licensing restrictions 8.71 7.72 7.72
(vi) Cost of tax compliance 6.08 6.30 6.30

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 Chapter 2: Country Data Tables E 97

Jordan
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.32 (52) 5.71 (42) 5.81 (47) 6.45 (51) 7.40 (34) 7.61 (26) 7.72 (20) 7.79 (16)
Area 1. Size of Government 5.33 (42) 5.14 (51) 7.27 (13) 6.38 (48) 6.08 (68) 6.85 (53) 8.11 (14) 8.33 (9)
Area 2. Legal System and Property Rights 2.32 (77) 3.52 (81) 3.99 (74) 5.95 (54) 7.22 (38) 6.86 (42) 6.53 (49) 6.54 (47)
Area 3. Sound Money 6.82 (32) 7.74 (30) 6.20 (69) 7.15 (53) 9.67 (7) 9.21 (37) 9.12 (43) 9.10 (46)
Area 4. Freedom to Trade Internationally 6.02 (33) 6.04 (32) 5.74 (48) 6.27 (70) 7.22 (62) 7.76 (40) 7.70 (44) 7.72 (39)
Area 5. Regulation 6.31 (29) 6.24 (35) 6.21 (41) 6.68 (34) 6.83 (43) 7.37 (25) 7.21 (37) 7.35 (36)

Unadjusted
Summary Ratings Rank) h 5.23 (52) 5.65 (43) 5.60 (54) 6.39 (53) 7.40 (32) 7.63 (21) 7.74 (16) 7.81 (13)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.77 4.60 6.12 5.71 6.08 6.27 7.42 7.63
A. Government consumption 3.89 (26.78) 5.04 (22.85) 4.37 (25.14) 3.72 (27.36) 4.75 (23.84) 6.66 (17.34) 5.82 (20.21) 6.09 (19.30)
B. Transfers and subsidies 8.42 (6.30) 8.75 (5.10) 9.13 (3.70) 9.40 (2.70) 9.56 (2.13) 6.42 (13.63) 8.35 (6.55) 7.41 (9.99)
C. Government enterprises and investment 2.00 (48.70) 0.00 (56.20) 6.00 (27.60) 4.00 (30.50) 2.00 (43.60) 7.00 (23.90) 8.00 (19.22) 8.00 (18.18)
D. Top marginal tax rate 5.00 8.00 5.00 7.50 9.00
(i) Top marginal income tax rate 5.00 (45) 8.00 (30) 7.00 (35) 10.00 (14) 10.00 (14)
(ii) Top marginal income and payroll tax rate 3.00 (46) 5.00 (40) 8.00 (29)

Area 2. Legal System and Property Rights 2.32 3.52 3.99 5.95 7.22 6.79 6.47 6.47
A. Judicial independence 6.45 8.18 6.53 5.59 5.65
B. Impartial courts 5.85 6.85 6.32 4.74 5.24
C. Protection of property rights 4.33 6.05 6.63 6.98 7.13
D. Military interference in rule of law and politics 6.16 8.33 8.33 8.33 7.50
E. Integrity of the legal system 6.96 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 3.38 3.38 3.38
G. Regulatory restrictions on sale of real property 6.32 7.14 7.14
H. Reliability of police 8.27 7.64 7.64
I. Business costs of crime 8.64 7.73 7.90

Area 3. Sound Money 6.82 7.74 6.20 7.15 9.67 9.21 9.12 9.10
A. Money growth 5.86 (20.70) 9.17 (-4.13) 8.36 (8.18) 9.77 (-1.14) 9.85 (0.75) 8.03 (9.87) 9.46 (2.72) 9.22 (3.92)
B. Standard deviation of inflation 6.64 (8.40) 7.09 (7.27) 6.74 (8.14) 9.52 (1.21) 8.97 (2.57) 9.51 (1.23) 8.04 (4.89) 8.06 (4.84)
C. Inflation: most recent year 9.78 (1.10) 9.71 (-1.45) 9.71 (-1.45) 9.32 (3.39) 9.87 (0.67) 9.30 (3.49) 9.00 (5.01) 9.12 (4.41)
D. Freedom to own foreign currency bank accounts 5.00 5.00 0.00 0.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.76 6.00 4.81 6.63 7.22 7.94 7.89 7.90
A. Tariffs 5.27 6.59 4.63 6.20 4.35 6.54 6.95 7.01
(i) Revenue from trade taxes (% of trade sector) 5.27 (7.10) 5.93 (6.10) 6.67 (5.00) 6.20 (5.70) 6.98 (4.53) 8.21 (2.68) 9.13 (1.30) 9.22 (1.17)
(ii) Mean tariff rate 7.24 (13.80) 5.20 (24.00) 7.52 (12.40) 8.00 (10.00) 8.00 (10.00)
(iii) Standard deviation of tariff rates 2.60 (18.50) 0.88 (22.80) 3.88 (15.30) 3.72 (15.70) 3.80 (15.50)
B. Regulatory trade barriers 5.08 6.34 6.73 6.87 6.95
(i) Non-tariff trade barriers 5.08 5.35 6.26 5.61 5.77
(ii) Compliance costs of importing and exporting 7.33 7.20 8.14 8.14
C. Black-market exchange rates 10.00 9.40 7.80 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 5.43 8.20 8.51 7.74 7.65
(i) Foreign ownership/investment restrictions 8.85 8.71 7.83 6.28 6.02
(ii) Capital controls 2.00 2.00 2.00 2.00 7.69 7.69 6.92 6.92
(iii) Freedom of foreigners to visit 10.00 10.00 10.00

Area 5. Regulation 6.49 6.42 6.89 6.53 6.83 7.95 7.79 7.93
A. Credit market regulations 7.01 6.70 5.72 6.77 7.79 9.37 8.05 8.32
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 9.02 8.40 8.16 9.31 8.38 8.10 4.14 4.97
(iii) Interest rate controls/negative real interest rates 4.00 6.00 10.00 10.00 10.00 10.00
B. Labor market regulations 8.07 7.34 6.50 8.39 8.41 8.44
(i) Hiring regulations and minimum wage 6.62 3.75 8.90 8.90 8.90
(ii) Hiring and firing regulations 6.27 6.27 4.45 3.91 4.11 4.59
(iii) Centralized collective bargaining 7.93 7.93 7.93 7.93 7.80 7.93 7.44 7.16
(iv) Hours regulations 5.88 6.51 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 9.63 10.00 10.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.49 6.20 6.10 6.90 7.03
(i) Administrative requirements 7.55 4.33 3.79 4.41
(ii) Bureaucracy costs 5.40 4.60 3.07 5.20 5.20
(iii) Starting a business 6.57 6.27 5.91 9.47 9.47
(iv) Extra payments/bribes/favoritism 4.50 6.37 7.08 5.44 6.00
(v) Licensing restrictions 7.34 8.81 8.82
(vi) Cost of tax compliance 8.87 8.70 8.31

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98 E Economic Freedom of the World: 2013 Annual Report

Kazakhstan
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.88 (70) 6.81 (85) 6.84 (84)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 8.16 7.09 7.06
A. Government consumption 6.39 (18.27) 6.48 (17.97) 6.35 (18.40)
B. Transfers and subsidies 8.76 (5.06) 8.89 (4.59) 8.90 (4.52)
C. Government enterprises and investment 8.00 (16.34) 4.00 (20.85) 4.00 (22.27)
D. Top marginal tax rate 9.50 9.00 9.00
(i) Top marginal income tax rate 10.00 (20) 10.00 (10) 10.00 (10)
(ii) Top marginal income and payroll tax rate 9.00 (25) 8.00 (30) 8.00 (30)

Area 2. Legal System and Property Rights 5.71 5.66 6.02

A. Judicial independence 2.89 2.90 3.64
B. Impartial courts 4.13 3.76 4.43
C. Protection of property rights 4.89 4.29 5.13
D. Military interference in rule of law and politics 8.33 8.33 8.33
E. Integrity of the legal system 6.67 6.67 5.83
F. Legal enforcement of contracts 6.19 6.19 6.34
G. Regulatory restrictions on sale of real property 8.62 9.21 9.21
H. Reliability of police 4.56 3.84 4.55
I. Business costs of crime 5.11 5.77 6.67

Area 3. Sound Money 6.85 8.24 8.17

A. Money growth 5.86 (20.71) 7.20 (13.99) 6.95 (15.23)
B. Standard deviation of inflation 8.07 (4.82) 7.20 (7.00) 7.41 (6.48)
C. Inflation: most recent year 8.48 (7.58) 8.58 (7.12) 8.33 (8.35)
D. Freedom to own foreign currency bank accounts 5.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.12 5.57 5.36

A. Tariffs 9.49 6.70 5.67
(i) Revenue from trade taxes (% of trade sector) 9.56 (0.66) 9.43 (0.85) 6.46 (5.31) 4.85 (7.73)
(ii) Mean tariff rate 9.54 (2.30) 8.16 (9.20) 8.08 (9.60)
(iii) Standard deviation of tariff rates 5.47 (11.32) 4.09 (14.78)
B. Regulatory trade barriers 2.42 3.04 3.21
(i) Non-tariff trade barriers 4.59 4.94 5.73
(ii) Compliance costs of importing and exporting 0.25 1.13 0.69
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.56 2.56 2.56
(i) Foreign ownership/investment restrictions 6.14 5.38 5.37
(ii) Capital controls 1.54 2.31 2.31
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 7.57 7.46 7.59

A. Credit market regulations 10.00 9.21 9.33
(i) Ownership of banks 10.00 8.00 8.00
(ii) Private sector credit 10.00 10.00 9.62 10.00
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00
B. Labor market regulations 7.35 7.08 7.13
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 7.61 5.70 6.12
(iii) Centralized collective bargaining 8.34 7.53 7.39
(iv) Hours regulations 8.00 10.00 10.00
(v) Mandated cost of worker dismissal 9.17 9.25 9.25
(vi) Conscription 1.00 0.00 0.00
C. Business regulations 5.37 6.08 6.31
(i) Administrative requirements 3.40 3.85 4.33
(ii) Bureaucracy costs 4.23 3.89 3.89
(iii) Starting a business 9.18 9.38 9.39
(iv) Extra payments/bribes/favoritism 5.54 3.81 4.74
(v) Licensing restrictions 2.90 7.67 7.65
(vi) Cost of tax compliance 6.96 7.89 7.89

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 Chapter 2: Country Data Tables E 99

Kenya
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.80 (65) 5.29 (52) 5.43 (63) 5.89 (71) 6.72 (57) 7.24 (49) 6.90 (64) 6.84 (67)
Area 1. Size of Government 3.79 (86) 3.94 (83) 4.83 (79) 5.70 (72) 7.09 (30) 8.57 (10) 7.04 (38) 7.01 (39)
Area 2. Legal System and Property Rights 4.20 (53) 5.25 (52) 5.30 (53) 3.63 (108) 3.92 (102) 4.57 (86) 4.63 (86) 4.77 (83)
Area 3. Sound Money 6.17 (59) 6.84 (42) 6.66 (58) 6.81 (58) 8.76 (41) 8.62 (58) 8.74 (57) 8.38 (67)
Area 4. Freedom to Trade Internationally 3.75 (57) 4.15 (61) 3.87 (80) 7.44 (44) 7.06 (67) 7.04 (65) 7.27 (55) 7.13 (57)
Area 5. Regulation 6.06 (33) 6.26 (34) 6.50 (31) 5.85 (58) 6.75 (46) 7.35 (27) 6.83 (62) 6.94 (60)

Unadjusted
Summary Ratings Rank) h 4.84 (65) 5.34 (56) 5.43 (62) 5.91 (69) 6.73 (55) 7.20 (53) 6.87 (80) 6.81 (87)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.79 3.94 4.83 5.70 7.09 8.57 7.04 7.01
A. Government consumption 4.65 (24.20) 4.92 (23.26) 4.96 (23.14) 6.58 (17.63) 6.15 (19.10) 6.36 (18.37) 6.39 (18.28) 6.29 (18.60)
B. Transfers and subsidies 9.51 (2.30) 8.86 (4.70) 9.37 (2.80) 9.22 (3.35) 9.21 (3.40) 9.91 (0.84) 9.79 (1.27) 9.73 (1.51)
C. Government enterprises and investment 0.00 (55.10) 2.00 (49.50) 2.00 (47.10) 4.00 (36.80) 6.00 (27.30) 10.00 (13.33) 4.00 (29.43) 4.00 (29.43)
D. Top marginal tax rate 1.00 0.00 3.00 3.00 7.00 8.00 8.00 8.00
(i) Top marginal income tax rate 1.00 (65) 0.00 (65) 3.00 (50) 3.00 (50) 7.00 (32) 8.00 (30) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 3.00 (50) 3.00 (50) 7.00 (32) 8.00 (30) 8.00 (30) 8.00 (30)

Area 2. Legal System and Property Rights 4.20 5.25 5.30 3.76 3.97 4.51 4.56 4.69
A. Judicial independence 3.32 3.24 4.01
B. Impartial courts 3.40 3.43 3.33 4.10 4.43
C. Protection of property rights 4.90 4.42 4.29
D. Military interference in rule of law and politics 3.39 5.00 6.67 6.67 6.67
E. Integrity of the legal system 4.11 3.33 3.89 3.33 3.33
F. Legal enforcement of contracts 4.88 4.09 4.09
G. Regulatory restrictions on sale of real property 7.27 7.38 7.21
H. Reliability of police 3.85 3.68 4.01
I. Business costs of crime 2.43 4.12 4.22

Area 3. Sound Money 6.17 6.84 6.66 6.81 8.76 8.62 8.74 8.38
A. Money growth 9.07 (4.63) 9.53 (2.37) 8.85 (5.77) 7.18 (14.09) 8.60 (6.99) 7.80 (10.98) 7.38 (13.11) 8.20 (9.01)
B. Standard deviation of inflation 7.53 (6.18) 9.48 (1.31) 9.44 (1.39) 7.32 (6.71) 8.44 (3.89) 8.75 (3.12) 8.38 (4.05) 8.11 (4.73)
C. Inflation: most recent year 8.09 (9.55) 8.35 (8.23) 8.35 (8.23) 7.74 (11.31) 8.00 (9.98) 7.94 (10.31) 9.21 (3.96) 7.20 (14.02)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.98 4.40 3.87 7.44 7.06 6.64 6.85 6.73
A. Tariffs 3.94 3.61 2.81 4.72 5.79 6.88 6.87 6.94
(i) Revenue from trade taxes (% of trade sector) 5.93 (6.10) 5.07 (7.40) 5.80 (6.30) 6.27 (5.59) 6.31 (5.54) 7.75 (3.38) 7.80 (3.30) 8.02 (2.97)
(ii) Mean tariff rate 1.94 (40.30) 2.16 (39.20) 1.26 (43.70) 3.20 (34.00) 6.14 (19.30) 7.58 (12.10) 7.50 (12.50) 7.50 (12.50)
(iii) Standard deviation of tariff rates 1.36 (21.60) 4.68 (13.30) 4.92 (12.70) 5.33 (11.68) 5.30 (11.75) 5.30 (11.75)
B. Regulatory trade barriers 4.78 6.00 5.60
(i) Non-tariff trade barriers 4.14 5.52 4.84
(ii) Compliance costs of importing and exporting 5.42 6.49 6.36
C. Black-market exchange rates 8.00 9.60 8.80 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 8.00 5.38 4.91 4.55 4.37
(i) Foreign ownership/investment restrictions 6.49 6.17 5.64
(ii) Capital controls 0.00 0.00 0.00 8.00 5.38 4.62 3.85 3.85
(iii) Freedom of foreigners to visit 3.63 3.63 3.63

Area 5. Regulation 6.06 6.26 6.50 5.85 6.75 7.67 7.13 7.24
A. Credit market regulations 6.17 6.69 7.33 5.60 8.00 10.00 8.41 8.54
(i) Ownership of banks 2.00 2.00 5.00 5.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 8.52 8.06 6.99 7.81 10.00 10.00 6.23 6.63
(iii) Interest rate controls/negative real interest rates 8.00 10.00 10.00 4.00 9.00 10.00 9.00 9.00
B. Labor market regulations 7.55 7.57 7.56
(i) Hiring regulations and minimum wage 6.70 7.77 7.77
(ii) Hiring and firing regulations 5.86 6.69 6.61
(iii) Centralized collective bargaining 7.11 6.65 6.68
(iv) Hours regulations 10.00 8.00 8.00
(v) Mandated cost of worker dismissal 5.64 6.30 6.30
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.47 5.41 5.62
(i) Administrative requirements 2.91 3.37 3.94
(ii) Bureaucracy costs 4.34 3.34 3.34
(iii) Starting a business 7.78 8.55 8.55
(iv) Extra payments/bribes/favoritism 4.41 3.01 3.19
(v) Licensing restrictions 8.22 8.59 8.50
(vi) Cost of tax compliance 5.16 5.59 6.19

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100 E Economic Freedom of the World: 2013 Annual Report

Korea, South
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.49 (45) 5.54 (45) 6.31 (36) 6.67 (42) 6.79 (52) 7.26 (48) 7.28 (44) 7.30 (44)
Area 1. Size of Government 5.86 (28) 6.12 (23) 6.49 (29) 6.42 (45) 6.26 (57) 6.66 (62) 6.85 (46) 6.84 (45)
Area 2. Legal System and Property Rights 6.52 (26) 4.16 (71) 5.45 (52) 5.62 (65) 5.97 (62) 6.52 (52) 6.14 (55) 6.27 (54)
Area 3. Sound Money 5.29 (85) 6.41 (69) 6.59 (61) 8.05 (41) 8.27 (51) 9.53 (22) 9.58 (20) 9.47 (26)
Area 4. Freedom to Trade Internationally 4.77 (45) 5.40 (44) 7.40 (27) 7.61 (43) 7.19 (64) 6.68 (77) 7.04 (67) 7.04 (67)
Area 5. Regulation 4.99 (70) 5.58 (56) 5.65 (62) 5.65 (71) 6.26 (62) 7.00 (49) 6.87 (59) 6.91 (62)

Unadjusted
Summary Ratings Rank) h 5.53 (47) 5.58 (45) 6.38 (35) 6.58 (45) 6.79 (51) 7.46 (34) 7.48 (30) 7.50 (33)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.97 6.24 6.49 6.42 6.26 6.66 6.85 6.84
A. Government consumption 7.29 (15.23) 7.43 (14.74) 7.10 (15.87) 6.99 (16.22) 6.37 (18.33) 5.55 (21.13) 5.13 (22.56) 5.00 (23.00)
B. Transfers and subsidies 9.59 (2.00) 9.54 (2.20) 9.35 (2.90) 7.68 (9.01) 7.68 (9.01) 7.10 (11.13) 8.28 (6.83) 8.35 (6.55)
C. Government enterprises and investment 7.00 (22.60) 6.00 (25.40) 8.00 (19.20) 6.00 (25.50) 6.00 (25.50) 8.00 (18.82) 8.00 (17.92) 8.00 (17.92)
D. Top marginal tax rate 0.00 2.00 1.50 5.00 5.00 6.00 6.00 6.00
(i) Top marginal income tax rate 0.00 (89) 2.00 (65) 2.00 (64) 5.00 (48) 5.00 (44) 6.00 (39) 6.00 (39) 6.00 (39)
(ii) Top marginal income and payroll tax rate 1.00 (66) 5.00 (48) 5.00 (44) 6.00 (39) 6.00 (39) 6.00 (39)

Area 2. Legal System and Property Rights 6.52 4.16 5.45 5.62 5.97 6.90 6.50 6.64
A. Judicial independence 4.87 4.68 5.21 4.59 4.47
B. Impartial courts 5.25 5.18 5.26 3.71 4.01
C. Protection of property rights 4.26 5.00 7.40 5.92 6.11
D. Military interference in rule of law and politics 6.75 8.33 6.67 6.67 6.67
E. Integrity of the legal system 6.96 6.67 8.33 8.33 8.33
F. Legal enforcement of contracts 8.11 8.11 8.11
G. Regulatory restrictions on sale of real property 8.12 8.12 8.12
H. Reliability of police 6.49 6.49 6.72
I. Business costs of crime 6.56 6.57 7.26

Area 3. Sound Money 5.29 6.41 6.59 8.05 8.27 9.53 9.58 9.47
A. Money growth 7.32 (13.39) 8.53 (7.37) 9.11 (4.47) 9.06 (4.68) 9.68 (-1.62) 9.23 (3.86) 9.57 (2.14) 9.11 (4.47)
B. Standard deviation of inflation 8.79 (3.02) 8.04 (4.89) 9.22 (1.94) 9.26 (1.85) 8.87 (2.83) 9.42 (1.45) 9.32 (1.69) 9.58 (1.06)
C. Inflation: most recent year 5.03 (24.87) 9.07 (4.64) 8.02 (9.91) 8.88 (5.60) 9.55 (2.27) 9.45 (2.75) 9.41 (2.93) 9.20 (4.00)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 4.80 5.43 7.42 7.18 7.19 7.21 7.60 7.60
A. Tariffs 6.59 6.50 7.46 7.91 8.35 5.86 5.64 5.68
(i) Revenue from trade taxes (% of trade sector) 7.27 (4.10) 7.60 (3.60) 7.73 (3.40) 8.67 (2.00) 9.15 (1.28) 9.37 (0.95) 9.35 (0.97) 9.46 (0.81)
(ii) Mean tariff rate 5.92 (20.40) 5.40 (23.00) 7.34 (13.30) 7.70 (11.50) 8.26 (8.70) 8.20 (9.00) 7.58 (12.10) 7.58 (12.10)
(iii) Standard deviation of tariff rates 7.32 (6.70) 7.36 (6.60) 7.64 (5.90) 0.00 (49.37) 0.00 (49.25) 0.00 (49.25)
B. Regulatory trade barriers 5.97 6.84 7.19 6.98 7.11
(i) Non-tariff trade barriers 5.97 5.18 5.98 4.82 5.08
(ii) Compliance costs of importing and exporting 8.50 8.41 9.14 9.14
C. Black-market exchange rates 7.80 7.80 9.80 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 2.00 5.00 4.83 3.58 5.79 7.76 7.61
(i) Foreign ownership/investment restrictions 4.66 7.16 5.82 5.60 5.90
(ii) Capital controls 0.00 2.00 5.00 5.00 0.00 1.54 7.69 6.92
(iii) Freedom of foreigners to visit 10.00 10.00 10.00

Area 5. Regulation 5.05 5.65 5.96 5.62 6.26 7.01 6.89 6.93
A. Credit market regulations 6.13 8.11 8.33 8.33 8.33 9.33 9.33 9.33
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 8.00 8.00 8.00
(ii) Private sector credit 9.40 9.32 10.00 10.00 10.00 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 4.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.59 4.43 4.20 4.84 4.68 4.67
(i) Hiring regulations and minimum wage 5.83 4.14 8.90 6.67 6.67
(ii) Hiring and firing regulations 3.53 3.53 4.70 4.71 3.76 3.95
(iii) Centralized collective bargaining 7.24 7.24 7.24 7.24 6.17 7.87 7.11 6.90
(iv) Hours regulations 5.53 6.01 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 1.56 2.52 2.52
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 4.10 6.24 6.86 6.66 6.78
(i) Administrative requirements 6.52 3.54 2.73 3.22
(ii) Bureaucracy costs 5.38 7.65 6.31 5.04 5.04
(iii) Starting a business 3.65 5.38 8.28 9.62 9.62
(iv) Extra payments/bribes/favoritism 3.28 5.40 6.51 5.22 5.35
(v) Licensing restrictions 9.79 9.86 9.77
(vi) Cost of tax compliance 6.75 7.48 7.68

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 Chapter 2: Country Data Tables E 101

Kuwait
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.99 (61) 6.85 (16) 5.46 (61) 6.93 (39) 7.07 (43) 7.46 (35) 7.50 (32) 7.30 (43)
Area 1. Size of Government 10.00 (1) 4.63 (65) 3.89 (96) 5.97 (63) 6.37 (55) 6.72 (59) 6.45 (58) 6.39 (62)
Area 2. Legal System and Property Rights 1.84 (85) 5.85 (40) 2.73 (96) 7.42 (30) 8.06 (23) 8.27 (18) 8.04 (22) 7.94 (23)
Area 3. Sound Money 5.19 (89) 8.93 (15) 7.84 (35) 8.89 (33) 8.09 (57) 7.84 (72) 8.07 (74) 7.94 (76)
Area 4. Freedom to Trade Internationally 7.07 (31) 7.13 (53) 7.96 (39) 8.03 (26) 8.06 (27) 7.92 (29)
Area 5. Regulation 6.04 (34) 5.68 (52) 5.88 (48) 5.17 (87) 4.86 (107) 6.60 (74) 6.97 (56) 6.44 (89)

Unadjusted
Summary Ratings Rank) h 3.78 (92) 5.70 (39) 5.09 (70) 6.50 (47) 6.85 (48) 7.38 (40) 7.42 (36) 7.22 (55)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.97 1.19 3.15 4.83 6.37 6.72 6.45 6.39
A. Government consumption 3.95 (26.58) 2.38 (31.90) 0.00 (40.57) 0.00 (44.39) 1.41 (35.21) 2.07 (32.97) 1.35 (35.40) 1.12 (36.20)
B. Transfers and subsidies 7.46 (9.83) 7.50 (9.66) 7.08 (11.22) 7.82 (8.49) 7.46 (9.81) 7.46 (9.81)
C. Government enterprises and investment 2.00 (43.50) 0.00 (61.30) 2.00 (46.00) 7.00 (21.80) 7.00 (21.80) 7.00 (21.80) 7.00 7.00
D. Top marginal tax rate 10.00 10.00 10.00 10.00
(i) Top marginal income tax rate 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0)
(ii) Top marginal income and payroll tax rate 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0)

Area 2. Legal System and Property Rights 1.84 5.85 2.73 6.49 6.95 7.30 7.10 7.01
A. Judicial independence 6.98 6.88 6.52
B. Impartial courts 7.17 7.51 6.76 5.06 4.70
C. Protection of property rights 6.32 6.63 6.91
D. Military interference in rule of law and politics 8.13 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.96 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 5.06 5.06 5.06
G. Regulatory restrictions on sale of real property 8.80 8.95 8.95
H. Reliability of police 7.40 6.66 6.33
I. Business costs of crime 7.70 7.96 7.95

Area 3. Sound Money 5.18 8.92 7.51 8.89 8.09 7.84 8.07 7.94
A. Money growth 7.16 (14.18) 9.63 (-1.85) 9.95 (-0.24) 9.29 (-3.57) 9.89 (-0.55) 7.13 (14.35) 9.07 (4.67) 9.49 (2.57)
B. Standard deviation of inflation 2.07 (19.83) 7.03 (7.43) 4.55 (13.62) 7.54 (6.16) 2.98 (17.55) 5.06 (12.36) 4.00 (15.00) 3.21 (16.98)
C. Inflation: most recent year 1.49 (42.57) 9.03 (4.86) 8.03 (9.83) 8.74 (6.29) 9.50 (2.51) 9.18 (4.12) 9.20 (4.02) 9.05 (4.75)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.07 7.07 7.13 7.96 7.57 7.59 7.47
A. Tariffs 9.20 9.20 9.40 9.27 8.83 8.84 8.88
(i) Revenue from trade taxes (% of trade sector) 9.20 (1.20) 9.40 (0.90) 9.27 (1.09) 9.49 (0.76) 9.53 (0.71) 9.65 (0.53)
(ii) Mean tariff rate 9.20 (4.00) 9.06 (4.70) 9.06 (4.70) 9.06 (4.70)
(iii) Standard deviation of tariff rates 7.94 (5.15) 7.93 (5.17) 7.93 (5.17)
B. Regulatory trade barriers 7.25 7.27 6.82
(i) Non-tariff trade barriers 7.27 6.90 6.00
(ii) Compliance costs of importing and exporting 7.24 7.64 7.64
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 4.61 4.18 4.27 4.18
(i) Foreign ownership/investment restrictions 3.72 3.60 3.33
(ii) Capital controls 2.00 2.00 2.00 2.00 4.61 4.61 5.00 5.00
(iii) Freedom of foreigners to visit 4.20 4.20 4.20

Area 5. Regulation 5.13 5.49 4.99 5.17 4.86 7.47 7.89 7.29
A. Credit market regulations 7.41 7.66 7.50 7.13 6.33 8.33 10.00 8.33
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 9.83 7.98 10.00 6.40 6.99 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 10.00 10.00 7.00 5.00 10.00 5.00
B. Labor market regulations 7.78 7.16 7.08
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 5.53 4.83 4.40
(iii) Centralized collective bargaining 8.40 7.76 7.70
(iv) Hours regulations 10.00 6.00 6.00
(v) Mandated cost of worker dismissal 2.77 4.39 4.39
(vi) Conscription 1.00 1.00 0.00 0.00 0.00 10.00 10.00 10.00
C. Business regulations 6.30 6.51 6.47
(i) Administrative requirements 3.16 2.72 2.27
(ii) Bureaucracy costs 1.65 4.97 4.97
(iii) Starting a business 8.53 8.73 8.78
(iv) Extra payments/bribes/favoritism 7.13 5.37 5.25
(v) Licensing restrictions 8.68 8.58 8.63
(vi) Cost of tax compliance 8.68 8.68 8.90

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102 E Economic Freedom of the World: 2013 Annual Report

Kyrgyz Republic
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.55 (83) 6.57 (98) 6.51 (102)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.62 7.36 7.67
A. Government consumption 6.43 (18.13) 6.34 (18.44) 6.50 (17.90)
B. Transfers and subsidies 9.43 (2.60) 8.62 (5.57) 8.68 (5.34)
C. Government enterprises and investment 4.00 (33.25) 6.00 (25.07) 7.00 (22.90)
D. Top marginal tax rate 8.50 8.50
(i) Top marginal income tax rate 10.00 (10) 10.00 (10)
(ii) Top marginal income and payroll tax rate 7.00 (31) 7.00 (32)

Area 2. Legal System and Property Rights 3.98 4.39 4.45

A. Judicial independence 1.59 1.52 1.56
B. Impartial courts 2.44 2.62 2.52
C. Protection of property rights 3.33 2.37 2.34
D. Military interference in rule of law and politics 3.10 3.80 3.80
E. Integrity of the legal system
F. Legal enforcement of contracts 6.74 6.74 6.74
G. Regulatory restrictions on sale of real property 9.22 9.18 9.31
H. Reliability of police 2.11 2.93 3.19
I. Business costs of crime 3.28 5.99 6.12

Area 3. Sound Money 8.65 8.17 7.60

A. Money growth 6.34 (18.28) 7.05 (14.75) 7.05 (14.75)
B. Standard deviation of inflation 9.11 (2.22) 7.22 (6.94) 6.65 (8.38)
C. Inflation: most recent year 9.13 (4.35) 8.41 (7.97) 6.70 (16.50)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.62 6.40 6.42

A. Tariffs 8.80 8.69 8.62
(i) Revenue from trade taxes (% of trade sector) 9.69 (0.47) 9.63 (0.55) 9.01 (1.48) 8.77 (1.84)
(ii) Mean tariff rate 9.04 (4.80) 9.08 (4.60) 9.08 (4.60)
(iii) Standard deviation of tariff rates 7.72 (5.71) 7.98 (5.06) 7.99 (5.01)
B. Regulatory trade barriers 2.15 2.49 2.58
(i) Non-tariff trade barriers 3.98 4.47 4.84
(ii) Compliance costs of importing and exporting 0.32 0.50 0.32
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.55 4.41 4.50
(i) Foreign ownership/investment restrictions 4.91 3.80 4.08
(ii) Capital controls 5.38 3.08 3.08
(iii) Freedom of foreigners to visit 6.35 6.35 6.35

Area 5. Regulation 6.86 6.55 6.41

A. Credit market regulations 9.19 7.48 7.11
(i) Ownership of banks 10.00 8.00 8.00
(ii) Private sector credit 0.00 8.05 9.56 7.44 7.34
(iii) Interest rate controls/negative real interest rates 8.00 7.00 6.00
B. Labor market regulations 6.51 6.46 6.39
(i) Hiring regulations and minimum wage 6.70 5.00 5.00
(ii) Hiring and firing regulations 7.35 6.55 6.36
(iii) Centralized collective bargaining 7.59 8.43 8.25
(iv) Hours regulations 8.00 10.00 10.00
(v) Mandated cost of worker dismissal 8.42 7.76 7.76
(vi) Conscription 1.00 1.00 1.00
C. Business regulations 4.88 5.71 5.73
(i) Administrative requirements 1.83 3.45 3.49
(ii) Bureaucracy costs 2.97 2.75 2.75
(iii) Starting a business 9.21 9.64 9.65
(iv) Extra payments/bribes/favoritism 3.53 2.45 2.47
(v) Licensing restrictions 4.03 8.29 8.35
(vi) Cost of tax compliance 7.74 7.65 7.65

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 Chapter 2: Country Data Tables E 103

Latvia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.28 (89) 6.96 (47) 7.30 (47) 7.02 (61) 7.19 (50)
Area 1. Size of Government 4.27 (100) 5.18 (89) 6.35 (74) 5.22 (94) 5.70 (85)
Area 2. Legal System and Property Rights 6.14 (51) 6.67 (46) 6.79 (44) 6.46 (50) 6.51 (48)
Area 3. Sound Money 4.86 (93) 2.98 (109) 8.55 (46) 8.68 (55) 8.93 (50) 8.98 (51)
Area 4. Freedom to Trade Internationally 7.91 (35) 7.81 (47) 7.84 (37) 7.74 (43) 7.74 (38)
Area 5. Regulation 4.66 (102) 6.61 (48) 6.88 (55) 6.77 (68) 7.01 (56)

Unadjusted
Summary Ratings Rank) h 5.54 (78) 6.82 (49) 7.42 (36) 7.14 (59) 7.31 (46)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.41 5.18 6.35 5.22 5.70
A. Government consumption 7.65 (13.99) 4.06 (26.19) 4.94 (23.22) 5.25 (22.15) 5.46 (21.42) 5.85 (20.10)
B. Transfers and subsidies 5.18 (18.20) 5.80 (15.91) 7.63 (9.20) 3.91 (22.86) 4.94 (19.06)
C. Government enterprises and investment 4.00 6.00 6.00 6.00
D. Top marginal tax rate 7.00 6.00 6.50 5.50 6.00
(i) Top marginal income tax rate 7.00 (35) 9.00 (25) 9.00 (25) 8.00 (26) 9.00 (25)
(ii) Top marginal income and payroll tax rate 3.00 (48) 4.00 (45) 3.00 (47) 3.00 (46)

Area 2. Legal System and Property Rights 5.96 5.95 6.72 6.40 6.45
A. Judicial independence 4.65 4.68 4.97
B. Impartial courts 5.83 6.20 4.58 3.44 3.74
C. Protection of property rights 3.82 6.46 5.22 5.40
D. Military interference in rule of law and politics 7.53 8.33 8.33 8.33 8.33
E. Integrity of the legal system 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 7.39 6.28 5.53
G. Regulatory restrictions on sale of real property 8.32 9.00 9.00
H. Reliability of police 5.53 5.34 5.55
I. Business costs of crime 6.89 6.98 7.20

Area 3. Sound Money 6.43 2.98 8.55 8.68 8.93 8.98

A. Money growth 0.10 (49.50) 6.81 (15.97) 7.41 (12.93) 9.23 (-3.86) 9.95 (-0.25)
B. Standard deviation of inflation 8.91 (2.73) 7.44 (6.39) 0.00 (365.31) 7.93 (5.17) 8.65 (3.37) 6.72 (8.20) 6.83 (7.93)
C. Inflation: most recent year 6.85 (15.74) 6.80 (16.00) 9.47 (2.65) 8.65 (6.76) 9.78 (-1.09) 9.12 (4.38)
D. Freedom to own foreign currency bank accounts 5.00 5.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 9.02 7.81 8.16 8.06 8.05

A. Tariffs 9.46 8.33 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.46 (0.81) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.88 (5.60) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 6.32 (9.20) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 5.30 7.46 7.49 7.43
(i) Non-tariff trade barriers 5.30 6.42 6.33 6.22
(ii) Compliance costs of importing and exporting 8.49 8.64 8.64
C. Black-market exchange rates 0.00 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 8.00 7.60 6.79 6.42 6.51
(i) Foreign ownership/investment restrictions 8.28 6.87 5.77 6.04
(ii) Capital controls 0.00 8.00 6.92 6.92 6.92 6.92
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 4.33 6.61 7.22 7.10 7.36

A. Credit market regulations 5.03 9.61 9.53 8.37 8.97
(i) Ownership of banks 10.00 10.00 8.00 8.00
(ii) Private sector credit 8.05 8.82 9.60 7.11 8.90
(iii) Interest rate controls/negative real interest rates 2.00 10.00 9.00 10.00 10.00
B. Labor market regulations 4.53 5.71 6.71 6.74
(i) Hiring regulations and minimum wage 3.33 3.30 2.23 2.23
(ii) Hiring and firing regulations 3.93 5.26 5.28 5.25
(iii) Centralized collective bargaining 7.85 8.30 7.00 7.18
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 8.42 7.76 7.76
(vi) Conscription 0.00 1.00 3.00 3.00 10.00 10.00
C. Business regulations 5.69 6.40 6.23 6.38
(i) Administrative requirements 7.18 3.88 3.80 4.04
(ii) Bureaucracy costs 4.73 4.53 4.90 4.90
(iii) Starting a business 5.00 9.37 9.46 9.46
(iv) Extra payments/bribes/favoritism 5.84 6.44 4.93 5.24
(v) Licensing restrictions 7.79 7.54 7.57
(vi) Cost of tax compliance 6.41 6.75 7.04

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104 E Economic Freedom of the World: 2013 Annual Report

Lebanon
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 7.44 (34) 7.41 (38)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 9.14 8.95
A. Government consumption 7.82 (13.40) 7.44 (14.70)
B. Transfers and subsidies 8.73 (5.18) 8.38 (6.46)
C. Government enterprises and investment 10.00 (11.90) 10.00 (6.56) 10.00 (7.10)
D. Top marginal tax rate 10.00 10.00
(i) Top marginal income tax rate 10.00 (20) 10.00 (20)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.68 4.70

A. Judicial independence 2.48 2.31
B. Impartial courts 2.94 3.17
C. Protection of property rights 5.76 5.49
D. Military interference in rule of law and politics 3.33 3.33
E. Integrity of the legal system 6.67 6.67
F. Legal enforcement of contracts 3.16 3.16
G. Regulatory restrictions on sale of real property 7.62 7.62
H. Reliability of police 3.94 4.15
I. Business costs of crime 6.25 6.37

Area 3. Sound Money 9.33 9.37

A. Money growth 9.35 (3.26) 9.26 (3.71)
B. Standard deviation of inflation 8.78 (3.05) 9.01 (2.47)
C. Inflation: most recent year 9.20 (3.99) 9.20 (3.99)
D. Freedom to own foreign currency bank accounts 10.00 10.00

Area 4. Freedom to Trade Internationally 7.18 7.06

A. Tariffs 7.09 7.15
(i) Revenue from trade taxes (% of trade sector) 8.67 (2.00) 8.85 (1.73)
(ii) Mean tariff rate 8.74 (6.30) 8.74 (6.30)
(iii) Standard deviation of tariff rates 3.88 (15.31) 3.88 (15.31)
B. Regulatory trade barriers 6.06 5.73
(i) Non-tariff trade barriers 5.80 5.01
(ii) Compliance costs of importing and exporting 6.32 6.45
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 5.54 5.35
(i) Foreign ownership/investment restrictions 5.79 5.23
(ii) Capital controls 1.54 1.54
(iii) Freedom of foreigners to visit 9.30 9.30

Area 5. Regulation 6.86 6.96

A. Credit market regulations 6.94 7.43
(i) Ownership of banks
(ii) Private sector credit 0.00 3.88 4.85
(iii) Interest rate controls/negative real interest rates 10.00 10.00
B. Labor market regulations 8.11 7.97
(i) Hiring regulations and minimum wage 5.57 5.57
(ii) Hiring and firing regulations 5.25 5.20
(iii) Centralized collective bargaining 7.82 7.08
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 10.00 10.00
(vi) Conscription 10.00 10.00
C. Business regulations 5.55 5.49
(i) Administrative requirements 3.35 3.34
(ii) Bureaucracy costs 3.23 3.23
(iii) Starting a business 8.89 8.89
(iv) Extra payments/bribes/favoritism 2.90 2.69
(v) Licensing restrictions 6.92 6.80
(vi) Cost of tax compliance 7.98 7.98

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 Chapter 2: Country Data Tables E 105

Lesotho
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.05 (106) 6.18 (121) 6.35 (110)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.63 5.08 5.67
A. Government consumption 2.74 (30.67) 4.06 (26.21) 4.50 (24.70)
B. Transfers and subsidies 7.16 (10.92) 9.20 (3.45) 9.20 (3.45)
C. Government enterprises and investment 4.00 (31.66) 2.00 (44.64) 2.00 (49.51)
D. Top marginal tax rate 7.00
(i) Top marginal income tax rate 7.00 (35)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.65 4.48 4.54

A. Judicial independence 5.00 3.13 3.28
B. Impartial courts 4.68 3.36 3.53
C. Protection of property rights 3.95 4.08 3.80
D. Military interference in rule of law and politics 7.10 7.60 7.60
E. Integrity of the legal system
F. Legal enforcement of contracts 4.04 3.82 3.93
G. Regulatory restrictions on sale of real property 5.36 5.46 5.49
H. Reliability of police 3.74 3.93 4.11
I. Business costs of crime 3.29 4.49 4.61

Area 3. Sound Money 8.08 7.84 8.02

A. Money growth 8.92 (5.38) 8.08 (9.62) 9.06 (-4.71)
B. Standard deviation of inflation 9.10 (2.24) 9.00 (2.50) 9.05 (2.39)
C. Inflation: most recent year 9.31 (3.44) 9.28 (3.58) 9.00 (5.02)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 6.00 6.19 6.11

A. Tariffs 4.57 4.67 4.68
(i) Revenue from trade taxes (% of trade sector) 0.00 (15.81) 0.00 (17.36) 0.00 (23.76) 0.00 (23.76)
(ii) Mean tariff rate 8.02 (9.90) 8.48 (7.60) 8.48 (7.60)
(iii) Standard deviation of tariff rates 5.70 (10.74) 5.53 (11.17) 5.56 (11.10)
B. Regulatory trade barriers 4.28 5.10 4.83
(i) Non-tariff trade barriers 5.15 4.81 4.27
(ii) Compliance costs of importing and exporting 3.42 5.38 5.38
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.16 5.00 4.95
(i) Foreign ownership/investment restrictions 6.71 6.24 6.08
(ii) Capital controls 2.31 2.31 2.31
(iii) Freedom of foreigners to visit 6.46 6.46 6.46

Area 5. Regulation 6.89 7.30 7.37

A. Credit market regulations 10.00 10.00 10.00
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 9.92 10.00 10.00 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00
B. Labor market regulations 6.77 7.13 7.07
(i) Hiring regulations and minimum wage 7.80 7.77 7.77
(ii) Hiring and firing regulations 4.49 4.34 4.39
(iii) Centralized collective bargaining 4.38 6.12 5.69
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 5.92 6.55 6.55
(vi) Conscription 10.00 10.00 10.00
C. Business regulations 3.90 4.77 5.06
(i) Administrative requirements 2.53 3.42 3.38
(ii) Bureaucracy costs 1.30 3.73 3.73
(iii) Starting a business 7.19 8.42 9.10
(iv) Extra payments/bribes/favoritism 5.32 3.56 3.97
(v) Licensing restrictions 3.40 3.12 3.82
(vi) Cost of tax compliance 3.68 6.37 6.37

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106 E Economic Freedom of the World: 2013 Annual Report

Lithuania
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.31 (88) 6.60 (63) 6.96 (59) 7.14 (50) 7.18 (51)
Area 1. Size of Government 5.64 (75) 5.45 (82) 5.19 (97) 5.62 (85) 5.76 (81)
Area 2. Legal System and Property Rights 5.90 (57) 6.48 (53) 6.16 (57) 6.24 (52) 6.28 (53)
Area 3. Sound Money 3.74 (105) 1.85 (114) 7.09 (76) 8.83 (48) 9.37 (33) 9.25 (41)
Area 4. Freedom to Trade Internationally 7.98 (31) 7.88 (45) 7.53 (47) 7.21 (57) 7.23 (51)
Area 5. Regulation 4.94 (92) 6.11 (74) 7.07 (47) 7.24 (36) 7.38 (34)

Unadjusted
Summary Ratings Rank) h 5.33 (86) 6.47 (67) 7.37 (41) 7.56 (26) 7.61 (25)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.64 5.45 6.28 6.79 6.97
A. Government consumption 4.34 (25.25) 5.11 (22.62) 4.44 (24.90) 5.78 (20.35) 4.83 (23.57) 5.03 (22.90)
B. Transfers and subsidies 7.30 (10.40) 6.92 (11.82) 6.83 (12.13) 5.35 (17.58) 5.84 (15.76)
C. Government enterprises and investment 8.00 (15.88) 10.00 (9.80) 10.00 (9.80)
D. Top marginal tax rate 4.50 5.00 4.50 7.00 7.00
(i) Top marginal income tax rate 7.00 (35) 7.00 (33) 7.00 (33) 10.00 (15) 10.00 (15)
(ii) Top marginal income and payroll tax rate 2.00 (51) 3.00 (50) 2.00 (51) 4.00 (41) 4.00 (41)

Area 2. Legal System and Property Rights 5.87 5.81 6.37 6.45 6.49
A. Judicial independence 3.96 3.99 4.14
B. Impartial courts 5.88 6.07 4.31 4.28 4.46
C. Protection of property rights 3.20 6.51 5.58 5.49
D. Military interference in rule of law and politics 7.23 8.33 8.33 8.33 8.33
E. Integrity of the legal system 8.33 6.67 6.67 6.67
F. Legal enforcement of contracts 7.45 6.96 6.96
G. Regulatory restrictions on sale of real property 9.71 9.68 9.68
H. Reliability of police 4.54 5.27 5.54
I. Business costs of crime 5.82 7.27 7.12

Area 3. Sound Money 7.49 1.85 7.09 8.83 9.37 9.25

A. Money growth 0.00 (53.00) 7.47 (12.63) 6.96 (15.19) 9.76 (-1.22) 9.83 (-0.83)
B. Standard deviation of inflation 0.00 (329.24) 6.09 (9.77) 8.91 (2.73) 7.97 (5.08) 7.99 (5.03)
C. Inflation: most recent year 9.97 (-0.15) 2.39 (38.05) 9.80 (1.01) 9.47 (2.66) 9.74 (1.32) 9.17 (4.13)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 8.78 7.88 8.00 7.66 7.69

A. Tariffs 8.35 8.50 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.56 (0.66) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 9.10 (4.50) 8.92 (5.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 6.40 (9.00) 6.80 (8.00) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 5.20 7.37 7.35 7.52
(i) Non-tariff trade barriers 5.20 6.10 5.84 6.12
(ii) Compliance costs of importing and exporting 8.64 8.85 8.91
C. Black-market exchange rates 0.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 8.00 7.81 6.25 4.96 4.97
(i) Foreign ownership/investment restrictions 8.12 6.03 5.24 5.26
(ii) Capital controls 0.00 8.00 7.50 6.15 3.08 3.08
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 4.53 6.11 7.35 7.53 7.67

A. Credit market regulations 0.00 4.44 7.30 9.91 8.70 9.02
(i) Ownership of banks 0.00 5.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 8.32 7.89 9.73 6.11 7.05
(iii) Interest rate controls/negative real interest rates 0.00 9.00 10.00 10.00 10.00
B. Labor market regulations 4.23 5.46 7.42 7.42
(i) Hiring regulations and minimum wage 3.01 6.70 8.33 8.33
(ii) Hiring and firing regulations 2.75 3.55 3.66 3.75
(iii) Centralized collective bargaining 8.17 8.28 8.29 8.17
(iv) Hours regulations 4.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.22 6.26 6.26
(vi) Conscription 0.00 3.00 3.00 3.00 10.00 10.00
C. Business regulations 6.81 6.70 6.45 6.58
(i) Administrative requirements 7.28 3.34 2.94 3.24
(ii) Bureaucracy costs 7.48 4.81 4.87 4.87
(iii) Starting a business 4.18 8.98 9.15 9.25
(iv) Extra payments/bribes/favoritism 8.29 6.86 5.17 5.52
(v) Licensing restrictions 8.05 8.56 8.56
(vi) Cost of tax compliance 8.14 8.04 8.04

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 Chapter 2: Country Data Tables E 107

Luxembourg
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 7.51 (6) 7.82 (5) 7.79 (8) 7.93 (11) 8.02 (12) 7.72 (19) 7.65 (22) 7.61 (25)
Area 1. Size of Government 4.41 (72) 4.81 (60) 4.73 (83) 4.40 (96) 4.78 (95) 4.35 (113) 4.03 (116) 3.94 (115)
Area 2. Legal System and Property Rights 7.82 (11) 8.34 (4) 8.34 (14) 9.09 (8) 8.62 (16) 8.74 (15) 8.96 (7) 8.92 (7)
Area 3. Sound Money 9.05 (8) 9.58 (4) 9.53 (11) 9.73 (7) 9.75 (3) 9.47 (27) 9.35 (34) 9.37 (30)
Area 4. Freedom to Trade Internationally 9.32 (2) 9.36 (3) 9.37 (4) 9.44 (4) 9.46 (4) 8.51 (13) 8.42 (15) 8.28 (18)
Area 5. Regulation 7.04 (11) 7.04 (16) 7.04 (19) 7.04 (19) 7.51 (13) 7.53 (22) 7.52 (26) 7.57 (28)

Unadjusted
Summary Ratings Rank) h 8.05 (3) 8.39 (1) 8.07 (7) 7.90 (11) 8.02 (12) 7.60 (25) 7.53 (28) 7.49 (35)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.77 7.39 4.73 4.40 4.78 4.35 4.03 3.94
A. Government consumption 6.54 (17.75) 6.79 (16.92) 6.54 (17.77) 3.84 (26.95) 3.15 (29.30) 2.40 (31.84) 1.62 (34.50) 1.62 (34.50)
B. Transfers and subsidies 2.89 (26.60) 3.27 (25.20) 4.47 (20.81) 4.01 (22.50) 3.49 (24.39) 3.64 (23.86)
C. Government enterprises and investment 7.00 (22.00) 8.00 (18.20) 8.00 (19.20) 8.00 (19.20) 8.00 (19.20) 7.00 (21.91) 7.00 (24.70) 7.00 (24.70)
D. Top marginal tax rate 1.50 2.50 3.50 4.00 4.00 3.50
(i) Top marginal income tax rate 1.00 (56) 3.00 (50) 4.00 (48) 5.00 (39) 5.00 (39) 4.00 (41)
(ii) Top marginal income and payroll tax rate 2.00 (58) 2.00 (60) 3.00 (54) 3.00 (46) 3.00 (46) 3.00 (48)

Area 2. Legal System and Property Rights 7.83 8.35 8.35 9.09 8.62 8.09 8.29 8.25
A. Judicial independence 9.45 7.30 7.43 8.49 8.07
B. Impartial courts 8.62 8.20 7.44 7.22 7.05
C. Protection of property rights 7.39 7.60 8.84 8.82 8.74
D. Military interference in rule of law and politics 10.00 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 10.00 10.00 10.00
F. Legal enforcement of contracts 7.51 7.46 7.46
G. Regulatory restrictions on sale of real property 6.10 6.13 6.13
H. Reliability of police 7.85 8.12 8.14
I. Business costs of crime 7.66 8.38 8.71

Area 3. Sound Money 9.05 9.58 9.53 9.73 9.75 9.47 9.35 9.37
A. Money growth 9.22 (3.88) 9.98 (0.10) 9.27 (3.64) 9.82 (0.92) 9.81 (0.95) 9.20 (4.00) 8.87 (5.65) 9.05 (4.75)
B. Standard deviation of inflation 8.56 (3.60) 8.93 (2.68) 9.52 (1.20) 9.23 (1.93) 9.84 (0.41) 9.18 (2.05) 9.00 (2.49) 9.09 (2.27)
C. Inflation: most recent year 8.42 (7.92) 9.40 (2.98) 9.32 (3.42) 9.86 (0.71) 9.37 (3.15) 9.50 (2.49) 9.54 (2.28) 9.32 (3.41)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 9.70 9.74 9.51 9.22 9.46 8.48 8.39 8.25
A. Tariffs 9.09 9.22 8.52 8.74 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.93 (0.10) 9.93 (0.10) 9.93 (0.10) 9.93 (0.10) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 8.67 9.10 8.68 8.83 8.42
(i) Non-tariff trade barriers 8.67 8.20 8.07 8.37 7.70
(ii) Compliance costs of importing and exporting 10.00 9.29 9.29 9.14
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 10.00 10.00 10.00 9.45 9.56 6.85 6.39 6.30
(i) Foreign ownership/investment restrictions 8.90 9.90 8.59 8.75 8.47
(ii) Capital controls 10.00 10.00 10.00 10.00 9.23 5.38 3.85 3.85
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 6.90 6.90 8.24 7.08 7.51 7.61 7.60 7.65
A. Credit market regulations 10.00 10.00 10.00 8.76 10.00 9.33 9.15 9.27
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 8.00 8.00 8.00
(ii) Private sector credit 6.28 10.00 10.00 9.46 9.82
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 6.48 5.45 5.80 5.70 5.68
(i) Hiring regulations and minimum wage 3.62 3.30 2.23 2.23
(ii) Hiring and firing regulations 4.28 4.28 4.60 3.93 3.67
(iii) Centralized collective bargaining 5.18 5.18 5.18 5.18 6.49 5.55 5.70
(iv) Hours regulations 4.17 4.00 4.00 4.00
(v) Mandated cost of worker dismissal 6.38 8.50 8.50
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 7.02 7.69 7.93 8.00
(i) Administrative requirements 4.94 4.32 4.74
(ii) Bureaucracy costs 7.24 6.78 7.83 7.83
(iii) Starting a business 6.95 8.97 9.30 9.30
(iv) Extra payments/bribes/favoritism 6.87 8.77 8.47 8.44
(v) Licensing restrictions 7.34 8.32 8.32
(vi) Cost of tax compliance 9.35 9.34 9.34

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108 E Economic Freedom of the World: 2013 Annual Report

Macedonia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.44 (90) 6.96 (73) 7.05 (71)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.71 6.05 6.12
A. Government consumption 6.94 (16.42) 6.03 (19.51) 5.74 (20.50) 6.04 (19.45)
B. Transfers and subsidies 6.81 (12.21) 5.95 (15.37) 5.95 (15.37)
C. Government enterprises and investment 4.00 (35.72) 4.00 (33.50) 4.00 (33.84)
D. Top marginal tax rate 6.00 8.50 8.50
(i) Top marginal income tax rate 9.00 (24) 10.00 (10) 10.00 (10)
(ii) Top marginal income and payroll tax rate 3.00 (47) 7.00 (34) 7.00 (34)

Area 2. Legal System and Property Rights 4.27 5.23 5.36

A. Judicial independence 2.37 3.15 3.07
B. Impartial courts 3.19 3.44 3.53
C. Protection of property rights 4.12 4.42 5.04
D. Military interference in rule of law and politics 3.50 5.10 5.10
E. Integrity of the legal system
F. Legal enforcement of contracts 5.55 5.79 5.79
G. Regulatory restrictions on sale of real property 7.00 8.23 8.19
H. Reliability of police 4.70 5.26 5.45
I. Business costs of crime 3.69 6.45 6.74

Area 3. Sound Money 7.59 7.97 8.12

A. Money growth 7.20 (13.98) 6.01 (19.95) 8.05 (9.76) 9.05 (4.74)
B. Standard deviation of inflation 9.36 (1.59) 9.16 (2.11) 9.19 (2.02)
C. Inflation: most recent year 9.99 (0.04) 9.68 (1.61) 9.22 (3.90)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 7.38 7.44 7.53

A. Tariffs 9.01 7.92 8.03
(i) Revenue from trade taxes (% of trade sector) 8.83 (1.75) 8.97 (1.54) 8.97 (1.54)
(ii) Mean tariff rate 9.18 (4.10) 8.46 (7.70) 8.60 (7.00)
(iii) Standard deviation of tariff rates 6.34 (9.16) 6.53 (8.68)
B. Regulatory trade barriers 5.95 6.98 7.00
(i) Non-tariff trade barriers 5.56 5.48 5.52
(ii) Compliance costs of importing and exporting 6.34 8.47 8.47
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 4.54 4.84 5.09
(i) Foreign ownership/investment restrictions 5.04 4.39 5.14
(ii) Capital controls 0.77 2.31 2.31
(iii) Freedom of foreigners to visit 7.82 7.82 7.82

Area 5. Regulation 7.24 8.10 8.11

A. Credit market regulations 10.00 9.84 9.84
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 10.00 9.51 9.51
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00
B. Labor market regulations 5.89 7.81 7.65
(i) Hiring regulations and minimum wage 3.90 7.23 7.23
(ii) Hiring and firing regulations 5.06 5.58 5.47
(iii) Centralized collective bargaining 7.80 8.27 7.46
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.59 7.76 7.76
(vi) Conscription 5.00 10.00 10.00
C. Business regulations 5.82 6.65 6.84
(i) Administrative requirements 3.20 3.59 4.25
(ii) Bureaucracy costs 5.29 4.82 4.82
(iii) Starting a business 8.98 9.88 9.92
(iv) Extra payments/bribes/favoritism 4.88 4.93 5.30
(v) Licensing restrictions 3.66 8.01 8.07
(vi) Cost of tax compliance 8.92 8.67 8.67

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 Chapter 2: Country Data Tables E 109

Madagascar
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.01 (83) 4.59 (83) 4.49 (92) 4.61 (104) 5.96 (88) 5.79 (106) 6.36 (92) 6.34 (92)
Area 1. Size of Government 5.65 (32) 6.06 (25) 6.34 (35) 6.52 (41) 7.21 (25) 7.66 (29) 9.06 (1) 9.29 (1)
Area 2. Legal System and Property Rights 4.32 (67) 3.09 (89) 5.09 (80) 4.78 (83) 3.26 (110) 3.21 (111) 3.11 (113)
Area 3. Sound Money 5.82 (71) 5.99 (85) 5.79 (79) 2.82 (110) 7.17 (73) 7.02 (89) 7.85 (82) 7.89 (78)
Area 4. Freedom to Trade Internationally 1.13 (85) 2.75 (73) 3.49 (84) 4.64 (100) 5.70 (97) 5.77 (95) 5.79 (100) 5.67 (101)
Area 5. Regulation 3.77 (92) 3.84 (92) 3.76 (103) 3.98 (114) 4.95 (106) 5.22 (113) 5.93 (105) 5.78 (108)

Unadjusted
Summary Ratings Rank) h 3.87 (90) 4.40 (88) 4.48 (95) 4.61 (106) 5.92 (87) 5.86 (118) 6.39 (109) 6.37 (107)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.13 4.43 6.34 6.52 7.21 7.66 8.81 9.02
A. Government consumption 8.25 (11.94) 8.86 (9.89) 9.25 (8.54) 9.73 (6.90) 9.75 (6.83) 9.22 (8.64) 8.88 (9.82) 8.74 (10.27)
B. Transfers and subsidies 9.75 (1.40) 9.84 (1.10) 9.86 (1.00) 9.77 (1.35) 9.35 (2.90) 9.35 (2.90)
C. Government enterprises and investment 0.00 (65.40) 0.00 (69.80) 0.00 (53.50) 0.00 (52.90) 2.00 (44.73) 4.00 (39.20) 10.00 (9.58) 10.00 (9.58)
D. Top marginal tax rate 7.00 8.00
(i) Top marginal income tax rate 9.00 (23) 9.00 (22)
(ii) Top marginal income and payroll tax rate 5.00 (36) 7.00 (35)

Area 2. Legal System and Property Rights 4.32 3.09 4.81 4.59 3.15 3.10 3.00
A. Judicial independence 3.26 2.10 2.02
B. Impartial courts 4.10 4.35 3.73 2.97 2.92
C. Protection of property rights 4.32 2.97 2.64
D. Military interference in rule of law and politics 4.22 5.00 1.67 1.67 1.67
E. Integrity of the legal system 6.96 5.00 2.08 4.17 4.17
F. Legal enforcement of contracts 2.42 2.42 2.42
G. Regulatory restrictions on sale of real property 3.65 5.12 5.15
H. Reliability of police 4.19 2.43 2.23
I. Business costs of crime 3.03 4.04 3.79

Area 3. Sound Money 5.82 5.99 5.79 2.82 7.17 7.02 7.85 7.89
A. Money growth 7.38 (13.08) 9.18 (4.09) 7.37 (13.13) 6.26 (18.68) 7.85 (10.74) 9.32 (3.38) 8.80 (6.01) 8.90 (5.49)
B. Standard deviation of inflation 8.89 (2.77) 6.87 (7.82) 8.08 (4.81) 4.05 (14.88) 8.22 (4.44) 7.44 (6.39) 9.47 (1.33) 9.56 (1.10)
C. Inflation: most recent year 7.00 (14.99) 7.92 (10.42) 7.71 (11.46) 0.97 (45.17) 7.59 (12.03) 6.30 (18.51) 8.15 (9.25) 8.10 (9.48)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 5.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 1.34 3.00 3.44 4.89 5.70 6.04 6.07 5.95
A. Tariffs 4.02 0.80 1.73 5.08 4.11 6.86 6.66 6.66
(i) Revenue from trade taxes (% of trade sector) 4.33 (8.50) 0.67 (14.00) 4.33 (8.50) 4.11 (8.83) 5.23 (7.15) 4.99 (7.51) 4.99 (7.51)
(ii) Mean tariff rate 3.70 (31.50) 0.80 (46.00) 2.80 (36.00) 4.00 (30.00) 7.68 (11.60) 7.66 (11.70) 7.68 (11.60)
(iii) Standard deviation of tariff rates 6.92 (7.70) 7.66 (5.85) 7.33 (6.67) 7.31 (6.73)
B. Regulatory trade barriers 4.32 6.11 5.52
(i) Non-tariff trade barriers 5.49 5.31 4.14
(ii) Compliance costs of importing and exporting 3.14 6.91 6.91
C. Black-market exchange rates 0.00 8.20 8.60 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 3.00 3.00 1.52 1.61
(i) Foreign ownership/investment restrictions 6.01 4.57 4.82
(ii) Capital controls 0.00 0.00 0.00 0.00 3.00 3.00 0.00 0.00
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 4.20 4.28 3.76 3.98 4.95 5.40 6.14 5.98
A. Credit market regulations 4.63 4.87 3.09 3.67 6.23 6.61 7.72 7.59
(i) Ownership of banks 0.00 0.00 0.00 2.00 2.00 5.00 10.00 10.00
(ii) Private sector credit 9.27 9.75 9.26 9.00 7.68 5.84 8.15 7.77
(iii) Interest rate controls/negative real interest rates 0.00 0.00 9.00 9.00 5.00 5.00
B. Labor market regulations 4.59 5.00 4.86
(i) Hiring regulations and minimum wage 1.10 1.10 1.10
(ii) Hiring and firing regulations 5.35 5.87 5.43
(iii) Centralized collective bargaining 6.90 6.89 6.51
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.22 7.12 7.12
(vi) Conscription 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
C. Business regulations 5.01 5.70 5.49
(i) Administrative requirements 2.75 3.21 3.09
(ii) Bureaucracy costs 4.14 3.23 3.23
(iii) Starting a business 7.74 9.62 9.63
(iv) Extra payments/bribes/favoritism 4.07 3.04 3.15
(v) Licensing restrictions 4.77 7.35 6.09
(vi) Cost of tax compliance 6.59 7.75 7.75

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110 E Economic Freedom of the World: 2013 Annual Report

Malawi
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.62 (70) 4.96 (68) 5.40 (65) 4.57 (106) 4.95 (114) 5.16 (117) 6.05 (100) 6.09 (99)
Area 1. Size of Government 5.05 (50) 4.87 (58) 6.15 (42) 5.83 (68) 5.33 (83) 6.44 (72) 6.83 (47) 5.76 (82)
Area 2. Legal System and Property Rights 3.62 (60) 3.99 (74) 4.48 (66) 5.36 (75) 5.53 (69) 5.42 (72) 5.92 (63) 5.61 (69)
Area 3. Sound Money 6.05 (64) 6.55 (61) 5.59 (85) 1.21 (118) 2.88 (120) 3.19 (122) 5.73 (118) 7.35 (84)
Area 4. Freedom to Trade Internationally 2.93 (67) 3.71 (66) 5.13 (54) 5.47 (88) 5.26 (106) 4.51 (119) 5.06 (113) 5.15 (112)
Area 5. Regulation 5.49 (51) 5.74 (47) 5.75 (55) 5.17 (86) 5.73 (95) 6.37 (83) 6.87 (60) 6.70 (76)

Unadjusted
Summary Ratings Rank) h 4.52 (74) 4.93 (70) 5.37 (64) 4.31 (112) 4.95 (114) 5.30 (131) 6.26 (116) 6.30 (117)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.75 4.58 5.78 4.32 5.33 6.44 6.83 5.76
A. Government consumption 5.41 (21.62) 5.79 (20.30) 6.65 (17.39) 5.95 (19.77) 6.82 (16.80) 7.29 (15.23) 5.82 (20.20) 5.56 (21.10)
B. Transfers and subsidies 9.59 (2.00) 9.51 (2.30) 9.48 (2.40) 9.48 (2.40) 9.48 (2.40) 9.48 (2.40) 9.48 (2.40)
C. Government enterprises and investment 0.00 (78.60) 0.00 (62.00) 4.00 (38.30) 0.00 (65.10) 0.00 (81.30) 4.00 (35.77) 4.00 (39.56) 0.00 (51.13)
D. Top marginal tax rate 4.00 3.00 3.00 7.00 5.00 5.00 8.00 8.00
(i) Top marginal income tax rate 4.00 (45) 3.00 (50) 3.00 (50) 7.00 (35) 5.00 (38) 5.00 (38) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 3.00 (50) 7.00 (35) 5.00 (38) 5.00 (38) 8.00 (30) 8.00 (30)

Area 2. Legal System and Property Rights 3.62 3.99 4.48 5.36 5.53 5.01 5.47 5.18
A. Judicial independence 6.67 6.18 5.90 5.57 5.24
B. Impartial courts 4.84 4.91 4.41 5.04 4.97
C. Protection of property rights 4.77 3.23 5.28 5.03 4.87
D. Military interference in rule of law and politics 6.41 6.67 6.67 6.67 6.67
E. Integrity of the legal system 4.11 6.67 5.00 5.00 5.00
F. Legal enforcement of contracts 2.21 3.11 2.21
G. Regulatory restrictions on sale of real property 7.22 7.64 7.51
H. Reliability of police 4.25 5.36 4.67
I. Business costs of crime 4.14 5.81 5.51

Area 3. Sound Money 6.05 6.55 5.59 1.21 2.88 3.19 5.73 7.35
A. Money growth 9.73 (1.36) 9.04 (4.82) 7.17 (14.15) 4.85 (25.73) 5.05 (24.75) 5.86 (20.72) 6.37 (18.17) 6.75 (16.25)
B. Standard deviation of inflation 7.64 (5.89) 8.94 (2.66) 7.35 (6.63) 0.00 (28.51) 2.37 (19.06) 0.00 (26.01) 8.04 (4.89) 9.19 (2.03)
C. Inflation: most recent year 6.84 (15.79) 8.21 (8.93) 7.83 (10.85) 0.00 (90.42) 4.08 (29.58) 6.92 (15.41) 8.52 (7.41) 8.48 (7.62)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.00

Area 4. Freedom to Trade Internationally 2.67 3.80 5.26 5.47 5.26 5.59 6.27 6.37
A. Tariffs 5.60 5.40 6.58 4.61 4.96 3.97 5.95 5.95
(i) Revenue from trade taxes (% of trade sector) 5.60 (6.60) 4.13 (8.80) 6.20 (5.70) 6.20 (5.70) 4.60 (8.10) 4.60 (8.10) 4.60 (8.10) 4.60 (8.10)
(ii) Mean tariff rate 6.66 (16.70) 6.96 (15.20) 3.84 (30.80) 6.08 (19.60) 7.30 (13.50) 7.46 (12.70) 7.46 (12.70)
(iii) Standard deviation of tariff rates 3.80 (15.50) 4.20 (14.50) 0.00 (34.29) 5.78 (10.54) 5.78 (10.54)
B. Regulatory trade barriers 3.92 4.33 4.91
(i) Non-tariff trade barriers 4.82 5.13 5.19
(ii) Compliance costs of importing and exporting 3.02 3.54 4.63
C. Black-market exchange rates 0.40 4.00 7.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 0.83 4.46 4.80 4.64
(i) Foreign ownership/investment restrictions 6.58 6.04 5.58
(ii) Capital controls 2.00 2.00 2.00 2.00 0.83 0.00 1.54 1.54
(iii) Freedom of foreigners to visit 6.80 6.80 6.80

Area 5. Regulation 5.49 5.74 5.75 5.17 5.73 6.28 6.99 6.82
A. Credit market regulations 4.65 5.32 5.35 3.82 5.30 7.94 8.03 7.77
(i) Ownership of banks 2.00 2.00 2.00 2.00 2.00 10.00 8.00 8.00
(ii) Private sector credit 7.95 5.96 8.05 5.47 5.91 5.81 8.09 7.31
(iii) Interest rate controls/negative real interest rates 4.00 8.00 6.00 4.00 8.00 8.00 8.00 8.00
B. Labor market regulations 6.57 7.23 7.11
(i) Hiring regulations and minimum wage 5.60 4.43 4.43
(ii) Hiring and firing regulations 4.56 5.68 5.17
(iii) Centralized collective bargaining 7.06 7.61 7.36
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 2.21 5.68 5.68
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.32 5.71 5.58
(i) Administrative requirements 3.98 3.92 3.82
(ii) Bureaucracy costs 1.09 4.36 4.36
(iii) Starting a business 6.55 7.80 7.87
(iv) Extra payments/bribes/favoritism 5.46 4.27 3.90
(v) Licensing restrictions 2.97 5.71 5.49
(vi) Cost of tax compliance 5.85 8.24 8.04

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 Chapter 2: Country Data Tables E 111

Malaysia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.94 (11) 7.00 (13) 7.40 (13) 7.62 (16) 6.79 (52) 6.99 (58) 7.03 (60) 7.05 (60)
Area 1. Size of Government 4.84 (60) 5.56 (38) 6.27 (38) 6.92 (26) 6.08 (67) 6.03 (84) 6.13 (73) 6.01 (77)
Area 2. Legal System and Property Rights 6.59 (24) 6.31 (30) 6.52 (30) 6.63 (40) 5.62 (67) 7.27 (33) 7.14 (32) 7.22 (32)
Area 3. Sound Money 9.05 (7) 8.38 (21) 9.00 (20) 9.11 (31) 8.15 (54) 6.60 (98) 6.52 (107) 6.50 (107)
Area 4. Freedom to Trade Internationally 7.32 (17) 7.44 (18) 7.75 (23) 7.81 (38) 6.88 (71) 6.88 (70) 6.97 (71) 7.09 (62)
Area 5. Regulation 6.88 (16) 7.34 (9) 7.46 (11) 7.60 (9) 7.22 (26) 8.18 (10) 8.38 (7) 8.43 (7)

Unadjusted
Summary Ratings Rank) h 6.76 (13) 6.82 (16) 7.43 (15) 7.54 (18) 6.79 (51) 7.00 (64) 7.04 (69) 7.06 (68)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.84 5.56 6.27 6.92 6.08 6.03 6.13 6.01
A. Government consumption 4.52 (24.64) 5.08 (22.72) 5.58 (21.02) 5.62 (20.88) 5.87 (20.05) 5.03 (22.89) 5.60 (20.95) 5.44 (21.50)
B. Transfers and subsidies 8.83 (4.80) 9.16 (3.60) 9.48 (2.40) 9.05 (4.00) 8.45 (6.20) 9.08 (3.87) 8.91 (4.50) 8.60 (5.66)
C. Government enterprises and investment 4.00 (37.30) 2.00 (46.80) 4.00 (33.80) 6.00 (28.40) 2.00 (47.00) 2.00 (45.37) 2.00 (45.81) 2.00 (42.67)
D. Top marginal tax rate 2.00 6.00 6.00 7.00 8.00 8.00 8.00 8.00
(i) Top marginal income tax rate 2.00 (60) 6.00 (45) 6.00 (45) 7.00 (32) 8.00 (29) 8.00 (28) 8.00 (26) 8.00 (26)
(ii) Top marginal income and payroll tax rate 6.00 (45) 7.00 (32) 8.00 (29) 8.00 (28) 8.00 (26) 8.00 (26)

Area 2. Legal System and Property Rights 6.59 6.31 6.52 6.63 5.62 6.99 6.86 6.94
A. Judicial independence 6.22 4.51 7.24 6.13 6.04
B. Impartial courts 6.05 6.01 7.35 6.59 6.81
C. Protection of property rights 6.14 4.23 7.93 7.19 7.29
D. Military interference in rule of law and politics 7.78 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.96 5.00 6.67 6.67 6.67
F. Legal enforcement of contracts 4.27 5.59 5.59
G. Regulatory restrictions on sale of real property 6.49 8.01 8.65
H. Reliability of police 7.51 6.72 6.70
I. Business costs of crime 7.11 6.56 6.42

Area 3. Sound Money 9.05 8.38 9.00 9.11 8.15 6.60 6.52 6.50
A. Money growth 8.81 (5.94) 9.89 (-0.53) 8.69 (6.57) 8.03 (9.86) 9.12 (-4.39) 9.16 (4.21) 8.93 (5.34) 9.13 (4.33)
B. Standard deviation of inflation 8.78 (3.06) 8.95 (2.63) 7.92 (5.20) 9.41 (1.48) 8.79 (3.04) 7.84 (5.40) 7.51 (6.23) 7.49 (6.28)
C. Inflation: most recent year 8.63 (6.87) 9.70 (-1.51) 9.41 (2.95) 9.00 (5.02) 9.69 (1.53) 9.41 (2.96) 9.66 (1.71) 9.36 (3.20)
D. Freedom to own foreign currency bank accounts 10.00 5.00 10.00 10.00 5.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 7.12 7.25 7.25 7.45 6.88 7.39 7.49 7.62
A. Tariffs 6.37 6.74 6.76 6.92 5.92 6.66 6.92 6.93
(i) Revenue from trade taxes (% of trade sector) 4.87 (7.70) 6.20 (5.70) 7.87 (3.20) 8.93 (1.60) 9.59 (0.62) 9.67 (0.49) 9.79 (0.31) 9.81 (0.28)
(ii) Mean tariff rate 7.88 (10.60) 7.28 (13.60) 7.40 (13.00) 7.44 (12.80) 8.16 (9.20) 8.50 (7.50) 8.70 (6.50) 8.70 (6.50)
(iii) Standard deviation of tariff rates 5.00 (12.50) 4.40 (14.00) 0.00 (33.30) 1.81 (20.49) 2.28 (19.31) 2.28 (19.31)
B. Regulatory trade barriers 6.73 7.92 7.03 7.09 7.60
(i) Non-tariff trade barriers 6.73 6.67 6.27 6.31 6.45
(ii) Compliance costs of importing and exporting 9.17 7.78 7.87 8.74
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 5.00 6.15 3.69 5.89 5.97 5.96
(i) Foreign ownership/investment restrictions 7.31 6.61 7.67 7.13 7.12
(ii) Capital controls 5.00 5.00 5.00 5.00 0.77 0.00 0.77 0.77
(iii) Freedom of foreigners to visit 10.00 10.00 10.00

Area 5. Regulation 6.18 6.60 8.11 7.58 7.22 7.97 8.16 8.21
A. Credit market regulations 6.30 7.68 8.02 8.33 8.05 9.61 9.46 9.21
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 7.90 8.04 9.06 10.00 9.16 8.84 8.37 8.62
(iii) Interest rate controls/negative real interest rates 6.00 10.00 10.00 10.00 10.00 10.00 10.00 9.00
B. Labor market regulations 8.19 7.55 6.60 7.67 7.94 7.96
(i) Hiring regulations and minimum wage 6.73 4.47 10.00 10.00 10.00
(ii) Hiring and firing regulations 6.65 6.65 4.00 5.05 5.82 5.87
(iii) Centralized collective bargaining 7.93 7.93 7.93 7.93 7.53 7.95 7.57 7.64
(iv) Hours regulations 6.45 7.01 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 3.05 4.24 4.24
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 6.87 7.00 6.63 7.10 7.45
(i) Administrative requirements 7.13 5.96 5.71 6.01
(ii) Bureaucracy costs 8.08 8.43 3.47 5.99 5.99
(iii) Starting a business 7.17 6.33 8.83 9.64 9.65
(iv) Extra payments/bribes/favoritism 5.36 6.11 7.39 6.06 5.96
(v) Licensing restrictions 6.25 6.67 8.60
(vi) Cost of tax compliance 7.87 8.51 8.51

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112 E Economic Freedom of the World: 2013 Annual Report

Mali
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.73 (34) 4.81 (76) 5.11 (72) 5.22 (90) 6.19 (80) 6.03 (95) 6.07 (99) 6.03 (102)
Area 1. Size of Government 7.98 (7) 5.24 (47) 5.80 (55) 5.27 (84) 7.15 (27) 7.49 (34) 6.45 (59) 6.46 (60)
Area 2. Legal System and Property Rights 4.23 (51) 3.05 (90) 3.02 (90) 5.75 (60) 5.35 (75) 5.65 (66) 5.62 (71) 5.55 (72)
Area 3. Sound Money 6.04 (65) 6.39 (71) 6.98 (48) 5.14 (89) 8.40 (47) 6.12 (109) 6.86 (96) 6.61 (103)
Area 4. Freedom to Trade Internationally 4.74 (46) 4.88 (52) 5.06 (55) 5.52 (86) 5.91 (88) 5.56 (103) 5.97 (97) 5.94 (96)
Area 5. Regulation 5.35 (54) 4.39 (85) 4.61 (92) 4.27 (109) 4.13 (121) 5.27 (112) 5.36 (113) 5.45 (112)

Unadjusted
Summary Ratings Rank) h 5.92 (30) 4.97 (68) 5.28 (66) 4.91 (100) 6.12 (81) 6.02 (108) 6.06 (125) 5.95 (130)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 8.84 5.81 6.43 4.23 7.15 7.49 6.45 6.10
A. Government consumption 10.00 (4.86) 7.92 (13.08) 7.31 (15.13) 6.46 (18.03) 7.47 (14.60) 8.46 (11.22) 5.35 (21.80) 5.38 (21.70)
B. Transfers and subsidies 9.51 (2.30) 9.51 (2.30) 9.97 (0.60) 9.97 (0.60) 10.00 (0.01) 10.00 (0.29) 10.00 (0.29)
C. Government enterprises and investment 7.00 (21.40) 0.00 (57.10) 2.00 (45.90) 2.00 (41.10) 4.00 (35.07) 4.00 (33.93) 4.00 (45.77) 4.00 (45.07)
D. Top marginal tax rate 5.00
(i) Top marginal income tax rate 5.00 (40)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.23 3.05 3.02 5.29 5.00 4.52 4.49 4.44
A. Judicial independence 4.43 2.89 2.99
B. Impartial courts 4.74 4.38 3.90 4.23 4.09
C. Protection of property rights 5.12 4.11 4.34
D. Military interference in rule of law and politics 5.55 6.67 5.83 5.83 5.83
E. Integrity of the legal system 6.96 5.00 5.00 5.00 5.00
F. Legal enforcement of contracts 1.95 2.63 2.63
G. Regulatory restrictions on sale of real property 4.38 5.47 5.51
H. Reliability of police 5.48 3.98 4.28
I. Business costs of crime 4.59 6.29 5.29

Area 3. Sound Money 6.04 6.39 6.98 5.14 8.40 6.12 6.86 6.61
A. Money growth 8.58 (7.09) 7.51 (12.44) 9.10 (-4.52) 7.89 (10.55) 10.00 (-0.02) 8.55 (7.24) 9.38 (3.10) 8.68 (6.60)
B. Standard deviation of inflation 8.83 (2.93) 8.30 (4.26) 9.36 (1.59) 5.18 (12.04) 8.72 (3.20) 7.21 (6.97) 8.29 (4.26) 8.35 (4.13)
C. Inflation: most recent year 6.74 (16.31) 9.73 (1.33) 9.45 (2.73) 7.50 (12.49) 9.86 (-0.68) 8.72 (6.40) 9.78 (1.11) 9.43 (2.86)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 5.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.74 4.88 5.06 5.32 5.91 6.02 6.46 6.44
A. Tariffs 5.23 4.83 5.97 6.17 7.73 7.30 7.62 7.62
(i) Revenue from trade taxes (% of trade sector) 7.47 (3.80) 6.67 (5.00) 6.93 (4.60) 6.80 (4.80) 7.87 (3.20) 7.11 (4.33) 7.95 (3.08) 7.95 (3.08)
(ii) Mean tariff rate 3.00 (35.00) 3.00 (35.00) 5.00 (25.00) 6.74 (16.30) 7.60 (12.00) 7.52 (12.40) 7.62 (11.90) 7.62 (11.90)
(iii) Standard deviation of tariff rates 4.96 (12.60) 7.26 (6.84) 7.29 (6.78) 7.29 (6.78)
B. Regulatory trade barriers 3.73 5.54 5.35
(i) Non-tariff trade barriers 5.04 5.02 4.65
(ii) Compliance costs of importing and exporting 2.42 6.05 6.05
C. Black-market exchange rates 9.00 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 3.05 2.70 2.78
(i) Foreign ownership/investment restrictions 6.77 4.96 5.19
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 0.77 0.77
(iii) Freedom of foreigners to visit 2.38 2.38 2.38

Area 5. Regulation 5.73 4.70 4.94 4.58 4.13 5.94 6.05 6.15
A. Credit market regulations 5.29 5.90 6.52 5.57 4.94 7.93 7.69 7.69
(i) Ownership of banks 2.00 2.00 2.00 2.00 2.00 8.00 8.00 8.00
(ii) Private sector credit 9.88 9.70 9.57 8.71 7.89 7.80 7.07 7.07
(iii) Interest rate controls/negative real interest rates 4.00 6.00 8.00 6.00 8.00 8.00 8.00
B. Labor market regulations 5.58 5.23 5.50
(i) Hiring regulations and minimum wage 6.70 5.00 6.67
(ii) Hiring and firing regulations 5.58 4.79 4.82
(iii) Centralized collective bargaining 6.09 6.00 5.94
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.13 7.57 7.57
(vi) Conscription 10.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 4.30 5.22 5.25
(i) Administrative requirements 3.33 4.04 4.20
(ii) Bureaucracy costs 1.74 2.89 2.89
(iii) Starting a business 4.86 7.65 7.75
(iv) Extra payments/bribes/favoritism 4.15 2.56 2.46
(v) Licensing restrictions 4.75 7.20 7.24
(vi) Cost of tax compliance 6.97 6.97 6.97

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 Chapter 2: Country Data Tables E 113

Malta
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.50 (44) 5.28 (53) 5.48 (59) 6.92 (40) 6.76 (55) 7.68 (22) 7.62 (25) 7.59 (27)
Area 1. Size of Government 4.67 (65) 4.67 (62) 4.30 (90) 5.97 (64) 6.00 (70) 5.85 (89) 5.80 (79) 5.83 (80)
Area 2. Legal System and Property Rights 3.52 (80) 4.48 (65) 8.97 (10) 8.37 (18) 8.79 (13) 8.60 (14) 8.52 (14)
Area 3. Sound Money 6.50 (40) 7.01 (36) 7.27 (38) 7.07 (54) 7.00 (81) 8.99 (42) 9.54 (22) 9.50 (22)
Area 4. Freedom to Trade Internationally 5.15 (42) 5.55 (38) 5.78 (46) 6.53 (63) 6.23 (82) 7.68 (43) 7.30 (52) 7.18 (54)
Area 5. Regulation 5.68 (44) 5.64 (53) 5.55 (67) 6.08 (50) 6.23 (65) 7.01 (48) 6.80 (65) 6.85 (67)

Unadjusted
Summary Ratings Rank) h 5.57 (44) 5.34 (56) 5.54 (57) 6.72 (41) 6.53 (63) 7.63 (21) 7.57 (24) 7.65 (21)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.67 4.67 4.30 5.97 6.00 5.85 5.80 5.83
A. Government consumption 5.88 (20.01) 5.83 (20.19) 5.33 (21.89) 4.38 (25.11) 5.10 (22.67) 4.58 (24.44) 4.28 (25.45) 4.24 (25.60)
B. Transfers and subsidies 6.81 (12.20) 5.86 (15.70) 5.89 (15.60) 6.49 (13.38) 5.92 (15.49) 5.82 (15.85) 5.92 (15.47) 6.07 (14.91)
C. Government enterprises and investment 6.00 (28.60) 7.00 (20.00) 6.00 (28.80) 6.00 (28.80) 6.00 (28.80) 6.00 6.00 6.00
D. Top marginal tax rate 0.00 0.00 0.00 7.00 7.00 7.00 7.00 7.00
(i) Top marginal income tax rate 0.00 (65) 0.00 (65) 0.00 (65) 7.00 (35) 7.00 (35) 7.00 (35) 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate 0.00 (65) 7.00 (35) 7.00 (35) 7.00 (35) 7.00 (35) 7.00 (35)

Area 2. Legal System and Property Rights 3.52 4.48 7.60 7.17 7.68 7.52 7.18
A. Judicial independence 7.18 6.89 6.70
B. Impartial courts 7.09 6.77 5.93 5.01 4.67
C. Protection of property rights 6.92 7.09 7.60
D. Military interference in rule of law and politics 9.82 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 4.48
G. Regulatory restrictions on sale of real property 8.01
H. Reliability of police 7.12 6.92 6.66
I. Business costs of crime 8.31 8.37 8.20

Area 3. Sound Money 6.50 7.01 7.27 7.07 7.00 8.99 9.54 9.50
A. Money growth 9.68 (1.60) 9.39 (-3.03) 10.00 (-0.02) 9.75 (-1.24) 9.94 (-0.28) 6.82 (15.91) 8.59 (7.06) 8.74 (6.29)
B. Standard deviation of inflation 8.80 (3.00) 8.77 (3.07) 9.74 (0.64) 9.63 (0.93) 8.51 (3.72) 9.75 (0.63) 9.87 (0.32) 9.80 (0.50)
C. Inflation: most recent year 7.52 (12.40) 9.87 (0.63) 9.36 (3.21) 8.89 (5.56) 9.53 (2.37) 9.40 (3.01) 9.70 (1.52) 9.46 (2.72)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.44 5.87 6.11 6.90 6.23 8.57 8.15 8.21
A. Tariffs 6.73 7.00 6.73 9.50 8.51 9.28 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 6.73 (4.90) 7.00 (4.50) 6.73 (4.90) 9.50 (0.75) 9.58 (0.63) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.72 (5.70) 8.80 (3.00) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 7.47 7.45 7.85
(i) Non-tariff trade barriers 7.47 7.45 7.02
(ii) Compliance costs of importing and exporting 8.68
C. Black-market exchange rates 7.60 8.60 9.60 9.20 9.40 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 0.77 7.51 6.80 6.73
(i) Foreign ownership/investment restrictions 7.48 6.90 6.68
(ii) Capital controls 2.00 2.00 2.00 2.00 0.77 8.46 6.92 6.92
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 5.68 5.64 5.55 6.08 6.23 7.07 6.86 7.50
A. Credit market regulations 5.15 5.06 4.81 6.22 6.62 9.08 9.03 9.03
(i) Ownership of banks 0.00 0.00 0.00 0.00 2.00 10.00 10.00 10.00
(ii) Private sector credit 9.45 9.17 8.43 8.65 7.86 7.24 7.09 7.09
(iii) Interest rate controls/negative real interest rates 6.00 6.00 6.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 7.09 6.76 7.16
(i) Hiring regulations and minimum wage 6.10
(ii) Hiring and firing regulations 4.14 4.17 4.41
(iii) Centralized collective bargaining 7.14 6.12 6.45
(iv) Hours regulations 6.00
(v) Mandated cost of worker dismissal 10.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.03 4.77 6.31
(i) Administrative requirements 2.99 3.05 3.34
(ii) Bureaucracy costs 4.78 5.45 5.45
(iii) Starting a business 8.62
(iv) Extra payments/bribes/favoritism 7.32 5.82 5.41
(v) Licensing restrictions 6.61
(vi) Cost of tax compliance 8.44

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114 E Economic Freedom of the World: 2013 Annual Report

Mauritania
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.67 (80) 6.09 (122) 6.42 (105)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 8.00 6.63 7.25
A. Government consumption 6.01 (19.57) 6.26 (18.70) 5.76 (20.40)
B. Transfers and subsidies
C. Government enterprises and investment 10.00 (11.56) 7.00 (24.12) 8.00 (18.24)
D. Top marginal tax rate 8.00
(i) Top marginal income tax rate 8.00 (30)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 5.56 4.60 4.78

A. Judicial independence 4.71 2.69 3.04
B. Impartial courts 5.12 4.18 4.07
C. Protection of property rights 4.57 4.27 4.06
D. Military interference in rule of law and politics 5.50 3.00 3.00
E. Integrity of the legal system
F. Legal enforcement of contracts 6.04 6.27 6.27
G. Regulatory restrictions on sale of real property 7.36 7.53 7.53
H. Reliability of police 5.27 2.74 3.16
I. Business costs of crime 5.91 6.10 7.12

Area 3. Sound Money 7.36 6.49 6.79

A. Money growth 9.17 (4.15) 8.36 (8.18) 7.92 (10.40)
B. Standard deviation of inflation 7.71 (5.72) 3.83 (15.42) 5.36 (11.59)
C. Inflation: most recent year 7.57 (12.13) 8.74 (6.28) 8.86 (5.68)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 5.98 6.01 6.43

A. Tariffs 7.50 7.64 7.64
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 7.86 (10.70) 8.08 (9.60) 8.08 (9.60)
(iii) Standard deviation of tariff rates 7.13 (7.17) 7.20 (7.01) 7.20 (7.01)
B. Regulatory trade barriers 4.00 4.93 5.50
(i) Non-tariff trade barriers 3.40 4.93 6.05
(ii) Compliance costs of importing and exporting 4.61 4.94 4.94
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.42 1.45 2.57
(i) Foreign ownership/investment restrictions 6.43 3.36 4.37
(ii) Capital controls 0.83 1.00 3.33
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 6.43 6.72 6.84

A. Credit market regulations 8.11 8.02 8.77
(i) Ownership of banks
(ii) Private sector credit 7.22 8.03 8.55
(iii) Interest rate controls/negative real interest rates 9.00 8.00 9.00
B. Labor market regulations 7.02 7.22 7.40
(i) Hiring regulations and minimum wage 3.30 5.57 5.57
(ii) Hiring and firing regulations 7.79 4.99 5.93
(iii) Centralized collective bargaining 5.88 6.81 6.97
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.13 7.94 7.94
(vi) Conscription 10.00 10.00 10.00
C. Business regulations 4.17 4.92 4.35
(i) Administrative requirements 6.00 4.88 5.22
(ii) Bureaucracy costs 2.68 3.09 3.09
(iii) Starting a business 4.03 7.79 7.82
(iv) Extra payments/bribes/favoritism 3.77 2.66 3.18
(v) Licensing restrictions 6.36 8.89 4.58
(vi) Cost of tax compliance 2.20 2.20 2.20

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 Chapter 2: Country Data Tables E 115

Mauritius
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.73 (68) 6.12 (29) 6.06 (41) 7.55 (18) 7.60 (21) 7.57 (30) 7.95 (8) 8.01 (7)
Area 1. Size of Government 5.63 (34) 6.79 (9) 6.81 (23) 6.89 (27) 7.37 (24) 7.19 (43) 7.89 (20) 7.92 (17)
Area 2. Legal System and Property Rights 5.54 (47) 5.51 (51) 7.06 (33) 6.94 (42) 7.19 (37) 7.86 (25) 8.06 (21)
Area 3. Sound Money 4.92 (92) 6.81 (45) 6.20 (70) 9.51 (21) 9.58 (12) 9.49 (25) 9.28 (39) 9.22 (42)
Area 4. Freedom to Trade Internationally 2.37 (70) 4.90 (51) 4.90 (62) 7.26 (50) 7.20 (63) 7.79 (39) 8.12 (22) 8.19 (20)
Area 5. Regulation 6.37 (25) 6.51 (27) 6.81 (23) 6.99 (21) 6.88 (41) 6.31 (85) 6.77 (69) 6.85 (66)

Unadjusted
Summary Ratings Rank) h 4.90 (62) 6.38 (24) 6.21 (38) 7.65 (15) 7.60 (20) 7.57 (28) 7.95 (7) 8.01 (6)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.63 6.79 6.81 6.89 7.37 7.19 7.89 7.92
A. Government consumption 7.14 (15.72) 7.44 (14.69) 7.24 (15.40) 7.13 (15.75) 7.00 (16.19) 6.62 (17.50) 7.09 (15.89) 7.21 (15.50)
B. Transfers and subsidies 8.37 (6.50) 8.72 (5.20) 8.99 (4.20) 8.94 (4.40) 8.49 (6.06) 8.62 (5.55) 8.45 (6.19) 8.47 (6.10)
C. Government enterprises and investment 4.00 (36.00) 4.00 (32.26) 4.00 (37.32) 4.00 (34.43) 6.00 (28.01) 6.00 (29.59) 7.00 (24.53) 7.00 (23.32)
D. Top marginal tax rate 3.00 7.00 7.00 7.50 8.00 7.50 9.00 9.00
(i) Top marginal income tax rate 3.00 (50) 7.00 (35) 7.00 (35) 8.00 (30) 9.00 (25) 8.00 (30) 10.00 (15) 10.00 (15)
(ii) Top marginal income and payroll tax rate 7.00 (35) 7.00 (32) 7.00 (33) 7.00 (31) 8.00 (26) 8.00 (26)

Area 2. Legal System and Property Rights 6.31 6.28 6.94 6.94 5.68 6.21 6.37
A. Judicial independence 6.18 6.11 6.43 6.76
B. Impartial courts 7.82 7.01 6.42 5.80 6.01
C. Protection of property rights 4.80 7.63 7.06 6.96
D. Military interference in rule of law and politics 9.35 10.00 8.70 7.70 7.70
E. Integrity of the legal system 6.96 6.70
F. Legal enforcement of contracts 3.94 4.55 4.61
G. Regulatory restrictions on sale of real property 1.03 6.10 6.23
H. Reliability of police 5.49 5.47 5.84
I. Business costs of crime 6.11 6.54 6.84

Area 3. Sound Money 4.92 6.81 6.20 9.51 9.58 9.49 9.28 9.22
A. Money growth 9.21 (3.95) 9.35 (3.26) 7.47 (12.64) 9.54 (2.30) 9.64 (-1.81) 9.35 (3.25) 8.82 (5.88) 9.31 (3.45)
B. Standard deviation of inflation 5.80 (10.50) 9.54 (1.14) 9.37 (1.58) 9.46 (1.36) 9.51 (1.21) 9.59 (1.03) 8.87 (2.83) 8.86 (2.84)
C. Inflation: most recent year 4.69 (26.57) 8.36 (8.20) 7.98 (10.12) 9.06 (4.69) 9.16 (4.20) 9.02 (4.91) 9.42 (2.89) 8.69 (6.53)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 2.44 5.04 4.51 7.47 7.20 7.98 8.31 8.39
A. Tariffs 3.31 3.31 3.14 4.41 3.54 7.44 9.17 9.19
(i) Revenue from trade taxes (% of trade sector) 3.60 (9.60) 3.60 (9.60) 4.93 (7.60) 6.05 (5.92) 6.81 (4.78) 7.59 (3.62) 9.71 (0.44) 9.73 (0.40)
(ii) Mean tariff rate 3.02 (34.90) 3.02 (34.90) 4.48 (27.60) 2.76 (36.20) 3.80 (31.00) 8.30 (8.50) 9.72 (1.40) 9.72 (1.40)
(iii) Standard deviation of tariff rates 0.00 (91.50) 0.00 (27.80) 6.43 (8.93) 8.08 (4.80) 8.11 (4.72)
B. Regulatory trade barriers 7.44 6.99 7.34 7.58
(i) Non-tariff trade barriers 7.88 6.15 6.43 6.46
(ii) Compliance costs of importing and exporting 6.99 7.82 8.26 8.70
C. Black-market exchange rates 2.00 9.80 8.40 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 8.00 7.84 7.48 6.73 6.77
(i) Foreign ownership/investment restrictions 8.75 6.57 6.63 6.75
(ii) Capital controls 2.00 2.00 2.00 8.00 6.92 6.92 4.62 4.62
(iii) Freedom of foreigners to visit 8.96 8.96 8.96

Area 5. Regulation 6.59 6.93 7.25 7.45 6.88 7.51 8.06 8.16
A. Credit market regulations 7.28 8.47 9.33 9.84 9.53 9.27 9.52 9.72
(i) Ownership of banks 8.00 8.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 6.56 7.42 10.00 9.52 9.59 8.82 8.57 9.17
(iii) Interest rate controls/negative real interest rates 10.00 8.00 10.00 9.00 9.00 10.00 10.00
B. Labor market regulations 4.90 6.93 7.63 7.68
(i) Hiring regulations and minimum wage 3.12 10.00 10.00 10.00
(ii) Hiring and firing regulations 1.98 2.59 4.61 4.81
(iii) Centralized collective bargaining 3.55 3.52 5.64 5.73
(iv) Hours regulations 5.85 8.70 8.00 8.00
(v) Mandated cost of worker dismissal 6.76 7.53 7.53
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 6.22 6.33 7.02 7.07
(i) Administrative requirements 5.93 2.16 4.28 4.50
(ii) Bureaucracy costs 7.50 4.40 5.59 5.59
(iii) Starting a business 5.42 8.44 9.77 9.77
(iv) Extra payments/bribes/favoritism 6.01 6.56 5.62 5.84
(v) Licensing restrictions 8.25 8.65 8.54
(vi) Cost of tax compliance 8.20 8.20 8.20

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116 E Economic Freedom of the World: 2013 Annual Report

Mexico
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.13 (58) 4.61 (81) 6.13 (39) 6.43 (53) 6.44 (70) 6.82 (69) 6.69 (75) 6.63 (78)
Area 1. Size of Government 5.32 (43) 5.78 (30) 7.44 (9) 6.98 (24) 7.14 (28) 7.11 (47) 7.18 (36) 6.77 (51)
Area 2. Legal System and Property Rights 6.29 (29) 5.38 (48) 6.76 (28) 5.30 (76) 4.25 (97) 4.87 (79) 4.49 (91) 4.54 (89)
Area 3. Sound Money 7.70 (25) 3.67 (102) 3.59 (106) 5.50 (82) 6.85 (88) 8.08 (67) 8.07 (73) 8.12 (73)
Area 4. Freedom to Trade Internationally 1.32 (83) 4.44 (56) 7.85 (21) 7.96 (33) 7.47 (55) 7.28 (56) 7.04 (68) 7.07 (66)
Area 5. Regulation 5.05 (68) 3.80 (93) 5.04 (76) 6.44 (41) 6.50 (51) 6.59 (75) 6.53 (84) 6.51 (88)

Unadjusted
Summary Ratings Rank) h 5.19 (55) 4.67 (80) 6.26 (36) 6.46 (50) 6.44 (69) 6.83 (73) 6.70 (92) 6.64 (94)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.69 6.19 7.96 7.47 7.14 7.11 7.18 6.77
A. Government consumption 7.83 (13.36) 8.08 (12.52) 8.60 (10.75) 7.80 (13.48) 7.65 (13.98) 7.51 (14.46) 7.29 (15.23) 7.18 (15.60)
B. Transfers and subsidies 8.94 (4.40) 8.66 (5.40) 9.25 (3.24) 8.09 (7.50) 7.92 (8.13) 7.92 (8.13) 7.92 (8.13) 7.92 (8.13)
C. Government enterprises and investment 2.00 (43.00) 4.00 (34.80) 7.00 (23.90) 7.00 (23.20) 8.00 (16.80) 7.00 (22.40) 6.00 (29.26) 6.00 (29.26)
D. Top marginal tax rate 4.00 4.00 7.00 7.00 5.00 6.00 7.50 6.00
(i) Top marginal income tax rate 4.00 (55) 4.00 (55) 7.00 (40) 7.00 (35) 7.00 (40) 8.00 (30) 9.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 3.00 (47) 4.00 (42) 6.00 (43) 4.00 (43)

Area 2. Legal System and Property Rights 6.29 5.38 6.76 5.30 4.25 4.96 4.57 4.63
A. Judicial independence 3.88 3.34 4.41 3.74 3.94
B. Impartial courts 5.05 5.18 3.85 3.72 3.88
C. Protection of property rights 5.22 4.38 6.05 5.05 5.36
D. Military interference in rule of law and politics 5.37 5.00 7.50 7.50 6.67
E. Integrity of the legal system 6.96 3.33 5.00 3.33 3.33
F. Legal enforcement of contracts 5.39 5.39 5.45
G. Regulatory restrictions on sale of real property 6.89 6.86 6.86
H. Reliability of police 3.29 2.64 3.02
I. Business costs of crime 2.28 2.91 3.15

Area 3. Sound Money 7.70 3.67 3.59 5.50 6.85 8.08 8.07 8.12
A. Money growth 6.27 (18.66) 2.80 (36.00) 0.00 (51.34) 8.95 (5.23) 7.22 (13.89) 8.60 (7.02) 8.48 (7.59) 8.54 (7.28)
B. Standard deviation of inflation 9.08 (2.29) 1.90 (20.26) 0.00 (43.89) 5.62 (10.95) 7.09 (7.27) 9.51 (1.22) 9.61 (0.97) 9.60 (1.00)
C. Inflation: most recent year 5.44 (22.80) 0.00 (54.01) 4.37 (28.13) 2.43 (37.85) 8.10 (9.50) 9.20 (3.99) 9.17 (4.16) 9.32 (3.41)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 5.00 5.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 1.30 4.38 7.63 7.72 7.47 7.25 7.01 7.04
A. Tariffs 1.91 6.13 7.88 8.21 7.48 7.55 6.58 6.69
(i) Revenue from trade taxes (% of trade sector) 0.00 (17.60) 8.27 (2.60) 8.67 (2.00) 9.30 (1.05) 9.37 (0.94) 9.37 (0.94) 9.37 (0.94) 9.37 (0.94)
(ii) Mean tariff rate 3.82 (30.90) 4.00 (30.00) 7.78 (11.10) 7.48 (12.60) 6.76 (16.20) 8.16 (9.20) 8.20 (9.00) 8.34 (8.30)
(iii) Standard deviation of tariff rates 7.20 (7.00) 7.84 (5.40) 6.32 (9.20) 5.13 (12.18) 2.15 (19.62) 2.36 (19.09)
B. Regulatory trade barriers 6.30 7.28 7.04 7.23 7.17
(i) Non-tariff trade barriers 6.30 6.40 6.15 6.05 5.94
(ii) Compliance costs of importing and exporting 8.16 7.93 8.41 8.41
C. Black-market exchange rates 0.00 5.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 5.00 6.39 5.12 4.43 4.23 4.28
(i) Foreign ownership/investment restrictions 7.77 8.70 7.54 6.97 7.12
(ii) Capital controls 2.00 2.00 5.00 5.00 1.54 1.54 1.54 1.54
(iii) Freedom of foreigners to visit 4.20 4.20 4.20

Area 5. Regulation 4.97 3.74 5.33 6.32 6.50 6.75 6.69 6.66
A. Credit market regulations 5.62 2.36 5.58 8.56 9.48 8.86 8.65 8.35
(i) Ownership of banks 8.00 0.00 0.00 8.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 4.87 3.08 8.74 9.68 9.43 6.57 5.94 6.05
(iii) Interest rate controls/negative real interest rates 4.00 4.00 8.00 8.00 9.00 10.00 10.00 9.00
B. Labor market regulations 5.08 5.87 4.40 5.74 5.40 5.48
(i) Hiring regulations and minimum wage 7.92 2.75 6.70 6.67 6.67
(ii) Hiring and firing regulations 5.00 5.00 4.10 4.65 3.47 3.84
(iii) Centralized collective bargaining 7.24 7.24 5.65 6.89 6.41 6.55
(iv) Hours regulations 6.18 6.51 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 5.18 4.82 4.82
(vi) Conscription 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 4.53 5.62 5.65 6.03 6.16
(i) Administrative requirements 6.73 2.70 3.15 3.41
(ii) Bureaucracy costs 6.09 6.33 3.79 4.18 4.18
(iii) Starting a business 4.15 3.70 8.95 9.57 9.61
(iv) Extra payments/bribes/favoritism 3.36 5.73 6.19 4.16 4.34
(v) Licensing restrictions 8.48 9.00 9.21
(vi) Cost of tax compliance 3.81 6.11 6.22

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 Chapter 2: Country Data Tables E 117

Moldova
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.77 (75) 6.74 (88) 6.86 (82)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 8.04 7.31 7.47
A. Government consumption 7.55 (14.33) 6.15 (19.10) 6.59 (17.60)
B. Transfers and subsidies 6.56 (13.13) 6.07 (14.91) 6.28 (14.16)
C. Government enterprises and investment 10.00 (8.09) 10.00 (3.62) 10.00 (6.30)
D. Top marginal tax rate 7.00 7.00
(i) Top marginal income tax rate 10.00 (18) 10.00 (18)
(ii) Top marginal income and payroll tax rate 4.00 (41) 4.00 (41)

Area 2. Legal System and Property Rights 5.30 5.48 5.50

A. Judicial independence 1.98 1.99 1.80
B. Impartial courts 2.62 3.34 3.23
C. Protection of property rights 4.20 3.86 3.89
D. Military interference in rule of law and politics 6.67 6.67 6.67
E. Integrity of the legal system 8.33 7.50 7.50
F. Legal enforcement of contracts 6.71 6.07 6.26
G. Regulatory restrictions on sale of real property 8.73 9.61 9.61
H. Reliability of police 3.60 3.41 3.45
I. Business costs of crime 4.88 6.82 7.10

Area 3. Sound Money 6.65 7.38 7.55

A. Money growth 5.30 (23.51) 8.06 (9.72) 8.78 (6.09)
B. Standard deviation of inflation 8.92 (2.70) 7.96 (5.10) 7.99 (5.04)
C. Inflation: most recent year 7.38 (13.11) 8.52 (7.40) 8.45 (7.74)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 6.81 6.81 6.85

A. Tariffs 8.50 8.64 8.68
(i) Revenue from trade taxes (% of trade sector) 9.23 (1.15) 9.15 (1.27) 9.15 (1.28) 9.27 (1.09)
(ii) Mean tariff rate 8.96 (5.20) 9.08 (4.60) 9.08 (4.60)
(iii) Standard deviation of tariff rates 7.38 (6.55) 7.68 (5.80) 7.68 (5.80)
B. Regulatory trade barriers 5.50 5.39 5.49
(i) Non-tariff trade barriers 5.70 5.48 5.69
(ii) Compliance costs of importing and exporting 5.30 5.30 5.30
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 3.26 3.23 3.22
(i) Foreign ownership/investment restrictions 5.02 4.94 4.90
(ii) Capital controls 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 4.76 4.76 4.76

Area 5. Regulation 7.06 6.74 6.92

A. Credit market regulations 9.33 9.13 9.54
(i) Ownership of banks 8.00 10.00 10.00
(ii) Private sector credit 9.09 10.00 8.38 8.62
(iii) Interest rate controls/negative real interest rates 10.00 9.00 10.00
B. Labor market regulations 6.04 5.50 5.55
(i) Hiring regulations and minimum wage 6.70 5.57 5.57
(ii) Hiring and firing regulations 5.73 4.11 4.45
(iii) Centralized collective bargaining 7.48 7.55 7.49
(iv) Hours regulations 6.00 6.00 6.00
(v) Mandated cost of worker dismissal 7.31 6.79 6.79
(vi) Conscription 3.00 3.00 3.00
C. Business regulations 5.81 5.60 5.66
(i) Administrative requirements 2.55 3.22 3.34
(ii) Bureaucracy costs 3.53 3.73 3.73
(iii) Starting a business 8.84 9.58 9.62
(iv) Extra payments/bribes/favoritism 6.78 3.56 3.71
(v) Licensing restrictions 5.76 6.03 6.05
(vi) Cost of tax compliance 7.40 7.44 7.53

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118 E Economic Freedom of the World: 2013 Annual Report

Mongolia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 7.06 (60) 6.90 (77) 7.06 (68)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 7.58 7.20 7.27
A. Government consumption 6.41 (18.22) 5.73 (20.53) 5.65 (20.80)
B. Transfers and subsidies 7.90 (8.20) 7.08 (11.23) 6.42 (13.64)
C. Government enterprises and investment 10.00 (7.63) 7.00 (20.50) 8.00 (18.55)
D. Top marginal tax rate 6.00 9.00 9.00
(i) Top marginal income tax rate 8.00 (30) 10.00 (10) 10.00 (10)
(ii) Top marginal income and payroll tax rate 4.00 (49) 8.00 (29) 8.00 (29)

Area 2. Legal System and Property Rights 5.28 5.67 5.80

A. Judicial independence 2.62 2.67 2.92
B. Impartial courts 2.52 3.21 3.55
C. Protection of property rights 5.00 3.84 4.06
D. Military interference in rule of law and politics 8.80 8.33 8.33
E. Integrity of the legal system 6.67 6.67
F. Legal enforcement of contracts 6.24 6.24 6.24
G. Regulatory restrictions on sale of real property 9.07 9.10 9.10
H. Reliability of police 3.23 4.42 4.73
I. Business costs of crime 4.73 6.52 6.60

Area 3. Sound Money 8.31 7.22 7.80

A. Money growth 8.48 (7.61) 4.74 (26.30) 6.57 (17.16)
B. Standard deviation of inflation 7.30 (6.74) 6.17 (9.57) 6.54 (8.64)
C. Inflation: most recent year 7.46 (12.72) 7.97 (10.15) 8.10 (9.48)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.81 6.94 6.93

A. Tariffs 9.18 9.13 9.11
(i) Revenue from trade taxes (% of trade sector) 9.01 (1.48) 8.69 (1.96) 8.64 (2.04)
(ii) Mean tariff rate 9.16 (4.20) 9.00 (5.00) 9.00 (5.00)
(iii) Standard deviation of tariff rates 9.37 (1.58) 9.70 (0.75) 9.70 (0.75)
B. Regulatory trade barriers 4.62 4.35 4.21
(i) Non-tariff trade barriers 3.90 5.32 5.49
(ii) Compliance costs of importing and exporting 5.34 3.37 2.93
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 3.43 4.29 4.38
(i) Foreign ownership/investment restrictions 6.75 6.06 6.31
(ii) Capital controls 3.08 6.36 6.36
(iii) Freedom of foreigners to visit 0.45 0.45 0.45

Area 5. Regulation 7.33 7.45 7.49

A. Credit market regulations 9.13 9.50 9.49
(i) Ownership of banks
(ii) Private sector credit 10.00 10.00 9.25 10.00 8.99
(iii) Interest rate controls/negative real interest rates 9.00 9.00 10.00
B. Labor market regulations 7.05 7.18 7.16
(i) Hiring regulations and minimum wage 8.90 8.90 8.90
(ii) Hiring and firing regulations 7.00 5.95 5.83
(iii) Centralized collective bargaining 8.25 7.96 7.99
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 9.17 9.25 9.25
(vi) Conscription 3.00 3.00 3.00
C. Business regulations 5.82 5.67 5.82
(i) Administrative requirements 2.92 2.83 3.35
(ii) Bureaucracy costs 3.36 3.28 3.28
(iii) Starting a business 9.12 9.44 9.59
(iv) Extra payments/bribes/favoritism 4.67 3.19 3.39
(v) Licensing restrictions 7.12 7.44 7.46
(vi) Cost of tax compliance 7.71 7.85 7.85

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 Chapter 2: Country Data Tables E 119

Montenegro
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.71 (79) 7.46 (31) 7.26 (49)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.60 5.58 5.72
A. Government consumption 3.81 (27.03) 5.24 (22.20) 5.65 (20.80)
B. Transfers and subsidies
C. Government enterprises and investment 6.00 (25.80) 4.00 (26.87) 4.00 (25.21)
D. Top marginal tax rate 7.00 7.50 7.50
(i) Top marginal income tax rate 9.00 (23) 10.00 (14) 10.00 (10)
(ii) Top marginal income and payroll tax rate 5.00 (40) 5.00 (40)

Area 2. Legal System and Property Rights 5.56 6.47 6.27

A. Judicial independence 3.50 5.28 4.86
B. Impartial courts 3.50 5.41 4.97
C. Protection of property rights 4.50 6.20 5.98
D. Military interference in rule of law and politics 10.00 7.70 7.70
E. Integrity of the legal system
F. Legal enforcement of contracts 4.80 4.80 4.80
G. Regulatory restrictions on sale of real property 7.72 7.64 7.64
H. Reliability of police 4.49 6.52 6.70
I. Business costs of crime 5.96 8.20 7.53

Area 3. Sound Money 8.79 9.57 8.94

A. Money growth 9.94 (-0.29) 7.96 (-10.21)
B. Standard deviation of inflation 7.24 (6.90) 8.48 (3.81) 8.44 (3.89)
C. Inflation: most recent year 9.14 (4.32) 9.87 (0.65) 9.36 (3.18)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.23 7.89 7.77

A. Tariffs 7.51 8.13 8.13
(i) Revenue from trade taxes (% of trade sector) 7.80 (3.30) 7.80 (3.30) 7.80 (3.30)
(ii) Mean tariff rate 8.68 (6.60) 9.02 (4.90) 9.02 (4.90)
(iii) Standard deviation of tariff rates 6.05 (9.90) 7.57 (6.08) 7.57 (6.08)
B. Regulatory trade barriers 6.31 7.23 6.88
(i) Non-tariff trade barriers 4.50 6.35 5.64
(ii) Compliance costs of importing and exporting 8.12 8.12 8.12
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.10 6.19 6.06
(i) Foreign ownership/investment restrictions 6.55 6.15
(ii) Capital controls 6.92 6.92
(iii) Freedom of foreigners to visit 5.10 5.10 5.10

Area 5. Regulation 6.38 7.78 7.60

A. Credit market regulations 9.45 9.78 9.62
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 8.34 9.34 8.86
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00
B. Labor market regulations 4.76 7.66 7.13
(i) Hiring regulations and minimum wage 6.70 8.90 5.57
(ii) Hiring and firing regulations 2.00 5.21 5.14
(iii) Centralized collective bargaining 2.50 6.35 6.34
(iv) Hours regulations 8.00 10.00 8.00
(v) Mandated cost of worker dismissal 6.38 5.51 7.76
(vi) Conscription 3.00 10.00 10.00
C. Business regulations 4.92 5.91 6.05
(i) Administrative requirements 4.00 5.06 4.87
(ii) Bureaucracy costs 3.00 5.40 5.40
(iii) Starting a business 9.16 9.66 9.66
(iv) Extra payments/bribes/favoritism 3.00 5.62 5.54
(v) Licensing restrictions 4.55 3.90 4.45
(vi) Cost of tax compliance 5.83 5.83 6.41

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120 E Economic Freedom of the World: 2013 Annual Report

Morocco
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.45 (77) 5.20 (55) 5.18 (70) 6.28 (58) 6.14 (82) 6.37 (83) 6.44 (85) 6.51 (84)
Area 1. Size of Government 4.63 (67) 5.23 (49) 5.91 (48) 6.27 (53) 6.32 (56) 6.71 (61) 6.50 (56) 6.56 (56)
Area 2. Legal System and Property Rights 2.24 (80) 3.99 (73) 3.99 (73) 7.77 (24) 7.68 (28) 7.55 (28) 7.30 (30) 7.37 (30)
Area 3. Sound Money 6.26 (52) 6.81 (44) 6.50 (64) 6.69 (59) 6.96 (83) 7.10 (86) 7.07 (90) 7.17 (88)
Area 4. Freedom to Trade Internationally 4.35 (49) 5.30 (45) 4.66 (65) 5.67 (83) 4.40 (117) 4.92 (118) 5.34 (109) 5.45 (106)
Area 5. Regulation 4.82 (77) 4.70 (77) 4.90 (81) 5.01 (88) 5.36 (103) 5.61 (103) 5.89 (107) 5.86 (106)

Unadjusted
Summary Ratings Rank) h 4.42 (77) 5.22 (61) 5.20 (68) 6.08 (62) 5.94 (85) 6.42 (93) 6.49 (105) 6.56 (98)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.63 5.23 5.91 6.27 6.32 6.71 6.50 6.56
A. Government consumption 5.51 (21.26) 6.06 (19.41) 6.12 (19.18) 6.01 (19.57) 5.10 (22.65) 4.48 (24.75) 4.87 (23.43) 5.97 (19.70)
B. Transfers and subsidies 9.02 (4.10) 8.88 (4.60) 9.51 (2.30) 9.07 (3.92) 8.16 (7.25) 8.37 (6.48) 8.13 (7.35) 7.28 (10.50)
C. Government enterprises and investment 2.00 (46.80) 6.00 (27.90) 8.00 (19.80) 7.00 (21.90) 8.00 (18.10) 10.00 (13.60) 8.00 (18.67) 8.00 (18.44)
D. Top marginal tax rate 2.00 0.00 0.00 3.00 4.00 4.00 5.00 5.00
(i) Top marginal income tax rate 2.00 (64) 0.00 (87) 0.00 (87) 3.00 (46) 4.00 (44) 4.00 (44) 5.00 (38) 5.00 (38)
(ii) Top marginal income and payroll tax rate 5.00 (38) 5.00 (38)

Area 2. Legal System and Property Rights 2.24 3.99 3.99 6.74 6.67 6.17 5.97 6.03
A. Judicial independence 4.07 4.28 4.17
B. Impartial courts 6.76 6.37 5.06 4.83 4.86
C. Protection of property rights 6.26 5.62 6.01
D. Military interference in rule of law and politics 6.55 6.67 6.67 6.67 6.67
E. Integrity of the legal system 10.00 10.00 8.33 8.33 8.33
F. Legal enforcement of contracts 4.30 5.09 5.09
G. Regulatory restrictions on sale of real property 7.65 6.97 6.64
H. Reliability of police 6.65 5.34 5.56
I. Business costs of crime 6.60 6.60 6.90

Area 3. Sound Money 6.26 6.81 6.50 6.69 6.96 7.10 7.07 7.17
A. Money growth 8.75 (6.25) 9.30 (3.48) 8.09 (9.57) 9.25 (3.73) 8.63 (6.84) 8.94 (5.29) 9.29 (3.56) 9.71 (1.44)
B. Standard deviation of inflation 8.19 (4.52) 9.64 (0.91) 9.06 (2.36) 9.11 (2.22) 9.60 (0.99) 9.65 (0.86) 9.18 (2.05) 9.16 (2.10)
C. Inflation: most recent year 8.11 (9.46) 8.32 (8.42) 8.87 (5.66) 8.41 (7.96) 9.62 (1.89) 9.80 (0.98) 9.80 (0.99) 9.82 (0.92)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.41 5.37 4.73 5.67 4.40 6.28 6.81 6.96
A. Tariffs 1.43 5.52 4.78 5.20 3.19 4.74 5.55 5.79
(i) Revenue from trade taxes (% of trade sector) 2.87 (10.70) 5.73 (6.40) 4.27 (8.60) 5.45 (6.82) 5.09 (7.36) 7.51 (3.73) 8.44 (2.34) 8.64 (2.04)
(ii) Mean tariff rate 0.00 (54.00) 5.30 (23.50) 5.30 (23.50) 5.44 (22.80) 3.28 (33.60) 6.12 (19.40) 6.38 (18.10) 7.14 (14.30)
(iii) Standard deviation of tariff rates 4.72 (13.20) 1.20 (22.00) 0.59 (23.52) 1.82 (20.45) 1.59 (21.02)
B. Regulatory trade barriers 5.88 6.87 7.06
(i) Non-tariff trade barriers 4.98 5.49 5.87
(ii) Compliance costs of importing and exporting 6.78 8.24 8.24
C. Black-market exchange rates 9.80 8.60 7.40 9.80 10.00 9.42 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 0.00 5.07 4.81 4.98
(i) Foreign ownership/investment restrictions 7.07 6.30 6.81
(ii) Capital controls 2.00 2.00 2.00 2.00 0.00 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 7.37 7.37 7.37

Area 5. Regulation 4.55 4.70 4.90 5.01 5.36 5.84 6.13 6.10
A. Credit market regulations 5.69 5.57 6.09 6.39 7.32 7.74 7.39 7.18
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 6.38 5.72 5.26 6.16 7.95 9.21 9.16 8.53
(iii) Interest rate controls/negative real interest rates 6.00 8.00 8.00 9.00 9.00 8.00 8.00
B. Labor market regulations 3.65 4.52 4.52
(i) Hiring regulations and minimum wage 0.00 1.10 1.10
(ii) Hiring and firing regulations 5.30 5.08 4.88
(iii) Centralized collective bargaining 7.50 6.65 6.86
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 2.12 5.29 5.29
(vi) Conscription 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
C. Business regulations 6.12 6.47 6.59
(i) Administrative requirements 3.56 3.86 4.06
(ii) Bureaucracy costs 5.40 4.61 4.61
(iii) Starting a business 9.26 9.42 9.45
(iv) Extra payments/bribes/favoritism 5.08 4.70 5.17
(v) Licensing restrictions 7.42 8.91 8.94
(vi) Cost of tax compliance 5.99 7.33 7.33

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 Chapter 2: Country Data Tables E 121

Mozambique
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 5.45 (129) 5.61 (140) 5.63 (139)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.47 5.66 5.60
A. Government consumption 8.08 (12.51) 8.41 (11.41) 7.62 (14.10) 7.38 (14.90)
B. Transfers and subsidies 9.01 (4.14) 9.01 (4.14)
C. Government enterprises and investment 2.00 (45.74) 0.00 (63.51) 0.00 (56.12)
D. Top marginal tax rate 6.00 6.00 6.00
(i) Top marginal income tax rate 7.00 (32) 7.00 (32) 7.00 (32)
(ii) Top marginal income and payroll tax rate 5.00 (37) 5.00 (38) 5.00 (38)

Area 2. Legal System and Property Rights 3.23 4.23 4.20

A. Judicial independence 2.46 2.83 2.40
B. Impartial courts 2.68 3.69 3.62
C. Protection of property rights 4.82 4.17 4.23
D. Military interference in rule of law and politics 3.61 6.67 6.67
E. Integrity of the legal system 5.00 5.00 5.00
F. Legal enforcement of contracts 0.00 0.00 0.00
G. Regulatory restrictions on sale of real property 4.54 6.35 6.58
H. Reliability of police 3.07 4.32 4.03
I. Business costs of crime 2.85 5.06 5.26

Area 3. Sound Money 7.64 5.86 6.13

A. Money growth 2.88 (35.58) 3.91 (30.43) 7.63 (11.85) 8.45 (7.77) 7.37 (13.16) 8.07 (9.64)
B. Standard deviation of inflation 8.56 (3.59) 8.60 (3.51) 8.50 (3.74)
C. Inflation: most recent year 8.57 (7.17) 7.46 (12.70) 7.93 (10.35)
D. Freedom to own foreign currency bank accounts 5.00 0.00 0.00

Area 4. Freedom to Trade Internationally 6.10 6.40 6.37

A. Tariffs 6.75 7.52 7.52
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 7.38 (13.10) 7.98 (10.10) 7.98 (10.10)
(iii) Standard deviation of tariff rates 6.13 (9.68) 7.05 (7.37) 7.05 (7.37)
B. Regulatory trade barriers 5.10 5.65 5.53
(i) Non-tariff trade barriers 4.68 4.82 4.58
(ii) Compliance costs of importing and exporting 5.53 6.49 6.49
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.54 2.43 2.42
(i) Foreign ownership/investment restrictions 6.70 6.38 6.34
(ii) Capital controls 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 0.91 0.91 0.91

Area 5. Regulation 4.82 5.90 5.88

A. Credit market regulations 7.16 9.20 8.92
(i) Ownership of banks 10.00 10.00
(ii) Private sector credit 5.31 7.59 6.77
(iii) Interest rate controls/negative real interest rates 10.00 9.00 10.00 10.00
B. Labor market regulations 2.96 2.76 3.05
(i) Hiring regulations and minimum wage 2.80 1.67 3.33
(ii) Hiring and firing regulations 3.01 3.90 4.17
(iii) Centralized collective bargaining 5.25 4.97 4.80
(iv) Hours regulations 6.70 6.00 6.00
(v) Mandated cost of worker dismissal 0.00 0.00 0.00
(vi) Conscription 0.00 0.00 0.00
C. Business regulations 4.35 5.75 5.67
(i) Administrative requirements 2.01 4.33 4.01
(ii) Bureaucracy costs 2.31 4.24 4.24
(iii) Starting a business 5.73 9.46 9.38
(iv) Extra payments/bribes/favoritism 5.09 4.28 4.19
(v) Licensing restrictions 3.50 4.78 4.79
(vi) Cost of tax compliance 7.42 7.42 7.42

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122 E Economic Freedom of the World: 2013 Annual Report

Myanmar
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.50 (76) 4.15 (91) 3.13 (109) 3.80 (118) 3.67 (123) 3.63 (122) 3.79 (123) 3.70 (122)
Area 1. Size of Government 5.76 (78) 6.33 (76) 5.80 (78) 5.67 (87)
Area 2. Legal System and Property Rights 5.35 (41) 3.99 (77) 3.50 (82) 4.93 (86) 2.92 (118) 2.60 (117) 3.19 (113) 3.19 (111)
Area 3. Sound Money 6.90 (31) 7.31 (33) 4.23 (99) 4.84 (97) 5.53 (111) 4.96 (118) 5.73 (117) 5.26 (119)
Area 4. Freedom to Trade Internationally 0.00 (91) 0.00 (97) 0.00 (104) 0.00 (113) 0.00 (122) 0.00 (122) 0.00 (122) 0.00 (121)
Area 5. Regulation 3.03 (96) 2.93 (102) 3.04 (106) 3.26 (119) 4.14 (120) 4.36 (121) 4.39 (120) 4.48 (121)

Unadjusted
Summary Ratings Rank) h 3.86 (91) 3.56 (101) 2.69 (113) 3.20 (122) 3.74 (123) 4.01 (139) 4.18 (152) 4.08 (151)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.76 6.33 5.80 5.67
A. Government consumption 8.28 (11.86) 10.00 (4.10) 8.40 (11.44) 8.01 (12.77)
B. Transfers and subsidies
C. Government enterprises and investment 2.00 (45.00) 2.00 (47.65) 4.00 (34.36) 4.00 (34.36) 4.00 4.00
D. Top marginal tax rate 5.00 5.00 5.00 5.00
(i) Top marginal income tax rate 5.00 (40) 5.00 (40) 5.00 (40) 5.00 (40)
(ii) Top marginal income and payroll tax rate 5.00 (40) 5.00 (40) 5.00 (40) 5.00 (40)

Area 2. Legal System and Property Rights 5.35 3.99 3.50 4.69 3.25 2.60 3.19 3.19
A. Judicial independence
B. Impartial courts 4.08 3.76 2.80 2.90 2.90
C. Protection of property rights
D. Military interference in rule of law and politics 3.74 0.00 0.00 1.67 1.67
E. Integrity of the legal system 6.96 5.00 5.00 5.00 5.00
F. Legal enforcement of contracts
G. Regulatory restrictions on sale of real property
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 6.90 7.31 4.23 4.84 5.53 4.96 5.73 5.26
A. Money growth 9.26 (3.69) 9.98 (-0.10) 7.46 (12.70) 5.64 (21.82) 6.93 (15.36) 7.10 (14.51) 7.71 (11.43) 7.94 (10.28)
B. Standard deviation of inflation 8.59 (3.53) 9.59 (1.03) 3.16 (17.09) 7.62 (5.96) 5.22 (11.96) 4.60 (13.49) 6.76 (8.10) 4.08 (14.80)
C. Inflation: most recent year 9.75 (1.24) 9.69 (1.57) 6.29 (18.54) 6.11 (19.44) 9.98 (-0.11) 8.13 (9.37) 8.46 (7.72) 9.00 (5.02)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 0.18 0.00 0.00 0.00 0.00 1.81 1.78 1.78
A. Tariffs 0.53 0.00 0.00 0.00 0.00 5.42 5.35 5.35
(i) Revenue from trade taxes (% of trade sector) 0.53 (14.20) 0.00 (17.60) 0.00 (19.35) 0.00 (24.66) 0.00 (19.80) 0.00 (57.21) 0.00 (57.21) 0.00 (57.21)
(ii) Mean tariff rate 9.10 (4.50) 8.88 (5.60) 8.88 (5.60)
(iii) Standard deviation of tariff rates 7.16 (7.11) 7.16 (7.11) 7.16 (7.11)
B. Regulatory trade barriers
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting
C. Black-market exchange rates 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(i) Foreign ownership/investment restrictions
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 3.03 2.93 3.04 3.26 4.14 4.36 4.39 4.48
A. Credit market regulations 0.47 0.20 0.50 1.08 3.42 4.00 5.08 5.33
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(ii) Private sector credit 1.40 0.61 1.49 3.25 3.26 1.99 5.25 5.98
(iii) Interest rate controls/negative real interest rates 0.00 0.00 0.00 0.00 7.00 10.00 10.00 10.00
B. Labor market regulations
(i) Hiring regulations and minimum wage
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations
(v) Mandated cost of worker dismissal
(vi) Conscription 3.00 3.00 3.00 3.00 3.00 3.00 0.00 0.00
C. Business regulations
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions
(vi) Cost of tax compliance

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 Chapter 2: Country Data Tables E 123

Namibia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.11 (73) 6.14 (62) 6.38 (72) 6.46 (78) 6.41 (88) 6.20 (97)
Area 1. Size of Government 3.02 (96) 1.16 (111) 4.88 (77) 4.72 (92) 5.14 (90) 6.21 (81) 5.76 (80) 5.20 (99)
Area 2. Legal System and Property Rights 2.33 (103) 7.83 (23) 8.15 (21) 7.74 (25) 7.84 (26) 7.47 (27)
Area 3. Sound Money 4.28 (98) 5.82 (77) 6.03 (72) 6.07 (107) 6.48 (103) 6.36 (111) 6.26 (113)
Area 4. Freedom to Trade Internationally 5.85 (45) 5.29 (91) 5.13 (111) 5.03 (114) 5.00 (115) 4.99 (117)
Area 5. Regulation 6.75 (25) 6.84 (27) 7.43 (18) 6.94 (51) 7.17 (39) 7.13 (50)

Unadjusted
Summary Ratings Rank) h 5.05 (72) 6.15 (60) 6.38 (70) 6.65 (81) 6.60 (94) 6.39 (106)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 1.70 0.65 4.92 4.77 5.14 6.21 5.76 5.20
A. Government consumption 3.40 (28.44) 1.31 (35.55) 1.50 (34.91) 1.09 (36.28) 2.24 (32.40) 4.41 (24.99) 3.79 (27.10) 3.53 (28.00)
B. Transfers and subsidies 9.26 (3.20) 9.21 (3.40) 9.33 (2.96) 9.41 (2.66) 9.26 (3.20) 9.26 (3.20)
C. Government enterprises and investment 0.00 (57.90) 0.00 (64.30) 4.00 (38.60) 4.00 (31.90) 4.00 (32.26) 4.00 (34.27) 4.00 (32.19) 2.00 (40.90)
D. Top marginal tax rate 5.00 7.00 6.00 6.00
(i) Top marginal income tax rate 5.00 (36) 7.00 (35) 6.00 (37) 6.00 (37)
(ii) Top marginal income and payroll tax rate 5.00 (36) 7.00 (35) 6.00 (37) 6.00 (37)

Area 2. Legal System and Property Rights 2.33 7.83 8.15 6.59 6.68 6.36
A. Judicial independence 7.17 7.18 7.07 6.44 5.92
B. Impartial courts 7.25 7.75 5.94 6.10 5.44
C. Protection of property rights 6.53 5.82 7.46 7.28 6.80
D. Military interference in rule of law and politics 8.21 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 8.33 8.33 8.33
F. Legal enforcement of contracts 6.25 6.25 6.25
G. Regulatory restrictions on sale of real property 6.28 4.76 4.59
H. Reliability of police 3.63 5.97 5.28
I. Business costs of crime 4.32 4.94 4.64

Area 3. Sound Money 4.00 5.44 6.03 6.07 6.48 6.36 6.26
A. Money growth 7.21 (13.96) 7.57 (12.15) 8.97 (5.17) 8.24 (8.82) 7.92 (10.39)
B. Standard deviation of inflation 6.96 (7.61) 7.99 (5.03) 8.34 (4.16) 8.70 (3.25) 7.40 (6.49) 8.12 (4.71) 8.13 (4.68)
C. Inflation: most recent year 5.04 (24.82) 8.33 (8.34) 8.56 (7.18) 8.00 (10.02) 9.55 (2.26) 9.11 (4.47) 8.99 (5.05)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 5.85 5.29 5.13 6.30 6.26 6.25
A. Tariffs 8.12 8.80 6.14 3.86 5.40 5.70 5.03 4.98
(i) Revenue from trade taxes (% of trade sector) 5.13 (7.30) 4.29 (8.56) 1.63 (12.55) 3.04 (10.44) 1.55 (12.67) 1.55 (12.67)
(ii) Mean tariff rate 8.12 (9.40) 8.80 (6.00) 7.80 (11.00) 6.06 (19.70) 8.56 (7.20) 8.88 (5.60) 8.46 (7.70) 8.46 (7.70)
(iii) Standard deviation of tariff rates 5.48 (11.30) 1.24 (21.90) 6.00 (10.00) 5.17 (12.08) 5.07 (12.32) 4.92 (12.71)
B. Regulatory trade barriers 5.74 6.02 6.11
(i) Non-tariff trade barriers 5.25 5.80 5.41
(ii) Compliance costs of importing and exporting 6.23 6.23 6.82
C. Black-market exchange rates 5.00 9.40 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 0.00 3.76 4.00 3.90
(i) Foreign ownership/investment restrictions 6.64 6.58 6.27
(ii) Capital controls 2.00 2.00 0.00 0.00 0.77 0.77
(iii) Freedom of foreigners to visit 4.65 4.65 4.65

Area 5. Regulation 6.73 6.82 7.43 7.69 7.95 7.90

A. Credit market regulations 7.68 7.94 9.79 9.99 10.00 10.00
(i) Ownership of banks 10.00 10.00 10.00 10.00
(ii) Private sector credit 9.37 7.88 9.36 9.98 10.00 10.00
(iii) Interest rate controls/negative real interest rates 6.00 8.00 10.00 10.00 10.00 10.00
B. Labor market regulations 7.61 7.71 7.61
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 3.68 3.57 3.31
(iii) Centralized collective bargaining 6.18 6.42 6.07
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.78 8.27 8.27
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.47 6.13 6.10
(i) Administrative requirements 2.87 3.98 4.03
(ii) Bureaucracy costs 3.45 5.39 5.39
(iii) Starting a business 6.77 7.71 7.69
(iv) Extra payments/bribes/favoritism 5.80 5.45 4.96
(v) Licensing restrictions 8.15 8.47 8.45
(vi) Cost of tax compliance 5.80 5.80 6.08

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124 E Economic Freedom of the World: 2013 Annual Report

Nepal
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.49 (46) 5.01 (65) 5.11 (74) 5.15 (96) 5.87 (93) 6.18 (89) 5.80 (106) 5.92 (105)
Area 1. Size of Government 6.77 (14) 5.29 (45) 5.50 (62) 5.33 (83) 5.30 (85) 9.23 (1) 7.70 (23) 7.76 (25)
Area 2. Legal System and Property Rights 5.01 (78) 2.98 (113) 2.84 (117) 3.07 (114)
Area 3. Sound Money 6.10 (60) 6.28 (77) 6.26 (68) 6.26 (69) 6.97 (82) 6.60 (99) 6.26 (112) 6.34 (111)
Area 4. Freedom to Trade Internationally 4.59 (47) 3.99 (62) 3.57 (83) 3.93 (106) 5.97 (87) 6.15 (87) 5.96 (98) 5.89 (97)
Area 5. Regulation 5.24 (60) 5.18 (68) 5.83 (50) 5.81 (61) 6.09 (77) 6.00 (96) 6.27 (91) 6.51 (87)

Unadjusted
Summary Ratings Rank) h 5.77 (34) 5.27 (59) 5.37 (64) 5.15 (92) 5.82 (94) 6.50 (85) 6.23 (120) 6.19 (125)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.77 5.29 5.50 5.33 5.30 9.23 8.34 7.56
A. Government consumption 9.55 (7.54) 8.58 (10.83) 9.00 (9.40) 8.65 (10.57) 8.60 (10.77) 8.45 (11.27) 8.40 (11.45) 8.62 (10.70)
B. Transfers and subsidies 9.62 (1.89) 9.61 (1.92)
C. Government enterprises and investment 4.00 (37.30) 2.00 (45.80) 2.00 (43.20) 2.00 (43.20) 2.00 (43.20) 10.00 (14.64) 7.00 (20.25) 7.00 (23.00)
D. Top marginal tax rate 5.00
(i) Top marginal income tax rate 5.00 (40)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.44 4.76 4.05 3.85 4.17
A. Judicial independence 5.16 3.63 3.80
B. Impartial courts 4.57 4.42 3.57 3.27 3.68
C. Protection of property rights 5.09 3.65 4.19
D. Military interference in rule of law and politics 5.61 0.00 1.80 1.80
E. Integrity of the legal system
F. Legal enforcement of contracts 3.37 3.37 3.37
G. Regulatory restrictions on sale of real property 7.80 8.26 8.29
H. Reliability of police 3.45 3.21 4.14
I. Business costs of crime 3.97 3.61 4.09

Area 3. Sound Money 6.10 6.28 6.26 6.26 6.97 6.60 6.26 6.34
A. Money growth 8.07 (9.66) 8.26 (8.71) 7.71 (11.47) 8.13 (9.35) 9.19 (-4.05) 8.91 (-5.46) 8.34 (8.32) 8.39 (8.04)
B. Standard deviation of inflation 7.86 (5.36) 9.13 (2.18) 9.48 (1.29) 8.16 (4.60) 9.19 (2.03) 8.86 (2.86) 8.72 (3.20) 8.86 (2.85)
C. Inflation: most recent year 8.48 (7.61) 7.72 (11.42) 7.86 (10.71) 8.74 (6.30) 9.50 (2.48) 8.63 (6.84) 8.00 (9.98) 8.09 (9.55)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.97 4.32 3.87 3.93 5.97 6.62 6.43 6.35
A. Tariffs 4.92 5.17 4.81 5.60 6.10 6.14 6.29 6.25
(i) Revenue from trade taxes (% of trade sector) 4.27 (8.60) 4.87 (7.70) 4.13 (8.80) 6.37 (5.44) 6.59 (5.11) 5.97 (6.05) 5.72 (6.42) 5.73 (6.40)
(ii) Mean tariff rate 5.58 (22.10) 5.48 (22.60) 5.48 (22.60) 6.78 (16.10) 7.06 (14.70) 7.06 (14.70) 7.54 (12.30) 7.54 (12.30)
(iii) Standard deviation of tariff rates 3.64 (15.90) 4.64 (13.40) 5.39 (11.54) 5.62 (10.95) 5.47 (11.32)
B. Regulatory trade barriers 4.58 4.72 4.44
(i) Non-tariff trade barriers 4.79 4.90 4.52
(ii) Compliance costs of importing and exporting 4.37 4.54 4.35
C. Black-market exchange rates 10.00 7.80 6.80 6.20 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 1.82 5.77 4.69 4.71
(i) Foreign ownership/investment restrictions 4.82 4.08 4.14
(ii) Capital controls 0.00 0.00 0.00 0.00 1.82 2.50 0.00 0.00
(iii) Freedom of foreigners to visit 10.00 10.00 10.00

Area 5. Regulation 5.24 5.18 5.83 5.81 6.09 6.02 6.28 6.52
A. Credit market regulations 4.00 3.84 5.56 5.52 6.25 7.23 7.85 8.24
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 2.00 8.00 8.00
(ii) Private sector credit 6.00 5.53 6.68 8.55 8.76 9.68 8.55 9.71
(iii) Interest rate controls/negative real interest rates 6.00 6.00 10.00 8.00 10.00 10.00 7.00 7.00
B. Labor market regulations 5.91 5.90 5.83
(i) Hiring regulations and minimum wage 4.40 3.33 3.33
(ii) Hiring and firing regulations 3.56 4.13 4.09
(iii) Centralized collective bargaining 5.86 5.35 4.97
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 1.66 2.60 2.60
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.91 5.09 5.50
(i) Administrative requirements 3.07 3.13 3.65
(ii) Bureaucracy costs 4.18 3.25 3.25
(iii) Starting a business 8.18 8.68 8.72
(iv) Extra payments/bribes/favoritism 4.20 3.22 3.18
(v) Licensing restrictions 4.41 5.93 7.86
(vi) Cost of tax compliance 5.43 6.35 6.35

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 Chapter 2: Country Data Tables E 125

Netherlands
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 7.23 (8) 7.28 (8) 7.60 (10) 7.95 (10) 8.21 (8) 7.92 (15) 7.64 (24) 7.76 (18)
Area 1. Size of Government 4.03 (80) 3.98 (82) 4.94 (74) 4.78 (90) 4.46 (106) 4.40 (112) 3.36 (122) 3.64 (120)
Area 2. Legal System and Property Rights 7.48 (13) 8.35 (1) 8.35 (2) 9.11 (6) 9.62 (1) 9.37 (2) 9.08 (5) 9.27 (1)
Area 3. Sound Money 9.43 (4) 9.44 (8) 9.64 (9) 9.70 (9) 9.57 (14) 9.46 (28) 9.56 (21) 9.54 (19)
Area 4. Freedom to Trade Internationally 8.59 (10) 8.63 (10) 8.62 (14) 9.34 (6) 9.57 (2) 8.69 (7) 8.71 (8) 8.71 (7)
Area 5. Regulation 6.73 (19) 6.08 (38) 6.46 (32) 6.85 (26) 7.84 (7) 7.70 (16) 7.53 (25) 7.64 (24)

Unadjusted
Summary Ratings Rank) h 7.29 (10) 7.34 (9) 7.56 (12) 7.95 (9) 8.21 (8) 7.73 (18) 7.46 (31) 7.57 (30)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.34 4.28 4.94 4.78 4.46 4.40 3.36 3.64
A. Government consumption 5.23 (22.22) 5.60 (20.96) 5.93 (19.85) 6.08 (19.34) 2.54 (31.37) 2.05 (33.02) 0.42 (38.56) 0.50 (38.30)
B. Transfers and subsidies 2.13 (29.40) 1.53 (31.60) 2.32 (28.70) 2.04 (29.70) 2.79 (26.97) 4.55 (20.51) 3.02 (26.12) 3.06 (25.97)
C. Government enterprises and investment 10.00 (14.80) 10.00 (14.70) 10.00 (12.70) 10.00 (13.80) 10.00 (13.80) 8.00 (17.37) 7.00 (20.91) 8.00 (18.96)
D. Top marginal tax rate 0.00 0.00 1.50 1.00 2.50 3.00 3.00 3.00
(i) Top marginal income tax rate 0.00 (72) 0.00 (72) 3.00 (60) 2.00 (60) 3.00 (52) 3.00 (52) 3.00 (52) 3.00 (52)
(ii) Top marginal income and payroll tax rate 0.00 (63) 0.00 (63) 2.00 (54) 3.00 (52) 3.00 (52) 3.00 (52)

Area 2. Legal System and Property Rights 7.48 8.35 8.35 9.11 9.62 8.36 8.10 8.27
A. Judicial independence 9.37 9.52 9.05 8.91 9.06
B. Impartial courts 8.73 9.52 8.90 7.32 7.61
C. Protection of property rights 7.46 9.09 9.21 8.06 8.39
D. Military interference in rule of law and politics 10.00 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 10.00 10.00 10.00
F. Legal enforcement of contracts 5.11 5.14 5.14
G. Regulatory restrictions on sale of real property 7.90 7.86 7.86
H. Reliability of police 7.99 8.51 8.72
I. Business costs of crime 7.05 7.08 7.61

Area 3. Sound Money 9.43 9.44 9.64 9.70 9.57 9.46 9.56 9.54
A. Money growth 9.47 (2.64) 8.84 (5.79) 9.45 (2.74) 9.27 (3.65) 9.26 (3.70) 8.87 (5.64) 8.92 (5.40) 9.05 (4.75)
B. Standard deviation of inflation 9.35 (1.63) 9.28 (1.79) 9.58 (1.04) 9.85 (0.37) 9.54 (1.15) 9.30 (1.75) 9.57 (1.08) 9.57 (1.07)
C. Inflation: most recent year 8.90 (5.52) 9.65 (1.76) 9.54 (2.31) 9.67 (1.63) 9.50 (2.52) 9.66 (1.70) 9.75 (1.27) 9.53 (2.35)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 9.00 9.04 8.81 9.27 9.57 8.55 8.58 8.58
A. Tariffs 8.99 9.12 8.44 8.66 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.73 (0.40) 9.73 (0.40) 9.67 (0.50) 9.67 (0.50) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 8.88 9.54 8.15 8.30 8.31
(i) Non-tariff trade barriers 8.88 9.25 7.01 7.31 7.32
(ii) Compliance costs of importing and exporting 9.83 9.29 9.29 9.29
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 8.00 8.00 8.00 9.55 9.54 7.66 7.67 7.73
(i) Foreign ownership/investment restrictions 9.10 9.85 7.95 7.26 7.38
(ii) Capital controls 8.00 8.00 8.00 10.00 9.23 8.46 9.17 9.23
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 6.21 5.60 6.05 6.91 7.84 7.89 7.71 7.82
A. Credit market regulations 9.44 8.59 9.26 8.85 10.00 9.99 8.74 8.83
(i) Ownership of banks 10.00 8.00 10.00 10.00 10.00 10.00 8.00 8.00
(ii) Private sector credit 8.33 7.77 7.78 6.54 10.00 9.96 8.21 8.50
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 2.97 2.62 2.83 4.09 5.19 6.67 6.72 6.77
(i) Hiring regulations and minimum wage 4.52 4.47 8.30 6.67 6.67
(ii) Hiring and firing regulations 3.38 3.38 2.58 3.17 3.57 3.52
(iii) Centralized collective bargaining 5.18 4.49 4.49 4.49 4.40 4.14 4.09 4.43
(iv) Hours regulations 2.73 2.37 2.46 5.08 4.51 6.00 6.00 6.00
(v) Mandated cost of worker dismissal 8.42 10.00 10.00
(vi) Conscription 1.00 1.00 1.00 3.00 10.00 10.00 10.00 10.00
C. Business regulations 7.79 8.32 7.02 7.68 7.87
(i) Administrative requirements 7.73 3.64 4.15 4.83
(ii) Bureaucracy costs 7.37 9.10 5.99 7.63 7.63
(iii) Starting a business 7.53 7.58 9.40 9.52 9.62
(iv) Extra payments/bribes/favoritism 8.46 8.88 8.91 8.34 8.38
(v) Licensing restrictions 7.01 7.85 8.18
(vi) Cost of tax compliance 7.20 8.58 8.58

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126 E Economic Freedom of the World: 2013 Annual Report

New Zealand
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.35 (21) 6.21 (26) 7.82 (7) 8.84 (3) 8.52 (5) 8.56 (3) 8.37 (3) 8.51 (3)
Area 1. Size of Government 3.82 (85) 3.54 (94) 5.30 (66) 7.46 (18) 6.68 (47) 6.74 (57) 5.94 (76) 6.52 (58)
Area 2. Legal System and Property Rights 8.04 (5) 7.88 (8) 8.35 (6) 9.17 (3) 9.10 (11) 9.04 (9) 9.03 (6) 9.14 (3)
Area 3. Sound Money 6.31 (50) 6.17 (81) 8.64 (25) 9.75 (5) 9.54 (17) 9.65 (8) 9.65 (11) 9.59 (13)
Area 4. Freedom to Trade Internationally 7.07 (20) 6.78 (24) 8.65 (12) 9.03 (14) 9.32 (8) 8.89 (5) 8.83 (4) 8.82 (3)
Area 5. Regulation 6.49 (23) 6.68 (20) 8.18 (5) 8.78 (2) 7.94 (5) 8.55 (3) 8.50 (5) 8.56 (4)

Unadjusted
Summary Ratings Rank) h 6.44 (20) 6.29 (27) 7.86 (9) 8.84 (3) 8.52 (5) 8.54 (3) 8.35 (3) 8.49 (3)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.82 3.54 5.30 7.46 6.68 6.74 5.94 6.52
A. Government consumption 5.12 (22.59) 5.63 (20.86) 5.54 (21.17) 6.21 (18.89) 4.84 (23.56) 4.87 (23.45) 4.00 (26.40) 4.35 (25.20)
B. Transfers and subsidies 4.17 (21.90) 4.52 (20.60) 2.64 (27.50) 6.65 (12.80) 6.90 (11.87) 7.10 (11.16) 6.76 (12.40) 6.74 (12.46)
C. Government enterprises and investment 4.00 (30.80) 4.00 (31.40) 6.00 (25.30) 10.00 (12.00) 10.00 (12.00) 10.00 (13.51) 8.00 (19.36) 8.00 (19.36)
D. Top marginal tax rate 2.00 0.00 7.00 7.00 5.00 5.00 5.00 7.00
(i) Top marginal income tax rate 2.00 (62) 0.00 (66) 7.00 (33) 7.00 (33) 5.00 (39) 5.00 (39) 5.00 (36) 7.00 (33)
(ii) Top marginal income and payroll tax rate 7.00 (33) 7.00 (33) 5.00 (40) 5.00 (40) 5.00 (37) 7.00 (35)

Area 2. Legal System and Property Rights 8.04 7.88 8.35 9.17 9.10 8.70 8.69 8.79
A. Judicial independence 9.47 9.19 8.86 9.55 9.48
B. Impartial courts 9.08 9.19 8.15 7.59 7.84
C. Protection of property rights 7.29 7.15 8.66 8.07 8.53
D. Military interference in rule of law and politics 10.00 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 9.65 9.17 9.17
F. Legal enforcement of contracts 7.50 7.48 7.18
G. Regulatory restrictions on sale of real property 9.93 9.93 9.93
H. Reliability of police 7.46 8.67 8.88
I. Business costs of crime 8.08 7.76 8.14

Area 3. Sound Money 6.31 6.17 8.64 9.75 9.54 9.65 9.65 9.59
A. Money growth 9.11 (4.46) 8.84 (5.80) 7.25 (13.76) 9.58 (2.09) 9.19 (4.06) 9.73 (1.36) 9.84 (-0.81) 9.84 (-0.81)
B. Standard deviation of inflation 9.20 (2.00) 8.68 (3.29) 7.84 (5.39) 9.87 (0.33) 9.48 (1.29) 9.47 (1.33) 9.34 (1.66) 9.41 (1.46)
C. Inflation: most recent year 6.93 (15.36) 7.16 (14.19) 9.46 (2.70) 9.55 (2.27) 9.48 (2.62) 9.39 (3.04) 9.42 (2.91) 9.11 (4.43)
D. Freedom to own foreign currency bank accounts 0.00 0.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.62 7.31 8.85 8.96 9.32 8.74 8.68 8.68
A. Tariffs 7.87 7.73 6.56 7.74 9.01 8.88 9.10 9.14
(i) Revenue from trade taxes (% of trade sector) 8.33 (2.50) 8.67 (2.00) 8.87 (1.70) 9.07 (1.40) 9.47 (0.79) 9.30 (1.04) 8.81 (1.79) 8.88 (1.68)
(ii) Mean tariff rate 7.40 (13.00) 6.80 (16.00) 7.10 (14.50) 8.30 (8.50) 9.32 (3.40) 9.00 (5.00) 9.58 (2.10) 9.60 (2.00)
(iii) Standard deviation of tariff rates 3.72 (15.70) 5.84 (10.40) 8.24 (4.40) 8.33 (4.17) 8.92 (2.69) 8.93 (2.68)
B. Regulatory trade barriers 8.52 9.38 8.90 8.86 8.81
(i) Non-tariff trade barriers 8.52 9.09 9.04 8.95 8.85
(ii) Compliance costs of importing and exporting 9.67 8.76 8.76 8.76
C. Black-market exchange rates 10.00 9.20 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 10.00 9.59 8.89 7.18 6.76 6.77
(i) Foreign ownership/investment restrictions 9.18 9.32 7.84 7.36 7.36
(ii) Capital controls 5.00 5.00 10.00 10.00 8.46 7.69 6.92 6.92
(iii) Freedom of foreigners to visit 6.01 6.01 6.01

Area 5. Regulation 6.38 6.57 8.18 8.86 7.94 8.86 8.81 8.88
A. Credit market regulations 6.18 6.64 9.59 9.86 9.83 10.00 9.52 9.52
(i) Ownership of banks 5.00 5.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 7.54 6.91 8.77 9.58 9.49 10.00 8.55 8.55
(iii) Interest rate controls/negative real interest rates 6.00 8.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 6.58 6.50 6.78 7.46 5.92 8.51 8.51 8.66
(i) Hiring regulations and minimum wage 6.52 3.62 8.90 8.90 8.90
(ii) Hiring and firing regulations 7.62 7.62 3.07 4.46 4.54 4.94
(iii) Centralized collective bargaining 5.18 5.18 5.18 7.93 8.05 7.68 7.61 8.09
(iv) Hours regulations 4.57 4.31 4.31 5.25 4.84 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 10.00 10.00 10.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 9.25 8.09 8.08 8.42 8.46
(i) Administrative requirements 7.47 4.13 5.01 5.56
(ii) Bureaucracy costs 9.35 7.80 6.13 8.37 8.37
(iii) Starting a business 8.47 7.85 9.61 9.96 9.96
(iv) Extra payments/bribes/favoritism 9.94 9.23 9.60 9.27 9.17
(v) Licensing restrictions 9.81 9.81 9.41
(vi) Cost of tax compliance 9.22 8.07 8.30

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 Chapter 2: Country Data Tables E 127

Nicaragua
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.69 (93) 1.78 (109) 2.75 (113) 5.47 (83) 6.69 (60) 6.86 (66) 6.77 (70) 6.87 (65)
Area 1. Size of Government 4.08 (78) 2.73 (103) 3.32 (104) 6.63 (38) 6.81 (42) 7.87 (24) 7.87 (21) 7.88 (18)
Area 2. Legal System and Property Rights 2.22 (83) 2.23 (102) 3.43 (84) 3.97 (104) 4.06 (100) 3.95 (101) 4.07 (101) 4.31 (94)
Area 3. Sound Money 0.00 (107) 0.00 (111) 0.00 (118) 5.20 (87) 8.66 (45) 8.85 (47) 8.29 (70) 8.49 (64)
Area 4. Freedom to Trade Internationally 0.63 (88) 0.76 (93) 4.25 (69) 6.14 (74) 7.64 (50) 6.82 (73) 6.98 (69) 6.95 (72)
Area 5. Regulation 3.06 (99) 2.35 (113) 5.29 (83) 6.28 (61) 6.85 (57) 6.66 (80) 6.74 (73)

Unadjusted
Summary Ratings Rank) h 3.52 (98) 2.00 (110) 2.92 (111) 5.79 (73) 6.69 (58) 7.19 (55) 7.12 (61) 7.23 (54)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.03 3.36 3.43 6.63 6.81 7.87 7.87 7.88
A. Government consumption 6.09 (19.29) 0.00 (42.59) 0.00 (42.57) 8.03 (12.71) 6.72 (17.14) 8.47 (11.19) 6.64 (17.43) 6.57 (17.67)
B. Transfers and subsidies 9.02 (4.10) 8.45 (6.20) 8.28 (6.80) 8.50 (6.00) 8.53 (5.88) 10.00 (0.40) 9.84 (1.08) 9.96 (0.64)
C. Government enterprises and investment 0.00 (71.90) 0.00 (62.18) 2.00 (45.30) 4.00 (38.30) 6.00 (25.50) 7.00 (24.30) 7.00 (23.69) 7.00 (20.92)
D. Top marginal tax rate 5.00 5.00 6.00 6.00 6.00 8.00 8.00
(i) Top marginal income tax rate 5.00 (50) 5.00 (50) 8.00 (30) 8.00 (30) 8.00 (30) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 4.00 (41) 4.00 (44) 4.00 (44) 8.00 (30) 8.00 (30)

Area 2. Legal System and Property Rights 2.58 2.59 3.99 4.47 4.07 4.29 4.53 4.80
A. Judicial independence 0.81 1.34 2.03
B. Impartial courts 4.28 4.16 1.91 2.29 3.18
C. Protection of property rights 2.08 4.06 3.69 3.88
D. Military interference in rule of law and politics 5.45 3.33 3.89 5.00 5.00
E. Integrity of the legal system 4.11 6.67 6.67 5.83 5.83
F. Legal enforcement of contracts 4.77 5.75 5.75
G. Regulatory restrictions on sale of real property 6.51 7.73 7.69
H. Reliability of police 5.45 4.13 4.64
I. Business costs of crime 4.60 5.04 5.15

Area 3. Sound Money 5.78 0.00 0.00 5.20 8.66 8.85 8.29 8.49
A. Money growth 5.91 (20.47) 0.00 (62.40) 0.00 (1589.23) 7.76 (11.22) 7.58 (12.11) 8.34 (8.30) 6.55 (17.27) 7.88 (10.62)
B. Standard deviation of inflation 4.56 (13.61) 0.00 (60.08) 0.00 (4792.48) 0.00 (1852.08) 9.26 (1.85) 8.96 (2.59) 7.70 (5.74) 7.70 (5.74)
C. Inflation: most recent year 2.68 (36.62) 0.00 (168.07) 0.00 (5012.69) 8.04 (9.79) 7.81 (10.94) 8.08 (9.60) 8.91 (5.45) 8.38 (8.08)
D. Freedom to own foreign currency bank accounts 10.00 0.00 0.00 5.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 0.70 0.84 4.70 7.09 7.64 7.64 7.82 7.78
A. Tariffs 2.10 2.53 6.09 7.88 8.77 8.31 8.49 8.44
(i) Revenue from trade taxes (% of trade sector) 4.20 (8.70) 5.07 (7.40) 7.13 (4.30) 6.07 (5.90) 8.84 (1.74) 9.16 (1.26) 9.51 (0.73) 9.52 (0.72)
(ii) Mean tariff rate 0.00 (54.00) 0.00 (54.00) 5.04 (24.80) 7.86 (10.70) 9.36 (3.20) 8.64 (6.80) 8.88 (5.60) 8.88 (5.60)
(iii) Standard deviation of tariff rates 9.72 (25.70) 8.12 (4.70) 7.13 (7.17) 7.07 (7.34) 6.91 (7.73)
B. Regulatory trade barriers 3.78 4.24 5.83 5.75
(i) Non-tariff trade barriers 3.78 3.70 4.94 4.34
(ii) Compliance costs of importing and exporting 4.77 6.72 7.16
C. Black-market exchange rates 0.00 0.00 8.00 8.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 5.00 7.99 8.02 6.98 6.95
(i) Foreign ownership/investment restrictions 8.30 6.37 5.57 5.48
(ii) Capital controls 0.00 0.00 0.00 5.00 7.69 7.69 5.38 5.38
(iii) Freedom of foreigners to visit 10.00 10.00 10.00

Area 5. Regulation 3.21 2.47 5.56 6.28 7.30 7.10 7.18

A. Credit market regulations 0.00 2.20 0.00 4.21 7.30 9.26 9.42 9.67
(i) Ownership of banks 10.00 10.00 10.00
(ii) Private sector credit 4.40 0.00 2.42 5.60 8.77 9.25 10.00
(iii) Interest rate controls/negative real interest rates 0.00 0.00 0.00 6.00 9.00 9.00 9.00 9.00
B. Labor market regulations 6.60 7.17 6.44 6.31
(i) Hiring regulations and minimum wage 3.63 7.80 6.67 6.67
(ii) Hiring and firing regulations 6.12 5.70 5.39 5.12
(iii) Centralized collective bargaining 6.65 7.58 6.34 5.78
(iv) Hours regulations 4.00 4.00 4.00
(v) Mandated cost of worker dismissal 7.96 6.26 6.26
(vi) Conscription 5.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.94 5.46 5.43 5.56
(i) Administrative requirements 6.03 3.24 3.74 3.81
(ii) Bureaucracy costs 5.18 4.62 3.62 3.62
(iii) Starting a business 4.10 7.37 7.62 7.69
(iv) Extra payments/bribes/favoritism 4.45 4.80 3.34 3.86
(v) Licensing restrictions 5.44 6.59 6.71
(vi) Cost of tax compliance 7.31 7.68 7.68

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128 E Economic Freedom of the World: 2013 Annual Report

Niger
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.63 (69) 5.07 (61) 5.16 (71) 4.33 (112) 5.44 (105) 5.62 (109) 5.68 (112) 5.70 (111)
Area 1. Size of Government 4.10 (77) 4.28 (77) 3.81 (97) 3.81 (106) 3.96 (110) 6.02 (85) 5.56 (86) 5.50 (92)
Area 2. Legal System and Property Rights 4.67 (48) 4.78 (60) 5.30 (54) 2.61 (115) 4.50 (91) 4.31 (92) 4.14 (98) 4.14 (97)
Area 3. Sound Money 4.90 (93) 6.53 (62) 7.08 (41) 5.71 (79) 8.25 (52) 6.47 (104) 6.61 (102) 6.67 (102)
Area 4. Freedom to Trade Internationally 5.87 (90) 5.75 (96) 6.11 (91) 6.11 (90)
Area 5. Regulation 4.76 (75) 4.79 (88) 4.83 (97) 4.61 (114) 5.55 (106) 6.16 (96) 6.27 (96)

Unadjusted
Summary Ratings Rank) h 4.95 (61) 4.85 (73) 5.04 (73) 4.31 (112) 5.41 (105) 5.39 (130) 5.57 (141) 5.60 (140)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.88 4.28 3.81 3.81 3.96 7.35 6.79 6.78
A. Government consumption 8.19 (12.15) 8.56 (10.90) 7.63 (14.06) 7.62 (14.10) 7.91 (13.10) 8.04 (12.65) 6.52 (17.83) 6.30 (18.58)
B. Transfers and subsidies 9.46 (2.50) 10.00 (0.38) 9.84 (1.09) 9.84 (1.09)
C. Government enterprises and investment 0.00 (79.90) 0.00 (79.90) 0.00 (64.80) 0.00 (74.30) 0.00 (58.50) 4.00 (33.80) 4.00 (33.80) 4.00 (33.80)
D. Top marginal tax rate 7.00
(i) Top marginal income tax rate 7.00 (35)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.67 4.78 5.30 3.02 4.38 4.11 3.95 3.95
A. Judicial independence
B. Impartial courts 3.54 3.49 4.10 4.60 4.60
C. Protection of property rights
D. Military interference in rule of law and politics 4.28 6.67 5.00 3.33 3.33
E. Integrity of the legal system 0.00 3.33 3.33 3.33 3.33
F. Legal enforcement of contracts 2.74 2.74 2.74
G. Regulatory restrictions on sale of real property 5.36 5.72 5.72
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 4.90 6.53 7.08 5.71 8.25 6.47 6.61 6.67
A. Money growth 5.92 (20.42) 9.92 (0.40) 9.78 (-1.10) 9.28 (3.62) 9.04 (-4.78) 8.98 (-5.11) 7.82 (10.88) 8.37 (8.17)
B. Standard deviation of inflation 7.86 (5.35) 7.36 (6.60) 8.86 (2.85) 4.64 (13.40) 9.54 (1.14) 8.46 (3.85) 8.77 (3.07) 8.89 (2.78)
C. Inflation: most recent year 5.84 (20.82) 8.82 (-5.90) 9.68 (-1.60) 8.92 (5.38) 9.42 (2.90) 8.44 (7.80) 9.84 (0.80) 9.41 (2.94)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 5.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.67 4.49 4.22 4.20 5.87 4.10 4.37 4.37
A. Tariffs 4.40 3.67 3.47 2.80 7.60 5.19 6.24 6.24
(i) Revenue from trade taxes (% of trade sector) 4.40 (8.40) 3.67 (9.50) 3.47 (9.80) 2.80 (10.80) 0.86 (13.71) 3.82 (9.27) 3.82 (9.27)
(ii) Mean tariff rate 7.60 (12.00) 7.46 (12.70) 7.62 (11.90) 7.62 (11.90)
(iii) Standard deviation of tariff rates 7.26 (6.84) 7.29 (6.78) 7.29 (6.78)
B. Regulatory trade barriers 1.22 1.22 1.22
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting 1.22 1.22 1.22
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(i) Foreign ownership/investment restrictions
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 4.64 4.19 4.79 4.83 4.61 4.94 6.15 6.26
A. Credit market regulations 4.30 5.12 6.13 6.24 5.67 7.70 9.62 9.58
(i) Ownership of banks 2.00 2.00 2.00 5.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 8.91 8.24 8.38 7.73 8.01 9.09 9.24 9.16
(iii) Interest rate controls/negative real interest rates 2.00 8.00 6.00 4.00 4.00
B. Labor market regulations 3.14 3.85 3.85
(i) Hiring regulations and minimum wage 1.10 0.00 0.00
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations 4.70 6.00 6.00
(v) Mandated cost of worker dismissal 6.76 9.40 9.40
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 3.97 4.97 5.35
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business 3.35 6.34 6.39
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions 1.60 1.59 2.68
(vi) Cost of tax compliance 6.97 6.97 6.97

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 Chapter 2: Country Data Tables E 129

Nigeria
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.25 (99) 3.68 (95) 3.31 (107) 3.76 (120) 5.30 (109) 6.03 (94) 5.92 (102) 6.15 (98)
Area 1. Size of Government 2.19 (103) 4.07 (81) 2.49 (111) 6.26 (54) 6.19 (58) 6.72 (60) 5.47 (89) 5.64 (88)
Area 2. Legal System and Property Rights 2.78 (69) 2.24 (100) 2.66 (98) 4.27 (102) 3.60 (107) 4.40 (89) 4.79 (81) 4.85 (80)
Area 3. Sound Money 5.91 (70) 6.32 (72) 4.14 (100) 1.27 (116) 5.37 (112) 6.41 (105) 6.59 (103) 7.20 (87)
Area 4. Freedom to Trade Internationally 0.68 (87) 0.80 (92) 1.84 (98) 1.23 (111) 4.92 (114) 5.63 (100) 6.04 (93) 6.19 (89)
Area 5. Regulation 5.65 (46) 6.04 (39) 5.26 (73) 5.65 (70) 6.42 (55) 7.23 (36) 7.05 (48) 7.22 (41)

Unadjusted
Summary Ratings Rank) h 3.46 (100) 4.19 (91) 3.52 (105) 3.81 (118) 5.33 (109) 5.93 (114) 5.98 (130) 6.21 (124)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.19 5.50 2.49 6.26 6.19 6.72 6.16 6.34
A. Government consumption 6.58 (17.64) 7.21 (15.49) 5.48 (21.37) 7.78 (13.56) 7.56 (14.28) 9.15 (8.91) 6.01 (19.56) 6.74 (17.08)
B. Transfers and subsidies 9.78 (1.30) 9.62 (1.91) 9.62 (1.91)
C. Government enterprises and investment 0.00 (50.90) 2.00 (49.80) 0.00 (88.10) 4.00 (32.14) 2.00 (47.28) 2.00 (45.28) 2.00 (46.82) 2.00 (46.82)
D. Top marginal tax rate 0.00 3.00 2.00 7.00 9.00 9.00 7.00 7.00
(i) Top marginal income tax rate 0.00 (70) 3.00 (55) 2.00 (55) 7.00 (35) 9.00 (25) 9.00 (25) 9.00 (25) 9.00 (25)
(ii) Top marginal income and payroll tax rate 9.00 (25) 9.00 (25) 5.00 (37) 5.00 (37)

Area 2. Legal System and Property Rights 3.06 2.46 2.93 4.53 3.74 3.63 3.95 4.00
A. Judicial independence 3.59 4.52 4.48
B. Impartial courts 3.62 3.56 3.74 4.78 4.86
C. Protection of property rights 2.52 4.66 3.69 3.95
D. Military interference in rule of law and politics 3.51 3.33 3.33 3.33 3.33
E. Integrity of the legal system 6.96 5.00 2.78 3.33 3.33
F. Legal enforcement of contracts 5.08 5.08 5.08
G. Regulatory restrictions on sale of real property 3.45 3.45 3.37
H. Reliability of police 2.91 3.33 3.75
I. Business costs of crime 3.14 4.04 3.86

Area 3. Sound Money 5.91 6.32 4.14 1.27 5.37 6.41 6.59 7.20
A. Money growth 6.70 (16.51) 8.64 (6.79) 6.06 (19.72) 4.00 (29.98) 5.93 (20.35) 7.74 (11.30) 6.11 (19.46) 8.11 (9.43)
B. Standard deviation of inflation 9.44 (1.39) 7.39 (6.52) 1.93 (20.18) 1.06 (22.35) 1.95 (20.12) 6.46 (8.86) 8.00 (4.99) 7.86 (5.34)
C. Inflation: most recent year 7.52 (12.42) 9.26 (3.69) 8.57 (7.16) 0.00 (55.83) 8.61 (6.93) 6.43 (17.86) 7.26 (13.72) 7.83 (10.84)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 5.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 1.30 1.53 2.96 1.56 4.92 5.95 6.39 6.55
A. Tariffs 3.91 4.60 3.49 4.68 3.76 7.04 7.26 7.26
(i) Revenue from trade taxes (% of trade sector) 4.33 (8.50) 6.60 (5.10) 7.33 (4.00)
(ii) Mean tariff rate 3.48 (32.60) 2.60 (37.00) 3.14 (34.30) 5.64 (21.80) 7.68 (11.60) 7.66 (11.70) 7.66 (11.70)
(iii) Standard deviation of tariff rates 0.00 (30.80) 3.72 (15.70) 3.76 (15.60) 6.40 (9.00) 6.86 (7.84) 6.86 (7.84)
B. Regulatory trade barriers 3.20 4.80 5.18 5.27
(i) Non-tariff trade barriers 3.20 4.48 4.65 4.81
(ii) Compliance costs of importing and exporting 5.11 5.72 5.72
C. Black-market exchange rates 0.00 0.00 5.40 0.00 5.68 7.86 9.42 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 7.04 4.11 3.68 3.66
(i) Foreign ownership/investment restrictions 8.69 6.93 6.05 5.99
(ii) Capital controls 0.00 0.00 0.00 0.00 5.38 5.38 5.00 5.00
(iii) Freedom of foreigners to visit 0.00 0.00 0.00

Area 5. Regulation 4.82 5.16 5.08 5.46 6.42 6.97 6.79 6.96
A. Credit market regulations 2.00 3.00 3.56 4.57 6.53 9.13 7.68 8.29
(i) Ownership of banks 2.00 2.00 2.00 5.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 8.69 8.71 6.60 7.39 7.05 5.88
(iii) Interest rate controls/negative real interest rates 2.00 4.00 0.00 0.00 8.00 10.00 6.00 9.00
B. Labor market regulations 7.22 8.11 8.02 7.83
(i) Hiring regulations and minimum wage 4.79 10.00 7.77 7.77
(ii) Hiring and firing regulations 7.15 6.62 6.93 6.46
(iii) Centralized collective bargaining 6.93 6.69 7.36 6.71
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 5.36 6.05 6.05
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.50 3.66 4.67 4.77
(i) Administrative requirements 7.83 3.72 4.38 4.81
(ii) Bureaucracy costs 6.03 3.16 3.67 3.67
(iii) Starting a business 5.12 8.05 8.17 8.28
(iv) Extra payments/bribes/favoritism 3.03 3.89 3.20 3.07
(v) Licensing restrictions 3.16 8.62 8.78
(vi) Cost of tax compliance 0.00 0.00 0.00

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130 E Economic Freedom of the World: 2013 Annual Report

Norway
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.79 (32) 6.46 (23) 7.13 (19) 7.56 (17) 7.27 (40) 7.69 (20) 7.49 (35) 7.52 (30)
Area 1. Size of Government 2.64 (98) 2.99 (100) 2.94 (108) 3.17 (112) 3.25 (116) 5.69 (93) 5.05 (99) 5.07 (100)
Area 2. Legal System and Property Rights 7.05 (18) 8.11 (5) 8.35 (9) 9.19 (2) 8.85 (15) 9.14 (6) 8.81 (9) 8.77 (9)
Area 3. Sound Money 6.43 (43) 6.45 (67) 8.73 (24) 9.47 (23) 9.03 (39) 9.20 (38) 9.32 (36) 9.37 (29)
Area 4. Freedom to Trade Internationally 7.04 (21) 8.28 (11) 9.30 (5) 9.11 (11) 8.43 (32) 7.37 (50) 7.28 (54) 7.29 (49)
Area 5. Regulation 5.86 (39) 6.58 (23) 6.43 (33) 6.88 (25) 6.79 (45) 7.12 (45) 7.02 (52) 7.14 (48)

Unadjusted
Summary Ratings Rank) h 5.72 (36) 6.39 (23) 6.99 (21) 7.57 (17) 7.27 (38) 7.73 (18) 7.53 (28) 7.56 (31)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.87 3.25 2.94 3.17 3.25 5.69 5.05 5.07
A. Government consumption 3.36 (28.57) 3.69 (27.46) 3.06 (29.59) 3.00 (29.79) 2.76 (30.62) 2.13 (32.75) 1.81 (33.83) 1.71 (34.20)
B. Transfers and subsidies 4.11 (22.10) 4.31 (21.40) 2.70 (27.30) 4.20 (21.80) 4.76 (19.72) 5.11 (18.44) 4.88 (19.30) 5.09 (18.53)
C. Government enterprises and investment 4.00 (35.90) 4.00 (34.20) 4.00 (37.40) 2.00 (43.10) 2.00 (43.10) 10.00 (14.50) 8.00 (16.16) 8.00 (15.78)
D. Top marginal tax rate 0.00 1.00 2.00 3.50 3.50 5.50 5.50 5.50
(i) Top marginal income tax rate 0.00 (75) 1.00 (64) 3.00 (51) 5.00 (42) 5.00 (48) 7.00 (40) 7.00 (40) 7.00 (40)
(ii) Top marginal income and payroll tax rate 1.00 (64) 2.00 (56) 2.00 (64) 4.00 (54) 4.00 (54) 4.00 (54)

Area 2. Legal System and Property Rights 7.05 8.11 8.35 9.19 8.85 8.97 8.65 8.61
A. Judicial independence 9.45 8.35 8.86 8.80 8.73
B. Impartial courts 8.88 8.68 8.81 7.33 7.34
C. Protection of property rights 7.61 7.20 8.83 8.22 8.22
D. Military interference in rule of law and politics 10.00 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 10.00 10.00 10.00
F. Legal enforcement of contracts 7.53 7.75 7.75
G. Regulatory restrictions on sale of real property 9.16 9.12 9.12
H. Reliability of police 8.63 8.34 8.28
I. Business costs of crime 8.93 8.32 8.06

Area 3. Sound Money 6.43 6.45 8.73 9.47 9.03 9.20 9.32 9.37
A. Money growth 9.41 (2.93) 7.97 (10.15) 6.77 (16.13) 9.06 (4.69) 9.17 (4.17) 8.64 (6.80) 9.93 (-0.33) 9.86 (-0.71)
B. Standard deviation of inflation 8.95 (2.63) 8.86 (2.84) 8.91 (2.72) 9.43 (1.43) 7.55 (6.11) 8.45 (3.87) 7.82 (5.44) 7.88 (5.29)
C. Inflation: most recent year 7.38 (13.12) 8.96 (5.21) 9.23 (3.87) 9.38 (3.09) 9.38 (3.09) 9.70 (1.52) 9.52 (2.40) 9.74 (1.30)
D. Freedom to own foreign currency bank accounts 0.00 0.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.89 8.11 8.88 8.97 8.43 7.40 7.30 7.32
A. Tariffs 9.28 9.33 8.63 8.09 7.55 6.07 6.16 6.11
(i) Revenue from trade taxes (% of trade sector) 9.80 (0.30) 9.80 (0.30) 9.80 (0.30) 9.73 (0.40) 9.88 (0.17) 9.92 (0.12) 9.89 (0.16) 9.90 (0.15)
(ii) Mean tariff rate 8.76 (6.20) 8.86 (5.70) 8.86 (5.70) 8.82 (5.90) 9.42 (2.90) 8.28 (8.60) 8.60 (7.00) 8.44 (7.80)
(iii) Standard deviation of tariff rates 7.24 (6.90) 5.72 (10.70) 3.36 (16.60) 0.00 (37.41) 0.00 (29.75) 0.00 (33.15)
B. Regulatory trade barriers 9.17 8.32 7.02 7.07 7.20
(i) Non-tariff trade barriers 9.17 7.80 4.90 4.99 5.27
(ii) Compliance costs of importing and exporting 8.83 9.14 9.14 9.14
C. Black-market exchange rates 9.40 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 5.00 8.00 8.64 7.84 6.50 5.98 5.95
(i) Foreign ownership/investment restrictions 9.28 8.76 7.42 6.64 6.55
(ii) Capital controls 2.00 5.00 8.00 8.00 6.92 5.38 4.62 4.62
(iii) Freedom of foreigners to visit 6.69 6.69 6.69

Area 5. Regulation 5.35 6.01 6.08 7.05 6.79 7.42 7.32 7.45
A. Credit market regulations 7.19 8.80 8.51 8.71 9.00 9.67 10.00 10.00
(i) Ownership of banks 10.00 10.00 8.00 8.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 5.56 6.39 7.53 8.12 10.00 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 6.00 10.00 10.00 10.00 7.00 9.00 10.00 10.00
B. Labor market regulations 3.52 3.23 3.64 4.33 3.79 4.86 4.34 4.35
(i) Hiring regulations and minimum wage 4.45 5.00 3.90 3.90 3.90
(ii) Hiring and firing regulations 4.88 4.88 2.05 2.83 2.94 3.02
(iii) Centralized collective bargaining 5.18 5.18 5.18 5.18 4.03 4.63 4.17 4.16
(iv) Hours regulations 4.40 3.52 3.52 4.17 4.84 6.00 4.00 4.00
(v) Mandated cost of worker dismissal 8.79 10.00 10.00
(vi) Conscription 1.00 1.00 1.00 3.00 3.00 3.00 1.00 1.00
C. Business regulations 8.11 7.59 7.74 7.63 8.00
(i) Administrative requirements 6.08 4.70 3.78 4.05
(ii) Bureaucracy costs 8.11 8.70 7.09 7.83 7.83
(iii) Starting a business 7.22 6.83 9.67 9.69 9.74
(iv) Extra payments/bribes/favoritism 9.01 8.73 9.26 8.67 8.47
(v) Licensing restrictions 6.72 6.78 8.86
(vi) Cost of tax compliance 9.02 9.02 9.02

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 Chapter 2: Country Data Tables E 131

Oman
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.78 (19) 6.34 (35) 6.99 (35) 7.53 (29) 7.39 (37) 7.65 (21) 7.59 (26)
Area 1. Size of Government 4.90 (58) 4.82 (59) 4.84 (78) 5.24 (85) 5.31 (84) 4.94 (102) 5.41 (91) 5.06 (101)
Area 2. Legal System and Property Rights 5.85 (34) 5.21 (56) 7.72 (25) 8.03 (24) 7.89 (22) 9.12 (2) 9.02 (5)
Area 3. Sound Money 5.40 (83) 9.45 (7) 7.67 (36) 9.15 (30) 8.31 (50) 8.68 (56) 7.29 (85) 7.59 (81)
Area 4. Freedom to Trade Internationally 6.65 (28) 6.74 (35) 6.72 (60) 8.68 (25) 8.22 (19) 8.69 (9) 8.72 (6)
Area 5. Regulation 7.26 (6) 7.14 (12) 7.24 (13) 6.13 (49) 7.31 (23) 7.23 (35) 7.86 (12) 7.67 (23)

Unadjusted
Summary Ratings Rank) h 6.87 (14) 6.41 (34) 6.79 (40) 7.31 (35) 7.51 (31) 7.37 (42) 7.31 (46)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.90 4.82 4.84 5.24 5.31 4.94 5.41 5.06
A. Government consumption 0.00 (47.45) 0.00 (45.46) 0.00 (58.84) 1.18 (36.00) 1.65 (34.40) 0.34 (38.84) 1.98 (33.26) 2.05 (33.05)
B. Transfers and subsidies 9.59 (2.00) 9.29 (3.10) 9.35 (2.90) 9.78 (1.30) 9.61 (1.92) 9.40 (2.69) 9.65 (1.80) 8.21 (7.05)
C. Government enterprises and investment 0.00 (58.80) 0.00 (58.80) 0.00 (59.19) 0.00 (65.23) 0.00 (62.99) 0.00 (65.34) 0.00 0.00
D. Top marginal tax rate 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(i) Top marginal income tax rate 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0)
(ii) Top marginal income and payroll tax rate 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0)

Area 2. Legal System and Property Rights 5.85 5.21 6.71 6.93 7.46 7.58 7.50
A. Judicial independence 6.83 6.87
B. Impartial courts 7.47 7.43 6.80 6.34 6.18
C. Protection of property rights 7.54 7.48
D. Military interference in rule of law and politics 8.74 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.96 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 5.14 5.14 5.14
G. Regulatory restrictions on sale of real property 8.71 8.71 8.71
H. Reliability of police 8.22 7.91
I. Business costs of crime 8.77 8.52

Area 3. Sound Money 5.40 9.45 7.67 9.15 8.31 8.68 7.29 7.59
A. Money growth 9.35 (3.25) 9.80 (0.98) 9.47 (-2.67) 9.76 (-1.20) 9.62 (-1.92) 8.75 (6.23) 7.57 (12.13) 9.19 (4.06)
B. Standard deviation of inflation 2.24 (19.39) 8.09 (4.78) 4.54 (13.65) 7.56 (6.11) 3.88 (15.31) 6.32 (9.19) 2.21 (19.47) 1.99 (20.02)
C. Inflation: most recent year 0.00 (51.11) 9.90 (-0.51) 6.68 (16.62) 9.26 (3.68) 9.75 (-1.27) 9.63 (1.86) 9.36 (3.20) 9.19 (4.07)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.08 7.11 6.72 8.68 7.91 8.05 8.08
A. Tariffs 9.23 9.33 8.15 9.38 7.70 7.91 7.91
(i) Revenue from trade taxes (% of trade sector) 9.07 (1.40) 9.33 (1.00) 9.27 (1.10) 9.55 (0.67) 9.45 (0.83) 9.38 (0.93) 9.38 (0.93)
(ii) Mean tariff rate 9.40 (3.00) 8.86 (5.70) 9.06 (4.70) 9.24 (3.80) 8.90 (5.50) 8.90 (5.50)
(iii) Standard deviation of tariff rates 6.32 (9.20) 9.52 (1.20) 4.40 (13.99) 5.44 (11.40) 5.44 (11.40)
B. Regulatory trade barriers 6.70 7.64 7.68
(i) Non-tariff trade barriers 6.51 6.59
(ii) Compliance costs of importing and exporting 6.70 8.76 8.76
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 6.67 7.26 6.67 6.75
(i) Foreign ownership/investment restrictions 6.32 6.56
(ii) Capital controls 2.00 2.00 2.00 2.00 6.67 6.67 5.83 5.83
(iii) Freedom of foreigners to visit 7.85 7.85 7.85

Area 5. Regulation 7.14 7.14 7.24 6.13 7.31 8.58 8.51 8.30
A. Credit market regulations 8.89 9.04 9.28 6.36 9.49 9.59 9.00 9.00
(i) Ownership of banks 8.00 8.00 8.00 8.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 9.79 9.12 9.85 1.09 8.47 8.76 10.00 10.00
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 7.00 7.00
B. Labor market regulations 8.91 8.75 8.05
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 5.12 4.91
(iii) Centralized collective bargaining 7.38 7.39
(iv) Hours regulations 6.00 10.00 6.00
(v) Mandated cost of worker dismissal 9.63 10.00 10.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 7.26 7.79 7.87
(i) Administrative requirements 5.42 5.80
(ii) Bureaucracy costs 7.36 7.36
(iii) Starting a business 6.98 8.82 8.99
(iv) Extra payments/bribes/favoritism 7.85 7.73
(v) Licensing restrictions 5.37 8.00 8.01
(vi) Cost of tax compliance 9.42 9.31 9.31

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132 E Economic Freedom of the World: 2013 Annual Report

Pakistan
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.30 (80) 4.91 (71) 4.87 (83) 5.67 (77) 5.41 (106) 5.86 (103) 5.94 (101) 6.01 (103)
Area 1. Size of Government 5.03 (51) 4.73 (61) 5.14 (71) 5.84 (67) 7.19 (26) 8.26 (14) 8.68 (6) 8.65 (6)
Area 2. Legal System and Property Rights 2.54 (73) 3.52 (83) 2.68 (97) 5.25 (77) 4.84 (80) 2.93 (114) 3.09 (115) 3.06 (115)
Area 3. Sound Money 6.39 (45) 6.78 (46) 7.87 (34) 7.60 (46) 6.15 (105) 6.04 (110) 6.04 (116) 6.23 (114)
Area 4. Freedom to Trade Internationally 2.20 (76) 3.77 (64) 3.07 (87) 4.22 (103) 2.85 (121) 5.02 (115) 4.81 (118) 5.17 (111)
Area 5. Regulation 5.35 (53) 5.74 (48) 5.61 (63) 5.43 (81) 6.00 (84) 6.91 (52) 6.94 (57) 6.79 (70)

Unadjusted
Summary Ratings Rank) h 4.30 (80) 4.91 (71) 4.87 (84) 5.60 (77) 5.36 (108) 6.18 (103) 6.26 (116) 6.34 (111)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.03 4.73 5.14 5.84 7.19 8.26 8.68 8.65
A. Government consumption 8.60 (10.77) 7.97 (12.91) 6.62 (17.49) 7.70 (13.81) 7.91 (13.12) 9.11 (9.04) 9.16 (8.84) 9.23 (8.62)
B. Transfers and subsidies 9.54 (2.20) 9.95 (0.70) 8.94 (4.40) 9.66 (1.75) 9.85 (1.05) 9.92 (0.79) 9.55 (2.17) 9.38 (2.77)
C. Government enterprises and investment 0.00 (65.30) 0.00 (53.90) 2.00 (49.40) 2.00 (46.80) 4.00 (35.29) 7.00 (24.89) 6.00 (25.24) 6.00 (25.11)
D. Top marginal tax rate 2.00 1.00 3.00 4.00 7.00 7.00 10.00 10.00
(i) Top marginal income tax rate 2.00 (55) 1.00 (60) 3.00 (50) 4.00 (45) 7.00 (35) 7.00 (35) 10.00 (20) 10.00 (20)
(ii) Top marginal income and payroll tax rate 3.00 (50) 4.00 (45) 7.00 (35) 7.00 (35) 10.00 (20) 10.00 (20)

Area 2. Legal System and Property Rights 2.54 3.52 2.68 4.93 4.63 4.04 4.27 4.22
A. Judicial independence 3.79 4.89 5.16
B. Impartial courts 4.21 4.26 3.39 3.72 3.59
C. Protection of property rights 4.50 4.08 4.11
D. Military interference in rule of law and politics 4.57 5.28 0.42 2.50 2.50
E. Integrity of the legal system 6.96 5.00 5.00 5.83 5.83
F. Legal enforcement of contracts 3.55 3.55 3.55
G. Regulatory restrictions on sale of real property 6.95 6.52 6.49
H. Reliability of police 4.13 3.60 3.27
I. Business costs of crime 4.66 3.69 3.47

Area 3. Sound Money 6.39 6.78 7.87 7.60 6.15 6.04 6.04 6.23
A. Money growth 8.05 (9.75) 8.94 (5.28) 8.72 (6.40) 8.97 (5.17) 8.55 (7.27) 6.92 (15.40) 8.94 (5.29) 9.25 (3.74)
B. Standard deviation of inflation 9.33 (1.67) 9.06 (2.34) 9.05 (2.38) 9.21 (1.97) 6.91 (7.73) 9.05 (2.38) 8.00 (5.01) 8.03 (4.92)
C. Inflation: most recent year 8.19 (9.06) 9.09 (4.53) 8.71 (6.45) 7.24 (13.79) 9.13 (4.37) 8.19 (9.06) 7.22 (13.88) 7.62 (11.92)
D. Freedom to own foreign currency bank accounts 0.00 0.00 5.00 5.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 2.20 3.77 3.07 4.22 2.85 6.11 5.85 6.30
A. Tariffs 0.00 0.10 0.00 1.27 2.79 6.42 4.99 6.91
(i) Revenue from trade taxes (% of trade sector) 0.00 (15.30) 0.20 (14.70) 0.00 (15.21) 2.58 (11.13) 6.18 (5.73) 6.59 (5.12) 7.75 (3.37) 8.08 (2.88)
(ii) Mean tariff rate 0.00 (77.60) 0.00 (78.00) 0.00 (58.80) 0.00 (61.10) 0.68 (46.60) 7.08 (14.60) 7.22 (13.90) 7.22 (13.90)
(iii) Standard deviation of tariff rates 0.00 (34.00) 1.24 (21.90) 1.52 (21.20) 5.60 (11.01) 0.00 (27.11) 5.44 (11.40)
B. Regulatory trade barriers 6.35 6.09 6.00
(i) Non-tariff trade barriers 5.56 4.89 4.73
(ii) Compliance costs of importing and exporting 7.13 7.28 7.28
C. Black-market exchange rates 4.60 9.20 7.20 9.40 5.00 8.93 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 0.77 2.75 2.32 2.27
(i) Foreign ownership/investment restrictions 6.70 5.40 5.25
(ii) Capital controls 2.00 2.00 2.00 2.00 0.77 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 0.79 0.79 0.79

Area 5. Regulation 5.35 5.74 5.61 5.43 6.00 6.43 6.47 6.32
A. Credit market regulations 4.29 5.31 4.97 4.49 6.00 8.92 8.57 7.94
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 8.00 8.00 8.00
(ii) Private sector credit 6.87 7.93 8.90 7.46 7.99 8.75 7.70 6.82
(iii) Interest rate controls/negative real interest rates 6.00 8.00 6.00 6.00 10.00 10.00 10.00 9.00
B. Labor market regulations 5.74 5.77 5.88
(i) Hiring regulations and minimum wage 2.20 2.23 2.23
(ii) Hiring and firing regulations 5.96 5.72 6.18
(iii) Centralized collective bargaining 6.63 6.09 6.28
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 1.66 2.60 2.60
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.64 5.06 5.14
(i) Administrative requirements 3.45 3.62 4.07
(ii) Bureaucracy costs 1.91 3.58 3.58
(iii) Starting a business 9.01 9.21 9.22
(iv) Extra payments/bribes/favoritism 4.52 3.41 3.36
(v) Licensing restrictions 5.25 6.82 6.91
(vi) Cost of tax compliance 3.72 3.72 3.72

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 Chapter 2: Country Data Tables E 133

Panama
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.55 (41) 6.12 (30) 6.45 (32) 7.44 (23) 7.56 (24) 7.60 (28) 7.24 (45) 7.12 (58)
Area 1. Size of Government 4.71 (63) 4.89 (57) 5.57 (60) 7.36 (19) 7.81 (15) 8.30 (13) 6.82 (49) 6.53 (57)
Area 2. Legal System and Property Rights 2.91 (68) 3.22 (87) 3.42 (85) 5.64 (63) 5.69 (66) 5.49 (69) 5.46 (74) 5.64 (68)
Area 3. Sound Money 6.78 (33) 9.68 (1) 9.79 (2) 9.50 (22) 9.58 (13) 9.55 (18) 9.04 (46) 8.52 (63)
Area 4. Freedom to Trade Internationally 6.45 (28) 6.28 (30) 6.66 (38) 7.78 (39) 7.89 (44) 7.99 (28) 8.18 (21) 8.12 (23)
Area 5. Regulation 6.73 (18) 6.69 (19) 6.90 (21) 6.90 (24) 6.86 (42) 6.69 (70) 6.68 (77) 6.79 (69)

Unadjusted
Summary Ratings Rank) h 6.09 (28) 6.71 (18) 6.83 (27) 7.76 (12) 7.48 (26) 7.59 (26) 7.20 (54) 7.08 (67)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.82 5.00 5.57 7.36 7.81 8.30 6.82 6.53
A. Government consumption 3.48 (28.18) 4.16 (25.84) 4.66 (24.15) 5.14 (22.51) 5.26 (22.10) 6.65 (17.40) 6.71 (17.20) 7.06 (16.00)
B. Transfers and subsidies 8.80 (4.90) 8.83 (4.80) 8.12 (7.40) 8.31 (6.70) 8.48 (6.06) 8.56 (5.80) 8.56 (5.80) 8.56 (5.80)
C. Government enterprises and investment 4.00 (39.90) 4.00 (31.40) 7.00 (22.10) 8.00 (16.10) 10.00 (11.86) 10.00 (14.46) 6.00 (26.87) 4.00 (39.39)
D. Top marginal tax rate 3.00 3.00 2.50 8.00 7.50 8.00 6.00 6.50
(i) Top marginal income tax rate 3.00 (56) 3.00 (56) 3.00 (56) 9.00 (30) 8.00 (31) 9.00 (30) 8.00 (27) 9.00 (25)
(ii) Top marginal income and payroll tax rate 2.00 (64) 7.00 (38) 7.00 (38) 7.00 (36) 4.00 (43) 4.00 (41)

Area 2. Legal System and Property Rights 3.19 3.52 3.75 5.60 5.24 5.24 5.06 5.23
A. Judicial independence 2.40 1.85 2.15
B. Impartial courts 4.87 5.35 3.10 4.11 4.68
C. Protection of property rights 4.07 6.71 6.25 6.49
D. Military interference in rule of law and politics 6.71 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.96 5.00 5.00 5.00 5.00
F. Legal enforcement of contracts 2.26 2.26 2.26
G. Regulatory restrictions on sale of real property 8.38 7.65 7.73
H. Reliability of police 5.92 5.64 6.13
I. Business costs of crime 5.10 4.48 4.28

Area 3. Sound Money 6.78 9.68 9.79 9.50 9.58 9.55 9.04 8.52
A. Money growth 8.23 (8.85) 9.86 (-0.71) 9.75 (-1.23) 8.82 (5.90) 9.32 (3.39) 9.05 (4.76) 7.95 (10.23) 7.95 (10.23)
B. Standard deviation of inflation 5.62 (10.96) 9.04 (2.39) 9.54 (1.16) 9.26 (1.85) 9.28 (1.80) 9.80 (0.49) 8.92 (2.70) 7.31 (6.73)
C. Inflation: most recent year 3.26 (33.69) 9.84 (0.81) 9.89 (0.57) 9.91 (0.47) 9.70 (1.50) 9.35 (3.26) 9.30 (3.49) 8.82 (5.88)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 8.64 8.42 7.80 9.11 7.89 8.11 8.30 8.24
A. Tariffs 7.93 7.27 5.40 7.33 7.49 7.95 7.88 7.88
(i) Revenue from trade taxes (% of trade sector) 7.93 (3.10) 7.27 (4.10) 8.80 (1.80) 9.07 (1.40) 7.33 (4.00) 8.94 (1.59) 8.94 (1.59) 8.94 (1.59)
(ii) Mean tariff rate 2.00 (40.00) 5.60 (22.00) 8.10 (9.50) 8.52 (7.40) 8.56 (7.20) 8.62 (6.90)
(iii) Standard deviation of tariff rates 7.04 (7.40) 6.38 (9.05) 6.14 (9.66) 6.08 (9.80)
B. Regulatory trade barriers 4.95 6.97 7.58 7.26
(i) Non-tariff trade barriers 4.95 5.09 6.31 5.68
(ii) Compliance costs of importing and exporting 8.85 8.85 8.85
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 8.00 8.00 8.00 10.00 9.12 7.53 7.74 7.82
(i) Foreign ownership/investment restrictions 8.24 7.13 7.76 8.02
(ii) Capital controls 8.00 8.00 8.00 10.00 10.00 10.00 10.00 10.00
(iii) Freedom of foreigners to visit 5.44 5.44 5.44

Area 5. Regulation 6.99 6.95 7.25 7.25 6.86 6.77 6.75 6.87
A. Credit market regulations 8.47 8.33 9.33 9.33 9.21 9.33 9.18 9.14
(i) Ownership of banks 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 8.95 8.67 10.00 10.00 9.64 10.00 9.54 9.42
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 5.94 5.16 5.10 5.19
(i) Hiring regulations and minimum wage 3.76 1.10 2.23 2.23
(ii) Hiring and firing regulations 4.15 3.37 3.56 4.05
(iii) Centralized collective bargaining 5.85 6.59 6.67 6.73
(iv) Hours regulations 4.00 4.00 4.00
(v) Mandated cost of worker dismissal 5.92 4.13 4.13
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.42 5.80 5.98 6.27
(i) Administrative requirements 6.93 3.07 4.05 4.61
(ii) Bureaucracy costs 3.90 4.69 4.49 4.49
(iii) Starting a business 5.53 9.17 9.64 9.68
(iv) Extra payments/bribes/favoritism 5.30 5.76 4.22 4.52
(v) Licensing restrictions 8.39 8.90 9.12
(vi) Cost of tax compliance 3.72 4.60 5.17

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134 E Economic Freedom of the World: 2013 Annual Report

Papua New Guinea

1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.89 (38) 6.06 (42) 6.37 (57) 5.83 (94) 6.16 (91) 6.60 (78) 6.62 (79)
Area 1. Size of Government 3.64 (88) 5.39 (42) 5.87 (49) 9.19 (2) 6.18 (60) 6.75 (56) 7.34 (32) 7.49 (30)
Area 2. Legal System and Property Rights 5.72 (44) 6.28 (33) 5.74 (61) 4.46 (92) 4.26 (96) 4.77 (82) 4.77 (82)
Area 3. Sound Money 6.06 (63) 6.57 (59) 6.65 (59) 5.56 (81) 6.27 (102) 7.08 (87) 7.27 (87) 7.22 (86)
Area 4. Freedom to Trade Internationally 5.25 (47) 4.93 (60) 5.19 (94) 5.45 (100) 5.37 (110) 6.46 (83) 6.48 (82)
Area 5. Regulation 6.25 (30) 6.42 (30) 6.42 (34) 6.61 (36) 6.80 (44) 7.27 (32) 7.13 (43) 7.09 (54)

Unadjusted
Summary Ratings Rank) h 6.02 (33) 6.07 (40) 5.96 (67) 5.81 (96) 6.48 (87) 6.94 (74) 6.96 (77)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.75 5.86 5.79 7.33 6.18 6.75 7.34 7.49
A. Government consumption 3.50 (28.12) 4.13 (25.95) 3.06 (29.61) 6.00 (19.59) 3.80 (27.08) 6.88 (16.61) 8.26 (11.91) 7.85 (13.30)
B. Transfers and subsidies 9.46 (2.50) 9.10 (3.80) 9.92 (0.79) 9.12 (3.74) 9.12 (3.74) 9.12 (3.74)
C. Government enterprises and investment 2.00 (41.40) 4.00 (34.20) 7.00 (20.40) 8.00 (18.70) 8.00 (18.70) 8.00 (18.70) 8.00 8.00
D. Top marginal tax rate 4.00 8.00 3.00 3.00 4.00 5.00
(i) Top marginal income tax rate 4.00 (45) 8.00 (28) 3.00 (47) 3.00 (47) 5.00 (42) 5.00 (42)
(ii) Top marginal income and payroll tax rate 4.00 (45) 8.00 (28) 3.00 (47) 3.00 (47) 3.00 (47) 5.00 (42)

Area 2. Legal System and Property Rights 5.72 6.28 5.28 4.36 4.21 4.71 4.71
A. Judicial independence
B. Impartial courts 5.02 5.06 3.90 3.90 3.90
C. Protection of property rights
D. Military interference in rule of law and politics 5.25 5.00 5.42 7.50 7.50
E. Integrity of the legal system 6.96 3.33 3.75 4.17 4.17
F. Legal enforcement of contracts 1.01 1.01 1.01
G. Regulatory restrictions on sale of real property 6.96 6.96 6.96
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 6.06 6.57 6.65 5.56 6.27 7.08 7.27 7.22
A. Money growth 8.71 (6.47) 9.38 (3.12) 9.05 (4.73) 8.68 (6.60) 9.73 (1.36) 6.58 (17.12) 7.83 (10.87) 8.09 (9.57)
B. Standard deviation of inflation 6.95 (7.63) 7.23 (6.93) 8.39 (4.02) 7.52 (6.19) 8.49 (3.78) 7.08 (7.30) 7.47 (6.33) 7.50 (6.25)
C. Inflation: most recent year 8.58 (7.09) 9.68 (1.62) 9.17 (4.13) 6.05 (19.73) 6.88 (15.60) 9.66 (1.70) 8.80 (6.02) 8.31 (8.44)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 5.51 5.18 5.03 5.45 5.82 7.01 7.03
A. Tariffs 7.80 7.33 6.93 6.50 4.80 6.15 7.06 7.06
(i) Revenue from trade taxes (% of trade sector) 7.80 (3.30) 6.07 (5.90) 5.27 (7.10) 5.99 (6.01) 6.03 (5.96) 6.61 (5.08) 6.61 (5.08) 6.61 (5.08)
(ii) Mean tariff rate 8.60 (7.00) 8.60 (7.00) 5.78 (21.10) 8.78 (6.10) 8.98 (5.10) 8.98 (5.10)
(iii) Standard deviation of tariff rates 7.00 (7.50) 2.60 (18.50) 3.05 (17.38) 5.57 (11.07) 5.57 (11.07)
B. Regulatory trade barriers 6.17 6.17 6.24
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting 6.17 6.17 6.24
C. Black-market exchange rates 9.20 8.60 8.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 1.54 0.96 4.81 4.81
(i) Foreign ownership/investment restrictions
(ii) Capital controls 0.00 0.00 0.00 0.00 1.54 0.00 7.69 7.69
(iii) Freedom of foreigners to visit 1.93 1.93 1.93

Area 5. Regulation 6.29 6.46 6.45 6.61 6.80 8.55 8.38 8.33
A. Credit market regulations 6.37 6.88 6.87 7.62 8.14 9.23 8.70 8.62
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 7.75 8.76 8.73 9.87 9.42 8.70 7.10 6.86
(iii) Interest rate controls/negative real interest rates 8.00 10.00 9.00 9.00 9.00
B. Labor market regulations 8.82 8.69 8.69
(i) Hiring regulations and minimum wage 8.90 7.77 7.77
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 6.38 7.01 7.01
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 7.59 7.75 7.68
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business 7.91 8.20 8.22
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions 7.18 7.23 7.14
(vi) Cost of tax compliance 7.69 7.83 7.68

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 Chapter 2: Country Data Tables E 135

Paraguay
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.68 (36) 4.82 (75) 5.60 (54) 6.53 (48) 6.44 (70) 6.36 (84) 6.59 (79) 6.65 (75)
Area 1. Size of Government 9.16 (3) 7.75 (3) 9.31 (2) 8.69 (4) 7.58 (20) 7.87 (25) 8.19 (11) 8.21 (12)
Area 2. Legal System and Property Rights 3.29 (64) 3.54 (79) 3.97 (77) 3.91 (105) 3.67 (106) 2.57 (118) 2.73 (119) 2.76 (116)
Area 3. Sound Money 7.87 (21) 7.48 (32) 6.50 (66) 8.20 (38) 8.72 (42) 8.37 (60) 8.65 (60) 8.87 (57)
Area 4. Freedom to Trade Internationally 4.12 (53) 2.30 (78) 4.24 (70) 6.60 (62) 6.78 (72) 7.22 (58) 6.98 (70) 6.99 (69)
Area 5. Regulation 4.39 (96) 5.34 (82) 5.46 (102) 5.77 (99) 6.40 (88) 6.43 (90)

Unadjusted
Summary Ratings Rank) h 6.55 (16) 5.58 (45) 6.04 (42) 7.03 (35) 6.47 (67) 6.48 (87) 6.72 (90) 6.78 (89)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 9.06 7.75 9.31 8.69 7.58 7.62 7.93 7.94
A. Government consumption 9.60 (7.36) 9.45 (7.87) 9.57 (7.45) 8.46 (11.23) 7.04 (16.07) 8.25 (11.95) 7.97 (12.90) 8.06 (12.60)
B. Transfers and subsidies 9.59 (2.00) 9.56 (2.10) 9.65 (1.80) 9.32 (3.00) 9.26 (3.21) 9.21 (3.38) 9.26 (3.20) 9.22 (3.36)
C. Government enterprises and investment 8.00 (17.80) 4.00 (31.40) 10.00 (13.30) 7.00 (23.20) 4.00 (35.71) 4.00 (35.71) 6.00 (27.68) 6.00 (27.68)
D. Top marginal tax rate 8.00 8.00 10.00 10.00 9.00 8.50 8.50
(i) Top marginal income tax rate 8.00 (30) 8.00 (30) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (8) 10.00 (8)
(ii) Top marginal income and payroll tax rate 8.00 (27) 7.00 (33) 7.00 (33)

Area 2. Legal System and Property Rights 3.71 3.99 4.48 4.32 3.79 3.41 3.63 3.67
A. Judicial independence 1.08 1.30 1.43
B. Impartial courts 4.33 4.08 1.76 2.86 2.88
C. Protection of property rights 2.27 3.35 3.39 3.33
D. Military interference in rule of law and politics 4.79 3.33 2.50 2.50 2.50
E. Integrity of the legal system 4.11 5.00 3.33 3.33 3.33
F. Legal enforcement of contracts 4.19 4.19 4.19
G. Regulatory restrictions on sale of real property 8.47 8.51 8.51
H. Reliability of police 3.03 2.48 2.66
I. Business costs of crime 2.94 4.09 4.17

Area 3. Sound Money 7.87 7.48 6.50 8.20 8.72 8.37 8.65 8.87
A. Money growth 6.93 (15.33) 8.12 (9.39) 4.67 (26.66) 7.09 (14.57) 8.66 (6.72) 7.09 (14.53) 7.26 (13.72) 8.65 (6.74)
B. Standard deviation of inflation 7.91 (5.23) 6.84 (7.91) 8.58 (3.55) 8.29 (4.27) 8.02 (4.94) 7.75 (5.62) 8.27 (4.34) 8.46 (3.84)
C. Inflation: most recent year 6.66 (16.71) 4.95 (25.24) 2.74 (36.28) 7.40 (12.99) 8.20 (8.98) 8.64 (6.79) 9.07 (4.65) 8.35 (8.25)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.53 3.09 5.44 8.46 6.78 7.46 7.21 7.23
A. Tariffs 3.00 4.27 6.51 7.99 7.63 7.94 7.86 7.84
(i) Revenue from trade taxes (% of trade sector) 6.00 (6.00) 8.53 (2.20) 7.80 (3.30) 8.60 (2.10) 7.76 (3.37) 8.90 (1.65) 8.93 (1.60) 8.92 (1.62)
(ii) Mean tariff rate 0.00 (71.00) 0.00 (71.70) 6.80 (16.00) 8.14 (9.30) 7.82 (10.90) 8.34 (8.30) 7.96 (10.20) 7.96 (10.20)
(iii) Standard deviation of tariff rates 4.92 (12.70) 7.24 (6.90) 7.32 (6.70) 6.59 (8.51) 6.70 (8.26) 6.65 (8.36)
B. Regulatory trade barriers 2.43 5.07 5.60 5.59
(i) Non-tariff trade barriers 2.43 4.98 5.87 5.84
(ii) Compliance costs of importing and exporting 5.17 5.34 5.34
C. Black-market exchange rates 8.60 0.00 4.80 7.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 5.00 10.00 7.06 6.81 5.39 5.47
(i) Foreign ownership/investment restrictions 5.67 5.07 5.44 5.68
(ii) Capital controls 5.00 5.00 5.00 10.00 8.46 9.23 4.62 4.62
(iii) Freedom of foreigners to visit 6.12 6.12 6.12

Area 5. Regulation 4.48 5.45 5.46 5.57 6.18 6.20

A. Credit market regulations 5.97 8.88 8.82 8.33 8.33 8.33
(i) Ownership of banks 8.00 8.00 8.00 8.00
(ii) Private sector credit 9.95 9.76 9.47 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 2.00 8.00 9.00 7.00 7.00 7.00
B. Labor market regulations 3.33 3.32 4.65 4.63
(i) Hiring regulations and minimum wage 4.67 4.40 5.57 5.57
(ii) Hiring and firing regulations 4.72 3.26 3.94 3.84
(iii) Centralized collective bargaining 3.95 5.74 6.80 6.75
(iv) Hours regulations 4.70 8.00 8.00
(v) Mandated cost of worker dismissal 0.82 2.60 2.60
(vi) Conscription 1.00 0.00 0.00 0.00 0.00 1.00 1.00 1.00
C. Business regulations 4.22 5.05 5.54 5.64
(i) Administrative requirements 4.87 2.94 4.17 4.73
(ii) Bureaucracy costs 4.95 5.13 3.51 3.51
(iii) Starting a business 3.98 6.19 8.38 8.39
(iv) Extra payments/bribes/favoritism 3.07 4.30 3.26 3.25
(v) Licensing restrictions 5.39 8.25 8.28
(vi) Cost of tax compliance 6.32 5.66 5.66

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136 E Economic Freedom of the World: 2013 Annual Report

Peru
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.90 (88) 2.61 (108) 3.97 (100) 6.50 (49) 7.30 (38) 7.30 (46) 7.51 (31) 7.55 (29)
Area 1. Size of Government 6.36 (20) 5.33 (44) 7.13 (17) 8.21 (9) 8.07 (12) 7.71 (28) 7.53 (28) 7.81 (22)
Area 2. Legal System and Property Rights 3.77 (58) 2.23 (101) 2.93 (94) 4.76 (95) 3.94 (101) 4.27 (95) 4.77 (83) 4.59 (87)
Area 3. Sound Money 0.00 (107) 0.00 (111) 1.25 (113) 5.13 (90) 8.79 (40) 9.68 (5) 9.27 (40) 9.44 (27)
Area 4. Freedom to Trade Internationally 2.86 (69) 1.23 (89) 3.85 (81) 7.89 (36) 8.35 (33) 7.91 (31) 8.47 (13) 8.40 (14)
Area 5. Regulation 5.15 (64) 5.04 (72) 4.95 (80) 6.53 (37) 7.39 (20) 6.88 (54) 7.41 (30) 7.38 (33)

Unadjusted
Summary Ratings Rank) h 3.72 (94) 2.47 (109) 3.87 (102) 6.47 (49) 7.30 (37) 7.39 (39) 7.60 (22) 7.64 (22)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.47 5.42 7.13 8.21 8.07 7.71 7.53 7.81
A. Government consumption 7.26 (15.33) 8.04 (12.67) 8.69 (10.46) 8.77 (10.17) 7.73 (13.72) 7.86 (13.29) 7.73 (13.71) 7.68 (13.90)
B. Transfers and subsidies 9.62 (1.90) 9.65 (1.80) 9.32 (3.00) 9.07 (3.90) 9.04 (4.02) 8.99 (4.20) 9.37 (2.82) 9.56 (2.12)
C. Government enterprises and investment 7.00 (24.30) 4.00 (33.90) 7.00 (20.00) 8.00 (19.50) 8.00 (19.61) 8.00 (15.60) 7.00 (23.59) 8.00 (18.71)
D. Top marginal tax rate 2.00 0.00 3.50 7.00 7.50 6.00 6.00 6.00
(i) Top marginal income tax rate 2.00 (65) 0.00 (65) 4.00 (45) 8.00 (30) 10.00 (20) 8.00 (30) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 3.00 (48) 6.00 (39) 5.00 (41) 4.00 (48) 4.00 (48) 4.00 (48)

Area 2. Legal System and Property Rights 3.77 2.23 2.93 4.76 3.94 4.56 5.10 4.91
A. Judicial independence 2.75 1.50 1.59 2.70 2.47
B. Impartial courts 4.33 3.17 2.58 3.47 3.46
C. Protection of property rights 4.83 3.33 4.13 4.78 4.62
D. Military interference in rule of law and politics 4.90 6.67 8.33 7.50 7.50
E. Integrity of the legal system 6.96 5.00 5.00 5.83 5.00
F. Legal enforcement of contracts 4.77 5.07 5.07
G. Regulatory restrictions on sale of real property 8.29 8.78 8.78
H. Reliability of police 3.71 3.69 3.26
I. Business costs of crime 2.67 4.07 4.01

Area 3. Sound Money 1.62 0.00 1.25 5.13 8.79 9.68 9.27 9.44
A. Money growth 3.38 (33.12) 0.00 (83.59) 0.00 (597.16) 2.94 (35.32) 7.03 (14.85) 9.77 (1.13) 8.42 (7.89) 9.25 (3.74)
B. Standard deviation of inflation 3.10 (17.26) 0.00 (37.94) 0.00 (2341.35) 0.00 (127.50) 8.87 (2.83) 9.25 (1.87) 8.97 (2.57) 9.19 (2.01)
C. Inflation: most recent year 0.00 (65.92) 0.00 (167.75) 0.00 (6134.79) 7.56 (12.18) 9.25 (3.76) 9.68 (1.62) 9.69 (1.53) 9.33 (3.37)
D. Freedom to own foreign currency bank accounts 0.00 0.00 5.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.29 1.30 4.07 7.90 8.35 8.08 8.65 8.58
A. Tariffs 1.47 1.89 3.40 7.02 7.80 8.08 8.61 9.01
(i) Revenue from trade taxes (% of trade sector) 2.93 (10.60) 4.47 (8.30) 7.40 (3.90) 6.33 (5.50) 7.23 (4.16) 8.48 (2.28) 9.43 (0.86) 9.65 (0.53)
(ii) Mean tariff rate 0.00 (57.00) 0.00 (64.00) 2.80 (36.00) 6.48 (17.60) 7.32 (13.40) 8.16 (9.20) 8.92 (5.40) 9.26 (3.70)
(iii) Standard deviation of tariff rates 1.20 (22.00) 0.00 (25.00) 8.24 (4.40) 8.84 (2.90) 7.59 (6.02) 7.47 (6.32) 8.14 (4.66)
B. Regulatory trade barriers 5.98 6.71 5.70 7.45 7.08
(i) Non-tariff trade barriers 5.98 6.75 5.19 6.80 6.07
(ii) Compliance costs of importing and exporting 6.66 6.22 8.10 8.10
C. Black-market exchange rates 6.40 0.00 6.80 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 8.61 8.88 8.53 8.54 8.23
(i) Foreign ownership/investment restrictions 9.22 9.30 7.27 7.29 7.13
(ii) Capital controls 2.00 2.00 2.00 8.00 8.46 8.46 8.46 7.69
(iii) Freedom of foreigners to visit 9.87 9.87 9.87

Area 5. Regulation 3.46 3.39 3.96 6.37 7.39 6.93 7.47 7.44
A. Credit market regulations 2.95 2.72 2.54 7.59 9.27 8.86 9.33 9.33
(i) Ownership of banks 10.00 8.00 10.00 10.00
(ii) Private sector credit 5.90 5.44 5.08 9.18 8.81 9.58 10.00 10.00
(iii) Interest rate controls/negative real interest rates 0.00 0.00 0.00 6.00 9.00 9.00 8.00 8.00
B. Labor market regulations 5.36 6.75 6.51 7.13 7.02
(i) Hiring regulations and minimum wage 6.45 3.08 5.60 3.90 3.90
(ii) Hiring and firing regulations 6.75 6.75 7.20 3.74 4.21 4.04
(iii) Centralized collective bargaining 7.93 7.93 7.82 7.62 7.16
(iv) Hours regulations 5.68 5.51 6.70 10.00 10.00
(v) Mandated cost of worker dismissal 5.18 7.04 7.04
(vi) Conscription 0.00 0.00 0.00 0.00 10.00 10.00 10.00 10.00
C. Business regulations 6.15 6.15 5.43 5.96 5.96
(i) Administrative requirements 6.75 2.25 2.72 2.80
(ii) Bureaucracy costs 7.00 7.50 4.19 4.68 4.68
(iii) Starting a business 6.43 3.57 7.35 9.04 9.06
(iv) Extra payments/bribes/favoritism 5.02 6.78 6.41 5.05 4.56
(v) Licensing restrictions 7.16 7.71 7.98
(vi) Cost of tax compliance 5.25 6.54 6.72

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 Chapter 2: Country Data Tables E 137

Philippines
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.33 (51) 5.07 (60) 5.79 (48) 7.30 (26) 6.97 (45) 7.00 (57) 7.06 (55) 7.14 (56)
Area 1. Size of Government 6.49 (19) 6.75 (10) 8.00 (7) 8.20 (10) 6.87 (38) 8.79 (5) 8.31 (8) 8.34 (8)
Area 2. Legal System and Property Rights 3.06 (65) 2.46 (97) 2.44 (100) 4.82 (91) 4.65 (85) 4.28 (94) 3.85 (103) 4.09 (100)
Area 3. Sound Money 6.10 (61) 4.59 (95) 5.76 (80) 8.80 (35) 9.23 (33) 7.94 (71) 9.29 (38) 9.28 (39)
Area 4. Freedom to Trade Internationally 5.65 (38) 5.82 (34) 5.89 (44) 7.62 (42) 7.09 (66) 7.11 (63) 6.95 (73) 7.00 (68)
Area 5. Regulation 5.17 (62) 5.62 (54) 6.60 (30) 7.02 (20) 7.00 (36) 6.75 (66) 6.83 (61) 6.95 (58)

Unadjusted
Summary Ratings Rank) h 5.22 (53) 4.97 (68) 5.91 (46) 7.16 (31) 6.97 (42) 7.06 (60) 7.12 (61) 7.21 (56)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.49 6.75 8.00 8.20 6.87 8.79 8.31 8.34
A. Government consumption 8.13 (12.35) 9.01 (9.37) 8.11 (12.43) 7.85 (13.32) 7.26 (15.31) 8.17 (12.23) 8.25 (11.96) 8.38 (11.50)
B. Transfers and subsidies 9.84 (1.10) 10.00 (0.20) 9.89 (0.90) 9.95 (0.70) 9.21 (3.40) 10.00 (0.26) 10.00 (0.20) 9.99 (0.55)
C. Government enterprises and investment 7.00 (20.10) 7.00 (23.70) 7.00 (23.30) 8.00 (17.50) 4.00 (31.10) 10.00 (10.32) 8.00 (18.20) 8.00 (18.20)
D. Top marginal tax rate 1.00 1.00 7.00 7.00 7.00 7.00 7.00 7.00
(i) Top marginal income tax rate 1.00 (70) 1.00 (60) 7.00 (35) 7.00 (35) 7.00 (32) 7.00 (32) 7.00 (32) 7.00 (32)
(ii) Top marginal income and payroll tax rate 7.00 (35) 7.00 (35) 7.00 (32) 7.00 (32) 7.00 (32) 7.00 (32)

Area 2. Legal System and Property Rights 3.06 2.46 2.44 4.82 4.65 4.86 4.37 4.64
A. Judicial independence 3.72 4.51 3.93 3.25 3.36
B. Impartial courts 5.27 5.51 3.62 3.04 3.63
C. Protection of property rights 3.96 3.22 5.69 4.35 5.17
D. Military interference in rule of law and politics 7.04 6.67 5.83 5.00 5.00
E. Integrity of the legal system 4.11 3.33 3.75 4.17 4.17
F. Legal enforcement of contracts 3.42 3.42 3.42
G. Regulatory restrictions on sale of real property 8.00 7.69 7.69
H. Reliability of police 4.13 3.80 4.38
I. Business costs of crime 5.36 4.58 4.91

Area 3. Sound Money 6.10 4.59 5.76 8.80 9.23 7.94 9.29 9.28
A. Money growth 8.41 (7.94) 8.43 (7.87) 6.95 (15.23) 8.11 (9.47) 8.41 (7.96) 8.77 (6.14) 8.74 (6.30) 8.86 (5.70)
B. Standard deviation of inflation 8.83 (2.92) 3.45 (16.37) 8.69 (3.27) 8.58 (3.54) 9.32 (1.71) 9.51 (1.22) 9.19 (2.03) 9.20 (1.99)
C. Inflation: most recent year 7.15 (14.25) 6.47 (17.63) 7.41 (12.97) 8.49 (7.55) 9.21 (3.95) 8.47 (7.63) 9.24 (3.81) 9.07 (4.65)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 10.00 10.00 5.00 10.00 10.00

Area 4. Freedom to Trade Internationally 5.11 5.26 5.43 7.10 7.09 6.84 6.69 6.74
A. Tariffs 3.93 5.17 5.69 6.08 7.86 8.14 7.75 7.81
(i) Revenue from trade taxes (% of trade sector) 5.47 (6.80) 5.87 (6.20) 5.60 (6.60) 5.73 (6.40) 8.26 (2.61) 8.24 (2.64) 7.31 (4.03) 7.29 (4.06)
(ii) Mean tariff rate 2.40 (38.00) 4.48 (27.60) 5.14 (24.30) 4.48 (27.60) 8.48 (7.60) 8.92 (5.40) 8.74 (6.30) 8.78 (6.10)
(iii) Standard deviation of tariff rates 6.32 (9.20) 8.04 (4.90) 6.84 (7.90) 7.25 (6.87) 7.20 (6.99) 7.36 (6.59)
B. Regulatory trade barriers 5.72 5.89 6.82 6.69 6.73
(i) Non-tariff trade barriers 5.72 3.95 6.03 5.36 5.43
(ii) Compliance costs of importing and exporting 7.83 7.62 8.03 8.03
C. Black-market exchange rates 9.40 8.60 8.60 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 6.61 4.60 2.40 2.30 2.40
(i) Foreign ownership/investment restrictions 8.21 8.44 6.21 5.89 6.21
(ii) Capital controls 2.00 2.00 2.00 5.00 0.77 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 0.23 0.23 0.23

Area 5. Regulation 5.34 5.81 7.92 6.88 7.00 6.87 6.95 7.07
A. Credit market regulations 6.60 5.50 8.19 9.19 8.98 9.01 8.91 9.10
(i) Ownership of banks 5.00 5.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 6.79 7.51 8.56 9.58 8.94 9.02 8.73 9.30
(iii) Interest rate controls/negative real interest rates 8.00 4.00 8.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 7.65 6.82 6.06 5.95 6.11 6.08
(i) Hiring regulations and minimum wage 5.05 4.38 4.40 4.43 4.43
(ii) Hiring and firing regulations 5.70 5.70 3.30 4.28 3.81 4.03
(iii) Centralized collective bargaining 7.24 7.24 6.92 5.47 5.89 5.52
(iv) Hours regulations 6.10 5.68 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 1.56 2.52 2.52
(vi) Conscription 3.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 4.63 5.97 5.65 5.83 6.02
(i) Administrative requirements 7.20 2.39 2.62 3.28
(ii) Bureaucracy costs 5.48 6.68 4.13 3.38 3.38
(iii) Starting a business 6.08 5.63 7.88 8.66 8.64
(iv) Extra payments/bribes/favoritism 2.32 4.35 4.24 3.15 3.64
(v) Licensing restrictions 7.41 9.33 9.36
(vi) Cost of tax compliance 7.81 7.81 7.84

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138 E Economic Freedom of the World: 2013 Annual Report

Poland
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.46 (101) 3.55 (104) 5.37 (87) 6.34 (74) 6.89 (63) 7.11 (53) 7.18 (52)
Area 1. Size of Government 4.00 (81) 3.90 (85) 1.85 (113) 2.62 (119) 4.25 (107) 5.40 (95) 5.35 (92) 5.46 (93)
Area 2. Legal System and Property Rights 4.78 (59) 6.19 (34) 6.84 (36) 6.50 (52) 5.93 (60) 6.67 (46) 6.79 (44)
Area 3. Sound Money 8.34 (14) 4.43 (97) 2.50 (109) 6.03 (73) 7.49 (69) 9.27 (36) 9.39 (30) 9.53 (20)
Area 4. Freedom to Trade Internationally 1.91 (82) 4.96 (58) 7.12 (54) 7.25 (61) 7.04 (66) 7.18 (59) 7.10 (59)
Area 5. Regulation 2.06 (100) 2.09 (105) 2.19 (114) 4.27 (110) 6.20 (69) 6.83 (60) 6.98 (55) 7.08 (55)

Unadjusted
Summary Ratings Rank) h 3.70 (97) 3.54 (104) 5.30 (89) 6.34 (72) 6.91 (69) 7.13 (60) 7.20 (59)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.10 4.21 2.00 2.62 4.25 5.40 5.35 5.46
A. Government consumption 8.21 (12.09) 7.95 (12.97) 3.33 (28.69) 4.99 (23.02) 5.00 (23.00) 5.15 (22.50) 4.84 (23.53) 5.07 (22.75)
B. Transfers and subsidies 2.67 (27.40) 2.67 (27.40) 3.49 (24.40) 4.50 (20.69) 4.96 (19.01) 5.05 (18.67) 5.28 (17.81)
C. Government enterprises and investment 2.00 (40.70) 2.00 (40.70) 0.00 (58.80) 0.00 (55.80) 4.00 (36.62) 8.00 (18.69) 6.00 (28.27) 6.00 (28.27)
D. Top marginal tax rate 2.00 3.50 3.50 5.50 5.50
(i) Top marginal income tax rate 4.00 (45) 5.00 (40) 5.00 (40) 7.00 (32) 7.00 (32)
(ii) Top marginal income and payroll tax rate 0.00 (63) 2.00 (53) 2.00 (55) 4.00 (44) 4.00 (44)

Area 2. Legal System and Property Rights 4.78 6.19 6.84 6.50 5.63 6.33 6.44
A. Judicial independence 6.47 5.34 4.18 5.55 5.41
B. Impartial courts 5.60 5.85 4.37 3.69 3.53
C. Protection of property rights 3.58 4.63 4.58 5.90 5.61
D. Military interference in rule of law and politics 8.54 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 6.67 7.08 7.50 7.50
F. Legal enforcement of contracts 4.27 4.27 4.15
G. Regulatory restrictions on sale of real property 5.75 7.00 8.85
H. Reliability of police 4.89 5.61 5.51
I. Business costs of crime 5.57 7.44 7.42

Area 3. Sound Money 7.42 4.43 2.50 6.03 7.49 9.27 9.39 9.53
A. Money growth 5.90 (20.50) 0.00 (110.44) 3.83 (30.87) 8.97 (5.14) 8.05 (9.75) 8.59 (7.04) 9.32 (3.40)
B. Standard deviation of inflation 9.21 (1.97) 0.00 (37.35) 0.00 (167.57) 5.91 (10.22) 8.00 (5.00) 9.44 (1.41) 9.51 (1.21) 9.64 (0.89)
C. Inflation: most recent year 8.04 (9.80) 6.83 (15.83) 0.00 (435.66) 4.37 (28.17) 7.99 (10.06) 9.58 (2.11) 9.46 (2.71) 9.16 (4.22)
D. Freedom to own foreign currency bank accounts 5.00 5.00 10.00 10.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 1.92 4.97 6.82 7.25 7.29 7.44 7.36
A. Tariffs 5.77 6.70 6.38 7.76 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 4.27 (8.60) 6.00 (6.00) 5.95 (6.08) 9.20 (1.20) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 7.28 (13.60) 7.66 (11.70) 6.32 (18.40) 8.00 (10.00) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 6.44 (8.90) 6.88 (7.80) 6.08 (9.80) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 5.70 7.45 6.19 6.85 6.54
(i) Non-tariff trade barriers 5.70 6.23 5.19 5.96 5.34
(ii) Compliance costs of importing and exporting 8.66 7.18 7.74 7.74
C. Black-market exchange rates 0.00 0.00 8.20 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 5.21 3.78 4.59 4.56 4.61
(i) Foreign ownership/investment restrictions 5.41 6.78 5.65 5.56 5.71
(ii) Capital controls 0.00 0.00 0.00 5.00 0.77 1.54 1.54 1.54
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 3.10 3.13 2.03 4.22 6.20 6.97 7.12 7.22
A. Credit market regulations 0.24 0.38 0.44 3.94 7.61 8.59 8.00 8.00
(i) Ownership of banks 0.00 0.00 0.00 2.00 5.00 8.00 8.00 8.00
(ii) Private sector credit 0.48 0.76 1.31 3.82 7.84 7.76 6.01 6.01
(iii) Interest rate controls/negative real interest rates 0.00 6.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.62 4.45 4.20 6.56 7.42 7.67
(i) Hiring regulations and minimum wage 5.38 3.39 10.00 5.57 8.90
(ii) Hiring and firing regulations 5.67 5.67 2.72 4.78 3.78 4.11
(iii) Centralized collective bargaining 4.49 4.49 5.18 5.18 7.03 6.11 7.19 7.27
(iv) Hours regulations 5.00 4.84 6.70 8.00 8.00
(v) Mandated cost of worker dismissal 8.79 10.00 7.76
(vi) Conscription 0.00 0.00 0.00 1.00 3.00 3.00 10.00 10.00
C. Business regulations 4.27 6.78 5.75 5.93 5.99
(i) Administrative requirements 7.40 3.45 2.68 2.67
(ii) Bureaucracy costs 5.14 7.13 6.50 5.58 5.58
(iii) Starting a business 4.37 6.98 8.11 8.75 8.78
(iv) Extra payments/bribes/favoritism 3.30 5.60 5.55 5.98 6.17
(v) Licensing restrictions 5.59 5.91 5.92
(vi) Cost of tax compliance 5.31 6.68 6.79

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 Chapter 2: Country Data Tables E 139

Portugal
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.53 (43) 5.37 (51) 6.25 (37) 7.46 (22) 7.55 (25) 7.43 (36) 7.16 (48) 7.43 (37)
Area 1. Size of Government 3.31 (93) 3.52 (95) 5.22 (68) 5.49 (80) 5.26 (88) 5.73 (91) 5.02 (101) 5.58 (89)
Area 2. Legal System and Property Rights 8.00 (7) 6.08 (31) 7.73 (19) 8.04 (21) 7.64 (30) 7.72 (26) 7.05 (34) 7.15 (34)
Area 3. Sound Money 5.61 (76) 5.61 (87) 6.05 (72) 9.18 (29) 9.51 (20) 9.54 (19) 9.75 (2) 9.69 (3)
Area 4. Freedom to Trade Internationally 6.57 (27) 6.77 (25) 7.66 (24) 9.02 (15) 8.95 (20) 7.89 (33) 7.99 (28) 7.93 (28)
Area 5. Regulation 4.26 (86) 5.00 (73) 4.58 (93) 5.55 (74) 6.39 (57) 6.33 (84) 6.05 (99) 6.84 (68)

Unadjusted
Summary Ratings Rank) h 5.62 (41) 5.46 (51) 6.20 (39) 7.40 (22) 7.55 (22) 7.34 (46) 7.08 (68) 7.34 (44)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.63 3.86 5.22 5.49 5.26 5.73 5.02 5.58
A. Government consumption 6.83 (16.76) 6.60 (17.57) 5.95 (19.76) 5.47 (21.41) 4.18 (25.80) 4.61 (24.33) 4.52 (24.62) 4.94 (23.20)
B. Transfers and subsidies 5.69 (16.30) 4.82 (19.50) 5.91 (15.50) 6.49 (13.40) 5.88 (15.64) 4.81 (19.54) 4.04 (22.37) 3.90 (22.89)
C. Government enterprises and investment 2.00 (42.20) 4.00 (30.50) 6.00 (29.90) 7.00 (23.20) 7.00 (23.20) 10.00 (13.22) 8.00 (18.24) 10.00 (14.33)
D. Top marginal tax rate 0.00 0.00 3.00 3.00 4.00 3.50 3.50 3.50
(i) Top marginal income tax rate 0.00 (84) 0.00 (69) 5.00 (40) 5.00 (40) 6.00 (40) 5.00 (42) 5.00 (47) 5.00 (47)
(ii) Top marginal income and payroll tax rate 1.00 (57) 1.00 (57) 2.00 (57) 2.00 (58) 2.00 (62) 2.00 (62)

Area 2. Legal System and Property Rights 8.00 6.08 7.73 8.04 7.64 7.32 6.69 6.78
A. Judicial independence 8.15 7.01 7.76 4.89 4.78
B. Impartial courts 6.97 6.35 5.33 2.91 3.35
C. Protection of property rights 5.10 6.48 7.43 6.31 6.36
D. Military interference in rule of law and politics 9.99 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 5.25 5.55 5.55
G. Regulatory restrictions on sale of real property 6.04 7.58 7.58
H. Reliability of police 7.42 6.70 6.92
I. Business costs of crime 8.29 7.94 8.19

Area 3. Sound Money 5.61 5.61 6.05 9.18 9.51 9.54 9.75 9.69
A. Money growth 7.96 (10.18) 7.84 (10.78) 8.23 (8.87) 8.80 (5.98) 8.77 (6.14) 8.83 (5.83) 9.78 (1.12) 9.96 (-0.21)
B. Standard deviation of inflation 8.66 (3.34) 8.94 (2.64) 8.54 (3.66) 8.95 (2.62) 9.85 (0.39) 9.78 (0.55) 9.51 (1.23) 9.55 (1.13)
C. Inflation: most recent year 5.82 (20.90) 5.65 (21.73) 7.45 (12.77) 8.97 (5.16) 9.43 (2.85) 9.54 (2.29) 9.72 (1.39) 9.27 (3.66)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.73 6.93 7.55 8.80 8.95 7.99 8.09 8.03
A. Tariffs 8.60 9.20 8.26 8.70 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 8.60 (2.10) 9.20 (1.20) 9.13 (1.30) 9.80 (0.30) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 8.18 8.62 7.80 7.78 7.90
(i) Non-tariff trade barriers 8.18 7.73 7.78 7.67 7.47
(ii) Compliance costs of importing and exporting 9.50 7.82 7.89 8.33
C. Black-market exchange rates 9.60 9.60 9.40 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 5.00 8.32 7.99 5.77 6.25 5.94
(i) Foreign ownership/investment restrictions 8.64 9.05 7.67 6.03 5.87
(ii) Capital controls 2.00 2.00 5.00 8.00 6.92 3.08 6.15 5.38
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 4.10 4.81 4.45 5.48 6.39 6.10 5.83 6.60
A. Credit market regulations 4.42 6.17 5.76 6.59 7.84 6.89 6.45 8.19
(i) Ownership of banks 0.00 0.00 2.00 2.00 5.00 5.00 8.00 8.00
(ii) Private sector credit 9.27 8.50 7.29 7.78 8.51 5.66 1.36 6.58
(iii) Interest rate controls/negative real interest rates 4.00 10.00 8.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.78 3.46 3.13 4.64 4.46 5.26 4.76 4.94
(i) Hiring regulations and minimum wage 6.42 4.05 6.70 2.23 2.23
(ii) Hiring and firing regulations 3.40 3.40 2.83 2.86 2.30 3.24
(iii) Centralized collective bargaining 5.18 5.18 5.18 5.18 4.88 5.51 5.53 5.63
(iv) Hours regulations 6.16 5.19 3.96 5.22 5.51 5.30 6.00 6.00
(v) Mandated cost of worker dismissal 1.19 2.52 2.52
(vi) Conscription 0.00 0.00 0.00 3.00 5.00 10.00 10.00 10.00
C. Business regulations 5.21 6.87 6.15 6.28 6.66
(i) Administrative requirements 7.58 3.68 2.48 2.68
(ii) Bureaucracy costs 5.53 7.20 3.57 5.68 5.68
(iii) Starting a business 4.32 5.65 9.53 9.82 9.82
(iv) Extra payments/bribes/favoritism 5.79 7.04 8.33 6.09 6.39
(v) Licensing restrictions 5.48 6.67 8.49
(vi) Cost of tax compliance 6.32 6.92 6.92

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140 E Economic Freedom of the World: 2013 Annual Report

Qatar
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 7.54 (27) 7.62 (23)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.59 6.88
A. Government consumption 0.59 (38.01) 1.28 (35.64)
B. Transfers and subsidies 9.19 (3.49) 9.36 (2.85)
C. Government enterprises and investment
D. Top marginal tax rate 10.00 10.00
(i) Top marginal income tax rate 10.00 (0) 10.00 (0)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 7.53 7.86

A. Judicial independence 8.37 8.66
B. Impartial courts 6.32 6.93
C. Protection of property rights 6.32 7.56
D. Military interference in rule of law and politics 6.67 6.67
E. Integrity of the legal system 8.33 8.33
F. Legal enforcement of contracts 4.86 4.86
G. Regulatory restrictions on sale of real property 9.66 9.66
H. Reliability of police 8.79 8.78
I. Business costs of crime 8.48 9.30

Area 3. Sound Money 7.95 8.08

A. Money growth 8.90 (-5.49) 9.02 (-4.90)
B. Standard deviation of inflation 3.36 (16.59) 3.69 (15.77)
C. Inflation: most recent year 9.51 (-2.43) 9.62 (1.92)
D. Freedom to own foreign currency bank accounts 10.00 10.00

Area 4. Freedom to Trade Internationally 7.76 7.77

A. Tariffs 8.31 8.20
(i) Revenue from trade taxes (% of trade sector) 9.25 (1.12) 9.25 (1.12)
(ii) Mean tariff rate 9.00 (5.00) 8.98 (5.10)
(iii) Standard deviation of tariff rates 6.68 (8.30) 6.37 (9.08)
B. Regulatory trade barriers 7.76 7.96
(i) Non-tariff trade barriers 8.36 8.25
(ii) Compliance costs of importing and exporting 7.16 7.68
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 4.97 4.94
(i) Foreign ownership/investment restrictions 6.79 6.68
(ii) Capital controls 4.62 4.62
(iii) Freedom of foreigners to visit 3.52 3.52

Area 5. Regulation 7.89 7.50

A. Credit market regulations 7.45 5.95
(i) Ownership of banks
(ii) Private sector credit 5.90 4.89
(iii) Interest rate controls/negative real interest rates 9.00 7.00
B. Labor market regulations 7.75 7.91
(i) Hiring regulations and minimum wage 10.00 10.00
(ii) Hiring and firing regulations 5.44 6.52
(iii) Centralized collective bargaining 8.27 8.11
(iv) Hours regulations 8.00 8.00
(v) Mandated cost of worker dismissal 4.82 4.82
(vi) Conscription 10.00 10.00
C. Business regulations 8.48 8.63
(i) Administrative requirements 6.48 6.85
(ii) Bureaucracy costs 7.62 7.62
(iii) Starting a business 9.32 9.46
(iv) Extra payments/bribes/favoritism 8.08 8.48
(v) Licensing restrictions 9.78 9.91
(vi) Cost of tax compliance 9.60 9.46

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 Chapter 2: Country Data Tables E 141

Romania
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.39 (85) 4.31 (99) 3.81 (117) 5.27 (110) 7.08 (54) 7.14 (49) 7.18 (53)
Area 1. Size of Government 4.08 (79) 4.63 (66) 3.09 (107) 3.37 (110) 5.02 (91) 7.86 (26) 6.29 (65) 6.51 (59)
Area 2. Legal System and Property Rights 3.59 (78) 5.65 (50) 5.62 (64) 6.16 (57) 5.70 (63) 5.97 (59) 5.81 (62)
Area 3. Sound Money 6.61 (37) 6.95 (39) 7.18 (39) 0.74 (119) 2.71 (121) 8.30 (61) 9.10 (44) 9.35 (31)
Area 4. Freedom to Trade Internationally 3.16 (86) 5.71 (82) 6.70 (73) 7.35 (51) 7.53 (47) 7.35 (48)
Area 5. Regulation 3.14 (95) 2.94 (101) 2.94 (107) 3.39 (118) 5.78 (94) 6.24 (89) 6.80 (64) 6.89 (63)

Unadjusted
Summary Ratings Rank) h 5.58 (45) 5.02 (75) 3.63 (120) 5.16 (112) 7.22 (50) 7.28 (51) 7.32 (45)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 7.85 8.92 5.94 3.37 5.02 7.86 6.29 6.51
A. Government consumption 9.41 (8.01) 9.85 (6.51) 6.82 (16.82) 6.81 (16.84) 7.50 (14.48) 8.44 (11.31) 5.71 (20.57) 6.24 (18.80)
B. Transfers and subsidies 6.29 (14.10) 7.98 (7.90) 5.07 (18.60) 6.16 (14.59) 6.09 (14.84) 7.01 (11.49) 5.96 (15.33) 6.29 (14.13)
C. Government enterprises and investment 0.00 (60.70) 4.00 (60.70) 10.00 (10.56) 7.00 (23.84) 7.00 (21.36)
D. Top marginal tax rate 0.50 2.50 6.00 6.50 6.50
(i) Top marginal income tax rate 1.00 (60) 5.00 (40) 10.00 (16) 10.00 (16) 10.00 (16)
(ii) Top marginal income and payroll tax rate 0.00 (72) 0.00 (68) 2.00 (54) 3.00 (48) 3.00 (46)

Area 2. Legal System and Property Rights 3.99 6.28 5.64 5.58 5.47 5.72 5.57
A. Judicial independence 3.14 3.52 2.82
B. Impartial courts 5.40 5.52 3.45 3.04 2.72
C. Protection of property rights 4.10 5.12 4.89 4.75
D. Military interference in rule of law and politics 6.37 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.96 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 5.21 4.85 4.85
G. Regulatory restrictions on sale of real property 7.97 9.11 9.11
H. Reliability of police 4.44 4.54 4.06
I. Business costs of crime 4.87 6.56 6.85

Area 3. Sound Money 6.61 6.95 7.18 0.74 2.71 8.30 9.10 9.35
A. Money growth 7.76 (11.20) 9.75 (-1.25) 8.57 (7.13) 0.00 (58.13) 9.98 (-0.12) 8.92 (-5.39) 8.65 (6.77) 9.54 (-2.30)
B. Standard deviation of inflation 8.78 (3.05) 8.11 (4.73) 7.87 (5.32) 0.00 (68.32) 0.00 (44.43) 6.07 (9.82) 8.98 (2.56) 9.00 (2.50)
C. Inflation: most recent year 9.88 (0.59) 9.93 (0.37) 7.26 (13.72) 2.94 (35.30) 0.87 (45.67) 8.20 (8.99) 8.78 (6.09) 8.84 (5.79)
D. Freedom to own foreign currency bank accounts 0.00 0.00 5.00 0.00 0.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.24 5.54 6.70 7.80 8.00 7.81
A. Tariffs 9.73 7.22 6.76 7.75 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.73 (0.40) 8.20 (2.70) 8.95 (1.58) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 6.24 (18.80) 6.96 (15.20) 8.68 (6.60) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 4.36 (14.10) 4.98 (12.56) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 5.48 6.89 7.06 6.56
(i) Non-tariff trade barriers 5.48 5.43 5.78 4.76
(ii) Compliance costs of importing and exporting 8.35 8.35 8.35
C. Black-market exchange rates 0.00 0.00 0.00 9.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 4.54 6.58 6.60 6.39
(i) Foreign ownership/investment restrictions 7.55 6.23 5.54 4.91
(ii) Capital controls 0.00 0.00 0.00 0.00 1.54 6.92 7.69 7.69
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 2.64 2.47 2.47 2.85 5.78 6.69 7.29 7.39
A. Credit market regulations 0.00 0.00 0.00 0.67 5.34 7.79 9.13 9.34
(i) Ownership of banks 0.00 0.00 0.00 2.00 0.00 5.00 10.00 10.00
(ii) Private sector credit 0.00 0.00 0.00 0.00 6.02 9.37 7.40 8.01
(iii) Interest rate controls/negative real interest rates 0.00 0.00 10.00 9.00 10.00 10.00
B. Labor market regulations 6.28 5.63 6.87 6.99
(i) Hiring regulations and minimum wage 4.66 3.30 3.33 3.33
(ii) Hiring and firing regulations 8.80 4.15 4.29 4.31
(iii) Centralized collective bargaining 8.67 7.87 6.37 6.32
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 9.44 9.25 10.00
(vi) Conscription 1.00 0.00 0.00 1.00 3.00 3.00 10.00 10.00
C. Business regulations 5.73 6.64 5.85 5.83
(i) Administrative requirements 6.63 3.50 3.08 3.00
(ii) Bureaucracy costs 7.50 7.04 4.39 4.39
(iii) Starting a business 3.60 9.60 9.52 9.65
(iv) Extra payments/bribes/favoritism 5.18 5.18 4.49 4.23
(v) Licensing restrictions 6.72 6.11 6.09
(vi) Cost of tax compliance 7.84 7.51 7.58

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142 E Economic Freedom of the World: 2013 Annual Report

Russia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.43 (108) 5.15 (113) 6.08 (93) 6.33 (94) 6.35 (91)
Area 1. Size of Government 1.14 (108) 1.06 (112) 1.13 (114) 6.78 (35) 6.77 (44) 7.24 (40) 6.90 (43) 6.78 (50)
Area 2. Legal System and Property Rights 3.54 (110) 4.45 (93) 4.51 (87) 4.43 (92) 4.50 (90)
Area 3. Sound Money 6.38 (46) 6.52 (63) 5.95 (74) 1.25 (117) 3.66 (115) 6.69 (96) 8.47 (62) 8.55 (61)
Area 4. Freedom to Trade Internationally 6.44 (64) 6.23 (81) 5.99 (91) 6.03 (95) 6.11 (91)
Area 5. Regulation 1.08 (101) 1.08 (106) 1.08 (115) 4.19 (113) 4.64 (112) 6.13 (92) 6.03 (101) 6.03 (100)

Unadjusted
Summary Ratings Rank) h 4.33 (111) 5.15 (113) 6.24 (99) 6.53 (101) 6.55 (101)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 1.66 1.54 1.24 6.78 6.77 7.24 6.90 6.78
A. Government consumption 3.03 (29.70) 2.65 (31.00) 2.99 (29.84) 3.74 (27.30) 5.01 (22.96) 4.40 (25.06) 4.03 (26.30) 4.03 (26.30)
B. Transfers and subsidies 1.96 (30.00) 1.96 (30.00) 1.96 (30.00) 7.90 (8.20) 6.56 (13.11) 7.05 (11.33) 5.07 (18.61) 5.58 (16.72)
C. Government enterprises and investment 0.00 (90.00) 10.00 (11.10) 10.00 (10.30) 10.00 (14.50) 10.00 (12.81) 10.00 (12.60)
D. Top marginal tax rate 0.00 0.00 0.00 5.50 5.50 7.50 8.50 7.50
(i) Top marginal income tax rate 0.00 (100) 0.00 (100) 0.00 (80) 8.00 (30) 8.00 (30) 10.00 (13) 10.00 (13) 10.00 (13)
(ii) Top marginal income and payroll tax rate 3.00 (51) 3.00 (50) 5.00 (39) 7.00 (35) 5.00 (39)

Area 2. Legal System and Property Rights 3.43 4.45 5.21 5.27 5.35
A. Judicial independence 3.48 3.51 2.14 2.66 2.59
B. Impartial courts 4.20 5.18 2.78 2.88 2.87
C. Protection of property rights 1.56 1.88 3.63 3.02 2.99
D. Military interference in rule of law and politics 4.49 6.67 7.50 7.50 7.50
E. Integrity of the legal system 5.00 6.67 6.67 6.67
F. Legal enforcement of contracts 7.53 7.53 7.62
G. Regulatory restrictions on sale of real property 8.92 9.12 9.10
H. Reliability of police 3.28 2.72 3.04
I. Business costs of crime 4.49 5.31 5.82

Area 3. Sound Money 5.72 6.52 5.95 1.25 3.66 6.69 8.47 8.55
A. Money growth 7.88 (10.60) 8.08 (9.60) 8.06 (9.70) 0.00 (401.40) 2.19 (39.06) 5.31 (23.43) 7.77 (11.14) 8.40 (7.98)
B. Standard deviation of inflation 9.28 (1.80) 9.44 (1.40) 8.92 (2.70) 0.00 (522.92) 1.61 (20.98) 8.97 (2.57) 7.47 (6.33) 7.48 (6.30)
C. Inflation: most recent year 8.54 (7.30) 6.82 (15.90) 0.00 (170.74) 5.84 (20.78) 7.46 (12.68) 8.63 (6.86) 8.31 (8.44)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 5.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.11 6.23 5.76 5.81 5.89

A. Tariffs 6.60 7.00 5.08 4.91 4.62
(i) Revenue from trade taxes (% of trade sector) 7.07 (4.40) 6.92 (4.62) 1.17 (13.24) 0.95 (13.57) 0.00 (15.76)
(ii) Mean tariff rate 7.70 (11.50) 7.48 (12.60) 8.08 (9.60) 8.10 (9.50) 8.12 (9.40)
(iii) Standard deviation of tariff rates 5.04 (12.40) 6.60 (8.50) 5.99 (10.03) 5.67 (10.83) 5.75 (10.62)
B. Regulatory trade barriers 4.32 5.06 4.83 4.51 5.16
(i) Non-tariff trade barriers 4.32 3.78 4.76 4.12 4.17
(ii) Compliance costs of importing and exporting 6.33 4.90 4.90 6.16
C. Black-market exchange rates 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 3.54 2.86 3.14 3.81 3.76
(i) Foreign ownership/investment restrictions 5.08 5.71 4.22 4.23 4.08
(ii) Capital controls 0.00 0.00 0.00 2.00 0.00 3.85 5.83 5.83
(iii) Freedom of foreigners to visit 1.36 1.36 1.36

Area 5. Regulation 2.47 2.47 1.00 4.08 4.64 6.31 6.20 6.20
A. Credit market regulations 0.00 0.00 0.17 5.02 4.29 8.00 7.77 7.33
(i) Ownership of banks 0.00 0.00 0.00 2.00 2.00 5.00 5.00 5.00
(ii) Private sector credit 0.50 5.05 5.88 10.00 9.30 10.00
(iii) Interest rate controls/negative real interest rates 0.00 0.00 0.00 8.00 5.00 9.00 9.00 7.00
B. Labor market regulations 1.84 4.00 4.50 5.98 5.94 5.95
(i) Hiring regulations and minimum wage 6.00 2.58 6.70 5.00 5.00
(ii) Hiring and firing regulations 1.03 1.03 6.08 6.75 4.55 4.47
(iii) Centralized collective bargaining 4.49 7.24 8.30 8.02 6.57 6.75
(iv) Hours regulations 5.72 5.51 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 8.42 8.50 8.50
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 3.00 3.00
C. Business regulations 3.23 5.14 4.94 4.90 5.31
(i) Administrative requirements 6.22 2.06 2.36 2.68
(ii) Bureaucracy costs 4.79 5.00 3.60 3.36 3.36
(iii) Starting a business 3.52 4.00 8.97 9.01 9.40
(iv) Extra payments/bribes/favoritism 1.40 5.36 5.59 3.23 3.31
(v) Licensing restrictions 4.43 4.67 5.07
(vi) Cost of tax compliance 4.98 6.75 8.02

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 Chapter 2: Country Data Tables E 143

Rwanda
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.02 (80) 3.78 (119) 5.40 (107) 5.93 (101) 7.38 (38) 7.38 (39)
Area 1. Size of Government 4.94 (57) 5.08 (53) 6.59 (27) 6.32 (51) 7.39 (23) 6.50 (67) 6.32 (63) 6.35 (64)
Area 2. Legal System and Property Rights 1.14 (119) 1.16 (123) 1.84 (121) 3.58 (108) 3.61 (106)
Area 3. Sound Money 6.45 (42) 6.76 (48) 6.06 (71) 3.17 (107) 7.44 (70) 7.75 (74) 9.05 (45) 8.88 (56)
Area 4. Freedom to Trade Internationally
Area 5. Regulation 5.62 (47) 5.72 (49) 5.65 (61) 4.37 (107) 5.62 (96) 7.19 (40) 8.51 (4) 8.52 (5)

Unadjusted
Summary Ratings Rank) h 4.60 (71) 4.99 (79) 3.95 (117) 5.61 (102) 5.92 (115) 7.45 (33) 7.46 (36)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.95 4.08 6.59 6.32 7.39 6.50 6.32 6.39
A. Government consumption 7.93 (13.04) 8.15 (12.28) 8.59 (10.81) 9.42 (7.98) 8.63 (10.66) 7.96 (12.94) 8.97 (9.50) 9.06 (9.20)
B. Transfers and subsidies 9.92 (0.80) 9.18 (3.50) 9.54 (2.20) 9.54 (2.20) 9.54 (2.20) 10.00 (0.00) 10.00 (0.00)
C. Government enterprises and investment 0.00 (100.00) 0.00 (100.00) 2.00 (40.46) 0.00 (60.25) 4.00 (33.90) 2.00 (42.15) 0.00 (55.15) 0.00 (52.04)
D. Top marginal tax rate 6.50
(i) Top marginal income tax rate 8.00 (30)
(ii) Top marginal income and payroll tax rate 5.00 (36)

Area 2. Legal System and Property Rights 2.38 1.98 3.02 6.72 6.79
A. Judicial independence 7.02 7.19
B. Impartial courts 3.43 3.48 3.80 6.11 6.53
C. Protection of property rights 6.82 6.99
D. Military interference in rule of law and politics 0.00 3.10 6.00 6.00
E. Integrity of the legal system 0.00 0.00
F. Legal enforcement of contracts 3.35 3.95 3.95
G. Regulatory restrictions on sale of real property 1.84 7.46 7.69
H. Reliability of police 8.15 8.24
I. Business costs of crime 8.24 7.70

Area 3. Sound Money 6.45 6.76 6.06 3.17 7.44 7.75 9.05 8.88
A. Money growth 8.44 (7.78) 10.00 (0.01) 9.59 (-2.07) 4.43 (27.87) 8.62 (6.88) 9.94 (0.31) 8.86 (5.71) 8.86 (5.71)
B. Standard deviation of inflation 7.99 (5.03) 7.97 (5.07) 7.34 (6.65) 3.27 (16.82) 6.98 (7.56) 7.86 (5.35) 7.81 (5.48) 7.78 (5.55)
C. Inflation: most recent year 9.39 (3.06) 9.09 (4.56) 7.31 (13.46) 0.00 (54.20) 9.14 (4.29) 8.20 (9.01) 9.54 (2.31) 8.87 (5.67)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 5.00 10.00 10.00

Area 4. Freedom to Trade Internationally 0.38 1.64 3.50 4.79 6.86 6.94
A. Tariffs 1.13 0.53 1.10 6.30 6.40 6.40
(i) Revenue from trade taxes (% of trade sector) 1.13 (13.30) 0.53 (14.20) 0.27 (14.60)
(ii) Mean tariff rate 3.04 (34.80) 6.56 (17.20) 7.50 (12.50) 7.50 (12.50)
(iii) Standard deviation of tariff rates 0.00 (33.10) 6.04 (9.91) 5.30 (11.75) 5.30 (11.75)
B. Regulatory trade barriers 0.13 5.48 5.79
(i) Non-tariff trade barriers 5.16 5.78
(ii) Compliance costs of importing and exporting 0.13 5.80 5.80
C. Black-market exchange rates 0.00 0.20 4.40 9.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 1.54 2.72 5.57 5.56
(i) Foreign ownership/investment restrictions 6.67 6.62
(ii) Capital controls 0.00 0.00 0.00 0.00 1.54 3.85 8.46 8.46
(iii) Freedom of foreigners to visit 1.59 1.59 1.59

Area 5. Regulation 5.62 5.72 5.65 4.37 5.62 7.56 8.29 8.30
A. Credit market regulations 5.01 5.26 5.08 1.68 5.01 8.55 8.55 8.55
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 8.00 8.00 8.00
(ii) Private sector credit 9.03 7.79 5.24 5.04 5.04 8.65 8.65 8.65
(iii) Interest rate controls/negative real interest rates 6.00 8.00 10.00 0.00 10.00 9.00 9.00 9.00
B. Labor market regulations 7.30 8.44 8.32
(i) Hiring regulations and minimum wage 5.60 10.00 10.00
(ii) Hiring and firing regulations 5.48 5.14
(iii) Centralized collective bargaining 7.42 6.99
(iv) Hours regulations 6.00 10.00 10.00
(v) Mandated cost of worker dismissal 7.59 7.76 7.76
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 6.83 7.88 8.02
(i) Administrative requirements 6.97 7.16
(ii) Bureaucracy costs 7.04 7.04
(iii) Starting a business 7.51 9.85 9.86
(iv) Extra payments/bribes/favoritism 7.39 7.85
(v) Licensing restrictions 4.86 7.68 7.74
(vi) Cost of tax compliance 8.12 8.34 8.50

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144 E Economic Freedom of the World: 2013 Annual Report

Saudi Arabia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 7.18 (58) 7.14 (60)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.04 5.06
A. Government consumption 0.07 (39.76) 0.12 (39.60)
B. Transfers and subsidies
C. Government enterprises and investment
D. Top marginal tax rate 10.00 10.00
(i) Top marginal income tax rate 10.00 (0) 10.00 (0)
(ii) Top marginal income and payroll tax rate 10.00 (18) 10.00 (18)

Area 2. Legal System and Property Rights 7.66 7.55

A. Judicial independence 7.63 7.17
B. Impartial courts 6.17 5.96
C. Protection of property rights 7.65 7.62
D. Military interference in rule of law and politics 8.33 8.33
E. Integrity of the legal system 8.33 8.33
F. Legal enforcement of contracts 4.01 4.01
G. Regulatory restrictions on sale of real property 9.96 9.85
H. Reliability of police 7.78 7.73
I. Business costs of crime 9.10 8.90

Area 3. Sound Money 7.84 7.76

A. Money growth 8.83 (5.84) 8.95 (5.24)
B. Standard deviation of inflation 3.61 (15.98) 3.09 (17.27)
C. Inflation: most recent year 8.93 (5.34) 9.00 (5.01)
D. Freedom to own foreign currency bank accounts 10.00 10.00

Area 4. Freedom to Trade Internationally 7.24 7.26

A. Tariffs 8.20 8.70
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 9.04 (4.80) 9.02 (4.90)
(iii) Standard deviation of tariff rates 7.35 (6.62) 8.37 (4.07)
B. Regulatory trade barriers 7.71 7.48
(i) Non-tariff trade barriers 7.41 6.95
(ii) Compliance costs of importing and exporting 8.01 8.01
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 3.04 2.86
(i) Foreign ownership/investment restrictions 7.00 6.48
(ii) Capital controls 1.54 1.54
(iii) Freedom of foreigners to visit 0.57 0.57

Area 5. Regulation 8.12 8.06

A. Credit market regulations 7.92 8.14
(i) Ownership of banks 8.00 8.00
(ii) Private sector credit 7.84 8.29
(iii) Interest rate controls/negative real interest rates
B. Labor market regulations 8.20 8.09
(i) Hiring regulations and minimum wage 10.00 10.00
(ii) Hiring and firing regulations 6.83 6.17
(iii) Centralized collective bargaining 7.98 7.98
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 4.39 4.39
(vi) Conscription 10.00 10.00
C. Business regulations 8.24 7.93
(i) Administrative requirements 5.64 5.12
(ii) Bureaucracy costs 7.36 7.36
(iii) Starting a business 9.78 9.28
(iv) Extra payments/bribes/favoritism 7.87 7.47
(v) Licensing restrictions 9.66 9.19
(vi) Cost of tax compliance 9.11 9.19

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 Chapter 2: Country Data Tables E 145

Senegal
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.43 (78) 5.17 (56) 5.31 (68) 4.56 (107) 5.88 (92) 5.72 (108) 5.75 (107) 5.72 (110)
Area 1. Size of Government 4.15 (74) 6.17 (20) 6.96 (20) 5.67 (74) 7.08 (31) 6.05 (83) 5.72 (81) 5.72 (84)
Area 2. Legal System and Property Rights 3.41 (62) 3.99 (76) 3.99 (76) 3.13 (112) 4.55 (89) 4.30 (93) 4.20 (97) 4.20 (96)
Area 3. Sound Money 6.36 (47) 6.76 (47) 6.93 (51) 5.80 (77) 7.28 (72) 7.11 (85) 7.03 (92) 7.01 (93)
Area 4. Freedom to Trade Internationally 3.68 (59) 4.38 (57) 3.92 (79) 4.02 (105) 6.11 (84) 5.49 (106) 5.67 (104) 5.65 (102)
Area 5. Regulation 4.84 (76) 4.62 (80) 4.87 (84) 4.24 (111) 4.38 (117) 5.58 (105) 5.96 (103) 5.88 (105)

Unadjusted
Summary Ratings Rank) h 5.01 (59) 5.03 (66) 5.16 (69) 4.48 (107) 5.86 (91) 5.82 (123) 6.00 (129) 5.97 (129)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.36 5.32 6.01 4.89 7.08 6.05 5.72 5.72
A. Government consumption 6.08 (19.34) 6.97 (16.31) 7.02 (16.13) 7.68 (13.90) 8.32 (11.70) 8.48 (11.18) 8.90 (9.75) 8.88 (9.80)
B. Transfers and subsidies 8.99 (4.20) 10.00 (0.43) 8.71 (5.24) 10.00 (0.00) 10.00 (0.00)
C. Government enterprises and investment 4.00 (32.20) 8.00 (18.20) 7.00 (22.60) 7.00 (21.50) 7.00 (20.10) 4.00 (33.56) 4.00 (37.24) 4.00 (38.94)
D. Top marginal tax rate 1.00 4.00 0.00 3.00 3.00 0.00 0.00
(i) Top marginal income tax rate 1.00 (65) 4.00 (48) 0.00 (64) 3.00 (50) 3.00 (50) 0.00 (61) 0.00 (61)
(ii) Top marginal income and payroll tax rate 4.00 (48) 0.00 (64) 3.00 (50) 3.00 (50) 0.00 (61) 0.00 (61)

Area 2. Legal System and Property Rights 3.41 3.99 3.99 3.40 4.43 3.82 4.39 4.39
A. Judicial independence 2.92 2.70
B. Impartial courts 5.39 5.33 5.10 3.76 4.25
C. Protection of property rights 5.17 5.12
D. Military interference in rule of law and politics 3.99 3.33 3.33 3.33 3.33
E. Integrity of the legal system 0.00 5.00 5.00 5.00 5.00
F. Legal enforcement of contracts 3.39 3.39 3.39
G. Regulatory restrictions on sale of real property 2.26 2.69 2.69
H. Reliability of police 5.12 5.61
I. Business costs of crime 8.10 7.37

Area 3. Sound Money 6.36 6.76 6.93 5.80 7.28 7.11 7.03 7.01
A. Money growth 8.79 (6.05) 9.54 (2.30) 8.94 (-5.32) 8.73 (6.34) 9.45 (2.74) 9.42 (2.89) 9.43 (2.85) 9.80 (1.00)
B. Standard deviation of inflation 8.95 (2.63) 9.38 (1.55) 9.01 (2.47) 5.65 (10.87) 9.82 (0.44) 9.34 (1.64) 8.93 (2.68) 8.93 (2.68)
C. Inflation: most recent year 7.69 (11.53) 8.14 (9.30) 9.76 (1.19) 8.82 (5.92) 9.85 (0.73) 9.66 (1.70) 9.75 (1.25) 9.32 (3.38)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 4.00 4.38 3.92 4.02 6.11 6.40 6.72 6.69
A. Tariffs 2.40 3.33 2.57 2.25 6.02 6.10 6.25 6.25
(i) Revenue from trade taxes (% of trade sector) 2.40 (11.40) 4.47 (8.30) 2.13 (11.80) 1.33 (13.00) 4.44 (8.34) 3.83 (9.25) 3.83 (9.25) 3.83 (9.25)
(ii) Mean tariff rate 2.20 (39.00) 3.00 (35.00) 3.16 (34.20) 7.60 (12.00) 7.20 (14.00) 7.62 (11.90) 7.62 (11.90)
(iii) Standard deviation of tariff rates 7.26 (6.84) 7.29 (6.78) 7.29 (6.78)
B. Regulatory trade barriers 6.86 6.78 6.55
(i) Non-tariff trade barriers 5.20 4.74
(ii) Compliance costs of importing and exporting 6.86 8.37 8.37
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 2.31 2.65 3.86 3.96
(i) Foreign ownership/investment restrictions 6.26 6.57
(ii) Capital controls 0.00 0.00 0.00 0.00 2.31 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 4.54 4.54 4.54

Area 5. Regulation 4.91 4.68 4.94 4.30 4.38 5.72 6.12 6.04
A. Credit market regulations 6.46 5.86 6.53 4.84 5.68 8.84 8.84 8.86
(i) Ownership of banks 2.00 2.00 2.00 2.00 2.00 10.00 10.00 10.00
(ii) Private sector credit 9.37 9.57 9.60 8.53 9.37 8.52 8.51 8.58
(iii) Interest rate controls/negative real interest rates 8.00 6.00 8.00 4.00 8.00 8.00 8.00
B. Labor market regulations 3.49 4.60 4.38
(i) Hiring regulations and minimum wage 2.80 3.90 2.23
(ii) Hiring and firing regulations 4.83 4.84
(iii) Centralized collective bargaining 5.69 6.04
(iv) Hours regulations 4.70 6.00 6.00
(v) Mandated cost of worker dismissal 6.48 7.19 7.19
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 4.84 4.92 4.87
(i) Administrative requirements 3.71 3.50
(ii) Bureaucracy costs 4.09 4.09
(iii) Starting a business 6.08 8.46 8.53
(iv) Extra payments/bribes/favoritism 4.04 4.04
(v) Licensing restrictions 6.24 6.71 6.54
(vi) Cost of tax compliance 2.20 2.53 2.53

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146 E Economic Freedom of the World: 2013 Annual Report

Serbia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 5.96 (112) 6.45 (107) 6.46 (104)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.47 5.78 5.88
A. Government consumption 5.60 (20.95) 5.74 (20.50) 5.94 (19.80)
B. Transfers and subsidies 4.26 (21.56) 3.88 (22.96) 4.06 (22.28)
C. Government enterprises and investment 10.00 (14.06) 6.00 (15.46) 6.00 (13.18)
D. Top marginal tax rate 6.00 7.50 7.50
(i) Top marginal income tax rate 10.00 (15) 10.00 (15) 10.00 (15)
(ii) Top marginal income and payroll tax rate 2.00 (53) 5.00 (37) 5.00 (37)

Area 2. Legal System and Property Rights 4.78 4.92 4.95

A. Judicial independence 2.45 2.38 2.40
B. Impartial courts 2.94 2.59 2.52
C. Protection of property rights 4.62 3.54 3.52
D. Military interference in rule of law and politics 6.67 6.67 6.67
E. Integrity of the legal system 5.83 5.83 5.83
F. Legal enforcement of contracts 3.95 3.78 3.78
G. Regulatory restrictions on sale of real property 6.13 8.87 8.87
H. Reliability of police 4.49 4.78 5.06
I. Business costs of crime 5.96 5.85 5.93

Area 3. Sound Money 4.55 7.94 7.87

A. Money growth 6.40 (17.99) 9.37 (3.17) 9.55 (2.27)
B. Standard deviation of inflation 0.00 (32.54) 8.63 (3.42) 9.14 (2.14)
C. Inflation: most recent year 6.78 (16.10) 8.77 (6.14) 7.77 (11.14)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 7.18 7.21 7.16

A. Tariffs 7.75 8.17 8.27
(i) Revenue from trade taxes (% of trade sector) 7.47 (3.80) 8.85 (1.72) 9.12 (1.32)
(ii) Mean tariff rate 8.36 (8.20) 8.52 (7.40) 8.52 (7.40)
(iii) Standard deviation of tariff rates 7.43 (6.42) 7.13 (7.18) 7.16 (7.10)
B. Regulatory trade barriers 6.83 6.82 6.51
(i) Non-tariff trade barriers 5.37 5.35 4.73
(ii) Compliance costs of importing and exporting 8.28 8.28 8.28
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 4.13 3.86 3.86
(i) Foreign ownership/investment restrictions 5.37 4.57 4.58
(ii) Capital controls 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 6.24 6.24 6.24

Area 5. Regulation 6.83 6.38 6.43

A. Credit market regulations 9.39 8.50 8.47
(i) Ownership of banks 10.00 8.00 8.00
(ii) Private sector credit 9.16 7.51 7.42
(iii) Interest rate controls/negative real interest rates 9.00 10.00 10.00
B. Labor market regulations 5.90 5.68 5.72
(i) Hiring regulations and minimum wage 3.30 2.23 2.23
(ii) Hiring and firing regulations 5.00 4.38 4.30
(iii) Centralized collective bargaining 7.12 6.95 7.27
(iv) Hours regulations 9.30 10.00 10.00
(v) Mandated cost of worker dismissal 7.68 7.51 7.51
(vi) Conscription 3.00 3.00 3.00
C. Business regulations 5.19 4.95 5.08
(i) Administrative requirements 1.72 2.23 2.28
(ii) Bureaucracy costs 5.14 3.80 3.80
(iii) Starting a business 9.13 9.48 9.53
(iv) Extra payments/bribes/favoritism 5.68 3.83 4.06
(v) Licensing restrictions 2.59 3.47 3.95
(vi) Cost of tax compliance 6.87 6.87 6.87

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 Chapter 2: Country Data Tables E 147

Sierra Leone
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.97 (62) 3.67 (96) 3.86 (103) 4.33 (111) 5.23 (112) 5.99 (99) 6.69 (74) 6.73 (72)
Area 1. Size of Government 7.79 (8) 7.71 (4) 6.67 (26) 6.23 (56) 5.83 (75) 6.61 (64) 8.15 (12) 8.19 (13)
Area 2. Legal System and Property Rights 5.25 (53) 5.30 (55) 2.08 (116) 3.30 (114) 4.57 (85) 5.81 (65) 5.96 (59)
Area 3. Sound Money 6.02 (67) 0.42 (110) 0.06 (117) 3.81 (103) 6.47 (99) 6.32 (106) 6.95 (94) 6.86 (95)
Area 4. Freedom to Trade Internationally 0.60 (89) 0.69 (94) 2.46 (94) 4.57 (101) 4.33 (118) 6.06 (90) 6.33 (88) 6.42 (85)
Area 5. Regulation 5.49 (50) 4.29 (87) 4.84 (86) 4.96 (91) 6.25 (63) 6.29 (86) 6.31 (90) 6.39 (93)

Unadjusted
Summary Ratings Rank) h 4.79 (67) 3.76 (95) 3.86 (103) 4.47 (108) 5.28 (110) 5.62 (127) 6.28 (114) 6.32 (115)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.65 7.71 6.67 6.23 5.83 6.61 8.15 8.14
A. Government consumption 9.29 (8.40) 9.15 (8.90) 8.30 (11.78) 7.72 (13.75) 7.79 (13.50) 7.83 (13.37) 8.44 (11.30) 8.65 (10.60)
B. Transfers and subsidies 9.97 (0.60) 9.70 (1.60) 8.96 (4.30) 9.71 (1.57) 10.00 (0.00) 10.00 (0.00) 9.93 (0.75)
C. Government enterprises and investment 4.00 (35.80) 4.00 (31.00) 2.00 (40.40) 2.00 (46.43) 0.00 (75.30) 2.00 (43.20) 6.00 (28.09) 6.00 (26.27)
D. Top marginal tax rate 8.00
(i) Top marginal income tax rate 8.00 (30)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 5.25 5.30 2.64 3.52 3.15 4.00 4.23
A. Judicial independence 3.04
B. Impartial courts 3.96 4.89 3.60 3.90 3.99
C. Protection of property rights 4.27
D. Military interference in rule of law and politics 2.27 0.00 4.17 4.17 4.17
E. Integrity of the legal system 0.00 5.00 5.83 5.83 5.83
F. Legal enforcement of contracts 1.58 1.58 1.58
G. Regulatory restrictions on sale of real property 0.56 4.50 4.92
H. Reliability of police 4.28
I. Business costs of crime 6.00

Area 3. Sound Money 6.02 0.42 0.06 3.81 6.47 6.32 6.95 6.86
A. Money growth 7.16 (14.22) 1.69 (41.56) 0.24 (48.82) 6.93 (15.37) 4.37 (28.16) 5.91 (20.44) 7.73 (11.34) 7.60 (12.00)
B. Standard deviation of inflation 8.90 (2.76) 0.00 (26.10) 0.00 (29.16) 0.00 (26.09) 6.67 (8.33) 6.78 (8.04) 8.39 (4.02) 8.08 (4.79)
C. Inflation: most recent year 8.02 (9.90) 0.00 (85.08) 0.00 (89.15) 3.30 (33.49) 9.83 (-0.84) 7.59 (12.05) 6.67 (16.64) 6.76 (16.19)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 1.00 1.15 2.46 4.69 4.33 6.05 6.32 6.65
A. Tariffs 2.99 3.45 7.37 4.48 3.37 6.08 6.82 7.16
(i) Revenue from trade taxes (% of trade sector) 1.13 (13.30) 2.07 (11.90) 7.37 (3.95) 4.11 (8.83) 3.37 (9.95) 4.65 (8.02) 6.88 (4.68) 7.89 (3.16)
(ii) Mean tariff rate 4.84 (25.80) 4.84 (25.80) 4.84 (25.80) 7.28 (13.60) 7.28 (13.60) 7.28 (13.60)
(iii) Standard deviation of tariff rates 6.30 (9.25) 6.30 (9.25) 6.30 (9.25)
B. Regulatory trade barriers 5.44 6.47 6.00
(i) Non-tariff trade barriers 5.54
(ii) Compliance costs of importing and exporting 5.44 6.47 6.47
C. Black-market exchange rates 0.00 0.00 0.00 9.60 5.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 4.61 2.66 1.99 3.43
(i) Foreign ownership/investment restrictions 6.31
(ii) Capital controls 0.00 0.00 0.00 0.00 4.61 3.85 2.50 2.50
(iii) Freedom of foreigners to visit 1.47 1.47 1.47

Area 5. Regulation 5.49 4.29 4.84 4.96 6.25 5.97 5.99 5.73
A. Credit market regulations 4.67 1.47 2.94 3.25 6.67 6.45 5.24 5.43
(i) Ownership of banks 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
(ii) Private sector credit 6.02 2.40 6.82 5.76 10.00 8.34 4.71 5.28
(iii) Interest rate controls/negative real interest rates 6.00 0.00 0.00 2.00 8.00 9.00 9.00 9.00
B. Labor market regulations 5.68 5.67 5.85
(i) Hiring regulations and minimum wage 6.70 6.67 6.67
(ii) Hiring and firing regulations 6.11
(iii) Centralized collective bargaining 6.33
(iv) Hours regulations 6.00 6.00 6.00
(v) Mandated cost of worker dismissal 0.00 0.00 0.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.79 7.06 5.92
(i) Administrative requirements 4.82
(ii) Bureaucracy costs
(iii) Starting a business 5.83 8.64 8.77
(iv) Extra payments/bribes/favoritism 3.46
(v) Licensing restrictions 6.00 6.54 6.56
(vi) Cost of tax compliance 5.53 6.00 6.00

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148 E Economic Freedom of the World: 2013 Annual Report

Singapore
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 7.76 (4) 8.00 (4) 8.59 (2) 8.90 (2) 8.61 (4) 8.73 (2) 8.60 (2) 8.60 (2)
Area 1. Size of Government 6.98 (12) 6.59 (13) 8.22 (5) 8.39 (6) 7.97 (14) 8.00 (23) 8.06 (15) 8.16 (14)
Area 2. Legal System and Property Rights 8.13 (3) 7.25 (17) 7.25 (22) 8.31 (17) 8.53 (17) 8.21 (19) 8.11 (20) 8.10 (19)
Area 3. Sound Money 6.51 (39) 8.29 (25) 9.34 (15) 9.69 (11) 9.46 (22) 9.71 (2) 8.91 (51) 8.88 (54)
Area 4. Freedom to Trade Internationally 8.97 (6) 9.63 (2) 9.64 (2) 9.61 (3) 9.15 (12) 9.17 (2) 9.19 (2) 9.14 (2)
Area 5. Regulation 8.34 (2) 8.36 (2) 8.49 (3) 8.49 (3) 7.92 (6) 8.51 (5) 8.69 (2) 8.68 (3)

Unadjusted
Summary Ratings Rank) h 7.42 (6) 7.65 (7) 8.49 (2) 8.88 (2) 8.61 (4) 8.86 (2) 8.73 (2) 8.73 (2)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.98 6.59 8.22 8.39 7.97 8.00 8.06 8.16
A. Government consumption 7.08 (15.93) 4.70 (24.02) 6.45 (18.06) 6.92 (16.47) 5.65 (20.80) 5.81 (20.24) 5.24 (22.20) 5.65 (20.80)
B. Transfers and subsidies 9.84 (1.10) 9.65 (1.80) 9.43 (2.60) 9.65 (1.80) 9.23 (3.32) 9.17 (3.54) 10.00 (0.04) 10.00 (0.03)
C. Government enterprises and investment 7.00 (24.20) 4.00 (34.70) 8.00 (18.60) 8.00 (18.60) 8.00 (18.60) 7.00 (21.30) 7.00 7.00
D. Top marginal tax rate 4.00 8.00 9.00 9.00 9.00 10.00 10.00 10.00
(i) Top marginal income tax rate 4.00 (55) 8.00 (40) 9.00 (33) 9.00 (30) 9.00 (28) 10.00 (21) 10.00 (20) 10.00 (20)
(ii) Top marginal income and payroll tax rate 9.00 (33) 9.00 (30) 9.00 (28) 10.00 (21) 10.00 (20) 10.00 (20)

Area 2. Legal System and Property Rights 8.13 7.25 7.25 8.31 8.53 8.49 8.38 8.38
A. Judicial independence 7.17 7.35 7.01 7.73 7.82
B. Impartial courts 7.05 7.68 7.97 7.99 8.08
C. Protection of property rights 7.33 7.62 8.90 8.97 8.96
D. Military interference in rule of law and politics 10.00 10.00 8.33 8.33 8.33
E. Integrity of the legal system 10.00 10.00 8.33 8.33 8.33
F. Legal enforcement of contracts 8.48 7.77 7.77
G. Regulatory restrictions on sale of real property 8.91 8.99 8.65
H. Reliability of police 9.17 9.03 8.93
I. Business costs of crime 9.29 8.30 8.51

Area 3. Sound Money 6.51 8.29 9.34 9.69 9.46 9.71 8.91 8.88
A. Money growth 9.76 (1.21) 9.47 (-2.66) 9.42 (2.90) 9.89 (0.55) 9.42 (-2.88) 9.83 (0.85) 7.65 (11.77) 8.00 (10.02)
B. Standard deviation of inflation 8.57 (3.57) 8.90 (2.76) 8.91 (2.73) 9.39 (1.53) 8.70 (3.24) 9.11 (2.21) 8.56 (3.59) 8.58 (3.54)
C. Inflation: most recent year 7.71 (11.47) 9.78 (-1.10) 9.02 (4.92) 9.47 (2.66) 9.73 (1.36) 9.91 (0.43) 9.44 (2.80) 8.95 (5.25)
D. Freedom to own foreign currency bank accounts 0.00 5.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 9.28 9.96 9.90 9.45 9.15 9.37 9.39 9.34
A. Tariffs 9.84 9.87 9.70 9.59 9.95 9.99 10.00 10.00
(i) Revenue from trade taxes (% of trade sector) 9.73 (0.40) 9.80 (0.30) 9.91 (0.14) 9.93 (0.10) 9.93 (0.11) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00)
(ii) Mean tariff rate 9.94 (0.30) 9.94 (0.30) 9.92 (0.40) 9.92 (0.40) 9.92 (0.40) 9.98 (0.10) 10.00 (0.00) 10.00 (0.00)
(iii) Standard deviation of tariff rates 9.28 (1.80) 8.92 (2.70) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00)
B. Regulatory trade barriers 8.85 9.39 9.08 9.00 8.83
(i) Non-tariff trade barriers 8.85 8.79 8.60 8.50 8.17
(ii) Compliance costs of importing and exporting 10.00 9.56 9.50 9.50
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 8.00 10.00 10.00 9.34 7.25 8.40 8.58 8.52
(i) Foreign ownership/investment restrictions 8.68 9.12 9.06 8.82 8.63
(ii) Capital controls 8.00 10.00 10.00 10.00 5.38 6.15 6.92 6.92
(iii) Freedom of foreigners to visit 10.00 10.00 10.00

Area 5. Regulation 6.18 6.19 7.74 8.56 7.92 8.73 8.92 8.91
A. Credit market regulations 9.64 9.67 10.00 10.00 10.00 10.00 10.00 10.00
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 8.91 9.00 10.00 10.00 10.00 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 5.48 6.16 5.52 7.65 7.72 7.70
(i) Hiring regulations and minimum wage 7.13 4.56 10.00 10.00 10.00
(ii) Hiring and firing regulations 8.50 8.50 7.17 8.15 8.03 7.83
(iii) Centralized collective bargaining 7.93 7.93 7.93 7.93 8.37 8.15 8.30 8.34
(iv) Hours regulations 7.25 7.52 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 9.63 10.00 10.00
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 9.50 8.22 8.54 9.04 9.03
(i) Administrative requirements 7.68 6.79 7.60 7.61
(ii) Bureaucracy costs 9.73 8.05 6.42 8.61 8.61
(iii) Starting a business 9.07 8.02 9.80 9.90 9.90
(iv) Extra payments/bribes/favoritism 9.72 9.15 9.58 9.09 8.98
(v) Licensing restrictions 9.22 9.97 9.97
(vi) Cost of tax compliance 9.45 9.06 9.08

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 Chapter 2: Country Data Tables E 149

Slovak Republic
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.55 (80) 6.20 (78) 7.64 (24) 7.43 (36) 7.47 (34)
Area 1. Size of Government 2.66 (118) 2.98 (120) 6.48 (70) 6.29 (66) 6.43 (61)
Area 2. Legal System and Property Rights 6.50 (45) 6.30 (56) 6.51 (53) 5.67 (69) 5.70 (63)
Area 3. Sound Money 8.16 (29) 6.69 (60) 7.90 (60) 9.15 (40) 9.71 (4) 9.58 (15)
Area 4. Freedom to Trade Internationally 6.98 (57) 7.92 (41) 8.49 (14) 8.39 (17) 8.33 (17)
Area 5. Regulation 4.91 (93) 5.91 (87) 7.58 (19) 7.10 (45) 7.29 (37)

Unadjusted
Summary Ratings Rank) h 5.42 (82) 6.20 (75) 7.63 (21) 7.42 (36) 7.46 (36)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.39 2.98 6.48 6.29 6.43
A. Government consumption 3.27 (28.89) 3.18 (29.20) 4.04 (26.26) 4.59 (24.38) 4.38 (25.11) 4.74 (23.90)
B. Transfers and subsidies 3.88 (22.95) 4.82 (19.50) 4.29 (21.46) 4.49 (20.74)
C. Government enterprises and investment 0.00 (75.10) 0.00 (75.10) 10.00 (7.86) 10.00 (12.29) 10.00 (9.93)
D. Top marginal tax rate 4.00 4.00 6.50 6.50 6.50
(i) Top marginal income tax rate 4.00 (42) 4.00 (42) 10.00 (19) 10.00 (19) 10.00 (19)
(ii) Top marginal income and payroll tax rate 4.00 (42) 4.00 (44) 3.00 (48) 3.00 (48) 3.00 (50)

Area 2. Legal System and Property Rights 6.50 6.30 6.63 5.78 5.81
A. Judicial independence 5.08 5.01 4.30 2.77 2.78
B. Impartial courts 5.43 5.18 4.37 2.13 2.29
C. Protection of property rights 3.97 4.67 6.67 5.09 5.14
D. Military interference in rule of law and politics 8.04 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 4.64 4.38 4.53
G. Regulatory restrictions on sale of real property 9.65 9.68 9.68
H. Reliability of police 5.77 4.67 4.80
I. Business costs of crime 7.62 6.64 6.42

Area 3. Sound Money 8.81 6.69 7.90 9.15 9.71 9.58

A. Money growth 7.32 (13.40) 9.81 (-0.94) 7.67 (11.66) 9.56 (2.20) 9.56 (2.20)
B. Standard deviation of inflation 8.99 (2.52) 6.39 (9.03) 9.20 (2.01) 9.46 (1.34) 9.48 (1.29) 9.56 (1.10)
C. Inflation: most recent year 8.63 (6.86) 8.05 (9.73) 7.59 (12.04) 9.46 (2.71) 9.81 (0.96) 9.22 (3.92)
D. Freedom to own foreign currency bank accounts 5.00 5.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.81 7.92 8.16 8.07 8.01

A. Tariffs 8.78 9.07 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.34 (0.99) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.78 (6.10) 8.80 (6.00) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 4.83 7.17 7.35 7.34 7.11
(i) Non-tariff trade barriers 4.83 6.67 7.94 7.01 6.53
(ii) Compliance costs of importing and exporting 7.66 6.76 7.68 7.68
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 3.65 5.46 6.91 6.61 6.66
(i) Foreign ownership/investment restrictions 5.29 7.83 8.77 7.86 8.03
(ii) Capital controls 2.00 3.08 5.38 5.38 5.38
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 4.68 5.91 7.75 7.25 7.44

A. Credit market regulations 5.44 7.70 9.55 8.88 9.01
(i) Ownership of banks 5.00 5.00 10.00 10.00 10.00
(ii) Private sector credit 5.31 8.10 8.66 6.63 7.03
(iii) Interest rate controls/negative real interest rates 6.00 10.00 10.00 10.00 10.00
B. Labor market regulations 4.38 4.54 7.53 7.15 7.61
(i) Hiring regulations and minimum wage 6.12 4.17 8.30 6.67 6.67
(ii) Hiring and firing regulations 4.92 4.92 3.00 6.83 3.71 4.18
(iii) Centralized collective bargaining 5.18 7.67 8.28 6.79 6.81
(iv) Hours regulations 4.68 4.84 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 8.79 7.76 10.00
(vi) Conscription 1.00 3.00 5.00 10.00 10.00
C. Business regulations 4.23 5.49 6.15 5.72 5.71
(i) Administrative requirements 8.00 3.49 2.76 2.67
(ii) Bureaucracy costs 4.70 4.50 5.21 4.34 4.34
(iii) Starting a business 4.28 3.00 9.02 9.34 9.40
(iv) Extra payments/bribes/favoritism 3.70 6.47 6.61 4.22 3.93
(v) Licensing restrictions 6.21 6.24 6.24
(vi) Cost of tax compliance 6.36 7.41 7.68

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150 E Economic Freedom of the World: 2013 Annual Report

Slovenia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.15 (95) 6.72 (57) 6.95 (60) 6.58 (80) 6.58 (81)
Area 1. Size of Government 1.46 (121) 4.92 (94) 4.91 (104) 4.29 (112) 4.49 (112)
Area 2. Legal System and Property Rights 8.04 (22) 7.29 (36) 6.76 (45) 6.88 (40) 6.89 (39)
Area 3. Sound Money 3.12 (108) 7.49 (68) 8.79 (51) 8.30 (69) 8.29 (68)
Area 4. Freedom to Trade Internationally 7.42 (46) 7.69 (49) 7.62 (46) 7.33 (51) 7.19 (52)
Area 5. Regulation 5.97 (55) 6.18 (71) 6.72 (68) 6.20 (92) 6.17 (98)

Unadjusted
Summary Ratings Rank) h 5.11 (93) 6.54 (62) 6.96 (67) 6.59 (96) 6.59 (97)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 1.75 4.92 4.91 4.29 4.49
A. Government consumption 4.15 (25.90) 4.17 (25.83) 3.67 (27.51) 4.04 (26.27) 3.81 (27.06) 3.94 (26.60)
B. Transfers and subsidies 1.09 (33.20) 4.02 (22.44) 4.08 (22.22) 3.85 (23.08) 3.53 (24.23)
C. Government enterprises and investment 0.00 (75.10) 10.00 (4.60) 10.00 (8.70) 7.00 (22.05) 8.00 (19.36)
D. Top marginal tax rate 2.00 1.50 2.50 2.50
(i) Top marginal income tax rate 4.00 (50) 3.00 (50) 4.00 (41) 4.00 (41)
(ii) Top marginal income and payroll tax rate 0.00 (70) 0.00 (70) 1.00 (60) 1.00 (60)

Area 2. Legal System and Property Rights 7.44 6.40 6.09 6.20 6.22
A. Judicial independence 5.87 4.63 4.60
B. Impartial courts 7.02 7.14 5.27 3.30 3.06
C. Protection of property rights 5.37 6.48 5.68 5.68
D. Military interference in rule of law and politics 9.22 8.33 8.33 9.17 9.17
E. Integrity of the legal system 10.00 8.33 7.50 7.50 7.50
F. Legal enforcement of contracts 3.87 4.23 4.23
G. Regulatory restrictions on sale of real property 4.34 7.26 7.26
H. Reliability of police 5.74 5.64 6.18
I. Business costs of crime 7.42 8.43 8.26

Area 3. Sound Money 3.12 7.49 8.79 8.30 8.29

A. Money growth 0.00 (57.50) 7.62 (11.91) 6.88 (15.58) 9.41 (2.96) 9.40 (2.99)
B. Standard deviation of inflation 0.00 (79.63) 9.12 (2.19) 8.78 (3.04) 9.16 (2.11) 9.12 (2.20)
C. Inflation: most recent year 7.48 (12.60) 8.22 (8.88) 9.50 (2.48) 9.63 (1.84) 9.64 (1.81)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00 10.00 5.00 5.00

Area 4. Freedom to Trade Internationally 7.51 7.69 7.93 7.63 7.48

A. Tariffs 7.53 8.05 8.48 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 7.53 (3.70) 9.48 (0.78) 9.84 (0.24) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 7.64 (11.80) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.04 (7.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 7.38 7.23 7.29 7.13
(i) Non-tariff trade barriers 7.38 7.29 6.69 6.31
(ii) Compliance costs of importing and exporting 7.18 7.89 7.95
C. Black-market exchange rates 0.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 5.00 5.30 6.01 4.90 4.52
(i) Foreign ownership/investment restrictions 6.76 5.30 4.27 3.91
(ii) Capital controls 0.00 0.00 0.00 5.00 3.85 6.15 3.85 3.08
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 5.74 6.18 7.06 6.51 6.49

A. Credit market regulations 7.65 8.18 9.14 7.50 7.40
(i) Ownership of banks 5.00 5.00 8.00 5.00 5.00
(ii) Private sector credit 9.94 9.55 9.42 7.50 7.19
(iii) Interest rate controls/negative real interest rates 8.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.60 5.56 5.55 5.60
(i) Hiring regulations and minimum wage 4.02 3.90 2.23 2.23
(ii) Hiring and firing regulations 2.32 2.92 2.21 2.15
(iii) Centralized collective bargaining 5.05 5.55 4.74 5.06
(iv) Hours regulations 4.70 6.00 6.00
(v) Mandated cost of worker dismissal 6.29 8.13 8.13
(vi) Conscription 3.00 3.00 10.00 10.00 10.00
C. Business regulations 6.77 6.47 6.49 6.47
(i) Administrative requirements 6.95 3.18 3.33 2.89
(ii) Bureaucracy costs 7.80 5.38 5.59 5.59
(iii) Starting a business 5.73 7.80 9.66 9.66
(iv) Extra payments/bribes/favoritism 6.58 8.27 5.72 5.98
(v) Licensing restrictions 7.12 7.56 7.59
(vi) Cost of tax compliance 7.09 7.09 7.09

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 Chapter 2: Country Data Tables E 151

South Africa
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.85 (31) 5.49 (48) 5.50 (57) 6.57 (47) 7.08 (41) 7.00 (56) 6.87 (67) 6.93 (64)
Area 1. Size of Government 5.97 (26) 6.10 (24) 6.32 (36) 6.30 (52) 6.45 (53) 5.99 (87) 5.52 (87) 5.45 (94)
Area 2. Legal System and Property Rights 6.18 (31) 4.46 (65) 2.93 (93) 6.11 (52) 6.54 (50) 7.19 (36) 6.98 (37) 7.19 (33)
Area 3. Sound Money 5.29 (84) 5.63 (86) 5.81 (78) 6.44 (66) 7.85 (64) 7.98 (70) 8.18 (72) 8.26 (69)
Area 4. Freedom to Trade Internationally 7.09 (19) 5.80 (36) 7.13 (29) 6.70 (61) 7.35 (58) 6.69 (76) 6.63 (80) 6.82 (76)
Area 5. Regulation 4.98 (71) 5.55 (57) 5.55 (66) 7.27 (15) 7.19 (28) 7.21 (39) 7.05 (47) 6.99 (57)

Unadjusted
Summary Ratings Rank) h 5.84 (32) 5.48 (50) 5.56 (55) 6.51 (46) 7.08 (41) 6.87 (71) 6.74 (88) 6.80 (88)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.97 6.10 6.32 6.30 6.45 5.99 5.52 5.45
A. Government consumption 5.61 (20.94) 4.58 (24.43) 4.46 (24.83) 4.50 (24.69) 5.17 (22.42) 4.76 (23.83) 3.96 (26.53) 3.88 (26.80)
B. Transfers and subsidies 9.26 (3.20) 8.83 (4.80) 8.83 (4.80) 8.69 (5.30) 8.62 (5.55) 8.69 (5.31) 8.62 (5.57) 8.43 (6.26)
C. Government enterprises and investment 7.00 (24.60) 7.00 (24.60) 7.00 (20.30) 8.00 (15.10) 8.00 (17.80) 6.00 (25.60) 4.00 (39.20) 4.00 (37.70)
D. Top marginal tax rate 2.00 4.00 5.00 4.00 4.00 4.50 5.50 5.50
(i) Top marginal income tax rate 2.00 (60) 4.00 (50) 5.00 (45) 4.00 (43) 4.00 (45) 5.00 (40) 6.00 (40) 6.00 (40)
(ii) Top marginal income and payroll tax rate 5.00 (45) 4.00 (43) 4.00 (45) 4.00 (41) 5.00 (41) 5.00 (41)

Area 2. Legal System and Property Rights 6.18 4.46 2.93 6.11 6.54 5.87 5.70 5.88
A. Judicial independence 7.17 7.18 7.63 6.62 7.14
B. Impartial courts 7.85 8.02 7.62 6.46 6.52
C. Protection of property rights 6.53 5.82 7.97 7.15 7.34
D. Military interference in rule of law and politics 4.91 8.33 8.33 8.33 8.33
E. Integrity of the legal system 4.11 3.33 4.17 4.17 4.17
F. Legal enforcement of contracts 3.93 3.93 3.93
G. Regulatory restrictions on sale of real property 6.64 7.72 7.63
H. Reliability of police 3.88 4.38 4.68
I. Business costs of crime 2.70 2.52 3.16

Area 3. Sound Money 5.29 5.63 5.81 6.44 7.85 7.98 8.18 8.26
A. Money growth 7.86 (10.69) 7.60 (12.01) 6.75 (16.24) 8.22 (8.89) 7.87 (10.66) 8.60 (6.98) 9.22 (3.90) 9.58 (2.09)
B. Standard deviation of inflation 8.12 (4.71) 8.54 (3.66) 9.49 (1.27) 9.29 (1.78) 9.60 (0.99) 9.01 (2.48) 9.37 (1.57) 9.46 (1.35)
C. Inflation: most recent year 5.18 (24.12) 6.39 (18.06) 6.98 (15.09) 8.25 (8.76) 8.93 (5.34) 9.32 (3.40) 9.15 (4.27) 9.00 (5.00)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 5.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 6.49 5.31 6.22 6.48 7.35 7.05 6.99 7.19
A. Tariffs 8.66 8.93 7.27 5.54 7.74 6.84 6.84 6.79
(i) Revenue from trade taxes (% of trade sector) 9.20 (1.20) 9.07 (1.40) 8.53 (2.20) 9.33 (1.00) 9.01 (1.48) 8.59 (2.11) 8.79 (1.82) 8.70 (1.95)
(ii) Mean tariff rate 8.12 (9.40) 8.80 (6.00) 7.80 (11.00) 6.06 (19.70) 8.30 (8.50) 8.30 (8.50) 8.46 (7.70) 8.46 (7.70)
(iii) Standard deviation of tariff rates 5.48 (11.30) 1.24 (21.90) 5.92 (10.20) 3.63 (15.92) 3.29 (16.79) 3.22 (16.94)
B. Regulatory trade barriers 6.40 7.56 6.07 5.89 6.74
(i) Non-tariff trade barriers 6.40 6.62 6.67 6.13 6.10
(ii) Compliance costs of importing and exporting 8.50 5.46 5.65 7.39
C. Black-market exchange rates 8.80 5.00 9.40 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 3.98 4.12 5.30 5.22 5.21
(i) Foreign ownership/investment restrictions 5.97 7.46 6.97 6.73 6.69
(ii) Capital controls 2.00 2.00 2.00 2.00 0.77 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 8.16 8.16 8.16

Area 5. Regulation 5.30 5.90 6.50 7.23 7.19 7.47 7.30 7.23
A. Credit market regulations 7.48 9.08 9.07 9.77 9.59 9.96 9.18 9.12
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 8.43 9.25 9.22 9.30 8.76 9.87 7.54 7.35
(iii) Interest rate controls/negative real interest rates 4.00 8.00 8.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.92 6.11 5.47 6.06 6.09 5.95
(i) Hiring regulations and minimum wage 2.87 4.61 4.40 4.43 4.43
(ii) Hiring and firing regulations 5.55 5.55 2.05 2.36 2.46 1.92
(iii) Centralized collective bargaining 6.21 6.21 4.52 3.84 3.39 3.08
(iv) Hours regulations 5.90 6.18 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.78 8.27 8.27
(vi) Conscription 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.81 6.53 6.38 6.62 6.63
(i) Administrative requirements 6.92 3.29 2.88 2.91
(ii) Bureaucracy costs 6.38 6.53 4.55 5.42 5.42
(iii) Starting a business 6.43 5.88 8.81 9.39 9.39
(iv) Extra payments/bribes/favoritism 4.60 6.77 7.54 5.46 5.51
(v) Licensing restrictions 8.02 8.81 8.79
(vi) Cost of tax compliance 6.08 7.76 7.76

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152 E Economic Freedom of the World: 2013 Annual Report

Spain
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.10 (24) 6.08 (32) 6.57 (30) 7.25 (29) 7.54 (28) 7.60 (27) 7.32 (39) 7.50 (31)
Area 1. Size of Government 5.18 (47) 4.20 (80) 4.67 (86) 4.16 (101) 4.75 (97) 6.57 (66) 5.65 (83) 6.15 (74)
Area 2. Legal System and Property Rights 6.35 (28) 6.42 (27) 7.16 (26) 7.46 (29) 7.54 (32) 6.75 (46) 6.79 (44) 6.87 (41)
Area 3. Sound Money 6.07 (62) 6.61 (58) 6.36 (67) 9.61 (14) 9.44 (24) 9.58 (15) 9.67 (7) 9.68 (4)
Area 4. Freedom to Trade Internationally 7.60 (14) 7.48 (17) 8.63 (13) 8.94 (16) 8.98 (18) 7.85 (35) 7.77 (41) 7.71 (40)
Area 5. Regulation 5.31 (56) 5.69 (51) 6.00 (45) 6.06 (52) 7.00 (37) 7.32 (29) 6.82 (63) 7.16 (45)

Unadjusted
Summary Ratings Rank) h 6.16 (26) 6.14 (29) 6.56 (32) 7.19 (29) 7.54 (24) 7.63 (21) 7.35 (43) 7.53 (32)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.18 4.20 4.67 4.16 4.75 6.57 5.65 6.15
A. Government consumption 6.93 (16.45) 6.27 (18.67) 5.89 (19.98) 5.53 (21.18) 5.22 (22.25) 4.79 (23.73) 4.05 (26.24) 4.00 (26.40)
B. Transfers and subsidies 6.78 (12.30) 5.53 (16.90) 5.78 (16.00) 5.10 (18.47) 5.76 (16.05) 6.00 (15.18) 4.56 (20.46) 4.61 (20.29)
C. Government enterprises and investment 6.00 (27.10) 4.00 (30.20) 4.00 (33.50) 4.00 (33.50) 4.00 (33.50) 10.00 (12.08) 8.00 (17.85) 10.00 (13.70)
D. Top marginal tax rate 1.00 1.00 3.00 2.00 4.00 5.50 6.00 6.00
(i) Top marginal income tax rate 1.00 (66) 1.00 (66) 3.00 (56) 2.00 (56) 4.00 (48) 6.00 (35-45) 6.00 (35-43) 6.00 (45)
(ii) Top marginal income and payroll tax rate 3.00 (56) 2.00 (56) 4.00 (48) 5.00 (45) 6.00 (35-43) 6.00 (45)

Area 2. Legal System and Property Rights 6.35 6.42 7.16 7.46 7.54 6.73 6.76 6.85
A. Judicial independence 6.75 7.52 4.49 4.86 5.01
B. Impartial courts 6.63 8.02 5.26 4.43 4.60
C. Protection of property rights 6.09 7.15 7.69 6.49 6.41
D. Military interference in rule of law and politics 7.85 8.33 8.33 8.33 8.33
E. Integrity of the legal system 10.00 6.67 8.33 8.33 8.33
F. Legal enforcement of contracts 5.54 5.54 5.58
G. Regulatory restrictions on sale of real property 7.31 7.42 7.42
H. Reliability of police 7.47 8.06 8.36
I. Business costs of crime 6.11 7.41 7.57

Area 3. Sound Money 6.07 6.61 6.36 9.61 9.44 9.58 9.67 9.68
A. Money growth 8.36 (8.21) 8.80 (5.98) 7.70 (11.50) 9.93 (-0.35) 8.66 (6.70) 9.02 (4.88) 9.65 (1.73) 9.89 (0.53)
B. Standard deviation of inflation 8.60 (3.49) 9.16 (2.09) 9.22 (1.95) 9.48 (1.31) 9.77 (0.57) 9.95 (0.12) 9.38 (1.54) 9.47 (1.32)
C. Inflation: most recent year 7.33 (13.35) 8.46 (7.69) 8.54 (7.31) 9.04 (4.81) 9.31 (3.43) 9.33 (3.37) 9.64 (1.80) 9.36 (3.20)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 7.74 7.62 8.60 8.66 8.98 7.96 7.88 7.82
A. Tariffs 8.22 8.25 8.21 8.72 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 8.20 (2.70) 8.00 (3.00) 9.00 (1.50) 9.87 (0.20) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 7.63 8.73 7.76 7.81 7.70
(i) Non-tariff trade barriers 7.63 7.62 6.73 6.83 6.55
(ii) Compliance costs of importing and exporting 9.83 8.79 8.79 8.85
C. Black-market exchange rates 10.00 9.60 9.60 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 5.00 5.00 8.00 8.28 8.02 5.68 5.37 5.31
(i) Foreign ownership/investment restrictions 8.57 9.11 7.39 6.47 6.26
(ii) Capital controls 5.00 5.00 8.00 8.00 6.92 3.08 3.08 3.08
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 5.46 5.85 5.99 6.03 7.00 7.30 6.80 7.15
A. Credit market regulations 7.37 8.27 8.27 8.45 9.93 10.00 9.08 9.35
(i) Ownership of banks 8.00 8.00 8.00 8.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 8.11 6.80 6.82 7.36 9.79 10.00 7.25 8.06
(iii) Interest rate controls/negative real interest rates 6.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 3.55 3.44 3.71 4.07 3.92 5.33 4.70 5.44
(i) Hiring regulations and minimum wage 5.78 3.06 2.20 2.23 5.57
(ii) Hiring and firing regulations 2.62 2.62 3.67 2.82 2.61 3.41
(iii) Centralized collective bargaining 5.18 5.18 5.18 5.18 4.85 6.13 4.29 4.62
(iv) Hours regulations 4.49 4.13 4.05 3.75 5.01 6.00 4.00 4.00
(v) Mandated cost of worker dismissal 4.81 5.07 5.07
(vi) Conscription 1.00 1.00 3.00 3.00 3.00 10.00 10.00 10.00
C. Business regulations 5.58 7.15 6.58 6.61 6.64
(i) Administrative requirements 7.40 3.23 2.95 2.99
(ii) Bureaucracy costs 6.37 7.90 6.30 5.79 5.79
(iii) Starting a business 5.32 5.67 8.28 9.01 9.01
(iv) Extra payments/bribes/favoritism 5.06 7.63 8.02 6.14 6.05
(v) Licensing restrictions 6.99 7.86 7.86
(vi) Cost of tax compliance 6.66 7.90 8.13

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 Chapter 2: Country Data Tables E 153

Sri Lanka
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.77 (66) 4.95 (69) 4.81 (85) 6.07 (66) 6.16 (81) 6.21 (87) 6.27 (96) 6.42 (87)
Area 1. Size of Government 5.64 (33) 5.77 (31) 7.03 (18) 6.83 (31) 7.02 (35) 8.09 (17) 7.08 (37) 7.84 (20)
Area 2. Legal System and Property Rights 3.77 (57) 3.22 (88) 2.19 (106) 4.38 (101) 4.21 (99) 4.08 (100) 4.60 (88) 4.67 (85)
Area 3. Sound Money 5.47 (81) 6.29 (75) 5.50 (87) 6.69 (61) 6.74 (90) 6.13 (108) 6.55 (106) 6.46 (110)
Area 4. Freedom to Trade Internationally 3.11 (64) 2.92 (71) 2.92 (88) 5.93 (76) 6.35 (79) 6.46 (81) 6.42 (85) 6.43 (84)
Area 5. Regulation 5.75 (42) 6.46 (28) 6.38 (36) 6.50 (39) 6.49 (53) 6.27 (88) 6.66 (78) 6.68 (78)

Unadjusted
Summary Ratings Rank) h 4.54 (73) 4.71 (79) 4.75 (88) 5.97 (65) 6.15 (79) 6.44 (90) 6.50 (103) 6.66 (92)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.20 4.29 6.97 6.83 7.02 8.09 7.08 7.84
A. Government consumption 8.93 (9.62) 8.42 (11.39) 8.41 (11.39) 7.78 (13.54) 8.04 (12.68) 8.84 (9.96) 6.13 (19.15) 6.62 (17.50)
B. Transfers and subsidies 7.85 (8.40) 8.75 (5.10) 8.50 (6.00) 8.53 (5.90) 9.03 (4.05) 8.53 (5.90) 9.18 (3.50) 9.23 (3.32)
C. Government enterprises and investment 0.00 (53.50) 0.00 (54.30) 4.00 (39.20) 4.00 (39.20) 4.00 (39.20) 8.00 (16.46) 7.00 (22.30) 7.00 (20.89)
D. Top marginal tax rate 0.00 0.00 7.00 7.00 7.00 6.00 8.50
(i) Top marginal income tax rate 0.00 (60) 0.00 (60) 7.00 (35) 7.00 (35) 7.00 (35) 7.00 (35) 9.00 (24)
(ii) Top marginal income and payroll tax rate 7.00 (35) 7.00 (35) 7.00 (35) 5.00 (38) 8.00 (26)

Area 2. Legal System and Property Rights 3.98 3.40 2.31 4.47 4.18 4.66 5.25 5.34
A. Judicial independence 4.16 5.51 5.17
B. Impartial courts 4.92 5.01 4.38 5.68 5.75
C. Protection of property rights 3.50 6.02 5.77 5.53
D. Military interference in rule of law and politics 1.98 3.33 3.33 3.33 3.33
E. Integrity of the legal system 6.96 5.00 5.00 4.17 4.17
F. Legal enforcement of contracts 3.61 3.61 3.61
G. Regulatory restrictions on sale of real property 6.75 6.75 7.19
H. Reliability of police 3.82 5.10 5.32
I. Business costs of crime 4.83 7.33 7.95

Area 3. Sound Money 5.47 6.29 5.50 6.69 6.74 6.13 6.55 6.46
A. Money growth 7.31 (13.43) 8.27 (8.64) 8.03 (9.85) 8.78 (6.08) 9.22 (3.92) 8.12 (9.42) 9.17 (4.16) 9.06 (4.71)
B. Standard deviation of inflation 8.57 (3.57) 7.01 (7.47) 8.01 (4.97) 9.82 (0.45) 8.99 (2.52) 8.75 (3.13) 8.21 (4.47) 8.14 (4.66)
C. Inflation: most recent year 6.00 (19.98) 9.88 (0.58) 5.94 (20.29) 8.14 (9.30) 8.76 (6.18) 7.67 (11.64) 8.81 (5.94) 8.66 (6.72)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 3.39 3.19 2.71 5.48 6.35 6.98 6.93 6.94
A. Tariffs 1.97 3.57 2.92 4.85 7.62 6.85 6.48 6.50
(i) Revenue from trade taxes (% of trade sector) 2.20 (11.70) 2.93 (10.60) 4.13 (8.80) 7.00 (4.50) 8.57 (2.15) 7.92 (3.12) 7.07 (4.40) 7.35 (3.98)
(ii) Mean tariff rate 1.74 (41.30) 4.20 (29.00) 4.62 (26.90) 4.78 (26.10) 8.02 (9.90) 7.74 (11.30) 7.88 (10.60) 7.96 (10.20)
(iii) Standard deviation of tariff rates 0.00 (25.50) 2.76 (18.10) 6.28 (9.30) 4.89 (12.77) 4.49 (13.78) 4.21 (14.48)
B. Regulatory trade barriers 4.75 5.84 6.15 6.10
(i) Non-tariff trade barriers 4.75 5.23 5.08 4.89
(ii) Compliance costs of importing and exporting 6.44 7.22 7.30
C. Black-market exchange rates 8.20 6.00 5.20 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 2.00 3.02 5.24 5.09 5.17
(i) Foreign ownership/investment restrictions 6.04 7.00 6.54 6.79
(ii) Capital controls 0.00 0.00 0.00 2.00 0.00 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 8.73 8.73 8.73

Area 5. Regulation 5.67 6.36 6.28 6.40 6.49 6.32 6.72 6.73
A. Credit market regulations 5.13 6.97 6.76 7.06 7.04 7.34 7.36 7.37
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 6.39 7.92 7.27 6.19 6.12 7.03 7.08 7.10
(iii) Interest rate controls/negative real interest rates 4.00 8.00 8.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 5.87 6.60 6.44 6.37
(i) Hiring regulations and minimum wage 4.06 10.00 10.00 10.00
(ii) Hiring and firing regulations 2.88 3.40 3.87 3.43
(iii) Centralized collective bargaining 6.53 6.22 6.78 6.78
(iv) Hours regulations 10.00 8.00 8.00
(v) Mandated cost of worker dismissal 0.00 0.00 0.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 6.55 5.02 6.35 6.45
(i) Administrative requirements 7.27 2.84 4.53 4.60
(ii) Bureaucracy costs 7.15 3.66 5.26 5.26
(iii) Starting a business 6.48 8.30 8.83 9.58
(iv) Extra payments/bribes/favoritism 5.30 4.74 5.02 4.76
(v) Licensing restrictions 3.46 7.31 7.33
(vi) Cost of tax compliance 7.13 7.13 7.15

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154 E Economic Freedom of the World: 2013 Annual Report

Suriname
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.54 (99) 6.29 (120)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.10 5.36
A. Government consumption 5.21 (22.30) 4.08 (26.12)
B. Transfers and subsidies
C. Government enterprises and investment 7.00 (21.14) 7.00 (21.14)
D. Top marginal tax rate 5.00
(i) Top marginal income tax rate 5.00 (38)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 4.34 4.27

A. Judicial independence 5.59 5.22
B. Impartial courts 2.79 3.31
C. Protection of property rights 4.42 4.32
D. Military interference in rule of law and politics 5.00 5.00
E. Integrity of the legal system 5.00
F. Legal enforcement of contracts 2.75 2.75
G. Regulatory restrictions on sale of real property 1.74 1.77
H. Reliability of police 6.18 6.24
I. Business costs of crime 5.64 5.55

Area 3. Sound Money 8.82 8.45

A. Money growth 9.13 (-4.33) 9.72 (-1.40)
B. Standard deviation of inflation 7.53 (6.17) 7.64 (5.91)
C. Inflation: most recent year 8.61 (6.94) 6.46 (17.71)
D. Freedom to own foreign currency bank accounts 10.00 10.00

Area 4. Freedom to Trade Internationally 6.49 6.53

A. Tariffs 7.03 7.05
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 7.92 (10.40) 7.94 (10.30)
(iii) Standard deviation of tariff rates 6.13 (9.67) 6.17 (9.58)
B. Regulatory trade barriers 6.51 6.60
(i) Non-tariff trade barriers 6.51 6.27
(ii) Compliance costs of importing and exporting 6.51 6.92
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 2.42 2.46
(i) Foreign ownership/investment restrictions 4.88 5.00
(ii) Capital controls 0.00 0.00
(iii) Freedom of foreigners to visit 2.38 2.38

Area 5. Regulation 6.94 6.84

A. Credit market regulations 8.05 7.75
(i) Ownership of banks 5.00 5.00
(ii) Private sector credit 9.14 9.24
(iii) Interest rate controls/negative real interest rates 10.00 9.00
B. Labor market regulations 7.85 7.77
(i) Hiring regulations and minimum wage 10.00 10.00
(ii) Hiring and firing regulations 3.18 2.96
(iii) Centralized collective bargaining 6.93 6.65
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 7.01 7.01
(vi) Conscription 10.00 10.00
C. Business regulations 4.92 4.99
(i) Administrative requirements 2.99 3.45
(ii) Bureaucracy costs 4.27 4.27
(iii) Starting a business 5.46 5.50
(iv) Extra payments/bribes/favoritism 4.19 4.06
(v) Licensing restrictions 4.87 4.89
(vi) Cost of tax compliance 7.77 7.77

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 Chapter 2: Country Data Tables E 155

Swaziland
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.86 (81) 6.56 (98)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.75 5.73
A. Government consumption 7.41 (14.80) 7.32 (15.10)
B. Transfers and subsidies 8.58 (5.70) 8.58 (5.70)
C. Government enterprises and investment 0.00 (52.72) 0.00 (52.72) 0.00 (52.72)
D. Top marginal tax rate 7.00 7.00
(i) Top marginal income tax rate 7.00 (33) 7.00 (33)
(ii) Top marginal income and payroll tax rate 7.00 (33) 7.00 (33)

Area 2. Legal System and Property Rights 5.02 4.80

A. Judicial independence 4.32 3.79
B. Impartial courts 4.21 3.80
C. Protection of property rights 5.62 5.06
D. Military interference in rule of law and politics 6.20 6.20
E. Integrity of the legal system
F. Legal enforcement of contracts 1.59 1.59
G. Regulatory restrictions on sale of real property 7.27 7.27
H. Reliability of police 5.39 5.27
I. Business costs of crime 5.58 5.43

Area 3. Sound Money 9.14 7.84

A. Money growth 9.10 (4.50) 9.25 (3.74)
B. Standard deviation of inflation 7.59 (6.03) 8.34 (4.14)
C. Inflation: most recent year 9.86 (0.70) 8.78 (6.11)
D. Freedom to own foreign currency bank accounts 10.00 5.00

Area 4. Freedom to Trade Internationally 6.70 6.72

A. Tariffs 6.77 6.69
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 8.46 (7.70) 8.46 (7.70)
(iii) Standard deviation of tariff rates 5.07 (12.32) 4.92 (12.71)
B. Regulatory trade barriers 5.88 5.99
(i) Non-tariff trade barriers 4.80 5.01
(ii) Compliance costs of importing and exporting 6.97 6.97
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 4.14 4.22
(i) Foreign ownership/investment restrictions 6.08 6.34
(ii) Capital controls 0.77 0.77
(iii) Freedom of foreigners to visit 5.56 5.56

Area 5. Regulation 7.71 7.69

A. Credit market regulations 8.99 8.90
(i) Ownership of banks 8.00 8.00
(ii) Private sector credit 8.89 8.98 8.69
(iii) Interest rate controls/negative real interest rates 10.00 10.00
B. Labor market regulations 7.73 7.82
(i) Hiring regulations and minimum wage 10.00 10.00
(ii) Hiring and firing regulations 3.84 3.78
(iii) Centralized collective bargaining 5.65 6.23
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 6.89 6.89
(vi) Conscription 10.00 10.00
C. Business regulations 6.42 6.36
(i) Administrative requirements 3.58 3.39
(ii) Bureaucracy costs 4.57 4.57
(iii) Starting a business 7.90 7.95
(iv) Extra payments/bribes/favoritism 4.46 4.22
(v) Licensing restrictions 9.16 9.20
(vi) Cost of tax compliance 8.83 8.83

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156 E Economic Freedom of the World: 2013 Annual Report

Sweden
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 5.68 (37) 6.47 (22) 7.11 (21) 7.28 (28) 7.62 (19) 7.58 (29) 7.73 (18) 7.67 (21)
Area 1. Size of Government 1.63 (105) 2.61 (107) 2.62 (110) 2.60 (120) 3.17 (117) 3.67 (120) 3.72 (119) 3.75 (118)
Area 2. Legal System and Property Rights 6.61 (23) 7.41 (15) 8.35 (11) 8.85 (13) 9.02 (13) 8.98 (11) 9.20 (1) 9.04 (4)
Area 3. Sound Money 7.56 (26) 8.10 (26) 8.03 (31) 9.54 (20) 9.84 (1) 9.71 (3) 9.64 (12) 9.63 (8)
Area 4. Freedom to Trade Internationally 6.44 (29) 7.82 (14) 9.46 (3) 9.37 (5) 8.89 (21) 8.19 (21) 8.18 (20) 7.94 (27)
Area 5. Regulation 6.35 (26) 6.55 (24) 7.22 (14) 6.05 (54) 7.17 (32) 7.33 (28) 7.90 (11) 7.96 (10)

Unadjusted
Summary Ratings Rank) h 5.66 (39) 6.45 (22) 7.06 (18) 7.28 (25) 7.62 (19) 7.49 (33) 7.64 (19) 7.58 (29)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 1.63 2.61 2.62 2.60 3.17 3.67 3.72 3.75
A. Government consumption 1.10 (36.25) 1.39 (35.27) 1.49 (34.95) 2.05 (33.02) 1.68 (34.28) 1.17 (36.03) 1.27 (35.69) 1.29 (35.60)
B. Transfers and subsidies 3.41 (24.70) 3.05 (26.00) 1.99 (29.90) 0.84 (34.10) 3.98 (22.59) 4.00 (22.51) 4.60 (20.32) 4.70 (19.96)
C. Government enterprises and investment 2.00 (41.20) 6.00 (28.00) 7.00 (22.80) 6.00 (28.30) 6.00 (28.30) 8.00 (17.13) 8.00 (19.28) 8.00 (18.61)
D. Top marginal tax rate 0.00 0.00 0.00 1.50 1.00 1.50 1.00 1.00
(i) Top marginal income tax rate 0.00 (87) 0.00 (80) 0.00 (61-68) 3.00 (46-53) 2.00 (51-58) 3.00 (52-59) 2.00 (52-59) 2.00 (56)
(ii) Top marginal income and payroll tax rate 0.00 (79-86) 0.00 (66-73) 0.00 (68.4- 0.00 (66) 0.00 (63-69) 0.00 (67)
75.4)
Area 2. Legal System and Property Rights 6.61 7.41 8.35 8.85 9.02 8.17 8.38 8.23
A. Judicial independence 8.82 8.68 8.11 9.12 8.68
B. Impartial courts 8.88 8.35 8.72 8.01 7.60
C. Protection of property rights 6.57 8.08 8.71 8.70 8.17
D. Military interference in rule of law and politics 10.00 10.00 9.17 9.17 9.17
E. Integrity of the legal system 10.00 10.00 10.00 10.00 10.00
F. Legal enforcement of contracts 4.73 4.74 6.20
G. Regulatory restrictions on sale of real property 8.73 8.45 8.02
H. Reliability of police 7.37 8.86 8.43
I. Business costs of crime 8.03 8.34 7.81

Area 3. Sound Money 7.56 8.10 8.03 9.54 9.84 9.71 9.64 9.63
A. Money growth 8.18 (9.11) 9.23 (3.86) 9.44 (2.78) 9.81 (0.97) 9.71 (1.47) 9.25 (3.77) 9.16 (4.19) 9.53 (2.37)
B. Standard deviation of inflation 9.41 (1.47) 9.50 (1.26) 9.44 (1.40) 9.10 (2.24) 9.83 (0.44) 9.69 (0.79) 9.65 (0.88) 9.59 (1.03)
C. Inflation: most recent year 7.66 (11.72) 8.67 (6.63) 8.23 (8.84) 9.27 (3.67) 9.82 (0.90) 9.91 (0.45) 9.77 (1.16) 9.41 (2.96)
D. Freedom to own foreign currency bank accounts 5.00 5.00 5.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.67 8.10 9.65 9.28 8.89 8.27 8.26 8.01
A. Tariffs 9.02 9.49 8.96 8.68 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.53 (0.70) 9.80 (0.30) 9.73 (0.40) 9.73 (0.40) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.50 (7.50) 9.18 (4.10) 9.06 (4.70) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 8.08 (4.80) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 9.13 9.15 8.71 8.84 8.16
(i) Non-tariff trade barriers 9.13 8.80 8.30 8.56 7.20
(ii) Compliance costs of importing and exporting 9.50 9.12 9.12 9.12
C. Black-market exchange rates 9.00 9.80 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 5.00 10.00 9.30 7.22 5.97 5.85 5.61
(i) Foreign ownership/investment restrictions 8.59 9.05 8.24 7.90 7.17
(ii) Capital controls 2.00 5.00 10.00 10.00 5.38 3.08 3.08 3.08
(iii) Freedom of foreigners to visit 6.58 6.58 6.58

Area 5. Regulation 5.85 6.03 6.64 6.13 7.17 7.61 8.20 8.26
A. Credit market regulations 7.59 8.07 9.33 7.81 10.00 9.74 9.97 10.00
(i) Ownership of banks 8.00 8.00 8.00 8.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 6.76 6.22 10.00 5.43 10.00 9.22 9.92 10.00
(iii) Interest rate controls/negative real interest rates 8.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 4.11 3.99 3.95 3.03 3.38 5.06 6.43 6.66
(i) Hiring regulations and minimum wage 1.83 4.41 8.30 6.67 6.67
(ii) Hiring and firing regulations 3.93 3.93 2.18 1.92 2.52 3.18
(iii) Centralized collective bargaining 4.49 4.49 4.49 4.49 3.78 3.56 3.41 4.12
(iv) Hours regulations 4.84 4.49 4.40 1.90 3.51 6.00 6.00 6.00
(v) Mandated cost of worker dismissal 7.59 10.00 10.00
(vi) Conscription 3.00 3.00 3.00 3.00 3.00 3.00 10.00 10.00
C. Business regulations 7.55 8.14 8.02 8.19 8.12
(i) Administrative requirements 7.27 3.73 4.76 4.99
(ii) Bureaucracy costs 8.28 8.30 8.26 8.26 8.26
(iii) Starting a business 5.08 7.87 9.40 9.47 9.44
(iv) Extra payments/bribes/favoritism 9.29 9.12 9.30 9.12 8.52
(v) Licensing restrictions 8.82 8.88 8.89
(vi) Cost of tax compliance 8.63 8.63 8.63

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 Chapter 2: Country Data Tables E 157

Switzerland
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 7.99 (2) 8.15 (2) 8.15 (4) 8.19 (7) 8.63 (3) 8.19 (9) 8.13 (5) 8.12 (4)
Area 1. Size of Government 6.61 (16) 6.52 (14) 6.43 (31) 6.37 (49) 7.00 (36) 7.04 (48) 6.89 (44) 6.91 (41)
Area 2. Legal System and Property Rights 8.13 (2) 8.35 (2) 8.35 (4) 9.14 (4) 9.27 (7) 8.94 (12) 8.76 (10) 8.78 (8)
Area 3. Sound Money 9.59 (1) 9.66 (2) 9.72 (4) 9.63 (12) 9.70 (6) 9.61 (11) 9.39 (31) 9.33 (33)
Area 4. Freedom to Trade Internationally 9.03 (4) 9.08 (6) 9.09 (8) 8.60 (22) 9.49 (3) 7.33 (52) 7.30 (53) 7.16 (56)
Area 5. Regulation 6.50 (22) 7.14 (13) 7.16 (17) 7.22 (16) 7.70 (9) 8.02 (11) 8.31 (8) 8.39 (8)

Unadjusted
Summary Ratings Rank) h 7.99 (4) 8.15 (4) 8.21 (4) 8.17 (7) 8.63 (3) 8.37 (4) 8.31 (4) 8.30 (4)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.78 6.69 6.43 6.37 7.00 7.88 7.71 7.73
A. Government consumption 6.86 (16.68) 6.54 (17.77) 6.01 (19.55) 6.12 (19.19) 7.16 (15.64) 7.08 (15.91) 6.91 (16.52) 7.00 (16.20)
B. Transfers and subsidies 6.49 (13.40) 6.54 (13.20) 5.78 (16.00) 4.99 (18.90) 5.85 (15.75) 6.42 (13.65) 5.92 (15.47) 5.92 (15.47)
C. Government enterprises and investment 10.00 (10.32) 10.00 (11.02) 10.00 (11.02)
D. Top marginal tax rate 7.00 7.00 7.50 8.00 8.00 8.00 8.00 8.00
(i) Top marginal income tax rate 7.00 (31-44) 7.00 (33-46) 8.00 (33-43) 8.00 (35-39) 9.00 (31-40) 9.00 (26-42) 9.00 (26-42) 9.00 (26-42)
(ii) Top marginal income and payroll tax rate 7.00 (36-46) 8.00 (38-42) 7.00 (39-48) 7.00 (34-50) 7.00 (35-49) 7.00 (35-49)

Area 2. Legal System and Property Rights 8.13 8.35 8.35 9.14 9.27 8.72 8.55 8.56
A. Judicial independence 9.35 8.68 8.63 9.01 8.79
B. Impartial courts 7.92 8.52 8.61 7.50 7.73
C. Protection of property rights 8.44 9.17 9.28 9.07 9.07
D. Military interference in rule of law and politics 10.00 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 8.33 8.33 8.33
F. Legal enforcement of contracts 6.03 6.07 6.07
G. Regulatory restrictions on sale of real property 9.57 9.57 9.57
H. Reliability of police 9.06 8.86 8.96
I. Business costs of crime 9.00 8.50 8.56

Area 3. Sound Money 9.59 9.66 9.72 9.63 9.70 9.61 9.39 9.33
A. Money growth 9.35 (3.25) 9.81 (0.94) 9.93 (0.33) 9.44 (2.82) 9.28 (3.60) 8.94 (5.28) 8.06 (9.71) 7.74 (11.29)
B. Standard deviation of inflation 9.55 (1.13) 9.30 (1.75) 9.78 (0.55) 9.32 (1.70) 9.83 (0.42) 9.75 (0.63) 9.64 (0.89) 9.63 (0.93)
C. Inflation: most recent year 9.46 (2.71) 9.53 (2.37) 9.15 (4.27) 9.77 (1.13) 9.69 (1.54) 9.77 (1.17) 9.86 (0.70) 9.95 (0.23)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 9.58 9.63 9.76 8.43 9.49 7.42 7.39 7.24
A. Tariffs 8.74 8.89 9.28 7.70 9.92 6.43 6.30 5.90
(i) Revenue from trade taxes (% of trade sector) 8.40 (2.40) 8.67 (2.00) 8.73 (1.90) 8.47 (2.30) 9.79 (0.31) 9.84 (0.24) 9.25 (1.13) 9.25 (1.13)
(ii) Mean tariff rate 9.08 (4.60) 9.12 (4.40) 9.12 (4.40) 9.28 (3.60) 10.00 (0.00) 9.46 (2.70) 8.96 (5.20) 8.44 (7.80)
(iii) Standard deviation of tariff rates 10.00 (0.00) 5.36 (11.60) 9.96 (0.10) 0.00 (30.48) 0.68 (23.30) 0.00 (34.55)
B. Regulatory trade barriers 6.40 8.94 7.00 7.16 7.03
(i) Non-tariff trade barriers 6.40 8.22 5.07 5.40 5.12
(ii) Compliance costs of importing and exporting 9.67 8.93 8.93 8.93
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 10.00 10.00 10.00 9.62 9.08 6.24 6.09 6.03
(i) Foreign ownership/investment restrictions 9.25 9.70 7.96 7.51 7.33
(ii) Capital controls 10.00 10.00 10.00 10.00 8.46 3.85 3.85 3.85
(iii) Freedom of foreigners to visit 6.92 6.92 6.92

Area 5. Regulation 5.85 6.43 6.82 7.30 7.70 8.24 8.54 8.62
A. Credit market regulations 6.69 8.08 8.15 8.27 9.33 9.29 9.33 9.33
(i) Ownership of banks 5.00 5.00 5.00 5.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 9.07 9.25 9.46 9.81 10.00 9.88 10.00 10.00
(iii) Interest rate controls/negative real interest rates 6.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 5.01 4.77 5.48 5.79 5.70 7.61 8.19 8.41
(i) Hiring regulations and minimum wage 7.05 4.56 10.00 8.33 10.00
(ii) Hiring and firing regulations 7.71 7.71 5.62 7.79 7.95 7.72
(iii) Centralized collective bargaining 6.21 6.21 6.21 6.21 7.80 8.06 7.86 7.76
(iv) Hours regulations 5.81 5.10 5.01 5.00 5.51 6.00 10.00 10.00
(v) Mandated cost of worker dismissal 8.79 10.00 10.00
(vi) Conscription 3.00 3.00 3.00 3.00 5.00 5.00 5.00 5.00
C. Business regulations 7.84 8.06 7.82 8.10 8.12
(i) Administrative requirements 7.30 5.11 5.23 5.49
(ii) Bureaucracy costs 8.31 9.08 5.99 7.99 7.99
(iii) Starting a business 6.58 7.67 9.29 9.31 9.32
(iv) Extra payments/bribes/favoritism 8.62 8.18 8.92 8.44 8.32
(v) Licensing restrictions 8.30 8.34 8.34
(vi) Cost of tax compliance 9.29 9.29 9.29

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158 E Economic Freedom of the World: 2013 Annual Report

Syria
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.31 (98) 3.07 (106) 3.53 (105) 4.23 (114) 4.92 (115) 5.46 (112) 5.52 (116)
Area 1. Size of Government 2.09 (104) 1.95 (110) 4.38 (87) 4.57 (93) 3.75 (113) 3.90 (117) 4.21 (115)
Area 2. Legal System and Property Rights 1.76 (87) 3.05 (91) 3.02 (91) 5.23 (78) 5.44 (70) 5.48 (71) 4.90 (79)
Area 3. Sound Money 8.18 (16) 6.10 (83) 5.58 (86) 6.59 (62) 6.46 (100) 7.39 (80) 7.28 (86)
Area 4. Freedom to Trade Internationally 2.08 (78) 1.63 (85) 2.10 (96) 2.13 (109) 5.06 (112) 6.87 (72) 7.15 (61)
Area 5. Regulation 2.65 (98) 2.80 (103) 2.77 (110) 2.82 (122) 3.90 (122) 3.90 (122) 4.16 (122)

Unadjusted
Summary Ratings Rank) h 3.77 (93) 3.14 (107) 3.46 (106) 4.25 (114) 4.85 (115) 5.84 (121) 6.07 (124)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.84 1.95 4.38 4.57 3.75 5.72 6.52
A. Government consumption 4.17 (25.82) 3.89 (26.76) 6.76 (17.03) 7.14 (15.72) 7.50 (14.51) 7.16 (15.65) 8.11 (12.41)
B. Transfers and subsidies 7.36 (10.20) 8.97 (4.29) Due to events
in Syria, data
C. Government enterprises and investment 0.00 (59.50) 0.00 (62.50) 2.00 (45.00) 2.00 (43.75) 0.00 (63.64) 2.00 (46.40) 2.00 (48.37)
for 2011 are
D. Top marginal tax rate 8.00 7.00
not included
(i) Top marginal income tax rate 8.00 (28) 9.00 (22)
on this table
(ii) Top marginal income and payroll tax rate 5.00 (39) and Syria is
Area 2. Legal System and Property Rights 1.76 3.05 3.02 4.91 5.06 4.84 5.06 not included
A. Judicial independence 2.93 in this year’s
rankings.
B. Impartial courts 5.05 4.64 4.80 3.26
C. Protection of property rights 6.13
D. Military interference in rule of law and politics 6.53 3.33 3.33 3.33
E. Integrity of the legal system 4.11 8.33 8.33 8.33
F. Legal enforcement of contracts 3.22 3.22
G. Regulatory restrictions on sale of real property 4.49 4.64
H. Reliability of police 4.36
I. Business costs of crime 9.37

Area 3. Sound Money 8.18 6.10 5.58 6.59 6.46 7.39 7.28
A. Money growth 7.66 (11.72) 7.29 (13.53) 7.42 (12.90) 8.83 (5.83) 9.16 (4.20) 8.01 (9.93) 9.03 (4.84)
B. Standard deviation of inflation 8.56 (3.60) 7.91 (5.22) 8.75 (3.13) 8.62 (3.46) 7.47 (6.33) 8.00 (4.99) 5.95 (10.12)
C. Inflation: most recent year 6.51 (17.47) 9.18 (4.10) 6.13 (19.33) 8.92 (5.38) 9.23 (-3.85) 8.55 (7.24) 9.12 (4.40)
D. Freedom to own foreign currency bank accounts 10.00 0.00 0.00 0.00 0.00 5.00 5.00

Area 4. Freedom to Trade Internationally 2.30 1.81 1.55 2.36 5.06 5.70 5.91
A. Tariffs 3.90 5.43 4.66 7.09 5.17 5.17 5.97
(i) Revenue from trade taxes (% of trade sector) 5.27 (7.10) 6.27 (5.60) 8.07 (2.90) 7.15 (4.28) 7.55 (3.67) 7.55 (3.67) 7.55 (3.67)
(ii) Mean tariff rate 2.54 (37.30) 4.60 (27.00) 5.92 (20.40) 7.04 (14.80) 6.08 (19.60) 6.08 (19.60) 7.16 (14.20)
(iii) Standard deviation of tariff rates 0.00 (27.70) 1.89 (20.28) 1.89 (20.28) 3.18 (17.04)
B. Regulatory trade barriers 7.14 6.12
(i) Non-tariff trade barriers 4.64
(ii) Compliance costs of importing and exporting 7.14 7.60
C. Black-market exchange rates 3.00 0.00 0.00 0.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 0.50 1.58
(i) Foreign ownership/investment restrictions 3.90
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 1.00 0.83
(iii) Freedom of foreigners to visit 0.00 0.00

Area 5. Regulation 2.75 2.80 2.77 2.82 3.90 5.54 5.57

A. Credit market regulations 0.82 0.85 0.78 0.92 3.79 4.39 5.59
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 0.00 2.00
(ii) Private sector credit 1.63 2.56 2.33 2.75 2.38 4.18 4.76
(iii) Interest rate controls/negative real interest rates 0.00 0.00 0.00 9.00 9.00 10.00
B. Labor market regulations 5.65 5.58
(i) Hiring regulations and minimum wage 10.00 6.10
(ii) Hiring and firing regulations 4.27
(iii) Centralized collective bargaining 7.13
(iv) Hours regulations 10.00 6.00
(v) Mandated cost of worker dismissal 2.58 10.00
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 6.57 5.54
(i) Administrative requirements 2.46
(ii) Bureaucracy costs 3.64
(iii) Starting a business 5.07 8.99
(iv) Extra payments/bribes/favoritism 3.61
(v) Licensing restrictions 8.40 8.31
(vi) Cost of tax compliance 6.23 6.23

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 Chapter 2: Country Data Tables E 159

Taiwan
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.58 (16) 6.84 (17) 7.30 (15) 7.41 (25) 7.45 (31) 7.68 (21) 7.86 (12) 7.86 (12)
Area 1. Size of Government 4.96 (55) 4.91 (56) 5.40 (63) 6.10 (62) 6.73 (46) 7.21 (41) 7.51 (29) 7.51 (28)
Area 2. Legal System and Property Rights 7.83 (10) 7.25 (19) 7.25 (25) 6.74 (38) 6.08 (58) 6.54 (50) 6.86 (41) 6.88 (40)
Area 3. Sound Money 8.05 (19) 9.33 (12) 9.42 (14) 9.69 (10) 9.46 (23) 9.58 (12) 9.63 (14) 9.55 (18)
Area 4. Freedom to Trade Internationally 6.66 (25) 6.70 (26) 8.10 (18) 8.20 (25) 8.46 (31) 8.13 (22) 8.08 (25) 8.10 (24)
Area 5. Regulation 5.34 (55) 6.01 (41) 6.28 (38) 6.28 (47) 6.50 (50) 6.89 (53) 7.17 (40) 7.26 (38)

Unadjusted
Summary Ratings Rank) h 6.35 (21) 6.60 (19) 7.18 (16) 7.34 (24) 7.45 (29) 7.59 (26) 7.77 (15) 7.77 (15)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.96 4.91 5.40 6.10 6.73 7.21 7.51 7.51
A. Government consumption 4.82 (23.60) 4.71 (24.00) 4.74 (23.90) 6.03 (19.50) 6.69 (17.25) 6.53 (17.78) 6.73 (17.13) 6.74 (17.10)
B. Transfers and subsidies 10.00 (0.35) 9.95 (0.67) 9.87 (0.99) 9.37 (2.80) 9.21 (3.40) 9.32 (3.00) 9.32 (3.00) 9.30 (3.00)
C. Government enterprises and investment 2.00 (44.30) 2.00 (43.00) 2.00 (44.30) 2.00 (47.20) 4.00 (30.23) 6.00 (25.48) 7.00 (24.61) 7.00 (23.89)
D. Top marginal tax rate 3.00 3.00 5.00 7.00 7.00 7.00 7.00 7.00
(i) Top marginal income tax rate 3.00 (60) 3.00 (60) 5.00 (50) 7.00 (40) 7.00 (40) 7.00 (40) 7.00 (40) 7.00 (40)
(ii) Top marginal income and payroll tax rate 5.00 (50) 7.00 (40) 7.00 (40) 7.00 (40) 7.00 (40) 7.00 (40)

Area 2. Legal System and Property Rights 7.83 7.25 7.25 6.74 6.08 6.69 7.02 7.03
A. Judicial independence 5.53 5.34 5.05 6.09 6.06
B. Impartial courts 6.47 5.68 5.69 5.42 5.45
C. Protection of property rights 5.92 6.07 7.15 8.08 8.09
D. Military interference in rule of law and politics 8.81 6.67 6.67 6.67 6.67
E. Integrity of the legal system 6.96 6.67 8.33 8.33 8.33
F. Legal enforcement of contracts 5.55 5.55 5.55
G. Regulatory restrictions on sale of real property 7.87 7.87 7.87
H. Reliability of police 6.59 7.35 7.22
I. Business costs of crime 7.32 7.78 8.06

Area 3. Sound Money 8.05 9.33 9.42 9.69 9.46 9.58 9.63 9.55
A. Money growth 8.24 (8.79) 9.84 (-0.81) 9.18 (4.09) 9.56 (-2.21) 9.50 (-2.52) 8.95 (5.27) 9.27 (3.65) 9.11 (4.45)
B. Standard deviation of inflation 7.76 (5.60) 7.52 (6.21) 9.32 (1.71) 9.80 (0.51) 9.09 (2.28) 9.64 (0.90) 9.46 (1.35) 9.36 (1.60)
C. Inflation: most recent year 6.20 (19.00) 9.96 (-0.20) 9.18 (4.10) 9.40 (3.00) 9.27 (3.67) 9.75 (1.26) 9.81 (0.97) 9.72 (1.42)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 6.47 6.51 7.78 7.91 8.46 7.74 7.69 7.71
A. Tariffs 7.60 8.13 8.33 8.63 7.98 7.41 7.73 7.71
(i) Revenue from trade taxes (% of trade sector) 7.60 (3.60) 8.13 (2.80) 8.60 (2.10) 8.87 (1.70) 8.98 (1.52) 9.61 (0.58) 9.68 (0.47) 9.68 (0.47)
(ii) Mean tariff rate 8.06 (9.70) 8.40 (8.00) 8.24 (8.80) 8.72 (6.40) 8.78 (6.10) 8.78 (6.10)
(iii) Standard deviation of tariff rates 6.72 (8.20) 3.88 (15.30) 4.73 (13.18) 4.68 (13.30)
B. Regulatory trade barriers 7.30 8.23 7.67 7.24 7.29
(i) Non-tariff trade barriers 7.30 7.13 7.02 6.07 5.89
(ii) Compliance costs of importing and exporting 9.33 8.33 8.41 8.70
C. Black-market exchange rates 9.80 9.40 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 5.00 5.71 7.63 5.87 5.81 5.84
(i) Foreign ownership/investment restrictions 6.43 7.63 7.44 7.31 7.37
(ii) Capital controls 2.00 2.00 5.00 5.00
(iii) Freedom of foreigners to visit 4.31 4.31 4.31

Area 5. Regulation 4.46 5.02 6.03 6.28 6.50 6.70 6.97 7.07
A. Credit market regulations 5.26 6.74 7.33 7.33 7.33 8.76 8.67 8.68
(i) Ownership of banks 0.00 2.00 2.00 2.00 2.00 8.00 8.00 8.00
(ii) Private sector credit 7.79 8.23 10.00 10.00 10.00 8.29 8.01 8.03
(iii) Interest rate controls/negative real interest rates 8.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 4.73 5.22 4.51 4.34 5.02 4.97
(i) Hiring regulations and minimum wage 6.50 3.78 2.20 2.23 2.23
(ii) Hiring and firing regulations 6.26 6.26 4.60 5.92 4.68 4.52
(iii) Centralized collective bargaining 7.93 7.93 7.98 8.36 7.71 7.54
(iv) Hours regulations 5.43 6.18 8.00 10.00 10.00
(v) Mandated cost of worker dismissal 1.56 2.52 2.52
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 3.00 3.00
C. Business regulations 6.28 7.67 7.00 7.22 7.55
(i) Administrative requirements 7.63 5.21 4.63 5.82
(ii) Bureaucracy costs 6.88 7.35 6.52 6.30 6.30
(iii) Starting a business 7.50 7.58 7.76 9.65 9.65
(iv) Extra payments/bribes/favoritism 4.46 8.09 7.95 6.67 6.67
(v) Licensing restrictions 8.41 8.80 9.36
(vi) Cost of tax compliance 6.19 7.25 7.52

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160 E Economic Freedom of the World: 2013 Annual Report

Tajikistan
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 5.77 (135) 6.01 (128)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.26 5.24
A. Government consumption 3.47 (28.20) 3.41 (28.40)
B. Transfers and subsidies 9.06 (3.94) 9.06 (3.94)
C. Government enterprises and investment 0.00 (56.65) 0.00 (62.56) 0.00 (62.76)
D. Top marginal tax rate 8.50 8.50
(i) Top marginal income tax rate 10.00 (13) 10.00 (13)
(ii) Top marginal income and payroll tax rate 7.00 (31) 7.00 (31)

Area 2. Legal System and Property Rights 5.11 5.39 5.43

A. Judicial independence 4.53 4.90
B. Impartial courts 4.92 5.05
C. Protection of property rights 4.63 4.68
D. Military interference in rule of law and politics 3.90 3.90
E. Integrity of the legal system
F. Legal enforcement of contracts 5.67 5.67
G. Regulatory restrictions on sale of real property 7.56 7.89
H. Reliability of police 5.38 5.15 5.08
I. Business costs of crime 4.83 6.76 6.28

Area 3. Sound Money 6.20 7.11

A. Money growth 4.58 (27.10) 4.58 (27.10)
B. Standard deviation of inflation 6.51 (8.72) 6.33 (9.18)
C. Inflation: most recent year 8.72 (6.42) 7.51 (12.43)
D. Freedom to own foreign currency bank accounts 5.00 10.00

Area 4. Freedom to Trade Internationally 5.63 5.86

A. Tariffs 7.97 7.97
(i) Revenue from trade taxes (% of trade sector) (1.22) (1.22) (1.22)
(ii) Mean tariff rate 8.44 (7.80) 8.44 (7.80)
(iii) Standard deviation of tariff rates 7.50 (6.24) 7.50 (6.24)
B. Regulatory trade barriers 2.38 2.74
(i) Non-tariff trade barriers 4.75 4.98
(ii) Compliance costs of importing and exporting 0.00 0.50
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 2.18 2.72
(i) Foreign ownership/investment restrictions 4.62 4.73
(ii) Capital controls 0.77 2.31
(iii) Freedom of foreigners to visit 1.13 1.13

Area 5. Regulation 6.38 6.42

A. Credit market regulations 8.00 8.00
(i) Ownership of banks 8.00 8.00
(ii) Private sector credit 1.51
(iii) Interest rate controls/negative real interest rates 8.00 8.00
B. Labor market regulations 5.24 5.24
(i) Hiring regulations and minimum wage 6.67 6.67
(ii) Hiring and firing regulations 5.51 5.32
(iii) Centralized collective bargaining 7.11 7.31
(iv) Hours regulations 4.00 4.00
(v) Mandated cost of worker dismissal 8.13 8.13
(vi) Conscription 0.00 0.00
C. Business regulations 5.91 6.03
(i) Administrative requirements 4.85 5.34
(ii) Bureaucracy costs 4.33 4.33
(iii) Starting a business 8.88 8.95
(iv) Extra payments/bribes/favoritism 4.26 4.03
(v) Licensing restrictions 5.66 6.04
(vi) Cost of tax compliance 7.49 7.49

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 Chapter 2: Country Data Tables E 161

Tanzania
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.65 (94) 3.47 (100) 3.87 (102) 5.43 (85) 6.07 (84) 6.44 (79) 6.44 (86) 6.49 (86)
Area 1. Size of Government 2.27 (102) 1.96 (109) 3.58 (100) 7.01 (22) 5.77 (77) 6.27 (80) 5.48 (88) 5.72 (83)
Area 2. Legal System and Property Rights 6.13 (32) 5.85 (36) 5.21 (57) 5.92 (55) 6.95 (41) 6.73 (47) 6.83 (42) 6.83 (42)
Area 3. Sound Money 4.11 (98) 4.92 (93) 4.58 (96) 5.02 (93) 7.59 (67) 7.57 (78) 7.71 (83) 7.42 (83)
Area 4. Freedom to Trade Internationally 1.31 (84) 1.56 (86) 1.50 (100) 5.02 (97) 5.24 (108) 5.09 (113) 5.09 (112) 5.00 (116)
Area 5. Regulation 4.35 (84) 3.21 (98) 4.51 (95) 4.20 (112) 4.80 (109) 6.48 (79) 6.99 (54) 7.36 (35)

Unadjusted
Summary Ratings Rank) h 4.41 (78) 3.87 (93) 3.88 (101) 5.33 (86) 5.91 (88) 6.35 (98) 6.60 (94) 6.65 (93)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.83 3.79 3.58 7.01 5.77 6.27 6.80 7.10
A. Government consumption 7.50 (14.50) 6.44 (18.10) 6.75 (17.06) 7.03 (16.08) 8.31 (11.76) 6.30 (18.58) 5.74 (20.50) 5.94 (19.80)
B. Transfers and subsidies 10.00 (0.00) 8.72 (5.20) 9.96 (0.65) 9.97 (0.60)
C. Government enterprises and investment 0.00 (53.80) 0.00 (53.50) 2.00 (40.03) 8.00 (17.20) 4.00 (34.60) 7.00 (24.15) 6.00 (26.33) 7.00 (24.71)
D. Top marginal tax rate 0.00 2.00 6.00 5.00 5.50 5.50 5.50
(i) Top marginal income tax rate 0.00 (95) 3.00 (50) 8.00 (30) 7.00 (31) 8.00 (30) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 1.00 (57) 4.00 (45) 3.00 (46) 3.00 (46) 3.00 (48) 3.00 (48)

Area 2. Legal System and Property Rights 6.13 5.85 5.21 5.41 6.15 5.65 5.73 5.73
A. Judicial independence 4.91 4.36 4.23
B. Impartial courts 5.84 5.84 4.46 4.65 4.46
C. Protection of property rights 4.90 4.23 4.35
D. Military interference in rule of law and politics 7.81 6.67 6.67 6.67 6.67
E. Integrity of the legal system 4.11 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 6.11 6.11 6.11
G. Regulatory restrictions on sale of real property 7.10 7.17 7.27
H. Reliability of police 4.19 4.62 4.30
I. Business costs of crime 4.18 5.48 5.87

Area 3. Sound Money 4.11 4.92 4.58 5.02 7.59 7.57 7.71 7.42
A. Money growth 5.94 (20.30) 7.92 (10.40) 4.00 (30.00) 4.48 (27.60) 8.72 (6.40) 7.32 (13.41) 7.54 (12.29) 7.74 (11.30)
B. Standard deviation of inflation 6.54 (8.66) 8.43 (3.93) 8.70 (3.26) 6.38 (9.06) 7.83 (5.43) 9.68 (0.80) 9.54 (1.14) 9.46 (1.35)
C. Inflation: most recent year 3.96 (30.20) 3.34 (33.28) 5.64 (21.82) 4.23 (28.86) 8.82 (5.92) 8.27 (8.63) 8.76 (6.20) 7.46 (12.69)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 5.00 5.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 1.62 1.57 1.51 5.02 5.24 6.13 6.13 6.02
A. Tariffs 4.87 4.70 4.53 5.26 4.96 4.94 4.96 4.96
(i) Revenue from trade taxes (% of trade sector) 4.87 (7.70) 5.80 (6.30) 5.00 (7.50) 4.60 (8.10) 2.07 (11.90) 2.07 (11.90) 2.07 (11.90) 2.07 (11.90)
(ii) Mean tariff rate 3.60 (32.00) 4.06 (29.70) 6.10 (19.50) 6.18 (19.10) 7.42 (12.90) 7.50 (12.50) 7.50 (12.50)
(iii) Standard deviation of tariff rates 5.08 (12.30) 6.64 (8.40) 5.33 (11.68) 5.30 (11.75) 5.30 (11.75)
B. Regulatory trade barriers 5.60 6.14 5.62
(i) Non-tariff trade barriers 4.93 5.12 4.52
(ii) Compliance costs of importing and exporting 6.28 7.16 6.72
C. Black-market exchange rates 0.00 0.00 0.00 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.77 3.97 3.42 3.50
(i) Foreign ownership/investment restrictions 7.38 5.72 5.97
(ii) Capital controls 0.00 0.00 0.00 0.00 0.77 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 4.54 4.54 4.54

Area 5. Regulation 4.35 3.21 4.51 4.20 4.80 6.15 6.63 6.99
A. Credit market regulations 1.64 0.30 3.74 2.90 4.50 7.89 8.83 8.73
(i) Ownership of banks 0.00 0.00 0.00 0.00 0.00 8.00 10.00 10.00
(ii) Private sector credit 0.93 0.89 7.21 4.69 4.51 6.67 6.49 7.19
(iii) Interest rate controls/negative real interest rates 4.00 0.00 4.00 4.00 9.00 9.00 10.00 9.00
B. Labor market regulations 5.76 5.71 6.39
(i) Hiring regulations and minimum wage 0.00 1.10 4.43
(ii) Hiring and firing regulations 5.09 4.66 4.94
(iii) Centralized collective bargaining 7.43 5.21 5.73
(iv) Hours regulations 8.70 10.00 10.00
(v) Mandated cost of worker dismissal 8.33 8.27 8.27
(vi) Conscription 10.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
C. Business regulations 4.80 5.36 5.84
(i) Administrative requirements 4.19 3.95 4.18
(ii) Bureaucracy costs 2.98 3.80 3.80
(iii) Starting a business 8.08 8.77 8.87
(iv) Extra payments/bribes/favoritism 4.60 3.71 3.59
(v) Licensing restrictions 0.90 3.86 6.54
(vi) Cost of tax compliance 8.07 8.07 8.07

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162 E Economic Freedom of the World: 2013 Annual Report

Thailand
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.09 (26) 6.17 (27) 6.83 (26) 7.18 (31) 6.51 (68) 6.68 (72) 6.66 (76) 6.60 (80)
Area 1. Size of Government 6.01 (23) 5.58 (36) 7.36 (12) 7.76 (16) 6.84 (40) 7.12 (46) 7.43 (31) 7.30 (34)
Area 2. Legal System and Property Rights 6.52 (25) 5.85 (37) 6.43 (31) 5.41 (74) 5.99 (61) 5.97 (59) 5.09 (78) 4.89 (77)
Area 3. Sound Money 6.32 (49) 7.02 (35) 7.97 (32) 9.46 (24) 6.61 (96) 6.76 (93) 7.06 (91) 7.04 (92)
Area 4. Freedom to Trade Internationally 5.66 (37) 5.89 (33) 5.90 (43) 6.42 (66) 7.03 (68) 6.66 (79) 7.06 (65) 7.12 (58)
Area 5. Regulation 5.85 (40) 6.51 (26) 6.38 (35) 6.77 (32) 6.07 (78) 6.82 (61) 6.66 (79) 6.65 (81)

Unadjusted
Summary Ratings Rank) h 5.86 (31) 5.94 (35) 6.69 (30) 7.07 (33) 6.51 (66) 6.72 (76) 6.70 (92) 6.64 (94)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.01 5.58 7.36 7.76 6.84 7.12 7.43 7.30
A. Government consumption 7.11 (15.81) 6.51 (17.86) 7.57 (14.26) 7.19 (15.57) 6.77 (17.00) 6.71 (17.18) 6.05 (19.44) 6.00 (19.60)
B. Transfers and subsidies 9.95 (0.70) 9.81 (1.20) 9.86 (1.00) 9.84 (1.10) 9.60 (1.96) 8.79 (4.95) 9.67 (1.70) 9.19 (3.46)
C. Government enterprises and investment 4.00 (31.90) 4.00 (32.00) 8.00 (15.20) 7.00 (21.60) 4.00 (37.20) 7.00 (24.70) 7.00 (23.81) 7.00 (20.96)
D. Top marginal tax rate 3.00 2.00 4.00 7.00 7.00 6.00 7.00 7.00
(i) Top marginal income tax rate 3.00 (60) 2.00 (65) 4.00 (55) 7.00 (37) 7.00 (37) 6.00 (37) 7.00 (37) 7.00 (37)
(ii) Top marginal income and payroll tax rate 4.00 (55) 7.00 (37) 7.00 (37) 6.00 (37) 7.00 (37) 7.00 (37)

Area 2. Legal System and Property Rights 6.52 5.85 6.43 5.41 5.99 6.28 5.35 5.14
A. Judicial independence 5.77 5.85 5.67 5.34 5.02
B. Impartial courts 3.75 4.68 5.87 4.86 4.47
C. Protection of property rights 3.60 4.42 7.11 4.29 4.54
D. Military interference in rule of law and politics 6.96 6.67 6.67 5.00 3.33
E. Integrity of the legal system 6.96 8.33 4.17 4.17 4.17
F. Legal enforcement of contracts 6.11 6.11 6.24
G. Regulatory restrictions on sale of real property 7.89 7.89 7.89
H. Reliability of police 6.27 4.53 4.38
I. Business costs of crime 6.74 5.98 6.27

Area 3. Sound Money 6.32 7.02 7.97 9.46 6.61 6.76 7.06 7.04
A. Money growth 8.96 (5.20) 9.49 (-2.55) 8.69 (6.56) 9.42 (2.90) 8.71 (6.47) 8.53 (7.34) 9.32 (3.40) 9.26 (3.72)
B. Standard deviation of inflation 8.85 (2.87) 9.02 (2.45) 9.34 (1.66) 9.62 (0.96) 8.06 (4.86) 9.40 (1.49) 9.57 (1.08) 9.66 (0.85)
C. Inflation: most recent year 7.46 (12.70) 9.56 (2.18) 8.85 (5.77) 8.80 (6.01) 9.69 (1.57) 9.09 (4.54) 9.34 (3.31) 9.24 (3.81)
D. Freedom to own foreign currency bank accounts 0.00 0.00 5.00 10.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 5.16 5.37 5.07 6.09 7.03 6.44 6.83 6.88
A. Tariffs 4.47 4.71 3.21 4.57 6.65 6.84 7.43 7.49
(i) Revenue from trade taxes (% of trade sector) 5.40 (6.90) 5.67 (6.50) 6.40 (5.40) 7.67 (3.50) 9.06 (1.41) 9.29 (1.06) 9.55 (0.68) 9.58 (0.63)
(ii) Mean tariff rate 3.54 (32.30) 3.76 (31.20) 1.84 (40.80) 2.80 (36.00) 6.60 (17.00) 7.88 (10.60) 8.02 (9.90) 8.04 (9.80)
(iii) Standard deviation of tariff rates 1.40 (21.50) 3.24 (16.90) 4.28 (14.30) 3.35 (16.64) 4.73 (13.17) 4.86 (12.84)
B. Regulatory trade barriers 5.13 7.20 5.89 6.82 6.85
(i) Non-tariff trade barriers 5.13 5.73 5.00 5.45 5.53
(ii) Compliance costs of importing and exporting 8.66 6.78 8.18 8.18
C. Black-market exchange rates 9.00 9.40 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 4.65 4.28 3.01 3.07 3.19
(i) Foreign ownership/investment restrictions 7.30 7.02 6.25 6.43 6.79
(ii) Capital controls 2.00 2.00 2.00 2.00 1.54 1.54 1.54 1.54
(iii) Freedom of foreigners to visit 1.25 1.25 1.25

Area 5. Regulation 5.29 5.88 6.62 6.65 6.07 6.99 6.83 6.81
A. Credit market regulations 6.67 8.65 8.26 9.08 8.06 9.33 9.27 9.27
(i) Ownership of banks 8.00 8.00 8.00 8.00 5.00 8.00 8.00 8.00
(ii) Private sector credit 8.02 7.96 8.78 9.23 9.17 10.00 9.80 9.80
(iii) Interest rate controls/negative real interest rates 4.00 10.00 8.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 4.98 5.39 4.30 5.43 4.96 4.96
(i) Hiring regulations and minimum wage 5.77 3.94 6.70 6.67 6.67
(ii) Hiring and firing regulations 7.01 7.01 4.60 4.75 5.59 5.55
(iii) Centralized collective bargaining 7.93 7.93 7.93 7.93 6.45 6.12 6.14 6.20
(iv) Hours regulations 6.27 6.51 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 4.99 1.37 1.37
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 5.47 5.86 6.20 6.26 6.20
(i) Administrative requirements 6.88 4.89 4.28 3.93
(ii) Bureaucracy costs 6.77 3.98 2.17 4.57 4.57
(iii) Starting a business 6.53 7.28 8.88 9.01 9.00
(iv) Extra payments/bribes/favoritism 3.11 5.31 5.85 4.31 4.33
(v) Licensing restrictions 8.35 8.34 8.34
(vi) Cost of tax compliance 7.04 7.04 7.04

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 Chapter 2: Country Data Tables E 163

Timor-Leste
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 5.12 (149) 6.30 (117)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 1.16 4.11
A. Government consumption 2.32 (32.12) 2.32 (32.12)
B. Transfers and subsidies
C. Government enterprises and investment 0.00 0.00
D. Top marginal tax rate 10.00
(i) Top marginal income tax rate 10.00 (10)
(ii) Top marginal income and payroll tax rate 10.00 (10)

Area 2. Legal System and Property Rights 3.13 3.75

A. Judicial independence 3.88 3.72
B. Impartial courts 3.35 3.96
C. Protection of property rights 2.92 2.72
D. Military interference in rule of law and politics 5.00 5.00
E. Integrity of the legal system
F. Legal enforcement of contracts 0.00 0.00
G. Regulatory restrictions on sale of real property 0.00
H. Reliability of police 4.33 4.92
I. Business costs of crime 5.58 5.95

Area 3. Sound Money 8.74 8.85

A. Money growth 7.66 (11.70) 8.79 (6.04)
B. Standard deviation of inflation 8.67 (3.33) 9.29 (1.77)
C. Inflation: most recent year 8.65 (6.77) 7.30 (13.50)
D. Freedom to own foreign currency bank accounts 10.00 10.00

Area 4. Freedom to Trade Internationally 7.39

A. Tariffs 9.75
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 9.50 (2.50)
(iii) Standard deviation of tariff rates 10.00 (0.00)
B. Regulatory trade barriers 5.99 5.62
(i) Non-tariff trade barriers 5.53 4.80
(ii) Compliance costs of importing and exporting 6.44 6.44
C. Black-market exchange rates
D. Controls of the movement of capital and people 6.73 6.79
(i) Foreign ownership/investment restrictions 5.12 5.25
(ii) Capital controls 8.33 8.33
(iii) Freedom of foreigners to visit

Area 5. Regulation 7.44 7.42

A. Credit market regulations 9.50 9.50
(i) Ownership of banks
(ii) Private sector credit 10.00 10.00
(iii) Interest rate controls/negative real interest rates 9.00 9.00
B. Labor market regulations 7.71 7.33
(i) Hiring regulations and minimum wage 6.67 3.33
(ii) Hiring and firing regulations 4.01 5.07
(iii) Centralized collective bargaining 5.57 5.55
(iv) Hours regulations 10.00 10.00
(v) Mandated cost of worker dismissal 10.00 10.00
(vi) Conscription 10.00 10.00
C. Business regulations 5.12 5.44
(i) Administrative requirements 3.56 4.19
(ii) Bureaucracy costs 3.82 3.82
(iii) Starting a business 5.91 6.54
(iv) Extra payments/bribes/favoritism 3.53 4.17
(v) Licensing restrictions 6.99 7.01
(vi) Cost of tax compliance 6.91 6.91

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164 E Economic Freedom of the World: 2013 Annual Report

Togo
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.07 (82) 5.15 (57) 5.73 (49) 5.46 (84) 5.81 (97) 6.00 (98) 5.85 (104) 5.90 (106)
Area 1. Size of Government 1.60 (107) 3.80 (86) 6.43 (30) 6.86 (29) 8.44 (7) 8.10 (15) 6.82 (48) 6.84 (44)
Area 2. Legal System and Property Rights 3.33 (63) 4.22 (70) 4.48 (68) 5.00 (85) 3.59 (108) 3.11 (111) 3.19 (112) 3.24 (110)
Area 3. Sound Money 5.53 (79) 6.75 (49) 6.95 (50) 5.03 (92) 6.48 (98) 6.88 (90) 6.69 (100) 6.58 (104)
Area 4. Freedom to Trade Internationally 5.87 (90) 6.38 (83) 6.39 (86) 6.38 (87)
Area 5. Regulation 4.89 (73) 4.97 (74) 4.96 (78) 4.88 (95) 4.65 (111) 5.38 (110) 6.18 (94) 6.56 (85)

Unadjusted
Summary Ratings Rank) h 3.99 (86) 5.27 (59) 5.44 (61) 5.38 (83) 5.84 (92) 5.83 (122) 5.70 (139) 5.57 (141)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 1.60 5.69 6.43 6.86 8.44 8.99 7.57 6.70
A. Government consumption 3.20 (29.11) 7.60 (14.18) 6.87 (16.65) 7.72 (13.76) 8.88 (9.82) 8.96 (9.52) 9.06 (9.20) 8.79 (10.10)
B. Transfers and subsidies 9.48 (2.40) 10.00 (0.28) 9.65 (1.79) 10.00 (0.00)
C. Government enterprises and investment 0.00 (71.70) 0.00 (73.90) 6.00 (28.80) 6.00 (25.80) 8.00 (16.80) 8.00 (17.48) 4.00 (41.53) 4.00 (44.57)
D. Top marginal tax rate 4.00
(i) Top marginal income tax rate 4.00 (45)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 3.33 4.22 4.48 4.75 3.73 2.48 2.55 2.59
A. Judicial independence
B. Impartial courts 4.15 4.11 3.70 3.90 3.90
C. Protection of property rights
D. Military interference in rule of law and politics 3.90 1.67 0.14 0.00 0.00
E. Integrity of the legal system 6.96 5.00 5.00 5.00 5.00
F. Legal enforcement of contracts 3.15 3.15 3.15
G. Regulatory restrictions on sale of real property 0.43 0.73 0.89
H. Reliability of police
I. Business costs of crime

Area 3. Sound Money 5.53 6.75 6.95 5.03 6.48 6.88 6.69 6.58
A. Money growth 8.66 (6.68) 9.66 (-1.72) 9.03 (-4.84) 8.06 (9.71) 8.66 (6.69) 9.94 (-0.32) 8.29 (8.54) 8.04 (9.79)
B. Standard deviation of inflation 5.56 (11.11) 8.04 (4.90) 9.37 (1.58) 4.50 (13.74) 7.65 (5.88) 8.94 (2.66) 8.84 (2.91) 8.99 (2.54)
C. Inflation: most recent year 7.91 (10.47) 9.32 (3.40) 9.40 (2.98) 7.57 (12.17) 9.62 (1.89) 8.64 (6.80) 9.63 (1.83) 9.29 (3.57)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 3.78 4.69 4.36 5.87 6.06 6.07 6.06
A. Tariffs 1.73 4.27 3.87 7.60 7.39 7.38 7.34
(i) Revenue from trade taxes (% of trade sector) 1.73 (12.40) 4.27 (8.60) 3.87 (9.20) 7.82 (3.27) 7.24 (4.14) 7.11 (4.33)
(ii) Mean tariff rate 7.60 (12.00) 7.08 (14.60) 7.62 (11.90) 7.62 (11.90)
(iii) Standard deviation of tariff rates 7.26 (6.84) 7.29 (6.78) 7.29 (6.78)
B. Regulatory trade barriers 6.34 6.40 6.40
(i) Non-tariff trade barriers
(ii) Compliance costs of importing and exporting 6.34 6.40 6.40
C. Black-market exchange rates 9.60 9.80 9.20 9.80 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 0.00 0.50 0.50 0.50
(i) Foreign ownership/investment restrictions
(ii) Capital controls 0.00 0.00 0.00 0.00 0.00 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 0.23 0.23 0.23

Area 5. Regulation 5.70 4.97 4.96 4.88 4.65 4.77 5.59 5.93
A. Credit market regulations 6.42 6.61 6.59 6.38 5.78 4.80 7.50 7.50
(i) Ownership of banks 2.00 2.00 2.00 2.00 2.00 5.00 5.00 5.00
(ii) Private sector credit 9.26 9.82 9.77 9.15 9.33 3.40 10.00 10.00
(iii) Interest rate controls/negative real interest rates 8.00 8.00 8.00 8.00 6.00 6.00
B. Labor market regulations 4.57 4.31 4.17
(i) Hiring regulations and minimum wage 5.60 1.67 1.67
(ii) Hiring and firing regulations
(iii) Centralized collective bargaining
(iv) Hours regulations 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 6.66 7.57 7.01
(vi) Conscription 0.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 4.94 4.97 6.13
(i) Administrative requirements
(ii) Bureaucracy costs
(iii) Starting a business 3.88 3.86 6.33
(iv) Extra payments/bribes/favoritism
(v) Licensing restrictions 3.96 4.08 5.10
(vi) Cost of tax compliance 6.97 6.97 6.97

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 Chapter 2: Country Data Tables E 165

Trinidad and Tobago

1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.83 (63) 4.80 (77) 5.52 (56) 7.29 (27) 7.55 (25) 7.14 (52) 6.95 (63) 6.97 (63)
Area 1. Size of Government 5.48 (36) 3.79 (87) 6.31 (37) 7.04 (21) 7.05 (33) 7.45 (35) 6.91 (42) 6.80 (49)
Area 2. Legal System and Property Rights 5.08 (44) 4.48 (63) 5.79 (42) 5.54 (67) 6.65 (47) 5.40 (73) 5.49 (73) 5.68 (65)
Area 3. Sound Money 4.50 (96) 6.16 (82) 5.94 (75) 8.61 (37) 9.03 (38) 8.58 (59) 7.96 (79) 8.13 (72)
Area 4. Freedom to Trade Internationally 2.37 (71) 2.47 (77) 2.65 (92) 7.96 (32) 7.28 (60) 7.73 (41) 7.63 (45) 7.62 (44)
Area 5. Regulation 6.94 (14) 7.36 (8) 7.03 (20) 7.34 (13) 7.75 (8) 6.56 (78) 6.76 (70) 6.65 (80)

Unadjusted
Summary Ratings Rank) h 4.89 (64) 4.87 (72) 5.52 (59) 7.19 (29) 7.41 (30) 7.12 (56) 6.93 (76) 6.95 (79)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.38 3.79 6.31 7.04 7.05 7.45 6.91 6.80
A. Government consumption 5.64 (20.81) 3.09 (29.49) 6.81 (16.84) 6.73 (17.11) 6.74 (17.10) 5.97 (19.70) 5.42 (21.58) 4.97 (23.09)
B. Transfers and subsidies 8.50 (6.00) 6.08 (14.90) 7.41 (10.00) 8.45 (6.20) 8.45 (6.20) 8.83 (4.80) 8.24 (6.97) 8.24 (6.97)
C. Government enterprises and investment 2.00 (47.60) 2.00 (40.60) 4.00 (34.60) 8.00 (16.70) 6.00 (28.67) 7.00 (23.59) 7.00 7.00
D. Top marginal tax rate 4.00 7.00 5.00 7.00 8.00 7.00 7.00
(i) Top marginal income tax rate 4.00 (50) 7.00 (35) 5.00 (38) 7.00 (35) 8.00 (30) 9.00 (25) 9.00 (25)
(ii) Top marginal income and payroll tax rate 7.00 (35) 5.00 (38) 7.00 (35) 8.00 (30) 5.00 (39) 5.00 (39)

Area 2. Legal System and Property Rights 5.42 4.78 6.19 5.40 5.93 4.48 4.56 4.72
A. Judicial independence 5.32 5.73 5.68
B. Impartial courts 6.47 6.28 5.16 4.24 3.96
C. Protection of property rights 5.30 5.98 4.96 5.11
D. Military interference in rule of law and politics 7.15 8.33 8.33 8.33 8.33
E. Integrity of the legal system 4.11 6.67 3.82 4.17 4.17
F. Legal enforcement of contracts 2.96 2.96 2.96
G. Regulatory restrictions on sale of real property 4.64 4.64 6.22
H. Reliability of police 1.93 3.51 3.59
I. Business costs of crime 2.22 2.54 2.46

Area 3. Sound Money 4.50 6.16 5.94 8.61 9.03 8.58 7.96 8.13
A. Money growth 7.62 (11.88) 9.98 (-0.09) 9.06 (4.70) 8.76 (6.18) 8.83 (5.86) 8.23 (8.83) 7.85 (10.77) 7.85 (10.77)
B. Standard deviation of inflation 5.89 (10.27) 6.66 (8.34) 7.81 (5.47) 6.41 (8.98) 8.02 (4.95) 7.47 (6.33) 6.12 (9.70) 5.69 (10.77)
C. Inflation: most recent year 4.49 (27.53) 7.98 (10.10) 6.90 (15.49) 9.25 (3.75) 9.29 (3.56) 8.62 (6.89) 7.89 (10.55) 8.98 (5.10)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 2.69 2.87 2.71 8.13 7.28 7.75 7.65 7.64
A. Tariffs 7.87 6.40 6.12 6.99 5.40 7.83 7.62 7.61
(i) Revenue from trade taxes (% of trade sector) 7.87 (3.20) 6.20 (5.70) 8.20 (2.70) 8.87 (1.70) 3.20 (10.20) 9.07 (1.40) 8.89 (1.67) 8.89 (1.67)
(ii) Mean tariff rate 6.60 (17.00) 6.28 (18.60) 7.18 (14.10) 6.32 (18.40) 8.44 (7.80) 8.50 (7.50) 8.50 (7.50)
(iii) Standard deviation of tariff rates 3.88 (15.30) 4.92 (12.70) 6.68 (8.30) 5.98 (10.06) 5.47 (11.33) 5.44 (11.40)
B. Regulatory trade barriers 6.20 6.53 6.93 6.95
(i) Non-tariff trade barriers 6.20 5.70 6.06 5.53
(ii) Compliance costs of importing and exporting 7.37 7.80 8.37
C. Black-market exchange rates 0.20 2.20 2.00 9.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 8.00 7.53 6.65 6.03 6.00
(i) Foreign ownership/investment restrictions 8.15 7.37 6.27 6.17
(ii) Capital controls 0.00 0.00 0.00 8.00 6.92 6.92 6.15 6.15
(iii) Freedom of foreigners to visit 5.67 5.67 5.67

Area 5. Regulation 6.47 6.77 6.46 6.75 7.75 7.34 7.57 7.44
A. Credit market regulations 6.90 8.04 7.24 7.99 8.99 8.33 9.33 9.00
(i) Ownership of banks 5.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 8.81 8.12 7.71 9.98 9.98 10.00 10.00 10.00
(iii) Interest rate controls/negative real interest rates 8.00 6.00 6.00 9.00 7.00 10.00 9.00
B. Labor market regulations 7.15 7.54 7.50 7.50
(i) Hiring regulations and minimum wage 5.34 10.00 10.00 10.00
(ii) Hiring and firing regulations 5.80 5.35 4.59 4.60
(iii) Centralized collective bargaining 7.47 6.13 5.30 5.28
(iv) Hours regulations 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 3.79 5.14 5.14
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 7.10 6.14 5.86 5.82
(i) Administrative requirements 7.47 3.27 4.04 3.86
(ii) Bureaucracy costs 7.70 4.75 4.52 4.52
(iii) Starting a business 6.63 8.61 8.61 8.68
(iv) Extra payments/bribes/favoritism 6.60 4.84 4.27 4.13
(v) Licensing restrictions 6.65 6.06 6.07
(vi) Cost of tax compliance 8.72 7.65 7.65

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166 E Economic Freedom of the World: 2013 Annual Report

Tunisia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.82 (64) 4.60 (82) 5.32 (67) 5.73 (75) 6.08 (83) 6.02 (96) 6.22 (97) 6.26 (95)
Area 1. Size of Government 4.87 (59) 4.48 (71) 5.81 (53) 4.56 (94) 5.28 (86) 5.17 (99) 6.97 (40) 6.84 (46)
Area 2. Legal System and Property Rights 4.92 (45) 3.52 (82) 3.50 (80) 6.29 (48) 7.33 (35) 7.36 (30) 6.80 (43) 6.80 (43)
Area 3. Sound Money 6.18 (58) 6.50 (65) 6.98 (47) 7.02 (56) 7.05 (77) 7.30 (83) 6.85 (97) 6.80 (97)
Area 4. Freedom to Trade Internationally 3.74 (58) 3.74 (65) 5.04 (56) 5.47 (89) 5.43 (101) 4.93 (117) 4.94 (116) 5.42 (107)
Area 5. Regulation 4.44 (82) 4.69 (78) 5.27 (72) 5.29 (84) 5.30 (104) 5.39 (109) 5.60 (111) 5.46 (111)

Unadjusted
Summary Ratings Rank) h 4.71 (70) 4.49 (86) 5.38 (63) 5.66 (76) 5.90 (89) 6.60 (82) 6.82 (84) 6.87 (81)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.19 3.86 5.81 4.56 5.28 5.23 7.05 6.92
A. Government consumption 6.17 (19.03) 5.16 (22.46) 5.75 (20.45) 5.56 (21.11) 5.74 (20.50) 6.01 (19.58) 5.70 (20.61) 5.53 (21.20)
B. Transfers and subsidies 8.61 (5.60) 8.28 (6.80) 7.68 (9.00) 8.14 (7.34) 8.10 (7.47) 7.41 (10.00) 7.00 (11.50) 6.64 (12.84)
C. Government enterprises and investment 0.00 (53.10) 0.00 (52.80) 4.00 (35.90) 0.00 (50.70) 2.00 (47.40) 2.00 (44.40) 10.00 (14.34) 10.00 (14.34)
D. Top marginal tax rate 2.00 2.00 5.50 5.50 5.50
(i) Top marginal income tax rate 2.00 (62) 2.00 (62) 7.00 (35) 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate 4.00 (51) 4.00 (51) 4.00 (44)

Area 2. Legal System and Property Rights 4.92 3.52 3.50 5.68 6.43 6.98 6.45 6.45
A. Judicial independence 6.78 5.12 5.12
B. Impartial courts 6.71 6.99 6.59 6.01 6.01
C. Protection of property rights 7.37 6.48 6.48
D. Military interference in rule of law and politics 8.07 6.67 6.67 6.67 6.67
E. Integrity of the legal system 4.11 8.33 8.33 8.33 8.33
F. Legal enforcement of contracts 4.88 4.88 4.88
G. Regulatory restrictions on sale of real property 7.11 7.26 7.26
H. Reliability of police 7.43 5.93 5.93
I. Business costs of crime 7.67 7.36 7.36

Area 3. Sound Money 6.18 6.50 6.98 7.02 7.05 7.30 6.85 6.80
A. Money growth 8.64 (6.80) 8.48 (7.61) 9.63 (1.86) 9.48 (2.60) 9.04 (4.82) 9.78 (1.09) 8.86 (5.71) 8.50 (7.52)
B. Standard deviation of inflation 8.63 (3.43) 8.25 (4.37) 9.20 (2.00) 9.62 (0.94) 9.75 (0.62) 9.83 (0.41) 9.44 (1.41) 9.41 (1.46)
C. Inflation: most recent year 7.44 (12.80) 9.28 (3.60) 9.10 (4.48) 8.96 (5.19) 9.41 (2.93) 9.60 (2.02) 9.12 (4.42) 9.28 (3.61)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 3.59 3.59 5.04 5.47 5.43 6.45 6.46 7.09
A. Tariffs 4.36 3.17 4.71 4.61 5.53 5.34 6.91 7.07
(i) Revenue from trade taxes (% of trade sector) 4.00 (9.00) 1.13 (13.30) 3.67 (9.50) 4.00 (9.00) 7.75 (3.37) 8.69 (1.96) 8.86 (1.71) 8.95 (1.57)
(ii) Mean tariff rate 4.72 (26.40) 5.20 (24.00) 4.50 (27.50) 4.50 (27.50) 3.88 (30.60) 7.32 (13.40) 6.70 (16.50) 6.80 (16.00)
(iii) Standard deviation of tariff rates 5.96 (10.10) 5.32 (11.70) 4.96 (12.60) 0.00 (26.00) 5.18 (12.05) 5.46 (11.36)
B. Regulatory trade barriers 6.57 6.89 6.89
(i) Non-tariff trade barriers 6.30 5.77 5.77
(ii) Compliance costs of importing and exporting 6.84 8.01 8.01
C. Black-market exchange rates 6.40 7.60 8.40 9.80 10.00 8.79 7.05 9.44
D. Controls of the movement of capital and people 0.00 0.00 2.00 2.00 0.77 5.12 4.98 4.98
(i) Foreign ownership/investment restrictions 7.45 7.03 7.03
(ii) Capital controls 0.00 0.00 2.00 2.00 0.77 0.77 0.77 0.77
(iii) Freedom of foreigners to visit 7.14 7.14 7.14

Area 5. Regulation 4.70 4.96 5.57 5.59 5.30 7.02 7.30 7.11
A. Credit market regulations 4.89 5.58 7.21 7.27 6.93 7.82 8.12 7.56
(i) Ownership of banks 2.00 2.00 5.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 8.68 8.75 8.63 8.80 8.86 8.45 9.35 7.68
(iii) Interest rate controls/negative real interest rates 4.00 6.00 8.00 8.00 10.00 10.00 10.00
B. Labor market regulations 6.52 6.55 6.55
(i) Hiring regulations and minimum wage 7.20 8.33 8.33
(ii) Hiring and firing regulations 5.83 4.89 4.89
(iii) Centralized collective bargaining 5.97 5.31 5.31
(iv) Hours regulations 8.70 10.00 10.00
(v) Mandated cost of worker dismissal 8.42 7.76 7.76
(vi) Conscription 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
C. Business regulations 6.74 7.22 7.22
(i) Administrative requirements 5.28 4.68 4.68
(ii) Bureaucracy costs 4.30 5.76 5.76
(iii) Starting a business 9.46 9.60 9.60
(iv) Extra payments/bribes/favoritism 6.84 5.88 5.88
(v) Licensing restrictions 7.54 9.01 9.02
(vi) Cost of tax compliance 7.00 8.39 8.39

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 Chapter 2: Country Data Tables E 167

Turkey
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.77 (91) 4.85 (74) 5.06 (76) 5.89 (70) 5.81 (97) 6.09 (92) 6.54 (83) 6.69 (74)
Area 1. Size of Government 4.13 (75) 4.63 (67) 5.82 (52) 6.93 (25) 7.08 (32) 7.84 (27) 6.76 (52) 7.07 (37)
Area 2. Legal System and Property Rights 5.57 (39) 5.85 (39) 4.48 (67) 4.85 (90) 5.39 (73) 5.62 (68) 4.62 (87) 4.86 (79)
Area 3. Sound Money 0.78 (106) 2.68 (105) 3.87 (103) 3.21 (106) 3.57 (116) 4.84 (120) 8.86 (54) 8.98 (50)
Area 4. Freedom to Trade Internationally 3.62 (60) 5.53 (39) 5.76 (47) 8.11 (27) 7.55 (53) 6.88 (71) 6.86 (75) 6.75 (78)
Area 5. Regulation 4.69 (81) 5.55 (58) 5.26 (74) 6.44 (42) 5.49 (100) 5.21 (115) 5.74 (109) 5.92 (102)

Unadjusted
Summary Ratings Rank) h 3.72 (94) 4.78 (77) 4.83 (85) 5.80 (71) 5.81 (96) 6.43 (92) 6.90 (77) 7.06 (68)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.40 4.93 5.82 6.93 7.08 7.84 6.76 7.07
A. Government consumption 7.09 (15.89) 8.40 (11.44) 7.71 (13.78) 7.85 (13.30) 6.93 (16.43) 6.98 (16.26) 6.86 (16.67) 6.94 (16.40)
B. Transfers and subsidies 8.50 (6.00) 7.30 (10.40) 9.07 (3.90) 7.86 (8.36) 9.37 (2.81) 9.38 (2.77) 6.16 (14.59) 6.33 (13.98)
C. Government enterprises and investment 2.00 (40.00) 2.00 (45.50) 4.00 (31.70) 8.00 (16.50) 7.00 (22.80) 8.00 (15.70) 7.00 (20.57) 8.00 (17.17)
D. Top marginal tax rate 0.00 2.00 2.50 4.00 5.00 7.00 7.00 7.00
(i) Top marginal income tax rate 0.00 (75) 2.00 (63) 4.00 (50) 4.00 (55) 6.00 (45) 7.00 (40) 7.00 (35) 7.00 (35)
(ii) Top marginal income and payroll tax rate 1.00 (57) 4.00 (55) 4.00 (46) 7.00 (40) 7.00 (35) 7.00 (35)

Area 2. Legal System and Property Rights 5.57 5.85 4.48 4.85 5.39 6.39 5.25 5.53
A. Judicial independence 5.47 5.34 5.30 3.77 4.09
B. Impartial courts 6.62 6.51 4.68 4.43 4.79
C. Protection of property rights 4.25 3.43 6.35 5.35 5.91
D. Military interference in rule of law and politics 3.80 5.00 6.67 3.33 3.33
E. Integrity of the legal system 4.11 6.67 7.50 5.83 5.83
F. Legal enforcement of contracts 6.16 5.60 5.79
G. Regulatory restrictions on sale of real property 8.87 8.80 8.80
H. Reliability of police 5.87 4.19 4.98
I. Business costs of crime 6.14 5.95 6.28

Area 3. Sound Money 0.78 2.68 3.87 3.21 3.57 4.84 8.86 8.98
A. Money growth 3.14 (34.30) 5.02 (24.88) 2.36 (38.20) 0.00 (50.41) 0.00 (81.91) 0.00 (59.29) 8.34 (8.30) 8.21 (8.93)
B. Standard deviation of inflation 0.00 (27.75) 5.71 (10.72) 3.11 (17.23) 2.84 (17.89) 4.27 (14.33) 1.40 (21.49) 8.80 (3.00) 8.99 (2.52)
C. Inflation: most recent year 0.00 (85.04) 0.00 (52.18) 0.00 (58.21) 0.00 (86.99) 0.00 (54.92) 7.97 (10.14) 8.29 (8.57) 8.71 (6.47)
D. Freedom to own foreign currency bank accounts 0.00 0.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.43 5.25 4.71 7.75 7.55 7.38 7.35 7.24
A. Tariffs 3.50 6.34 4.53 8.31 7.42 6.87 6.25 6.32
(i) Revenue from trade taxes (% of trade sector) 5.80 (6.30) 8.00 (3.00) 8.13 (2.80) 9.00 (1.50) 9.55 (0.67) 9.73 (0.41) 9.57 (0.64) 9.56 (0.66)
(ii) Mean tariff rate 1.20 (44.00) 4.68 (26.60) 5.46 (22.70) 8.20 (9.00) 8.58 (7.10) 9.52 (2.40) 8.02 (9.90) 8.08 (9.60)
(iii) Standard deviation of tariff rates 0.00 (35.70) 7.72 (5.70) 4.12 (14.70) 1.36 (21.60) 1.17 (22.08) 1.32 (21.70)
B. Regulatory trade barriers 7.60 6.98 6.60 6.86 6.60
(i) Non-tariff trade barriers 7.60 5.63 6.28 5.66 4.99
(ii) Compliance costs of importing and exporting 8.33 6.93 8.05 8.20
C. Black-market exchange rates 6.80 9.40 9.60 9.60 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 5.49 5.79 6.03 6.30 6.05
(i) Foreign ownership/investment restrictions 8.98 9.27 6.55 5.82 5.84
(ii) Capital controls 0.00 0.00 0.00 2.00 2.31 1.54 3.08 2.31
(iii) Freedom of foreigners to visit 10.00 10.00 10.00

Area 5. Regulation 4.41 5.21 5.28 6.27 5.49 5.69 6.28 6.48
A. Credit market regulations 3.99 6.65 5.41 7.78 6.14 6.65 7.79 8.03
(i) Ownership of banks 8.00 8.00 8.00 8.00 8.00 5.00 5.00 5.00
(ii) Private sector credit 3.98 3.96 6.22 7.35 4.29 4.95 8.36 9.09
(iii) Interest rate controls/negative real interest rates 0.00 8.00 2.00 8.00 10.00 10.00 10.00
B. Labor market regulations 5.16 5.35 4.49 3.83 4.86 4.98
(i) Hiring regulations and minimum wage 6.35 3.38 4.40 5.57 5.57
(ii) Hiring and firing regulations 7.23 7.23 5.32 4.02 5.00 5.45
(iii) Centralized collective bargaining 7.24 7.24 7.24 7.24 6.57 6.39 7.06 7.33
(iv) Hours regulations 4.93 6.18 6.00 8.00 8.00
(v) Mandated cost of worker dismissal 1.19 2.52 2.52
(vi) Conscription 0.00 0.00 1.00 1.00 1.00 1.00 1.00 1.00
C. Business regulations 5.67 5.82 6.60 6.19 6.42
(i) Administrative requirements 7.40 3.28 3.34 3.82
(ii) Bureaucracy costs 6.24 5.15 6.21 4.64 4.64
(iii) Starting a business 7.55 5.22 9.47 9.66 9.67
(iv) Extra payments/bribes/favoritism 3.23 5.52 6.33 4.51 5.19
(v) Licensing restrictions 7.13 7.48 7.69
(vi) Cost of tax compliance 7.15 7.50 7.50

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168 E Economic Freedom of the World: 2013 Annual Report

Uganda
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.14 (100) 2.82 (107) 2.86 (112) 5.15 (94) 7.00 (44) 7.31 (43) 7.57 (29) 7.38 (40)
Area 1. Size of Government 3.77 (89) 4.90 (75) 7.47 (17) 6.73 (45) 7.54 (33) 7.66 (24) 7.44 (32)
Area 2. Legal System and Property Rights 2.76 (72) 2.93 (93) 2.44 (101) 4.45 (100) 4.80 (82) 5.03 (78) 5.44 (75) 5.34 (76)
Area 3. Sound Money 0.00 (107) 0.00 (111) 0.28 (116) 4.62 (98) 9.30 (31) 8.70 (54) 8.71 (58) 8.08 (74)
Area 4. Freedom to Trade Internationally 2.96 (66) 2.71 (74) 1.80 (99) 4.76 (98) 7.96 (40) 7.41 (49) 8.31 (18) 8.26 (19)
Area 5. Regulation 4.72 (80) 4.70 (76) 4.95 (79) 4.47 (106) 6.20 (68) 7.77 (15) 7.70 (16) 7.77 (16)

Unadjusted
Summary Ratings Rank) h 2.79 (104) 2.82 (108) 2.80 (112) 5.17 (90) 6.79 (51) 7.04 (63) 7.29 (50) 7.10 (64)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.73 4.52 7.47 6.73 7.54 7.66 7.44
A. Government consumption 7.20 (15.51) 9.57 (7.48) 8.68 (10.49) 7.50 (14.51) 7.16 (15.65) 7.74 (13.69) 7.91 (13.10)
B. Transfers and subsidies 9.20 (3.42) 8.94 (4.40) 9.99 (0.55) 9.89 (0.90) 9.84 (1.09)
C. Government enterprises and investment 2.00 (42.80) 4.00 (39.00) 2.00 (49.10) 6.00 (27.80) 4.00 (31.50) 7.00 (22.40) 7.00 (24.09) 6.00 (27.51)
D. Top marginal tax rate 0.00 2.00 6.00 6.50 6.00 6.00 6.00
(i) Top marginal income tax rate 0.00 (70) 3.00 (50) 8.00 (30) 8.00 (30) 8.00 (30) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate 1.00 (59) 4.00 (41) 5.00 (40) 4.00 (41) 4.00 (41) 4.00 (41)

Area 2. Legal System and Property Rights 2.76 2.93 2.44 4.35 4.60 4.67 5.05 4.96
A. Judicial independence 4.63 4.56 4.18
B. Impartial courts 5.54 4.41 4.12 4.82 4.99
C. Protection of property rights 4.29 5.20 5.11
D. Military interference in rule of law and politics 3.70 3.33 3.33 3.33 3.33
E. Integrity of the legal system 4.11 6.67 6.67 5.83 5.83
F. Legal enforcement of contracts 3.70 4.04 4.04
G. Regulatory restrictions on sale of real property 7.03 8.14 8.39
H. Reliability of police 3.97 4.95 4.76
I. Business costs of crime 4.29 4.57 3.98

Area 3. Sound Money 1.04 0.00 0.28 4.62 9.30 8.70 8.71 8.08
A. Money growth 3.12 (34.40) 0.00 (76.20) 0.00 (410.00) 5.96 (20.21) 8.73 (6.34) 8.56 (7.20) 7.33 (13.35) 7.90 (10.52)
B. Standard deviation of inflation 0.00 (33.80) 0.00 (40.83) 0.00 (52.40) 4.36 (14.10) 9.05 (2.39) 7.86 (5.36) 8.32 (4.21) 8.16 (4.61)
C. Inflation: most recent year 0.00 (120.35) 1.12 (44.38) 8.15 (9.23) 9.43 (2.83) 8.37 (8.15) 9.20 (3.98) 6.26 (18.69)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 2.64 2.71 1.80 4.93 7.96 6.39 7.18 7.13
A. Tariffs 7.93 3.13 3.39 5.38 5.43 5.72 7.14 7.07
(i) Revenue from trade taxes (% of trade sector) 7.93 (3.10) 2.27 (11.60) 2.80 (10.80) 3.20 (10.20) 2.51 (11.23) 4.31 (8.54) 8.61 (2.09) 8.41 (2.38)
(ii) Mean tariff rate 4.00 (30.00) 3.98 (30.10) 6.58 (17.10) 8.34 (8.30) 7.52 (12.40) 7.50 (12.50) 7.50 (12.50)
(iii) Standard deviation of tariff rates 6.36 (9.10) 5.33 (11.68) 5.30 (11.75) 5.30 (11.75)
B. Regulatory trade barriers 3.29 5.28 5.20
(i) Non-tariff trade barriers 4.12 5.63 5.07
(ii) Compliance costs of importing and exporting 2.46 4.94 5.34
C. Black-market exchange rates 0.00 5.00 2.00 9.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 0.00 8.46 6.57 6.29 6.26
(i) Foreign ownership/investment restrictions 7.97 7.13 7.04
(ii) Capital controls 0.00 0.00 0.00 0.00 8.46 8.46 8.46 8.46
(iii) Freedom of foreigners to visit 3.29 3.29 3.29

Area 5. Regulation 4.72 4.70 4.95 4.47 5.32 7.92 7.85 7.91
A. Credit market regulations 2.61 2.58 3.23 4.29 6.55 9.54 8.96 9.04
(i) Ownership of banks 2.00 2.00 2.00 2.00 2.00 10.00 10.00 10.00
(ii) Private sector credit 5.84 5.74 7.70 6.86 8.66 9.62 7.88 8.13
(iii) Interest rate controls/negative real interest rates 0.00 0.00 0.00 4.00 9.00 9.00 9.00 9.00
B. Labor market regulations 8.73 8.88 8.95
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 6.88 6.73 6.92
(iii) Centralized collective bargaining 8.69 8.55 8.76
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 8.79 10.00 10.00
(vi) Conscription 10.00 10.00 10.00 3.00 10.00 10.00 10.00 10.00
C. Business regulations 5.49 5.70 5.75
(i) Administrative requirements 3.82 4.89 4.72
(ii) Bureaucracy costs 2.41 3.49 3.49
(iii) Starting a business 8.10 8.02 8.14
(iv) Extra payments/bribes/favoritism 4.20 3.03 3.22
(v) Licensing restrictions 7.05 7.17 7.34
(vi) Cost of tax compliance 7.34 7.61 7.61

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 Chapter 2: Country Data Tables E 169

Ukraine
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 3.39 (122) 4.56 (119) 5.74 (107) 5.83 (105) 6.09 (100)
Area 1. Size of Government 4.59 (101) 6.46 (71) 6.62 (54) 6.83 (48)
Area 2. Legal System and Property Rights 4.78 (93) 4.81 (81) 4.79 (82) 4.50 (90) 4.84 (81)
Area 3. Sound Money 0.00 (118) 0.00 (121) 2.24 (122) 4.88 (119) 5.60 (120) 6.04 (116)
Area 4. Freedom to Trade Internationally 6.00 (75) 6.31 (80) 6.07 (89) 6.42 (84) 6.41 (86)
Area 5. Regulation 2.82 (121) 4.84 (108) 6.61 (73) 6.11 (97) 6.41 (91)

Unadjusted
Summary Ratings Rank) h 3.03 (123) 4.56 (119) 5.81 (125) 5.90 (132) 6.16 (126)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 4.59 6.46 6.62 6.83
A. Government consumption 4.65 (24.20) 4.41 (25.00) 5.16 (22.44) 3.58 (27.84) 3.59 (27.80) 4.38 (25.12) 4.68 (24.10) 5.41 (21.60)
B. Transfers and subsidies 6.26 (14.24) 3.98 (22.59) 4.28 (21.48) 4.89 (19.25)
C. Government enterprises and investment 4.00 10.00 (8.46) 10.00 (7.13) 10.00 (8.06)
D. Top marginal tax rate 4.50 7.50 7.50 7.00
(i) Top marginal income tax rate 5.00 (40) 10.00 (13) 10.00 (15) 10.00 (17)
(ii) Top marginal income and payroll tax rate 4.00 (44) 5.00 (38) 5.00 (40) 4.00 (42)

Area 2. Legal System and Property Rights 4.32 4.81 5.09 4.79 5.14
A. Judicial independence 6.10 3.17 2.56 1.80 2.52
B. Impartial courts 4.28 3.51 3.05 2.27 2.32
C. Protection of property rights 1.22 2.38 3.95 2.78 2.89
D. Military interference in rule of law and politics 5.67 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 5.28 5.36 5.36
G. Regulatory restrictions on sale of real property 7.12 6.51 7.46
H. Reliability of police 3.96 3.28 3.37
I. Business costs of crime 4.93 6.08 7.35

Area 3. Sound Money 3.37 0.00 2.24 4.88 5.60 6.04

A. Money growth 3.17 (34.15) 5.27 (23.66) 6.98 (15.11) 8.35 (8.24)
B. Standard deviation of inflation 0.00 (1158.31) 1.45 (21.38) 6.95 (7.64) 7.29 (6.78) 7.41 (6.48)
C. Inflation: most recent year 6.73 (16.34) 0.00 (415.53) 4.36 (28.20) 7.30 (13.52) 8.12 (9.38) 8.41 (7.96)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 5.12 6.31 6.21 6.57 6.56

A. Tariffs 7.62 6.75 8.62 8.66
(i) Revenue from trade taxes (% of trade sector) 9.36 (0.96) 8.87 (1.70) 9.45 (0.82) 9.46 (0.81)
(ii) Mean tariff rate 7.90 (10.50) 8.64 (6.80) 9.08 (4.60) 9.10 (4.50)
(iii) Standard deviation of tariff rates 5.60 (11.00) 2.74 (18.16) 7.33 (6.67) 7.41 (6.48)
B. Regulatory trade barriers 2.52 5.51 4.84 4.75 4.74
(i) Non-tariff trade barriers 2.52 4.03 4.56 3.91 3.89
(ii) Compliance costs of importing and exporting 6.99 5.13 5.59 5.59
C. Black-market exchange rates 0.00 0.00 0.00 9.40 7.78 10.00 10.00 10.00
D. Controls of the movement of capital and people 0.00 0.00 0.00 3.43 4.34 3.27 2.91 2.85
(i) Foreign ownership/investment restrictions 4.86 7.13 4.61 4.31 4.13
(ii) Capital controls 0.00 0.00 0.00 2.00 1.54 0.77 0.00 0.00
(iii) Freedom of foreigners to visit 4.42 4.42 4.42

Area 5. Regulation 2.70 4.84 6.42 5.93 6.23

A. Credit market regulations 0.00 0.57 5.59 9.16 8.09 8.52
(i) Ownership of banks 0.00 0.00 0.00 8.00 8.00 8.00
(ii) Private sector credit 1.72 9.76 9.47 6.26 8.57
(iii) Interest rate controls/negative real interest rates 0.00 7.00 10.00 10.00 9.00
B. Labor market regulations 5.35 4.51 6.17 6.03 6.09
(i) Hiring regulations and minimum wage 6.62 1.87 5.60 5.57 5.57
(ii) Hiring and firing regulations 5.83 5.83 6.25 6.34 6.32 6.48
(iii) Centralized collective bargaining 7.93 8.07 7.30 7.01 7.23
(iv) Hours regulations 5.35 5.34 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 8.79 9.25 9.25
(vi) Conscription 1.00 1.00 1.00 0.00 0.00
C. Business regulations 2.18 4.43 3.95 3.69 4.07
(i) Administrative requirements 6.27 2.58 2.45 2.34
(ii) Bureaucracy costs 2.20 4.80 3.80 2.79 2.79
(iii) Starting a business 3.73 2.87 8.20 9.18 9.28
(iv) Extra payments/bribes/favoritism 0.62 3.79 5.59 2.70 2.76
(v) Licensing restrictions 3.51 2.35 2.71
(vi) Cost of tax compliance 0.00 2.64 4.50

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170 E Economic Freedom of the World: 2013 Annual Report

United Arab Emirates

1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.03 (28) 6.83 (18) 7.20 (18) 6.95 (38) 7.28 (39) 7.50 (34) 7.74 (17) 7.85 (13)
Area 1. Size of Government 5.97 (25) 5.75 (32) 7.43 (10) 5.94 (65) 6.11 (65) 8.09 (16) 7.94 (17) 7.81 (23)
Area 2. Legal System and Property Rights 2.06 (84) 5.85 (35) 5.79 (43) 6.51 (44) 7.52 (33) 7.18 (38) 7.18 (31) 7.42 (28)
Area 3. Sound Money 6.64 (35) 7.64 (31) 7.91 (33) 7.76 (44) 7.75 (65) 7.60 (77) 8.32 (68) 8.62 (59)
Area 4. Freedom to Trade Internationally 8.58 (27) 8.55 (12) 8.55 (11) 8.57 (9)
Area 5. Regulation 5.28 (58) 6.22 (36) 6.33 (37) 6.29 (45) 6.45 (54) 6.11 (93) 6.70 (74) 6.78 (71)

Unadjusted
Summary Ratings Rank) h 6.09 (28) 6.88 (13) 7.46 (14) 6.88 (38) 7.09 (40) 7.71 (20) 7.96 (6) 8.07 (5)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.19 5.00 7.43 5.94 6.11 8.09 7.94 7.81
A. Government consumption 0.37 (38.73) 0.00 (41.76) 2.91 (30.10) 3.88 (26.80) 4.71 (23.97) 8.66 (10.54) 8.06 (12.58) 8.01 (12.75)
B. Transfers and subsidies 9.81 (1.20) 9.86 (1.00) 9.71 (1.55) 9.71 (1.55) 9.71 (1.55) 9.22 (3.37)
C. Government enterprises and investment 7.00 (21.40) 0.00 (55.70) 0.00 (56.90) 4.00 (38.18) 4.00 (36.28) 4.00 (36.28)
D. Top marginal tax rate 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(i) Top marginal income tax rate 10.00 (0) 10.00 (0) 10.00 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0)
(ii) Top marginal income and payroll tax rate 10.00 (16) 10.00 (16) 10.00 (16)

Area 2. Legal System and Property Rights 2.06 5.85 5.79 5.83 6.56 7.27 7.27 7.51
A. Judicial independence 6.30 6.80 7.31
B. Impartial courts 6.92 7.55 6.35 5.66 6.15
C. Protection of property rights 6.82 6.35 7.03
D. Military interference in rule of law and politics 8.50 8.33 8.33 8.33 8.33
E. Integrity of the legal system 4.11 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 4.83 4.83 5.33
G. Regulatory restrictions on sale of real property 9.30 9.30 9.05
H. Reliability of police 8.23 8.55 8.49
I. Business costs of crime 8.63 8.98 9.25

Area 3. Sound Money 7.93 9.12 9.44 9.45 7.75 7.60 8.32 8.62
A. Money growth 5.46 (22.70) 9.30 (-3.51) 9.27 (3.66) 8.90 (5.51) 8.87 (5.66) 6.65 (16.75) 8.21 (8.95) 9.56 (2.22)
B. Standard deviation of inflation 8.08 (4.79) 8.09 (4.78) 9.32 (1.69) 6.49 (8.78) 6.62 (8.45) 5.23 (11.92) 5.11 (12.23)
C. Inflation: most recent year 8.18 (9.10) 9.11 (4.46) 9.18 (4.10) 5.63 (21.83) 7.14 (14.29) 9.82 (0.88) 9.82 (0.88)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 10.00 8.20 8.33 8.58 8.11 8.10 8.13
A. Tariffs 10.00 9.60 10.00 9.60 8.87 8.67 8.65
(i) Revenue from trade taxes (% of trade sector) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00) 10.00 (0.00)
(ii) Mean tariff rate 9.20 (4.00) 9.20 (4.00) 9.04 (4.80) 9.02 (4.90) 9.02 (4.90)
(iii) Standard deviation of tariff rates 7.56 (6.10) 7.00 (7.50) 6.94 (7.64)
B. Regulatory trade barriers 8.11 8.40 8.31
(i) Non-tariff trade barriers 7.62 7.65 7.49
(ii) Compliance costs of importing and exporting 8.60 9.14 9.14
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 10.00 5.00 5.00 5.00 6.15 5.45 5.34 5.53
(i) Foreign ownership/investment restrictions 6.69 6.68 7.26
(ii) Capital controls 10.00 5.00 5.00 5.00 6.15 6.15 5.83 5.83
(iii) Freedom of foreigners to visit 3.52 3.52 3.52

Area 5. Regulation 5.28 6.22 6.33 6.29 6.45 7.46 8.18 8.27
A. Credit market regulations 6.85 6.17 6.49 6.36 6.86 7.74 7.64 7.63
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 8.71 7.35 7.98 7.73 8.71 8.21 7.92 7.90
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00
B. Labor market regulations 7.48 8.50 8.51
(i) Hiring regulations and minimum wage 10.00 10.00 10.00
(ii) Hiring and firing regulations 6.21 6.59 6.59
(iii) Centralized collective bargaining 8.47 8.38 8.48
(iv) Hours regulations 8.00 6.00 6.00
(v) Mandated cost of worker dismissal 2.21 10.00 10.00
(vi) Conscription 3.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 7.15 8.40 8.66
(i) Administrative requirements 5.56 5.60 6.37
(ii) Bureaucracy costs 2.18 7.47 7.47
(iii) Starting a business 8.03 9.52 9.68
(iv) Extra payments/bribes/favoritism 8.07 7.97 8.62
(v) Licensing restrictions 9.21 9.99 9.98
(vi) Cost of tax compliance 9.87 9.87 9.87

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 Chapter 2: Country Data Tables E 171

United Kingdom
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.57 (17) 7.53 (7) 8.08 (6) 8.20 (6) 8.50 (6) 8.38 (5) 7.94 (9) 7.97 (9)
Area 1. Size of Government 3.77 (87) 4.41 (74) 5.65 (58) 5.42 (81) 6.13 (61) 6.29 (79) 5.18 (96) 5.23 (98)
Area 2. Legal System and Property Rights 7.05 (19) 6.65 (25) 7.73 (16) 8.84 (15) 9.29 (6) 9.07 (8) 8.74 (11) 8.74 (10)
Area 3. Sound Money 5.96 (68) 9.35 (11) 9.48 (12) 9.60 (16) 9.31 (30) 9.45 (29) 9.58 (19) 9.56 (17)
Area 4. Freedom to Trade Internationally 8.99 (5) 9.04 (7) 9.04 (9) 9.11 (12) 9.40 (5) 8.75 (6) 8.75 (6) 8.65 (8)
Area 5. Regulation 6.99 (12) 8.23 (3) 8.55 (2) 8.04 (6) 8.36 (3) 8.35 (7) 7.48 (29) 7.67 (22)

Unadjusted
Summary Ratings Rank) h 6.72 (14) 7.71 (6) 8.18 (5) 8.19 (6) 8.50 (6) 8.25 (5) 7.82 (12) 7.85 (12)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 3.94 4.61 5.65 5.42 6.13 6.29 5.18 5.23
A. Government consumption 3.93 (26.62) 4.16 (25.85) 4.52 (24.63) 4.36 (25.18) 5.23 (22.22) 4.32 (25.31) 3.98 (26.46) 4.18 (25.80)
B. Transfers and subsidies 5.83 (15.80) 5.26 (17.90) 6.08 (14.90) 5.31 (17.70) 6.31 (14.05) 6.33 (13.97) 5.75 (16.10) 5.73 (16.17)
C. Government enterprises and investment 6.00 (29.10) 7.00 (23.50) 8.00 (15.30) 8.00 (16.40) 8.00 (16.40) 10.00 (4.24) 8.00 (16.60) 8.00 (15.52)
D. Top marginal tax rate 0.00 2.00 4.00 4.00 5.00 4.50 3.00 3.00
(i) Top marginal income tax rate 0.00 (83) 2.00 (60) 5.00 (40) 5.00 (40) 6.00 (40) 5.00 (41) 5.00 (50) 5.00 (50)
(ii) Top marginal income and payroll tax rate 3.00 (48) 3.00 (48) 4.00 (48) 4.00 (48) 1.00 (66) 1.00 (68)

Area 2. Legal System and Property Rights 7.05 6.65 7.73 8.84 9.29 8.27 7.97 7.97
A. Judicial independence 9.50 9.02 8.74 8.66 8.66
B. Impartial courts 8.88 9.02 8.38 6.79 7.03
C. Protection of property rights 7.08 8.44 9.09 8.34 8.67
D. Military interference in rule of law and politics 8.76 10.00 10.00 10.00 10.00
E. Integrity of the legal system 10.00 10.00 9.17 9.17 8.33
F. Legal enforcement of contracts 6.00 5.95 5.88
G. Regulatory restrictions on sale of real property 8.26 7.91 7.91
H. Reliability of police 7.51 7.77 8.11
I. Business costs of crime 7.25 7.15 7.11

Area 3. Sound Money 5.96 9.35 9.48 9.60 9.31 9.45 9.58 9.56
A. Money growth 8.57 (7.17) 9.57 (2.17) 9.75 (1.27) 9.59 (2.06) 8.14 (9.31) 8.54 (7.30) 9.26 (3.70) 9.39 (3.04)
B. Standard deviation of inflation 9.04 (2.40) 9.01 (2.48) 9.45 (1.38) 9.30 (1.74) 9.69 (0.77) 9.82 (0.44) 9.73 (0.67) 9.73 (0.67)
C. Inflation: most recent year 6.23 (18.84) 8.82 (5.91) 8.72 (6.42) 9.51 (2.44) 9.41 (2.93) 9.43 (2.83) 9.34 (3.29) 9.10 (4.48)
D. Freedom to own foreign currency bank accounts 0.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 9.63 9.68 9.47 9.03 9.40 8.80 8.80 8.70
A. Tariffs 8.89 9.05 8.41 8.63 9.18 8.39 8.34 8.27
(i) Revenue from trade taxes (% of trade sector) 9.53 (0.70) 9.60 (0.60) 9.60 (0.60) 9.60 (0.60) 9.78 (0.33) 9.59 (0.62) 9.63 (0.55) 9.66 (0.51)
(ii) Mean tariff rate 8.24 (8.80) 8.50 (7.50) 8.52 (7.40) 8.66 (6.70) 9.52 (2.40) 9.46 (2.70) 8.98 (5.10) 8.94 (5.30)
(iii) Standard deviation of tariff rates 7.12 (7.20) 7.64 (5.90) 8.24 (4.40) 6.13 (9.67) 6.41 (8.98) 6.23 (9.43)
B. Regulatory trade barriers 8.03 9.32 8.07 8.36 8.26
(i) Non-tariff trade barriers 8.03 8.97 7.23 7.51 7.31
(ii) Compliance costs of importing and exporting 9.67 8.91 9.20 9.20
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 10.00 10.00 10.00 9.45 9.10 8.74 8.50 8.27
(i) Foreign ownership/investment restrictions 8.89 9.75 8.59 7.99 7.93
(ii) Capital controls 10.00 10.00 10.00 10.00 8.46 8.46 8.33 7.69
(iii) Freedom of foreigners to visit 9.18 9.18 9.18

Area 5. Regulation 7.00 8.25 8.59 8.06 8.36 8.46 7.58 7.78
A. Credit market regulations 7.33 9.71 9.93 8.79 10.00 9.33 6.85 7.33
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 8.00 9.12 9.79 6.36 10.00 7.98 1.54 3.98
(iii) Interest rate controls/negative real interest rates 4.00 10.00 10.00 10.00 10.00 10.00 9.00 8.00
B. Labor market regulations 6.67 6.79 7.24 7.22 6.92 8.47 8.25 8.27
(i) Hiring regulations and minimum wage 6.67 4.61 8.90 8.90 8.90
(ii) Hiring and firing regulations 7.39 7.39 4.90 5.83 5.67 5.88
(iii) Centralized collective bargaining 5.18 5.18 6.21 6.21 8.60 8.10 7.87 7.87
(iv) Hours regulations 4.84 5.19 5.37 5.85 6.51 10.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.96 9.08 8.96
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 8.18 8.17 7.60 7.65 7.75
(i) Administrative requirements 7.93 3.80 3.50 3.95
(ii) Bureaucracy costs 7.78 8.03 5.90 7.16 7.16
(iii) Starting a business 8.07 7.73 9.58 9.58 9.58
(iv) Extra payments/bribes/favoritism 8.70 8.97 9.04 7.70 7.84
(v) Licensing restrictions 8.45 9.19 9.19
(vi) Cost of tax compliance 8.82 8.77 8.77

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172 E Economic Freedom of the World: 2013 Annual Report

United States
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 7.92 (3) 8.11 (3) 8.35 (3) 8.50 (4) 8.65 (2) 8.21 (8) 7.75 (16) 7.74 (19)
Area 1. Size of Government 5.08 (49) 5.94 (28) 6.71 (24) 6.88 (28) 7.03 (34) 7.13 (45) 6.39 (61) 6.83 (47)
Area 2. Legal System and Property Rights 8.35 (1) 8.35 (3) 8.35 (10) 8.76 (16) 9.23 (9) 7.51 (29) 7.12 (33) 6.93 (38)
Area 3. Sound Money 9.22 (5) 9.36 (9) 9.68 (7) 9.76 (3) 9.78 (2) 9.76 (1) 9.68 (6) 9.30 (36)
Area 4. Freedom to Trade Internationally 8.77 (7) 8.73 (8) 8.77 (11) 8.83 (18) 8.78 (22) 8.28 (17) 7.93 (31) 7.92 (30)
Area 5. Regulation 8.11 (4) 8.09 (5) 8.23 (4) 8.29 (5) 8.43 (2) 8.37 (6) 7.64 (19) 7.75 (17)

Unadjusted
Summary Ratings Rank) h 8.07 (2) 8.26 (3) 8.43 (3) 8.48 (4) 8.65 (2) 8.20 (8) 7.74 (16) 7.73 (17)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 5.17 6.05 6.71 6.88 7.03 7.13 6.39 6.83
A. Government consumption 5.53 (21.21) 5.45 (21.46) 5.66 (20.76) 6.18 (18.97) 6.59 (17.60) 6.34 (18.43) 5.85 (20.10) 6.03 (19.50)
B. Transfers and subsidies 7.17 (10.90) 6.73 (12.50) 6.68 (12.70) 6.32 (14.00) 6.54 (13.19) 6.69 (12.66) 5.69 (16.31) 5.77 (16.01)
C. Government enterprises and investment 8.00 (17.71) 8.00 (18.07) 8.00 (18.28) 8.00 (16.70) 8.00 (17.68) 8.00 (15.23) 7.00 (23.14) 8.00 (18.33)
D. Top marginal tax rate 0.00 4.00 6.50 7.00 7.00 7.50 7.00 7.50
(i) Top marginal income tax rate 0.00 (70-75) 4.00 (50-59) 7.00 (33-42) 7.00 (40-46) 7.00 (40-46) 8.00 (35-42) 7.00 (35-41) 8.00 (35-42)
(ii) Top marginal income and payroll tax rate 6.00 (36-45) 7.00 (42-49) 7.00 (42-49) 7.00 (37-44) 7.00 (37-44) 7.00 (37-44)

Area 2. Legal System and Property Rights 8.35 8.35 8.35 8.76 9.23 7.54 7.14 6.96
A. Judicial independence 8.30 8.02 6.60 6.57 6.50
B. Impartial courts 8.52 9.02 6.80 5.63 5.57
C. Protection of property rights 7.76 9.10 8.05 6.76 6.63
D. Military interference in rule of law and politics 9.23 10.00 6.67 6.67 6.67
E. Integrity of the legal system 10.00 10.00 8.33 8.33 8.33
F. Legal enforcement of contracts 7.33 7.33 6.80
G. Regulatory restrictions on sale of real property 9.61 9.51 8.62
H. Reliability of police 7.82 7.60 7.58
I. Business costs of crime 6.66 5.89 5.91

Area 3. Sound Money 9.22 9.36 9.68 9.76 9.78 9.76 9.68 9.30
A. Money growth 9.25 (3.75) 9.11 (4.46) 9.86 (-0.72) 9.70 (1.51) 9.94 (-0.28) 9.92 (-0.41) 9.46 (2.69) 8.18 (9.12)
B. Standard deviation of inflation 9.54 (1.15) 9.04 (2.41) 9.71 (0.72) 9.74 (0.64) 9.84 (0.40) 9.79 (0.52) 9.58 (1.05) 9.67 (0.84)
C. Inflation: most recent year 8.10 (9.51) 9.30 (3.52) 9.13 (4.34) 9.60 (2.00) 9.32 (3.38) 9.32 (3.39) 9.67 (1.64) 9.37 (3.16)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 8.97 8.92 8.74 8.65 8.78 8.07 7.73 7.72
A. Tariffs 8.90 8.77 8.23 8.41 8.12 8.38 8.43 8.40
(i) Revenue from trade taxes (% of trade sector) 9.27 (1.10) 8.87 (1.70) 9.00 (1.50) 9.20 (1.20) 9.44 (0.84) 9.49 (0.76) 9.55 (0.68) 9.55 (0.67)
(ii) Mean tariff rate 8.54 (7.30) 8.68 (6.60) 8.76 (6.20) 8.82 (5.90) 9.20 (4.00) 9.36 (3.20) 9.30 (3.50) 9.30 (3.50)
(iii) Standard deviation of tariff rates 6.92 (7.70) 7.20 (7.00) 5.72 (10.70) 6.28 (9.31) 6.43 (8.93) 6.36 (9.10)
B. Regulatory trade barriers 7.82 8.81 8.03 7.66 7.65
(i) Non-tariff trade barriers 7.82 8.12 6.72 5.97 5.95
(ii) Compliance costs of importing and exporting 9.50 9.35 9.35 9.35
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 8.00 8.00 8.00 8.39 8.21 5.88 4.83 4.83
(i) Foreign ownership/investment restrictions 8.78 9.49 7.28 6.46 6.44
(ii) Capital controls 8.00 8.00 8.00 8.00 6.92 6.15 3.85 3.85
(iii) Freedom of foreigners to visit 4.20 4.20 4.20

Area 5. Regulation 8.63 8.60 8.66 8.33 8.43 8.50 7.76 7.87
A. Credit market regulations 9.52 9.47 9.64 9.60 9.81 9.10 6.95 7.34
(i) Ownership of banks 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
(ii) Private sector credit 8.55 8.40 8.93 8.79 9.43 7.29 0.84 2.01
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
B. Labor market regulations 7.74 7.74 7.68 7.46 7.17 9.14 9.06 9.01
(i) Hiring regulations and minimum wage 5.90 3.82 10.00 10.00 10.00
(ii) Hiring and firing regulations 7.15 7.15 6.65 7.01 6.84 6.73
(iii) Centralized collective bargaining 7.59 7.59 7.59 7.59 8.35 7.83 7.49 7.33
(iv) Hours regulations 5.63 5.63 5.98 6.67 7.01 10.00 10.00 10.00
(v) Mandated cost of worker dismissal 10.00 10.00 10.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 7.94 8.32 7.26 7.26 7.26
(i) Administrative requirements 7.92 4.29 4.03 3.88
(ii) Bureaucracy costs 7.48 8.15 5.93 5.88 5.88
(iii) Starting a business 8.43 8.40 9.80 9.79 9.79
(iv) Extra payments/bribes/favoritism 7.91 8.82 7.23 5.99 5.97
(v) Licensing restrictions 9.98 9.98 9.97
(vi) Cost of tax compliance 6.36 7.90 8.04

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 Chapter 2: Country Data Tables E 173

Uruguay
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.07 (27) 5.97 (37) 6.34 (34) 6.47 (50) 7.08 (41) 7.02 (55) 7.29 (42) 7.30 (42)
Area 1. Size of Government 7.13 (11) 6.40 (16) 7.00 (19) 6.83 (32) 6.53 (51) 7.25 (39) 6.81 (50) 7.09 (36)
Area 2. Legal System and Property Rights 5.37 (40) 5.15 (54) 6.01 (39) 6.46 (47) 6.39 (54) 5.69 (65) 6.01 (58) 5.68 (64)
Area 3. Sound Money 4.18 (97) 3.71 (101) 3.76 (104) 3.92 (101) 8.39 (48) 8.18 (65) 8.98 (48) 9.09 (47)
Area 4. Freedom to Trade Internationally 7.43 (16) 8.06 (13) 8.10 (17) 8.69 (19) 8.18 (37) 7.68 (44) 7.97 (30) 7.92 (31)
Area 5. Regulation 6.03 (35) 6.37 (31) 6.63 (28) 6.28 (46) 5.91 (86) 6.28 (87) 6.71 (73) 6.72 (75)

Unadjusted
Summary Ratings Rank) h 6.33 (22) 6.16 (28) 6.60 (31) 6.59 (44) 6.95 (44) 7.06 (60) 7.34 (44) 7.35 (43)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 7.82 7.01 7.67 7.48 6.53 7.25 6.81 7.09
A. Government consumption 7.61 (14.11) 6.64 (17.41) 6.83 (16.77) 7.49 (14.52) 7.40 (14.84) 7.88 (13.19) 6.94 (16.39) 7.06 (16.00)
B. Transfers and subsidies 7.66 (9.10) 7.41 (10.00) 6.87 (12.00) 5.42 (17.30) 5.20 (18.10) 6.60 (13.00) 6.29 (14.10) 6.32 (14.01)
C. Government enterprises and investment 6.00 (29.00) 4.00 (36.20) 7.00 (23.00) 7.00 (22.90) 6.00 (25.20) 7.00 (20.41) 6.00 (27.50) 7.00 (24.60)
D. Top marginal tax rate 10.00 10.00 10.00 10.00 7.50 7.50 8.00 8.00
(i) Top marginal income tax rate 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 10.00 (0) 9.00 (25) 9.00 (25)
(ii) Top marginal income and payroll tax rate 5.00 (36) 5.00 (36) 7.00 (31) 7.00 (31)

Area 2. Legal System and Property Rights 5.61 5.38 6.28 6.00 5.74 5.57 5.89 5.57
A. Judicial independence 6.55 7.13 7.04
B. Impartial courts 6.04 6.67 5.47 5.26 4.86
C. Protection of property rights 5.53 6.26 6.75 6.68
D. Military interference in rule of law and politics 7.24 8.33 8.19 6.67 5.83
E. Integrity of the legal system 6.96 5.00 4.17 4.17 4.17
F. Legal enforcement of contracts 3.88 3.88 3.85
G. Regulatory restrictions on sale of real property 6.42 6.42 6.42
H. Reliability of police 4.84 6.02 5.39
I. Business costs of crime 4.35 6.68 5.86

Area 3. Sound Money 4.18 3.71 3.76 3.92 8.39 8.18 8.98 9.09
A. Money growth 1.45 (42.73) 2.98 (35.11) 0.00 (54.79) 2.99 (35.05) 8.49 (7.57) 6.89 (15.53) 7.90 (10.51) 8.62 (6.89)
B. Standard deviation of inflation 5.28 (11.81) 1.85 (20.37) 5.03 (12.43) 1.08 (22.30) 6.04 (9.89) 6.76 (8.11) 9.36 (1.60) 9.34 (1.65)
C. Inflation: most recent year 0.00 (54.76) 0.00 (74.02) 0.00 (100.39) 1.59 (42.03) 9.05 (4.76) 9.06 (4.70) 8.66 (6.68) 8.38 (8.09)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 8.02 8.32 8.65 9.28 8.18 7.85 8.15 8.10
A. Tariffs 4.07 4.97 5.94 7.83 7.72 7.73 7.77 7.74
(i) Revenue from trade taxes (% of trade sector) 4.07 (8.90) 6.13 (5.80) 6.27 (5.60) 8.20 (2.70) 8.71 (1.93) 8.43 (2.35) 8.65 (2.03) 8.57 (2.15)
(ii) Mean tariff rate 3.80 (31.00) 3.90 (30.50) 8.14 (9.30) 7.78 (11.10) 8.02 (9.90) 7.90 (10.50) 7.90 (10.50)
(iii) Standard deviation of tariff rates 7.64 (5.90) 7.16 (7.10) 6.68 (8.30) 6.74 (8.16) 6.77 (8.09) 6.77 (8.09)
B. Regulatory trade barriers 6.25 6.22 6.96 6.84
(i) Non-tariff trade barriers 6.25 5.73 6.56 5.97
(ii) Compliance costs of importing and exporting 6.72 7.37 7.70
C. Black-market exchange rates 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 10.00 10.00 10.00 10.00 8.74 7.45 7.87 7.81
(i) Foreign ownership/investment restrictions 9.02 6.74 8.02 7.81
(ii) Capital controls 10.00 10.00 10.00 10.00 8.46 8.46 8.46 8.46
(iii) Freedom of foreigners to visit 7.14 7.14 7.14

Area 5. Regulation 6.00 6.36 6.63 6.27 5.91 6.43 6.87 6.89
A. Credit market regulations 5.50 6.97 7.67 6.72 5.75 6.71 8.15 8.22
(i) Ownership of banks 5.00 5.00 5.00 5.00 5.00 2.00 5.00 5.00
(ii) Private sector credit 7.91 10.00 9.15 7.25 9.13 9.44 9.65
(iii) Interest rate controls/negative real interest rates 6.00 8.00 8.00 6.00 5.00 9.00 10.00 10.00
B. Labor market regulations 5.89 6.43 5.78 5.70
(i) Hiring regulations and minimum wage 2.56 6.70 6.67 6.67
(ii) Hiring and firing regulations 4.12 3.29 3.28 2.90
(iii) Centralized collective bargaining 6.90 3.47 2.14 2.02
(iv) Hours regulations 8.00 8.00 8.00
(v) Mandated cost of worker dismissal 7.13 4.61 4.61
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 6.09 6.16 6.69 6.74
(i) Administrative requirements 6.75 3.50 3.52 3.56
(ii) Bureaucracy costs 6.48 4.96 6.71 6.71
(iii) Starting a business 5.00 7.56 9.51 9.52
(iv) Extra payments/bribes/favoritism 6.11 7.49 7.20 7.15
(v) Licensing restrictions 6.85 6.97 6.98
(vi) Cost of tax compliance 6.59 6.23 6.53

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174 E Economic Freedom of the World: 2013 Annual Report

Venezuela
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 6.69 (14) 6.08 (34) 5.69 (51) 4.40 (109) 5.83 (94) 4.52 (121) 3.79 (122) 3.74 (121)
Area 1. Size of Government 6.29 (21) 6.86 (7) 5.95 (45) 6.13 (61) 5.95 (73) 4.91 (103) 4.96 (104) 4.61 (110)
Area 2. Legal System and Property Rights 6.22 (30) 5.25 (51) 5.70 (49) 3.84 (107) 3.75 (105) 1.64 (122) 1.46 (123) 1.45 (122)
Area 3. Sound Money 7.40 (27) 8.34 (22) 4.74 (94) 1.93 (113) 5.56 (110) 5.10 (116) 4.72 (121) 4.71 (120)
Area 4. Freedom to Trade Internationally 8.59 (9) 4.60 (54) 7.14 (28) 5.34 (90) 7.86 (46) 5.50 (105) 3.41 (121) 3.36 (120)
Area 5. Regulation 4.92 (72) 5.26 (64) 4.89 (82) 4.71 (99) 6.05 (80) 5.41 (108) 4.38 (121) 4.55 (120)

Unadjusted
Summary Ratings Rank) h 6.72 (14) 6.08 (31) 5.55 (56) 4.35 (109) 5.83 (93) 4.74 (136) 3.98 (153) 3.93 (152)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.29 6.86 5.95 6.13 5.95 4.91 4.96 4.61
A. Government consumption 6.56 (17.68) 7.52 (14.44) 8.25 (11.95) 9.02 (9.32) 6.06 (19.39) 6.36 (18.37) 7.06 (16.00) 6.68 (17.30)
B. Transfers and subsidies 9.59 (2.00) 8.91 (4.50) 8.56 (5.80) 8.50 (6.01) 7.74 (8.79) 5.77 (16.01) 5.77 (16.01) 5.77 (16.01)
C. Government enterprises and investment 2.00 (45.60) 4.00 (35.80) 0.00 (65.20) 0.00 (58.30) 2.00 (42.36) 2.00 (42.36) 0.00 (60.59) 0.00 (60.59)
D. Top marginal tax rate 7.00 7.00 7.00 7.00 8.00 5.50 7.00 6.00
(i) Top marginal income tax rate 7.00 (45) 7.00 (45) 7.00 (45) 7.00 (34) 8.00 (35) 7.00 (34) 8.00 (34) 7.00 (34)
(ii) Top marginal income and payroll tax rate 7.00 (45) 7.00 (34) 8.00 (35) 4.00 (49) 6.00 (41) 5.00 (41)

Area 2. Legal System and Property Rights 6.22 5.25 5.70 3.84 3.75 2.77 2.48 2.46
A. Judicial independence 2.85 1.67 0.31 1.08 0.45
B. Impartial courts 2.90 3.67 0.93 1.24 1.37
C. Protection of property rights 3.72 3.40 2.27 1.25 1.32
D. Military interference in rule of law and politics 5.65 3.33 0.83 0.83 0.83
E. Integrity of the legal system 4.11 6.67 5.00 1.67 1.67
F. Legal enforcement of contracts 3.97 3.97 3.97
G. Regulatory restrictions on sale of real property 8.42 8.46 8.46
H. Reliability of police 1.82 1.99 1.87
I. Business costs of crime 1.36 1.81 2.17

Area 3. Sound Money 7.40 8.34 4.74 1.93 5.56 5.10 4.72 4.71
A. Money growth 7.79 (11.04) 7.49 (12.53) 7.28 (13.58) 3.94 (30.28) 5.48 (22.60) 3.12 (34.40) 5.90 (20.49) 5.12 (24.42)
B. Standard deviation of inflation 7.02 (7.44) 7.94 (5.15) 0.00 (30.17) 3.77 (15.57) 0.00 (39.24) 5.49 (11.29) 3.81 (15.48) 3.96 (15.11)
C. Inflation: most recent year 4.80 (26.02) 7.92 (10.41) 1.66 (41.71) 0.00 (51.93) 6.76 (16.21) 6.81 (15.95) 4.19 (29.06) 4.78 (26.09)
D. Freedom to own foreign currency bank accounts 10.00 10.00 10.00 0.00 10.00 5.00 5.00 5.00

Area 4. Freedom to Trade Internationally 8.67 4.56 6.41 5.20 7.86 5.63 3.48 3.44
A. Tariffs 8.00 3.68 4.22 7.78 7.61 7.64 7.80 7.80
(i) Revenue from trade taxes (% of trade sector) 8.00 (3.00) 3.93 (9.10) 8.53 (2.20) 7.93 (3.10) 7.89 (3.16) 8.45 (2.33) 8.45 (2.33) 8.45 (2.33)
(ii) Mean tariff rate 3.42 (32.90) 3.88 (30.60) 7.32 (13.40) 7.30 (13.50) 7.44 (12.80) 7.50 (12.50) 7.50 (12.50)
(iii) Standard deviation of tariff rates 0.24 (24.40) 8.08 (4.80) 7.64 (5.90) 7.04 (7.41) 7.45 (6.38) 7.45 (6.38)
B. Regulatory trade barriers 4.57 5.68 4.04 2.59 2.50
(i) Non-tariff trade barriers 4.57 4.87 4.78 3.56 3.38
(ii) Compliance costs of importing and exporting 6.49 3.30 1.62 1.62
C. Black-market exchange rates 10.00 5.00 10.00 1.60 10.00 5.13 0.00 0.00
D. Controls of the movement of capital and people 8.00 5.00 5.00 6.87 8.15 5.70 3.55 3.44
(i) Foreign ownership/investment restrictions 8.74 9.37 5.03 3.18 2.87
(ii) Capital controls 8.00 5.00 5.00 5.00 6.92 5.38 0.77 0.77
(iii) Freedom of foreigners to visit 6.69 6.69 6.69

Area 5. Regulation 5.04 5.39 4.93 4.64 6.05 5.27 4.27 4.44
A. Credit market regulations 6.09 6.92 6.00 5.64 8.55 9.33 5.93 6.49
(i) Ownership of banks 5.00 8.00 8.00 8.00 8.00 8.00 5.00 5.00
(ii) Private sector credit 9.26 8.77 10.00 8.92 9.64 10.00 7.79 7.47
(iii) Interest rate controls/negative real interest rates 4.00 4.00 0.00 0.00 8.00 10.00 5.00 7.00
B. Labor market regulations 3.87 4.30 4.03 3.06 3.61 3.51
(i) Hiring regulations and minimum wage 4.85 4.07 3.30 3.33 3.33
(ii) Hiring and firing regulations 4.36 4.36 4.55 1.69 2.16 1.81
(iii) Centralized collective bargaining 7.24 7.24 7.24 7.24 5.83 4.29 4.55 4.40
(iv) Hours regulations 5.03 5.68 6.00 8.00 8.00
(v) Mandated cost of worker dismissal
(vi) Conscription 0.00 1.00 0.00 0.00 0.00 0.00 0.00 0.00
C. Business regulations 3.98 5.57 3.43 3.26 3.31
(i) Administrative requirements 6.42 1.39 1.97 1.84
(ii) Bureaucracy costs 5.31 6.15 3.73 3.22 3.22
(iii) Starting a business 4.57 4.68 6.40 6.39 6.38
(iv) Extra payments/bribes/favoritism 2.07 5.02 4.44 2.98 2.53
(v) Licensing restrictions 4.30 4.71 4.78
(vi) Cost of tax compliance 0.32 0.32 1.12

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 Chapter 2: Country Data Tables E 175

Vietnam
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.19 (102) 6.52 (102) 6.23 (122)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.58 8.04 7.03
A. Government consumption 9.38 (8.09) 9.17 (8.83) 9.08 (9.14) 9.06 (9.20)
B. Transfers and subsidies
C. Government enterprises and investment
D. Top marginal tax rate 4.00 7.00 5.00
(i) Top marginal income tax rate 5.00 (40) 7.00 (35) 5.00 (36)
(ii) Top marginal income and payroll tax rate 3.00 (52) 7.00 (35) 5.00 (36)

Area 2. Legal System and Property Rights 5.86 5.88 5.66

A. Judicial independence 4.13 4.33 3.94
B. Impartial courts 4.60 4.39 4.32
C. Protection of property rights 5.72 4.52 4.20
D. Military interference in rule of law and politics 5.00 5.00 5.00
E. Integrity of the legal system 6.67 6.67 6.67
F. Legal enforcement of contracts 6.36 6.51 5.69
G. Regulatory restrictions on sale of real property 8.34 8.73 8.73
H. Reliability of police 5.88 6.96 6.02
I. Business costs of crime 6.00 5.85 6.38

Area 3. Sound Money 6.30 5.93 5.69

A. Money growth 6.96 (15.21) 7.95 (10.27) 8.02 (9.92) 9.37 (3.13)
B. Standard deviation of inflation 8.90 (2.76) 7.46 (6.35) 7.12 (7.20)
C. Inflation: most recent year 8.35 (8.27) 8.23 (8.86) 6.26 (18.68)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00

Area 4. Freedom to Trade Internationally 5.84 6.28 6.27

A. Tariffs 5.80 7.14 7.14
(i) Revenue from trade taxes (% of trade sector) 8.18 (2.73) 8.16 (2.76) 8.16 (2.76) 8.16 (2.76)
(ii) Mean tariff rate 7.36 (13.20) 8.04 (9.80) 8.04 (9.80)
(iii) Standard deviation of tariff rates 1.87 (20.33) 5.22 (11.96) 5.22 (11.96)
B. Regulatory trade barriers 5.53 5.77 5.71
(i) Non-tariff trade barriers 4.35 4.54 4.32
(ii) Compliance costs of importing and exporting 6.72 7.01 7.09
C. Black-market exchange rates 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.04 2.23 2.22
(i) Foreign ownership/investment restrictions 5.54 5.35 5.33
(ii) Capital controls 0.00 0.77 0.77
(iii) Freedom of foreigners to visit 0.57 0.57 0.57

Area 5. Regulation 6.39 6.49 6.49

A. Credit market regulations 9.54 9.63 9.08
(i) Ownership of banks
(ii) Private sector credit 9.09 9.26 9.17
(iii) Interest rate controls/negative real interest rates 10.00 10.00 10.00 9.00
B. Labor market regulations 5.38 5.50 5.64
(i) Hiring regulations and minimum wage 10.00 7.23 8.90
(ii) Hiring and firing regulations 5.41 5.44 5.19
(iii) Centralized collective bargaining 6.24 7.79 7.22
(iv) Hours regulations 8.70 10.00 10.00
(v) Mandated cost of worker dismissal 1.93 2.52 2.52
(vi) Conscription 0.00 0.00 0.00
C. Business regulations 4.25 4.35 4.74
(i) Administrative requirements 2.30 2.85 3.23
(ii) Bureaucracy costs 3.98 3.66 3.66
(iii) Starting a business 8.14 8.48 8.82
(iv) Extra payments/bribes/favoritism 4.05 3.63 3.51
(v) Licensing restrictions 7.00 7.46 9.00
(vi) Cost of tax compliance 0.00 0.00 0.23

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176 E Economic Freedom of the World: 2013 Annual Report

Yemen, Republic of
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h
Area 1. Size of Government
Area 2. Legal System and Property Rights
Area 3. Sound Money
Area 4. Freedom to Trade Internationally
Area 5. Regulation

Unadjusted
Summary Ratings Rank) h 6.38 (111) 6.31 (116)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 7.20 7.13
A. Government consumption 8.04 (12.67) 7.31 (15.15)
B. Transfers and subsidies 7.77 (8.68) 8.21 (7.06)
C. Government enterprises and investment 2.00 (42.78) 4.00 (39.65) 4.00 (39.65)
D. Top marginal tax rate 9.00 9.00
(i) Top marginal income tax rate 10.00 (15) 10.00 (15)
(ii) Top marginal income and payroll tax rate 8.00 (28) 8.00 (28)

Area 2. Legal System and Property Rights 4.21 4.04

A. Judicial independence 1.28 1.62
B. Impartial courts 1.82 2.32
C. Protection of property rights 3.87 3.86
D. Military interference in rule of law and politics 6.67 5.00
E. Integrity of the legal system 3.33 3.33
F. Legal enforcement of contracts 5.54 5.17
G. Regulatory restrictions on sale of real property 8.39 8.39
H. Reliability of police 1.77 1.98
I. Business costs of crime 5.22 4.72

Area 3. Sound Money 7.75 7.74

A. Money growth 8.37 (-8.15) 9.50 (-2.49)
B. Standard deviation of inflation 4.85 (12.89) 4.73 (13.18)
C. Inflation: most recent year 7.77 (11.17) 6.72 (16.39)
D. Freedom to own foreign currency bank accounts 10.00 10.00

Area 4. Freedom to Trade Internationally 6.97 6.88

A. Tariffs 8.12 8.35
(i) Revenue from trade taxes (% of trade sector)
(ii) Mean tariff rate 8.58 (7.10)
(iii) Standard deviation of tariff rates 8.12 (4.70) 8.13 (4.69)
B. Regulatory trade barriers 6.25 5.60
(i) Non-tariff trade barriers 6.17 5.03
(ii) Compliance costs of importing and exporting 6.34 6.17
C. Black-market exchange rates 10.00 10.00
D. Controls of the movement of capital and people 3.52 3.57
(i) Foreign ownership/investment restrictions 3.40 3.55
(ii) Capital controls 6.92 6.92
(iii) Freedom of foreigners to visit 0.23 0.23

Area 5. Regulation 5.78 5.76

A. Credit market regulations 6.56 6.78
(i) Ownership of banks
(ii) Private sector credit 4.12 3.56
(iii) Interest rate controls/negative real interest rates 9.00 10.00
B. Labor market regulations 5.50 5.40
(i) Hiring regulations and minimum wage 8.90 8.90
(ii) Hiring and firing regulations 5.61 4.92
(iii) Centralized collective bargaining 7.99 8.09
(iv) Hours regulations 8.00 8.00
(v) Mandated cost of worker dismissal 2.52 2.52
(vi) Conscription 0.00 0.00
C. Business regulations 5.29 5.10
(i) Administrative requirements 2.62 3.00
(ii) Bureaucracy costs 2.29 2.29
(iii) Starting a business 8.74 7.96
(iv) Extra payments/bribes/favoritism 1.94 2.40
(v) Licensing restrictions 8.92 7.71
(vi) Cost of tax compliance 7.22 7.22

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 Chapter 2: Country Data Tables E 177

Zambia
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.60 (71) 3.54 (99) 3.09 (110) 4.76 (102) 6.90 (49) 7.37 (41) 7.72 (19) 7.62 (23)
Area 1. Size of Government 2.56 (100) 3.15 (97) 3.97 (95) 6.43 (44) 6.63 (49) 7.56 (32) 7.58 (26) 6.87 (43)
Area 2. Legal System and Property Rights 6.09 (33) 3.99 (75) 3.70 (79) 5.91 (56) 5.85 (64) 5.69 (64) 6.18 (54) 6.40 (50)
Area 3. Sound Money 6.26 (53) 3.33 (103) 0.59 (115) 0.65 (120) 7.15 (75) 8.11 (66) 8.87 (53) 8.95 (52)
Area 4. Freedom to Trade Internationally 2.98 (65) 2.91 (72) 2.59 (93) 5.81 (80) 8.48 (30) 8.09 (23) 8.46 (14) 8.34 (15)
Area 5. Regulation 5.26 (59) 4.37 (86) 4.63 (91) 4.99 (89) 6.36 (59) 7.26 (33) 7.39 (32) 7.48 (32)

Unadjusted
Summary Ratings Rank) h 4.73 (69) 3.55 (102) 3.10 (109) 4.76 (101) 6.90 (47) 6.86 (72) 7.19 (57) 7.10 (64)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 2.56 3.15 3.97 6.43 6.63 7.56 7.58 6.87
A. Government consumption 2.47 (31.60) 3.60 (27.78) 4.96 (23.14) 7.28 (15.24) 8.53 (11.00) 8.24 (11.98) 4.41 (25.00) 2.59 (31.20)
B. Transfers and subsidies 7.77 (8.70) 8.99 (4.20) 8.91 (4.50) 9.43 (2.60) 10.00 (0.00) 10.00 (0.40) 9.91 (0.83) 9.91 (0.83)
C. Government enterprises and investment 0.00 (77.10) 0.00 (90.70) 2.00 (46.20) 2.00 (41.30) 0.00 (62.60) 4.00 (31.00) 8.00 (15.35) 7.00 (23.25)
D. Top marginal tax rate 0.00 0.00 0.00 7.00 8.00 8.00 8.00 8.00
(i) Top marginal income tax rate 0.00 (70) 0.00 (80) 0.00 (75) 7.00 (35) 8.00 (30) 8.00 (30) 8.00 (30) 8.00 (30)
(ii) Top marginal income and payroll tax rate

Area 2. Legal System and Property Rights 6.09 3.99 3.70 5.91 5.85 5.24 5.70 5.90
A. Judicial independence 6.67 6.18 2.86 4.12 4.18
B. Impartial courts 4.85 4.86 5.00 4.98 5.25
C. Protection of property rights 4.77 3.23 6.05 5.23 5.78
D. Military interference in rule of law and politics 6.31 8.33 8.33 8.33 8.33
E. Integrity of the legal system 6.96 6.67 6.67 6.67 6.67
F. Legal enforcement of contracts 4.56 4.56 4.56
G. Regulatory restrictions on sale of real property 5.52 6.52 6.55
H. Reliability of police 4.95 5.03 5.59
I. Business costs of crime 3.26 5.84 6.20

Area 3. Sound Money 6.26 3.33 0.59 0.65 7.15 8.11 8.87 8.95
A. Money growth 9.21 (3.95) 6.58 (17.10) 1.92 (40.40) 0.00 (58.52) 5.45 (22.73) 6.97 (15.14) 7.69 (11.56) 7.67 (11.67)
B. Standard deviation of inflation 8.18 (4.55) 4.96 (12.60) 0.43 (23.92) 0.00 (49.23) 8.35 (4.11) 9.13 (2.17) 9.47 (1.32) 9.42 (1.46)
C. Inflation: most recent year 7.65 (11.76) 1.77 (41.14) 0.00 (106.39) 2.62 (36.92) 4.79 (26.03) 6.34 (18.32) 8.30 (8.50) 8.71 (6.43)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 10.00 10.00 10.00 10.00

Area 4. Freedom to Trade Internationally 3.47 2.93 2.61 5.81 8.48 6.86 7.17 7.07
A. Tariffs 8.40 4.39 5.84 6.04 6.22 6.97 7.27 7.27
(i) Revenue from trade taxes (% of trade sector) 8.40 (2.40) 5.73 (6.40) 6.80 (4.80) 7.47 (3.80) 5.11 (7.33) 7.82 (3.27) 8.67 (1.99) 8.67 (1.99)
(ii) Mean tariff rate 3.04 (34.80) 4.88 (25.60) 4.88 (25.60) 7.06 (14.70) 7.08 (14.60) 7.32 (13.40) 7.32 (13.40)
(iii) Standard deviation of tariff rates 5.76 (10.60) 6.48 (8.80) 6.00 (10.01) 5.82 (10.45) 5.82 (10.45)
B. Regulatory trade barriers 3.40 4.60 4.32
(i) Non-tariff trade barriers 5.07 6.22 5.66
(ii) Compliance costs of importing and exporting 1.72 2.98 2.98
C. Black-market exchange rates 0.00 2.40 0.00 9.40 10.00 10.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 2.00 9.23 7.07 6.80 6.68
(i) Foreign ownership/investment restrictions 8.25 7.44 7.07
(ii) Capital controls 2.00 2.00 2.00 2.00 9.23 9.23 9.23 9.23
(iii) Freedom of foreigners to visit 3.74 3.74 3.74

Area 5. Regulation 5.26 4.37 4.63 4.99 6.36 6.52 6.64 6.72
A. Credit market regulations 4.04 1.70 2.39 3.34 6.95 6.79 7.78 7.78
(i) Ownership of banks 2.00 2.00 2.00 5.00 5.00 5.00 5.00 5.00
(ii) Private sector credit 6.13 3.10 5.18 5.03 7.86 7.37 9.33 9.33
(iii) Interest rate controls/negative real interest rates 4.00 0.00 0.00 0.00 8.00 8.00 9.00 9.00
B. Labor market regulations 6.92 6.34 6.36
(i) Hiring regulations and minimum wage 10.00 7.77 7.77
(ii) Hiring and firing regulations 8.16 5.75 5.91
(iii) Centralized collective bargaining 8.68 6.52 6.50
(iv) Hours regulations 4.70 8.00 8.00
(v) Mandated cost of worker dismissal 0.00 0.00 0.00
(vi) Conscription 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 5.86 5.80 6.03
(i) Administrative requirements 5.31 4.66 5.34
(ii) Bureaucracy costs 5.53 4.32 4.32
(iii) Starting a business 8.56 9.14 9.18
(iv) Extra payments/bribes/favoritism 2.90 4.09 4.12
(v) Licensing restrictions 4.35 4.08 4.68
(vi) Cost of tax compliance 8.52 8.52 8.52

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178 E Economic Freedom of the World: 2013 Annual Report

Zimbabwe
1980 1985 1990 1995 2000 2005 2010 2011
Chain-Linked Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Summary Rating Rank) h 4.57 (73) 4.51 (84) 4.83 (84) 5.77 (74) 4.60 (118) 2.88 (123) 4.40 (121) 4.50 (120)
Area 1. Size of Government 6.90 (13) 5.48 (39) 5.57 (59) 7.00 (23) 5.85 (74) 4.59 (108) 5.68 (82) 6.11 (75)
Area 2. Legal System and Property Rights 2.97 (67) 3.05 (89) 3.99 (75) 5.53 (68) 5.02 (77) 2.87 (115) 3.21 (110) 3.31 (108)
Area 3. Sound Money 6.35 (48) 6.31 (73) 5.67 (83) 4.92 (95) 2.89 (119) 0.00 (123) 0.00 (123) 0.00 (122)
Area 4. Freedom to Trade Internationally 3.28 (63) 3.17 (70) 4.70 (64) 5.85 (79) 3.23 (120) 2.27 (121) 4.71 (119) 5.00 (115)
Area 5. Regulation 3.53 (94) 4.52 (84) 4.27 (99) 5.54 (75) 6.02 (83) 4.55 (120) 5.06 (116) 4.68 (119)

Unadjusted
Summary Ratings Rank) h 4.80 (66) 4.74 (78) 5.01 (78) 5.80 (71) 4.60 (118) 2.94 (141) 4.49 (151) 4.59 (149)
Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank) Rating Rank)
Area 1. Size of Government 6.90 5.48 5.57 7.00 5.85 4.59 5.68 6.11
A. Government consumption 5.56 (21.10) 4.52 (24.65) 4.84 (23.56) 5.42 (21.57) 3.65 (27.60) 7.60 (14.16) 6.47 (18.00) 5.71 (20.60)
B. Transfers and subsidies 7.03 (11.40) 7.41 (10.00) 8.45 (6.20) 8.57 (5.73) 7.75 (8.77) 7.75 (8.77) 7.75 (8.77) 7.75 (8.77)
C. Government enterprises and investment 10.00 (12.70) 10.00 (14.50) 8.00 (18.60) 10.00 (11.80) 10.00 (6.20) 0.00 (100.00) 4.00 (39.90) 6.00 (29.40)
D. Top marginal tax rate 5.00 0.00 1.00 4.00 2.00 3.00 4.50 5.00
(i) Top marginal income tax rate 5.00 (45) 0.00 (63) 1.00 (60) 4.00 (45) 2.00 (53) 3.00 (46) 5.00 (36) 5.00 (36)
(ii) Top marginal income and payroll tax rate 1.00 (60) 4.00 (45) 2.00 (53) 3.00 (46) 4.00 (42) 5.00 (37)

Area 2. Legal System and Property Rights 2.97 3.05 3.99 5.53 5.02 3.49 3.90 4.02
A. Judicial independence 6.67 6.18 1.10 2.73 2.89
B. Impartial courts 7.25 7.35 2.14 3.32 3.38
C. Protection of property rights 4.77 3.23 1.44 2.24 2.67
D. Military interference in rule of law and politics 4.87 5.00 5.00 3.33 3.33
E. Integrity of the legal system 4.11 3.33 5.00 5.00 5.00
F. Legal enforcement of contracts 5.43 2.37 2.37
G. Regulatory restrictions on sale of real property 4.43 6.78 6.85
H. Reliability of police 3.01 3.04 3.31
I. Business costs of crime 3.84 6.26 6.36

Area 3. Sound Money 6.35 6.31 5.67 4.92 2.89 0.00 3.22 3.22
A. Money growth 7.96 (10.19) 8.86 (5.70) 7.24 (13.79) 4.53 (27.34) 3.92 (30.39) 0.00 (224.09) 0.00 (457.94) 0.00 (457.94)
B. Standard deviation of inflation 8.75 (3.13) 7.68 (5.80) 8.38 (4.05) 7.28 (6.81) 2.64 (18.39) 0.00 (140.78) 0.00 (10799.60) 0.00 (10909.95)
C. Inflation: most recent year 8.69 (6.57) 8.70 (6.49) 7.05 (14.75) 7.86 (10.70) 0.00 (55.86) 0.00 (302.12) 7.89 (10.56) 7.89 (10.56)
D. Freedom to own foreign currency bank accounts 0.00 0.00 0.00 0.00 5.00 0.00 5.00 5.00

Area 4. Freedom to Trade Internationally 3.48 3.35 4.90 5.95 3.23 2.38 4.93 5.24
A. Tariffs 8.43 6.46 5.71 6.78 4.56 3.92 3.74 4.96
(i) Revenue from trade taxes (% of trade sector) 8.87 (1.70) 4.67 (8.00) 3.87 (9.20) 5.40 (6.90) 5.11 (7.33) 5.11 (7.33) 5.11 (7.33) 5.11 (7.33)
(ii) Mean tariff rate 8.00 (10.00) 8.26 (8.70) 7.98 (10.10) 8.16 (9.20) 5.72 (21.40) 6.66 (16.70) 6.10 (19.50) 6.82 (15.90)
(iii) Standard deviation of tariff rates 5.28 (11.80) 2.84 (17.90) 0.00 (71.68) 0.00 (68.06) 2.94 (17.65)
B. Regulatory trade barriers 3.68 5.86 3.15 3.50 3.58
(i) Non-tariff trade barriers 3.68 5.22 4.68 5.84 6.00
(ii) Compliance costs of importing and exporting 6.49 1.62 1.16 1.16
C. Black-market exchange rates 0.00 1.60 7.00 9.80 0.00 0.00 10.00 10.00
D. Controls of the movement of capital and people 2.00 2.00 2.00 3.53 2.50 2.43 2.49 2.40
(i) Foreign ownership/investment restrictions 5.06 5.00 4.00 4.17 3.92
(ii) Capital controls 2.00 2.00 2.00 2.00 0.00 0.00 0.00 0.00
(iii) Freedom of foreigners to visit 3.29 3.29 3.29

Area 5. Regulation 4.28 5.49 4.90 5.58 6.02 4.23 4.70 4.34
A. Credit market regulations 4.45 4.65 6.16 6.76 7.71 4.11 4.79 4.46
(i) Ownership of banks 2.00 2.00 2.00 5.00 8.00 8.00 8.00 8.00
(ii) Private sector credit 5.36 3.95 8.49 7.27 7.12 4.33 6.37 5.38
(iii) Interest rate controls/negative real interest rates 6.00 8.00 8.00 8.00 8.00 0.00 0.00 0.00
B. Labor market regulations 3.63 6.02 4.88 5.05 5.05 4.29
(i) Hiring regulations and minimum wage 5.85 3.52 8.90 6.67 6.67
(ii) Hiring and firing regulations 3.42 3.42 1.57 2.59 3.17 2.62
(iii) Centralized collective bargaining 4.49 4.49 2.45 2.82 2.48 2.45
(iv) Hours regulations 6.35 6.85 6.00 8.00 4.00
(v) Mandated cost of worker dismissal 0.00 0.00 0.00
(vi) Conscription 1.00 10.00 3.00 10.00 10.00 10.00 10.00 10.00
C. Business regulations 3.97 5.48 3.51 4.25 4.28
(i) Administrative requirements 5.10 1.99 3.52 3.30
(ii) Bureaucracy costs 4.30 7.05 3.37 4.60 4.60
(iii) Starting a business 3.68 5.68 3.59 5.55 5.99
(iv) Extra payments/bribes/favoritism 3.92 4.09 4.55 4.55 4.52
(v) Licensing restrictions 0.00 0.00 0.00
(vi) Cost of tax compliance 7.58 7.29 7.29

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Chapter 3 Institutions and Economic, Political,
and Civil Liberty in Africa
Alice M. Crisp and James Gwartney

Introduction
This chapter will focus on the economic, political, and civil institutions of 26 African
countries. During the past two decades, scholarly research has confirmed the impor-
tance of institutional factors including the rule of law, security of property rights,
openness of the political process, limitations on the power of the executive, monetary
stability, liberal trade regimes, and civil liberties as sources of human development,
economic growth, and high incomes per capita.1 The economic, political, and civil
institutions of countries are interrelated. Economic institutions are an outgrowth of
the political process. Moreover, there is evidence that moves toward economic lib-
eralization sometimes lead to subsequent moves toward political liberalization, and
vice versa.2 Further, civil liberties influence the public discourse and thereby exert
an impact on both economic and political decision-making. Because of these inter-
relationships, it is important to consider institutional quality in all of these areas.
While 39 African countries are included in index published in Economic Freedom
of the World (EFW), the detailed institutional data presented in this chapter are
available for only 26 of the 39. The EFW data for 1980 and 1985 are unavailable
for nine countries: Angola, Burkina Faso, Chad, Ethiopia, Guinea-Bissau, Lesotho,
Mauritania, Mozambique, and Namibia. Four other countries—Central African
Republic, Niger, Togo, and Tunisia—are omitted because their data for the other
institutional measures of this study are not available. As of 2011, the 26 countries
included in this chapter comprise 71% of the total population of the African con-
tinent. The primary purpose of our analysis is to enhance the knowledge of the
interaction among institutional factors, and the strengths and weaknesses of each
of these 26 African economies.

Citation Crisp, Alice M., and James Gwartney (2013). Institutions and Economic, Political, and Civil
Liberty in Africa. In James Gwartney, Robert Lawson, and Joshua Hall, Economic Freedom of the
World: 2013 Annual Report (Fraser Institute): 179–214.
1 Acemoglu, Johnson, Robinson, 2005. For additional information on the importance of institu-
tions in growth, see Hall and Jones, 1999; Knack and Keefer, 1995.
2 Acemoglu et al., 2008. For more information on the connections between economic and politi-
cal liberalization, see Persson and Tabellini, 2008; Rode and Gwartney, 2012.

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180 E Economic Freedom of the World: 2013 Annual Report

In 2011, the mean per-capita income on the African continent was US$3,045.
The population-weighted, average per-capita income for the 26 countries in this
analysis was a little higher, $3,400. The comparable figures for Latin American coun-
tries and Asian countries are $11,870 and $7,009, respectively. Thus, the mean per-
capita income of Africans is approximately half that of Asians, and a third that of
Latin Americans.
Not only are the mean income levels low, so too are the growth rates. The mean
population-weighted, annual per-capita growth rate of the 26 countries in the anal-
ysis was −0.08 from 1980 to 1990, −0.23 from 1990 to 2000, and 2.59 from 2000
to 2010. The good news here is that while incomes stagnated during the 1980s and
1990s, most African countries have registered modest growth during the most
recent decade.

Economic freedom in Africa

Given the linkage between institutions and prosperity, the low incomes of African
countries elevate the importance of institutional analysis in this region. The EFW
data indicates that the region has become more economically free since 1980, par-
ticularly during the past two decades. The mean EFW chain-linked summary rating
of the 26 African countries included in this chapter rose from 4.44 in 1980 to 4.73
in 1990 and 5.83 in 2000. By 2010, the mean regional EFW rating had risen to 6.25,
an increase of 1.81 units compared to 1980. While the mean EFW rating increases
of the 26 countries have been substantial since 1990, the changes have been highly
uneven. The EFW rating of eight countries—Zambia, Uganda, Nigeria, Tanzania,
Sierra Leone, Rwanda, Egypt, and Ghana—rose by more than two units between
1990 and 2010. Two of these countries—Zambia and Uganda—saw increases in the
EFW chain-linked summary rating of more than four units from 1990 to 2010. But
the ratings of Côte d’Ivoire, Gabon, and Senegal increased by less than half a point
during the same period. Still more troublesome, the EFW chain-linked summary
ratings of Zimbabwe and the Republic of the Congo have fallen since 1995.
In spite of these recent increases, the economic institutions of African coun-
tries are still among the poorest in the world. Compared to countries worldwide,
African nations are heavily regulated and have a politicized legal system; govern-
ment intervention in business is common and the movement of people and goods
are extensively restricted. Compared to the other 144 nations included in the EFW
Index, only six African nations rank in the top half—Mauritius, Rwanda, Uganda,
Zambia, Botswana and Ghana—and, of this group, only Mauritius ranks in the top
quartile. On the other hand, seven countries rank in the bottom 20—Zimbabwe,
the Republic of the Congo, the Democratic Republic of the Congo, Algeria, Burundi,
Côte d’Ivoire, and Gabon—and 12 rank in the bottom quartile.
Nine of the 26 African countries rank in the top 50 worldwide in the Area 1,
measure of size of government. Yet, 11 rank in the bottom 50 worldwide in this area.
The legal system (Area 2) and regulatory policies (Area 5) are major weaknesses in
the region. For Legal System and Property Rights, only three African countries—
Botswana, Rwanda, and Mauritius—place in the top 50 among the 144 countries
worldwide. In contrast, 14 of the 26 African countries place in the bottom 50 world-
wide for this area. Only five—Rwanda, Uganda, Mauritius, Botswana, and Gabon—
rank in the top 50 worldwide in the Regulation area, while 14 countries in the region
place in the bottom 50.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 181

Furthermore, African countries fall far behind the rest of the world in terms of
sound money (Area 3) and freedom to trade internationally (Area 4). In Area 3,
only two countries—Mauritius and Rwanda—rank in the top 50 worldwide, while
16 of the 26 African countries rank in the bottom 50. Only Mauritius ranked in the
top 50 for freedom of international exchange, while 16 African nations ranked in the
bottom 50 worldwide. The mean tariff rates in African countries are very high. The
average among all 26 African nations is 13.1%. Three countries in the region—the
Democratic Republic of the Congo, the Republic of the Congo, and Zimbabwe—
rank in the bottom 50 in every area of the EFW index. In contrast, only Mauritius
ranked in the top 50 in every area.

Broader economic, political, and civil institutional measures

In addition to the index published in Economic Freedom of the World, two other
measures of the quality of economic institutions will be integrated into our analy-
sis. These two measures are the World Bank’s Doing Business report and the Global
Competitiveness Report of the World Economic Forum. The Doing Business report
compares the regulatory cost imposed on business activity across countries and over
time. The index is based on the cost in time and money of regulatory compliance
accompanying ten generic business activities. The ten areas covered by the index are:
starting a business, dealing with construction permits, getting electricity, registering
property, getting credit, protecting investors, paying taxes, trading across borders,
enforcing contracts, and resolving insolvency. Countries imposing regulations that
increase the cost of engaging in normal business activities and/or substitute govern-
ment mandates for agreements among parties are given lower ratings.
The Global Competitiveness Report (GCR) uses a combination of objective and
survey data to rate the “competitiveness” of various countries. While this measure
considers some institutional variables, it also incorporates factors such as educa-
tion and skill levels of the labor force, size of the domestic market, the environ-
ment for innovation, access to advanced technology, and the development of the
country’s physical infrastructure (roads, telecommunications, and transportation
networks).

Economic institutions
While several components from both the Doing Business report and Global
Competitiveness Reports are included among the 42 components of the EFW index,
the three economic indicators measure different dimensions of a country’s eco-
nomic environment. The original ratings of the three indicators were converted to
a zero-to-10 scale and averaged to derive a measure of the economic institutional
quality of each of the 26 African countries. These ratings are presented in the left
graph of Exhibit 3.1.

Political institutions
Turning to the political institutions, five measures were used to rate coun-
tries in this area. The five measures were: (1) the rating for the Legal System
and Property Rights Area from the EFW index, (2) the political rights rat-
ing from Freedom House’s Freedom in the World,3 (3) the Polity IV rating on

3 The data for this measure can be found at Freedom House (2012a).

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182 E Economic Freedom of the World: 2013 Annual Report

the authoritarian-democratic scale, (4) the Polity IV rating for constraints on

the executive,4 and (5) the Corruption Perceptions Index from Transparency
International. As in the case of the economic institutional measures, these five
indicators were placed on a zero-to-10 scale and the mean of the five ratings used
to calculate a summary rating for the quality of the political institutions of each
country. This rating is presented in the middle graph of Exhibit 3.1. Clearly, this
measure incorporates a broad range of political factors, including a legal system
that protects property rights and enforces contracts in an even-handed manner,
democratic decision-making, constraints on the executive, openness of the politi-
cal process, and absence of corruption.

Civil liberty
Three measures were used to examine cross-country differences in civil liberty:
(1) the civil liberties rating from Freedom House,5 (2) the summary rating from
Freedom House’s Freedom of the Press,6 and (3) the rating from the Press Freedom
Index from Reporters without Borders.7 The civil liberties component from Freedom
House provides a measure of the degree to which freedom of speech, religion, asso-
ciation, and other civil liberties of individuals are protected both legally and in prac-
tice. Freedom House’s Freedom of the Press considers legal, political, and economic
factors that might interfere with the free flow of news or exert an impact on its con-
tent. The Reporters without Borders Press Freedom Index measures violations of
press freedom, government efforts to ensure freedom of the press, and indicates the
degree of freedom available to journalists and news organizations. The latter mea-
sure gives considerable attention to violence against journalists, censorship of news
media, searches and harassment, self-censorship, and financial pressures that affect
the freedom of the press. Again, the original ratings of the three civil liberty indica-
tors were placed on a zero-to-10 scale and the average used to calculate a summary
civil liberties rating for each country. This rating is presented in the right graph of
Exhibit 3.1. This combined rating provides a broad indicator of the extent to which
a country protects civil liberties and provides a free and competitive environment
for the news media.

In order to provide some international perspective on the ratings of African coun-

tries, the economic, political, and civil liberty measures were also derived for the
top 20 countries in the index of Economic Freedom of the World. This benchmark will
provide perspective on the strengths and weaknesses of African countries compared
to the world’s most economically free institutions.
As Exhibit 3.1 illustrates, the top five African countries for economic institu-
tions are Mauritius, South Africa, Rwanda, Botswana, and Ghana. However, all of
these countries fall well below the top-20 benchmark. Mauritius has the highest
rating, 7.08, compared to the benchmark, 7.28. At the other end of the spectrum,
the five countries with the lowest economic institutional rating are the Republic of

4 The data for both Polity IV measures can be found at Marshall (2011) or <http://www.systemicpeace.
org/inscr/inscr.htm>.
5 The data for this measure can be found at Freedom House (2012a).
6 The data for this measure can be found at Freedom House (2012b).
7 The data for this measure can be found at Reporters without Borders (2012) or <http://en.rsf.org/
press-freedom-index-2011-2012,1043.html>.

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 Exhibit 3.1: Economic, Political, and Civil Liberties of African Countries for 2011
Economic Institutions Political Institutions Civil LIberty
0 2 4 6 8 10 0 2 4 6 8 10 0 2 4 6 8 10

Benchmark 7.28 Benchmark 6.58 Benchmark 7.38

Mauritius 1 7.08 Mauritius 1 7.58 Ghana 1 8.37

South Africa 2 6.33 Botswana 2 7.06 Mauritius 2 8.05

Rwanda 3 6.24 South Africa 3 6.80 South Africa 3 7.80

Botswana 4 5.96 Ghana 4 6.62 Mali 4 7.53

Ghana 5 5.76 Zambia 5 5.68 Botswana 5 7.27

Zambia 6 5.32 Kenya 6 5.65 Benin 7 7.17

Morocco 7 5.11 Malawi 7 5.63 Tanzania 6 7.17

Egypt 8 4.77 Benin 8 5.62 Sierra Leone 8 6.67

Uganda 9 4.76 Sierra Leone 9 5.42 Senegal 9 6.30

Kenya 10 4.69 Senegal 10 5.40 Zambia 10 6.00

Tanzania 11 4.24 Mali 11 4.58 Kenya 11 5.95

Nigeria 12 4.21 Burundi 12 4.38 Congo, Rep. of 12 5.15

Madagascar 13 4.03 Nigeria 13 4.33 Nigeria 13 5.12

Malawi 14 3.83 Algeria 14 3.77 Madagascar 14 4.92

Mali 15 3.78 Côte d’Ivoire 14 3.77 Malawi 15 4.73

Cameroon 16 3.76 Gabon 14 3.77 Cameroon 16 4.57
Sierra Leone 17 3.74 Congo, Dem. Rep. 17 3.70 Gabon 17 4.45
Algeria 18 3.61 Madagascar 18 3.66 Uganda 18 4.30
Senegal 19 3.54 Tanzania 19 3.65 Algeria 19 4.07
Gabon 20 3.49 Rwanda 20 3.00 Burundi 20 4.01
Benin 21 3.43 Uganda 21 2.99 Morocco 21 3.96
Burundi 22 3.19 Morocco 22 2.93 Zimbabwe 22 3.50
Côte d’Ivoire 23 3.17 Zimbabwe 23 2.78 Congo, Dem. Rep. 23 2.98
Zimbabwe 24 2.77 Egypt 24 2.49 Côte d’Ivoire 24 2.88
Congo, Dem. Rep. 25 2.62 Cameroon 25 1.72 Egypt 25 2.85
Congo, Rep. of 26 2.38 Congo, Rep. of 26 1.58 Rwanda 26 2.57

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Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 183
184 E Economic Freedom of the World: 2013 Annual Report

the Congo, the Democratic Republic of the Congo, Zimbabwe, Côte d’Ivoire, and
Burundi. The economic institutional rating for each of these five countries is more
than four points below the benchmark.
The political institutional ratings of four African countries—Mauritius, Botswana,
South Africa, and Ghana—exceed the top-20 benchmark. All other countries are
below the benchmark. The bottom five countries in the political institutions cate-
gory are the Republic of the Congo, Cameroon, Egypt, Zimbabwe, and Morocco. In
the civil liberties area, the five highest-rated African countries are Ghana, Mauritius,
South Africa, Mali and Botswana. These top five countries in Africa exceed the top-
20 benchmark. The bottom five countries in this category are Rwanda, Egypt, Côte
d’Ivoire, the Democratic Republic of the Congo, and Zimbabwe.
There is a close relationship between the quality of economic and political insti-
tutions. Countries that have institutions of high quality in one tend to rank highly in
the other. For example, five countries—Mauritius, South Africa, Botswana, Ghana,
and Zambia—rank in the top eight among the 26 African countries in both eco-
nomic and political institutional quality. Similarly, two countries—Republic of the
Congo and Zimbabwe—rank in the bottom eight in both the economic and politi-
cal categories.

Institutions and the development of Africa

African countries are characterized by uncertain protection of property rights,
biased law enforcement, trade restrictions, and regulations that restrict entry into
markets and impose heavy costs on business. The low ratings of African countries
in Areas 2, 4, and 5C of the Economic Freedom of the World index reflect these defi-
ciencies. Consider the impact of the high tariff rates and other trade restrictions. The
geographic size of most African countries is about the same as that of the typical US
state. Before resources and products can cross these national boundaries, they are
subject to both taxes and customs clearance delays that often last two or three weeks.
This is a costly, time-consuming, and onerous ordeal that exerts a corrupting influ-
ence on both business and government. Most important, it is a major deterrent to
gains from specialization, economies of scale, entrepreneurship, and investment. If
trade restrictions of this type were present among the American states, the United
States would be considerably poorer. The trade restrictions alone would be enough
to undermine prosperity in Africa but, when coupled with legal systems that fail to
enforce contracts and protect property rights, and regulations that restrict entry and
drive up the cost of doing business, the results are catastrophic.
What determines the quality of a country’s economic, political, and civil
institutions? In an important recent book, Why Nations Fail, economists Daron
Acemoglu of the Massachusetts Institute of Technology, and James Robinson of
Harvard University present evidence that history provides a big part of the answer.8
Acemoglu and Robinson argue that a country’s experience during the colonial era
exerted a major impact on the evolution of their institutions. Their research indi-
cates that countries with colonial settlers who planned on staying were more likely
to develop institutions that limited the powers of political leaders, provided for
more secure property rights, and permitted open markets—all of which encour-
aged trade, innovation, and entrepreneurship. In contrast, colonizers settling in

8 Acemoglu and Robinson, 2012. For additional information on the importance of institutions as a
source of economic success, see Hall and Jones, 1999; Acemoglu, Johnson, and Robinson, 2001.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 185

harsh climates and with short-term interests in the extraction of mineral resources
were more likely to choose institutions that provided few limitations on the power
of government. When the colonizers were not planning on permanent settlement,
they were not very interested in individual rights, protection of property, and even-
handed application in the enforcement of the law.
The hot and humid climatic conditions of most of Africa made it unattractive to
most Europeans as a location for permanent settlement. Thus, the colonizers were
more likely to establish extractive rather than protective institutions. Even though
the colonial era is over, the imprint on African institutions remains.
Research also indicates that the identity of the colonizer exerts an impact on
institutional quality. Countries colonized by England tended to develop institu-
tions more consistent with limited government and protection of individual rights
than those colonized by France, Spain, and Portugal. The powers of the monarchy
were more limited in England than in other European countries. The Magna Carta
and Glorious Revolution provide evidence on this point. Similarly, the writings of
John Locke, Adam Ferguson, David Hume, and most of all Adam Smith developed
a powerful case for private ownership, gains from trade, competitive markets, and
limited government. Their writings exerted an impact on both English intellectuals
and popular culture. During the 18th century, no parallel set of literature was present
in any other European country.
Moreover, the English common law system provides for greater stability and
protection under the law than French civil law. Under English common law, legal
changes occur as the result of precedents derived from judicial decisions rendered
by judges. This system leads to more gradual changes and greater constraint on the
ability of political decision-makers to alter the law. No such check is present under
civil law, the foundation of which is that the law is what the political decision-
makers say it is.

Exhibit 3.2: Institutional Differences by Colonizer

10
English

8 Others
Institutional rating

6.24
6
5.35
4.89
4.53
4 3.80 3.60

0
Economic Political Civil
Institutions Institutions Liberties

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186 E Economic Freedom of the World: 2013 Annual Report

Did the identity of the colonizer make any difference in Africa? Exhibits 3.2 and
3.3 present evidence on this point. Half of the 26 African countries included in our
analysis were colonized by the English and the other half by another European coun-
try, France in most cases. Using the country ratings of Exhibit 3.1, Exhibit 3.2 presents
the average rating for the economic, political, and civil institutions of African coun-
tries according to the identity of the colonizer. Interestingly, the mean rating for all
three of these institutional measures is at least one full point higher for the coun-
tries colonized by the English than for those colonized by another European power.
Exhibit 3.3 presents the mean of the 2010 EFW summary rating and the legal
system (Area 2) ratings as well as the average of the EFW chain-linked summary
rating for 1990 to 2010 according to the identity of the colonizer. Again, all of these
institutional ratings were higher for the countries colonized by the English. Finally,
Exhibit 3.3 shows the mean 2011 per-capita income level by the identity of the col-
onizer. The mean per-capita income of countries colonized by the English was
US$4,415, compared to $3,725 for those colonized by another European country.
While what happened a century or more ago leaves an imprint, the colonial era
is over. Countries are now in a position to make their own institutional and policy
choices. As in other regions, the future of Africa is dependent on its ability to estab-
lish and develop institutions supportive of economic freedom, limited government,
and civil liberties. We now turn to a more detailed analysis of the institutional envi-
ronment of each of the 26 African countries.

Exhibit 3.3: Economic Freedom and Income by Colonizer

10
English

8 Others

6.60
5.93 5.87
6
5.34 5.22

4.20 4.415
4 3.725

0
EFW Summary, EFW Summary Average, EFW Area 2 Rating, GDP per capita
2010 1980–2010 2010 (000s)

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 187

Algeria
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10 (7th)
8.42
8 8
(22nd) (22nd) (23rd)
rd
6 (23rd) 5.25 (23 ) 6 5.55 5.53
4.87 (15th) (26th)
(22nd) 4.66 4.44 4.56
(22nd) 4.06 (26th)
4 3.43 4 3.65

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth 7.3% of GDP, a high figure for the region. Government enter-
In 2011, Algeria’s per-capita income was $8,655, placing it prise and investment accounts for 61.3% of total investment
5th among the 26 African countries. From 2000 to 2010, real in Algeria, indicating that the private sector is substantially
GDP per capita grew at an annual rate of 2.22%, the 14th most crowded out. Algeria has significant controls on capital mar-
rapid in the region. Algeria’s population is 35.5 million. kets, labor markets, and business with no rating above 5.0
for these subsections (5A, 5B, and 5C). Military conscription
Economic institutions and analysis is required in Algeria.
In 2010, Algeria ranked 23rd among the 26 African countries
in the Economic Freedom of the World index. Its ranking was Political institutions and civil liberty
higher in the Doing Business report, 16th in the region, and Algeria’s political institutions are largely undemocratic and
in the Global Competitiveness Report, 11th. In the past two military involvement in politics is common. In the Legal
decades, Algeria’s chain-linked summary EFW rating has System and Property Rights area of the EFW Index, Algeria
been one of the lowest in the region. It has made substan- ranks 15th among African countries. Freedom House catego-
tial improvements in economic freedom, increasing grad- rizes Algeria as “not free” in its political rights measure. In
ually from 3.43 in 1990 to 5.25 in 2005, in stride with the the Polity IV measure of democracy, it ranks 18th, and it ranks
economic liberalization of the rest of the region. By 2010, 9th in the constraints on the executive component. Algeria
however, its rating had receded to 4.87. ranks 13th in the region in Transparency International’s
Algeria ranked in the top ten in the region in only one Corruption Perceptions Index. Despite this moderate rank-
area in 2010, Sound Money, where it ranks 7th. The inflation ing, Freedom House comments, “high levels of corruption
rate in the most recent year was modest, 3.9%, and citi- plague Algeria’s business and public sectors”.
zens are permitted to own foreign currency bank accounts. The measures of civil liberty give consistent conclusions
Algeria ranked 22nd in the region and 133rd among 144 coun- for Algeria. Of the 26 countries in the region, it ranks 16th in
tries in the world in the Freedom to Trade Internationally area. the Reporters without Borders Press Freedom Index. Algeria
The mean tariff rate is the second highest in the region, 18.6%, ranks 17th in Freedom House’s Freedom of the Press and is in
and varies substantially with a standard deviation of 10.4. the “not free” group for its civil liberties measure. There are
Algeria ranked last in the region and 142nd worldwide restrictions on the media, but they have been relaxed a bit in
in both the Size of Government and the Regulation areas. recent decades. However, most private newspapers still rely
Government consumption as a share of the total is 30.5%, on the government for printing, which leads to substantial
the highest in the African region. Transfers and subsidies are self-censorship.

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188 E Economic Freedom of the World: 2013 Annual Report

Benin
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10

8 (8th) (20th)
8 7.12 (13th)
6.80 6.66 (15th)
th
(17 ) th
(20 ) (19th) (21st) 6.15
6 (10th) (16th) 5.77 5.64
5.25 5.49 5.55 6 th
(13 )
4.92 4.52
4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and Growth Benin ranked 20th in the region in Area 3, Sound Money.
th
Benin’s 2011 per-capita income of $1,617 places it 16 among Inflation in 2010 was moderate, 2.3%. However, ownership
the 26 African countries. From 2000 to 2010, real GDP per of foreign currency bank accounts is forbidden in Benin. In
capita grew at an annual rate of 0.78%, the 5th slowest in the Area 4, Freedom to Trade Internationally, Benin ranked 21st
region. Benin’s population as of 2010 was 8.9 million. in the region and 133rd in the world. Revenues derived from
tariffs sum to 15.7% of the trade sector. Capital controls are
Economic institutions and analysis strict and it is onerous for foreigners to obtain visas in Benin.
In 2010, Benin ranked 15th in the region in both the Economic The mean tariff rate is 11.9%, high by world standards.
Freedom of the World index and the Global Competitiveness
Report. Its ranking was lower (23rd in the region) in the Doing Political institutions and civil liberty
Business report. This indicates that Benin is a highly regu- Benin is an electoral democracy with elections generally
lated economy. The country has made gains in economic characterized as free and fair. However, courts in Benin are
freedom in the last 15 years. Its chain-linked summary EFW “highly inefficient and susceptible to corruption”, accord-
rating increased from 4.92 in 1995 to 5.77 in 2010. However, it ing to Freedom House. In the Legal System and Property
has not kept with the pace of the rest of the region, falling Rights area of the EFW Index, Benin ranks 13th among African
from 16th place in 1995 to 19th place in 2010. countries. It is in the “free” group in Freedom House’s polit-
Benin’s highest area ranking was in the area of Size ical rights measure. In the Polity IV measure of democ-
of Government where it ranked 8th in the region and 44th racy it ranks 6th, and it ranks 9th in the constraints on the
worldwide. Government consumption as a share of total executive component. Benin also ranks 9th in the region in
consumption (13.4%) and transfers and subsidies as a share Transparency International’s Corruption Perceptions Index.
of GDP (1.8%) are low. The top marginal income-tax rate in Of the 26 countries in the region, Benin ranks 12 th in
Benin is 35%. Benin achieved its next highest ranking, 13th, the Reporters without Borders Press Freedom Index. It ranks
in both EFW Area 2 and EFW Area 5. However, its worldwide much higher in Freedom House’s Freedom of the Press, 4th,
ranking for the Regulation area is 142nd of 144 countries. The and falls in the “free” group in Freedom House’s civil liber-
component that contributes the most to this low ranking is ties measure. While freedom of expression, religion, and
5Bi, hiring regulations and minimum wage. The regulation assembly are respected in Benin, human trafficking is
of credit is also cumbersome; it takes four years to resolve widespread and the legal protections available to women
insolvency in Benin. are minimal.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 189

Botswana
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10 (8th)
8.33 (4th)
nd
(2 ) th
(4 )
th
(5 ) (2nd) 7.63 (5th)
8 7.42 7.20 8 (1st) 7.21
rd
(3 ) 7.11 6.81 7.00
(2nd) 6.40
6 5.92 (24th)
6
5.03

4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth In the Sound Money area, Botswana ranked 8th in the
Botswana is one of the wealthiest countries in Africa. In region and 74th in the world. However, the country has a
2011, GDP per capita was $14,746, 2nd among the 26 African relatively high rate of inflation, 7.0% in the most recent year.
countries. From 2000 to 2010, real GDP per capita grew at an Botswana’s lowest area ranking is in the Size of Government
annual rate of 2.78%, 11th most rapid in the region. The popu- area, 24th in the region and 121st worldwide. Government
lation in Botswana was 2 million in 2010. consumption as a share of the total is high, 26.6%, as are
transfers and subsidies as a share of GDP, 10.9%. However,
Economic institutions and analysis the top marginal income-tax rate and marginal income and
Though Botswana ranked 67th worldwide in the Economic payroll tax rate is reasonable, 25%.
Freedom of the World index in 2010, it still has some of the
strongest economic institutions in the region. Botswana Political institutions and civil liberty
ranked 5th among the 26 African countries in the EFW Index Botswana’s political institutions place it 2nd in the region
and the Global Competitiveness Report. Its ranking was a lit- behind only Mauritius. Botswana is an electoral democ-
tle higher, 4th in the region, in the Doing Business report. In racy and the courts generally operate without direct polit-
the past two decades, Botswana has continued to be one of ical obstruction. In the Legal System and Property Rights
the most economically free African countries in this analysis. area of the EFW index, Botswana ranks first among African
Its chain-linked summary EFW rating climbed from 5.92 in countries. It is a member of the “moderately free” group in
1990 to 7.42 in 2000. In recent years, however, its rating has the Freedom House political rights measure. In the Polity
receded, slipping to 7.20 in 2010. IV measure of democracy it ranks 3rd, and it ranks first in
Botswana ranked first in the region and 35th worldwide in the constraints on the executive component. Botswana
EFW Area 2, indicating that its legal system provides for rela- also ranks first in the region in Transparency International’s
tively secure property rights and even-handed enforcement Corruption Perceptions Index.
of contracts. It ranked 2nd in the region and 69th worldwide In the area of civil liberties, Botswana places 5th
in EFW Area 4 with a mean tariff rate of 7.7%, the second among African countries. Of the 26 countries in the region,
lowest in the region. Botswana ranked 4th in the region and Botswana ranked 4th in the Reporters without Borders
35th worldwide in the Regulation Area. It takes 152 hours for Press Freedom Index. It ranked 6 th in Freedom House’s
a business to prepare and pay taxes, the 3rd shortest amount Freedom of the Press and is in the “moderately free” group
of time in Africa and it only takes 1.7 years to resolve insol- in Freedom House’s civil liberties measure. According to
vency, the fastest in the region. Botswana received a rating Freedom House, “Botswana has a free and vigorous press,
of 10.0 in the hiring regulations and minimum wage com- with several independent newspapers and magazines”,
ponent (5Bi). However, it takes 61 days to start a business in and the freedoms of religion, assembly, and association
Botswana, the 2nd longest in the region. are respected.

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190 E Economic Freedom of the World: 2013 Annual Report

Burundi
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10

8 8 (18th) (11th)
6.98 6.76
(22nd) (21st) (24th) (22nd)
6 (18th) (22nd) (24th) 6 5.24 5.38
5.10 4.49
4.58 rd
(23 ) 4.73 4.66
3.89 (24th)
4 4 2.98

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth 21st in the region and 114th in the world. Government enter-
In 2011, Burundi’s per-capita income was $604, the second prise and investment accounts for 84% of total invest-
lowest in the region. From 2000 to 2010, real GDP per capita ment in Burundi, severely crowding out private investment.
grew at an annual rate of 0.55%, the 4th slowest in the region. Burundi ranked 24th in the region in both EFW Area 2 (137th
Burundi’s population in 2010 was 8.3 million. worldwide) and EFW Area 4 (138th worldwide). Burundi
ranked last among African countries in the impartial courts
Economic institutions and analysis component (2B) and 21st in the protection of property rights
The economic institutions of Burundi rank in the bottom component (2C), illustrating major deficiencies of its legal
five in the region. In 2010, Burundi ranked 22nd among the system. The mean tariff rate in Burundi is 12.5%, and the cost
26 African countries in the Economic Freedom of the World of importing is great, the 2nd highest in the region.
index and 24th in the Global Competitiveness Report. Its rank-
ing was a little higher, 18th in the region, in the Doing Business Political institutions and civil liberty
report. Burundi’s chain-linked summary EFW rating has fluc- The political institutions of Burundi are for the most part
tuated substantially in recent decades. It fell from 4.58 in undemocratic and corruption is a significant problem. In the
1990 to 3.89 in 1995, and then rose to 4.73 in 2000. The rat- Legal System and Property Rights area of the EFW index,
ing declined slightly to 4.66 in 2005 but it rose once more Burundi ranked 24th among 26 African countries. Yet, it is
to 5.10 in 2010. only “moderately not free” according to categories derived
Burundi did not rank in the top ten in the region in any from the Freedom House political rights measure. In the
area of the EFW Index. It ranked 11th in the region in the Polity IV measure of democracy it ranked 11th, and it ranked
Regulation area, its highest area ranking. Burundi received 5th in the constraints on the executive component. Burundi
a rating of 10 in the hiring regulations and minimum wage ranked last in the region in Transparency International’s
component (5Bi). It only takes eight days and four proce- Corruption Perceptions Index, providing still more evidence
dures to start a business in Burundi, the 5th shortest amount of the deficiencies of its legal system.
of time in the region. However, bureaucracy costs (compo- In the area of civil liberties, Burundi ranks 20th in the
nent 5Cii) are high and extra payments, bribes, and favor- region. Of the 26 African countries, Burundi ranked 18th
itism (component 5Civ) play a large role in business. For in the Reporters without Borders Press Freedom Index. It
these components, Burundi received a rating of 2.8 and 2.6, ranked lower in Freedom House’s Freedom of the Press, 23rd in
respectively. Burundi’s next highest regional ranking was in the region. According to Freedom House, “press laws restrict
Area 3, Sound Money, 18th. In the most recent year, the rate journalists in broad, imprecise ways, and sanctions for defa-
of inflation was 6.4%. mation and insult include harsh fines and imprisonment”.
In the other three areas, Burundi ranked in the bottom Burundi is in the “moderately not free” group in Freedom
30 worldwide. In the Size of Government, Burundi ranked House’s civil liberties measure.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 191

Cameroon
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10
(4th)
7.98
8 (10th) 8 (21st) (15th)
(11th) 6.74 (16th) (14th)
(3rd) (13th) 6.55 6.55 6.29
th
(8 ) 6.19 6.16
6 5.81 5.68 5.92 6
(18th)
4.00
4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth African countries and the mean tariff rate is high, 17.8%.
In 2011, the per-capita income of Cameroon was $2,359, plac- Cameroon’s lowest ranking, 21st in the region, was in Area 3,
ing it 10th among the 26 African countries. From 2000 to 2010, Access to Sound Money. Inflation in 2010 was moderate,
real GDP per capita grew at an annual rate of 0.98%, the 6th 1.3%, yet citizens have no freedom to own foreign currency
slowest in the region. The population of Cameroon was 19.6 bank accounts in Cameroon.
million in 2010.
Political institutions and civil liberty
Economic institutions and analysis In the overall measure of political institutions, Cameroon
th
In 2010, Cameroon ranked 14 among the 26 African coun- ranks 25th among 26 African countries in the region. The
tries in the Economic Freedom of the World index. It ranked political institutions of Cameroon are largely undemocratic
19th in the Doing Business report and 12th in the Global and corruption is endemic. In the Legal System and Property
Competitiveness Report. Cameroon has made improve- Rights area of the EFW index, Cameroon ranks 18th among
ments in economic freedom since 1995. Its chain-linked African countries. However, it is in the “not free” group in
summary EFW rating increased from 5.68 in 1995 to 6.55 in the Freedom House political rights measure. In the Polity IV
2010. However, these gains have not been as strong as other measure of democracy it ranks 23rd, and it ranks 24th in the
countries in the region. Its chain-linked summary ranking in constraints on the executive component. Cameroon ranks
1990 was 3rd, but it fell to 10th in 2010. 22nd in the region in Transparency International’s Corruption
Cameroon’s highest area ranking, 4th in the region and Perceptions Index.
21st worldwide, was for Size of Government. Government Though the constitution guarantees freedom of
investment as a share of the total is low, 14%. Government speech, freedom of expression is not respected in prac-
consumption as a share of total consumption is also low, tice. Of the 26 countries in the region, Cameroon ranks 13th
13.3%, but top marginal income-tax rates are relatively high, in the Reporters without Borders Press Freedom Index, and
39%, and 41% when the payroll tax is included. still lower, 19th, in Freedom House’s Freedom of the Press.
Cameroon ranked 15th in the region in EFW Area 5 and It is a member of the “not free” category in the Freedom
16th in EFW Area 4. It takes 654 hours for a business to pre- House’s civil liberties measure and self-censorship among
pare and pay taxes in Cameroon, the 2nd longest among journalists is prevalent.

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192 E Economic Freedom of the World: 2013 Annual Report

Democratic Republic of the Congo

Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10
(13th)
8 8 7.12
(23rd)
(22nd) 5.79 (24th)
6 th
(25 ) 6 5.19 (26th)
(25th) 4.66 5.03
(26th) 4.46 4.81
(25th) (26th) 3.85
4 3.28 4 (26th)
3.03
2.40
2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth and 54% when the payroll tax is included. Its next highest
The Democratic Republic of the Congo (DR Congo) is the ranking was in EFW Area 5, 23rd in the region and 130th world-
poorest country in the region. In 2011, GDP per capita was wide. It takes 58 days to start a business in the DR Congo,
$373 and real GDP per capita grew at an annual rate of 2.01% the fourth longest in the region. It takes 5.2 years to resolve
from 2000 to 2010. In 2010, the population of the DR Congo an undisputed contractual issue, the longest in the region.
was 65.97 million. The DR Congo ranks last in the region and 141st worldwide
in the Freedom to Trade Internationally area. The length
Economic institutions and analysis of time for customs clearance is among the longest in the
The economic institutions of the Democratic Republic of region, and extensive controls are applied to the cross-
Congo are among the poorest in the region. In 2010, DR border movements of both capital and people.
Congo ranked 24th among the 26 African countries and
140th of 14 countries in the world in the Economic Freedom Political institutions and civil liberty
of the World index. Its ranking was even lower in the Doing The political institutions of the DR Congo are largely undem-
Business report, 25th, illustrating the economy’s highly reg- ocratic and corruption is a major problem. According to
ulated nature. Data for DR Congo is not available in the Freedom House, “the 2006 and 2011 elections lacked cred-
Global Competitiveness Report but has made small improve- ibility and transparency, and were marred by fraud, voting
ments in economic freedom since 1990. Its chain-linked irregularities, voter intimidation, and violence”. In the Legal
summary EFW rating was 3.03 in 1990 and has steadily risen System and Property Rights area of the EFW index, the DR
thereafter, reaching 3.85 in 2000 and 4.81 in 2010. However, Congo ranks last among African countries and 142nd among
it has continually maintained one of the lowest summary 144 countries worldwide. It is in the “not free” group in the
ratings in the region, ranking either 25th or 26th in every five- Freedom House political rights measure. In the Polity IV
year increment. measure of democracy it ranks 13th, and it ranks 9th in the
DR Congo does not rank in the top ten in any areas of constraints on the executive component. The DR Congo
the EFW index. It’s highest regional ranking, 13th, was in the ranks 24th in the region in Transparency International’s
Sound Money area. Even in this area, the inflation rate in Corruption Perceptions Index.
the most recent year was 22.4%, the highest among African In the overall civil liberties measure, the DR Congo ranks
rd
countries. However, its citizens are permitted to own foreign 23 in the region. Of the 26 African countries, DR Congo
currency bank accounts. ranks 21st in the Reporters without Borders Press Freedom
The DR Congo ranked in the bottom five in the region in Index. It is in the “not free” group in the Freedom House civil
each of the other EFW areas. It ranked 22nd in the region and liberties measure. It ranks last in Freedom House’s Freedom
116th among 144 countries in the world in the area of Size of of the Press, indicating the presence of substantial restric-
Government. Top marginal income-tax rates are high, 50%, tions on freedom of the press.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 193

Republic of the Congo

Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10

8 8
(22nd)
(23rd) (23rd) 5.96
6 (15th) (15th) rd
(23 ) th
(24 ) 6 (25th)
4.97 5.02 (25th) 5.08 5.06
4.71 4.82 (25th) 4.66
4.28 nd
(22 ) 3.91
4 4 3.28

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth of total consumption is large, 21%. In the Freedom to Trade
In 2011, the per-capita income of the Republic of the Congo area, it ranked 23rd in the region and 135th worldwide. The
was $4,360, placing it 8th among the 26 African countries in compliance costs of importing and exporting are high
the region. From 2000 to 2010, real GDP per capita grew at (component 4Bii) and controls on the movements of capi-
an annual rate of 2.06%, the 15th most rapid in the region. tal and people are broad (components 4Dii and 4Diii). The
The population of the Republic of the Congo was 4 million Republic of the Congo ranked 22nd in both EFW Area 2 and
in 2010. EFW Area 5. It takes 606 hours per year to prepare and pay
taxes, the 3rd longest in the region and 161 days to start a
Economic institutions and analysis business, the longest among African countries. The Republic
Central planning, trade restrictions, and other roadblocks of the Congo ranked 25th in the region and 143rd worldwide
limiting market activity characterize the economic institu- in EFW Area 3. Inflation in the most recent year was 20.7%,
tions of the Republic of the Congo. In 2010, the Republic of the 2nd highest in the region.
the Congo ranked 25th among the 26 African countries and
141st of 144 countries worldwide in the Economic Freedom Political institutions and civil liberty
of the World index. Its ranking was even lower in the Doing Like the Democratic Republic of the Congo, the political
Business report, 26th, indicating considerable business regu- institutions of the Republic of the Congo are also charac-
lations. Data for the Republic of the Congo is not available terized by authoritarianism and rampant corruption. In the
in the Global Competitiveness Report. Moreover, its economic Legal System and Property Rights area of the EFW index,
institutions have changed little in the recent decades. The the Republic of the Congo ranks 22nd among African coun-
Republic of the Congo’s chain-linked summary EFW rating tries. It is a member of the “not free” group in the Freedom
rose from 4.97 in 1990 to 5.02 in 1995 and then plunged to House political rights measure. In the Polity IV measure of
4.28 in 2000. It has made small improvements in the last democracy it ranks 23rd, and it places 24th in the constraints
decade with a rating of 4.82 in 2010. on the executive component. The Republic of the Congo
The Republic of the Congo ranked in the bottom five ranks 22nd in the region and 144th of 176 countries worldwide
in every area of the EFW Index. For Size of Government, in Transparency International’s Corruption Perceptions Index.
the Republic of the Congo ranked 23rd in the region, and Of the 26 countries in the region, the Congo ranks 11th in
119th among the 144 countries worldwide. The top marginal the Reporters without Borders Press Freedom Index and in
income-tax rate is high, 45%, and 49% when the payroll Freedom House’s Freedom of the Press. It is in the “not free”
tax is included, and government consumption as a share group in the Freedom House civil liberties measure.

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194 E Economic Freedom of the World: 2013 Annual Report

Côte d’Ivoire
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10

8 8 (12th) (23rd) (16th)

(11th) (12th) (15th)
(18th) 6.45 6.56 6.25 6.41 (21st)
(4th) th
(13 ) 5.99 6.11 5.91
6 5.57 6 5.73
5.20

4 4 (25th)
2.95

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth Côte d’Ivoire ranks 16th in the Regulation area. The country
The per-capita income of Côte d’Ivoire was $1,789 in 2011, exercises military conscription (component 5Bvi), bureau-
the 13th highest among the 26 African countries. However, cracy costs are high (component 5Cii), and extra payments,
Côte d’Ivoire was one of only three African countries expe- bribes, and favoritism plague the conduct of business
riencing declining income from 2000 to 2010. Real GDP per (component 5Civ).
capita actually declined at an annual rate of −0.66% dur- In the Area 3, Sound Money, Côte d’Ivoire ranked 23rd
ing the decade. In 2010, the population of Côte d’Ivoire among African countries and 121st among 144 countries in
was 19.7 million. the world. Even so, its inflation rate in the most recent year
was low, 1.7%. However, citizens are forbidden to own for-
Economic institutions and analysis eign currency bank accounts.
In 2010, Côte d’Ivoire ranked 21st among the 26 African
countries in the Economic Freedom of the World index and Political institutions and civil liberty
the Global Competitiveness Report. Its ranking was even The political institutions of Côte d’Ivoire are largely undem-
lower in the Doing Business report, 24th in the region, which ocratic and one party, Rassemblement des républicains, dom-
implies the country faces large regulatory burdens. Côte inates the political scene. In the Legal System and Property
d’Ivoire made increases in economic freedom in the past Rights area of the EFW index, Cote d’Ivoire ranks 25th among
two decades but not at the pace of the rest of the region. African countries. Freedom House places it in the “not free”
Its chain-linked summary EFW rating was 5.20 in 1995 and group in its political rights measure. In the Polity IV mea-
rose to 6.11 in 2005. However, while most of the countries in sure of democracy it ranks 14th, and it ranks 9th in the con-
the region were experiencing increases, the rating of Côte straints on the executive component. Côte d’Ivoire ranks
d’Ivoire fell to 5.91 in 2010. 18th in the region in Transparency International’s Corruption
Côte d’Ivoire’s highest area ranking was in the Size Perceptions Index.
of Government area, 12th in the region. Government con- In the overall measure of civil liberties, Côte d’Ivoire
sumption as a share of total consumption is low, 10.6%, ranks 24th among African countries. Of the 26 countries in
but the top marginal income-tax rates are high, 39%, and the region, Côte d’Ivoire ranks 24th in the Reporters with-
54% when the payroll tax is included. Côte d’Ivoire ranked out Borders Press Freedom Index and 21st in Freedom House’s
15th among African countries in EFW Area 4, Freedom to Freedom of the Press. It is included in the “not free” group in
Trade Internationally. The mean tariff rate is low for the the Freedom House civil liberties measure. The Press Freedom
region, 11.9%, yet high compared to worldwide standards. Index reports that violence against journalists is prevalent.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 195

Egypt
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10 (4th)
8.81
8 (6th) (7th) (9th) 8 (11th) (13th) (10th)
(5th) 6.81 6.59 6.77 6.58 6.48
(10th) 6.29 (24th)
5.99 5.49
6 (17th) 6 5.24
4.60
4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth $755 per container. However, its mean tariff rate is very high,
In 2011, Egypt’s per-capita income was $6,281, the 6th highest 17%, and varies outrageously with a standard deviation of
among 26 African nations. From 2000 to 2010, real GDP per 149.5. Egypt ranked 24th in the region and 134th worldwide
capita grew at an annual rate of 2.97%, the 9th most rapid in in EFW Area 5. Conscription (component 5Bvi) and the high
the region. Egypt’s population in 2010 was 81.1 million, the cost of dismissing workers (component 5Bv) pull down
second largest country in the region. Egypt’s EFW Area 5 rating.

Economic institutions and analysis Political institutions and civil liberty

th
In 2010, Egypt ranked 10 among the 26 African countries In recent decades, Egypt’s political institutions have been
in the Economic Freedom of the World index and the Global characterized by authoritarianism and extensive involve-
Competitiveness Report. Its ranking was a little higher in the ment of the military. In the Legal System and Property
Doing Business report, 8th in the region. Egypt made sub- Rights area of the EFW index, Egypt ranked 10th among the
stantial improvements in economic freedom in the 1990s. 26 African countries. In the Polity IV measure of democracy
Its chain-linked summary EFW rating rose from 4.60 in 1990 it ranks 22nd, and 24th in the constraints on the executive
to 6.81 in 2000. However, it reversed some of this gain in the component. This indicates that the autocratic government
most recent decade and its rating declined to 6.77 in 2010. of Egypt faces few limits on its power. Egypt is a member of
Egypt’s highest area ranking was in EFW Area 3, 4th in the “not free” group in the Freedom House political rights
the region and 61st among 144 countries worldwide. Yet, measure, and it ranks 15th in the region in Transparency
inflation in the most recent year was relatively high, 11.3%. International’s Corruption Perceptions Index. It will be inter-
However, citizens of Egypt are permitted to own foreign cur- esting to see how the recent turmoil from the election of
rency bank accounts. Egypt ranked 11th in the region and the Muslim Brotherhood, the contested adoption of a con-
66th worldwide in the Size of Government area. Government stitution, and the military intervention that followed will
consumption as a share of total consumption is low, 13%, affect the future of Egypt.
but transfers and subsidies are sizeable, 12% of GDP. Egypt Of the 26 countries in the region, Egypt ranks 25th in the
has the lowest top marginal income-tax rate among African Reporters without Borders Press Freedom Index. Similarly, it
countries, 20%, but this rate is much higher—40%—when is in the “not free” group in the Freedom House civil liber-
the payroll tax is included. ties measure. Yet, it ranks much higher, 13th in the region, in
In Area 4, Freedom to Trade Internationally, Egypt Freedom House’s Freedom of the Press. This suggests that,
ranked 13th in the region and 108th worldwide, with the sec- although journalists and the media face intense threats and
ond cheapest cost of importing among African countries, acts of violence, the regulation of the media is less aggressive.

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196 E Economic Freedom of the World: 2013 Annual Report

Gabon
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10
(5th)
8 8 7.48
(18th) (20th)
(15th) (19th) (21st) (16th) (24th) 6.05
(6th) (11th) 5.81 5.73 5.05 5.85
6 5.47 5.38 5.60 5.63 6 (17th)
4.35
4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth marginal income tax rates, 40% and 53% when the payroll
Gabon has the highest per capita income of the 26 African tax is included. Government enterprise and investment as
countries in the region. Its 2011 GDP per capita was $15,852. a share of the total is large, 34.6%.
However, roughly 50% of the GDP of Gabon is related to Gabon ranked 18th among African countries and 122nd
the petroleum industry, particularly offshore oil extraction. worldwide in EFW Area 4. The mean tariff rate is high, 17.8%,
Foreigners comprise the bulk of employment in this indus- and extensive controls are applied to the cross-border
try. Therefore, the high per capita income level almost cer- movements of both capital and people (components 4Dii
tainly overstates the living standard of ordinary citizens. and 4Diii). In the Sound Money area, Gabon ranked 24th in
From 2000 to 2010, real GDP per capita grew at an annual the region and 137th in the world. While the 2010 inflation
rate of 0.29%, the 3rd slowest in the region. In 2010, the rate was relatively low, 1.5%, the rate has varied substantially
population of Gabon was 1.5 million, one of the smallest in recent years. Furthermore, citizens of Gabon are not per-
in the region. mitted to own foreign currency banks accounts.

Economic institutions and analysis Political institutions and civil liberty

For most countries, the three economic institution mea- The political institutions of Gabon are largely undemocratic.
sures are similar, but this was not the case for Gabon. Gabon One political party, Parti démocratique gabonais, has held
ranked 20th among the 26 African countries in the Economic power without interruption since 1968, and the judiciary
Freedom of the World Index and 21st in the Doing Business is far from independent. In the Legal System and Property
report, but its ranking in the Global Competitiveness Report Rights area of the EFW index, Gabon ranks 17th among
was much higher, 6th in the region. Gabon’s chain-linked African countries. It is in the “not free” group in Freedom
summary EFW rating has remained relatively constant in House’s political rights measure. In the Polity IV measure of
the last two decades. It rose from 5.47 in 1990 to 5.81 in 2000, democracy it ranks 16th, and it ranks 18th in the constraints
and then fell to 5.63 in 2010. However, the rest of the region on the executive component. Gabon ranks 11th in the region
has made improvements in economic freedom since 1990. in Transparency International’s Corruption Perceptions Index.
As a result, Gabon’s ranking among the African countries Of the 26 countries in the region, Gabon ranks 14th in
has fallen steadily from 6th in 1990 to 15th in 2000 and to the Reporters without Borders Press Freedom Index. Though
21st in 2010. this indicates that journalists in Gabon do not face intense
Gabon ranked 5th in the region and 43rd worldwide in threats or acts of violence, this does not imply the media
the Regulation Area, though it takes more than 5 years to operates without restriction. Gabon is in the “not free” group
settle an undisputed contract in the country. Conscription in the Freedom House civil liberties measure, and it ranks
is not required in Gabon. In EFW Area 1, it ranked 16th in the still lower, 21st in the region, in Freedom House’s Freedom of
region and 100th worldwide. Government consumption as the Press. According to Freedom House, “press freedom is
a share of total consumption is high, 20.9%, as are the top guaranteed by law but restricted in practice”.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 197

Ghana
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10 (2nd)
8.28
(6th) (12th) (6th) (10th) (6th)
8 (8th) 8 7.13 6.95
7.09 6.87 6.96
(9th) (16th) 6.49 (8th)
6 (13th) 5.53 5.66 6 5.58
5.06

4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth Ghana ranked 10th in the region in EFW Area 5 with a
th
Ghana’s per-capita income of $1,871 for 2011 was 12 among rating of 10.0 for the hiring regulations and minimum
the 26 African countries. From 2000 to 2010, real GDP per wage component (5Bi) and it only takes 1.4 years to set-
capita grew at an annual rate of 3.33%, the 6th most rapid in tle an undisputed debt in Ghana. On the other hand, the
the region. Ghana had a population of 24.4 million in 2010. mandated cost of dismissing workers (component 5Bv) is
burdensome, and extra payments, bribes, and favoritism
Economic institutions and analysis (component 5Civ) are commonplace. Ghana’s lowest area
The economic institutions of Ghana are among the best in ranking was in Area 3, Sound Money, 12th in the region and
the region. In 2010, Ghana ranked 6th in the region in the 101st worldwide. The inflation rate in the most recent year
Economic Freedom of the World Index (70th of 144 countries was high, 10.7%, and there are some restrictions on the own-
worldwide) and 5th in the Doing Business report. Its ranking ership of foreign currency bank accounts.
in the Global Competitiveness Report was a little lower, 8th
in the region. Ghana has made significant improvements Political institutions and civil liberty
in economic freedom since 1990. It’s chain-linked summary Ghana’s political institutions are among the best in Africa.
EFW rating climbed from 5.06 in 1990 to 5.66 in 2000 to 7.09 Ghana is an electoral democracy and Freedom House con-
in 2010. As a result, Ghana’s ranking rose from 13th in 1990 to siders its most recent elections to be free and fair. In the
6th in 2010. Legal System and Property Rights area of the EFW index,
Ghana ranks in the top ten in the region in four areas Ghana ranks 8th among African countries. It is in the “free”
of the EFW index, Size of Government, Legal System and group in the Freedom House political rights measure. In the
Property Rights, Freedom to Trade Internationally, and Polity IV measure of democracy it ranks 3rd, and it ranks 5th in
Regulation. Its highest area ranking was in EFW Area 1, 2nd the constraints on the executive component. Ghana ranks
in the region and 10th among the 144 countries worldwide. 4th in the region in Transparency International’s Corruption
Government consumption as a share of total consump- Perceptions Index.
tion is low, 11.2%. Top marginal income-tax rates are also Ghana’s protection of civil liberties is also strong. In
low, 25%, and 37% when the payroll tax is included. Ghana the overall measure of civil liberty, Ghana ranks 2nd in the
ranked 6th in the region and 82nd in the world in EFW Area region. Of the 26 countries in the region, Ghana ranks 3rd in
4 with relatively low compliance costs of importing and the Reporters without Borders Press Freedom Index. It is in
exporting (component 4Bii) though the mean tariff rate is the “free” group in Freedom House’s civil liberties measure
relatively high, 13%. and ranks 2nd in Freedom House’s Freedom of the Press.

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198 E Economic Freedom of the World: 2013 Annual Report

Kenya
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10 (5th)
8.74
(5th) (9th) 8th) (7th) (7th)
8 (7th) (7th) 8 7.04 7.11
7.09 6.89 6.80 6.85
(6th) 6.72
(7th) 5.89
6 5.43 6 (12th)
4.56
4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth varies substantially with a standard deviation of 11.8. Kenya
Kenya’s per-capita income of $1,710 for 2011 was 14th among ranked 9th in the region and 48th worldwide in Area 1, Size of
the 26 African countries. From 2000 to 2010, real GDP per Government. Top marginal income-tax rates are moderate,
capita grew at an annual rate of 1.49%, the 18th fastest in the 30% with or without the payroll tax, but government con-
region. Kenya had a population of 40.5 million in 2010. sumption is sizable compared to other African countries, 18.3%.

Economic institutions and analysis Political institutions and civil liberty

In 2010, Kenya ranked 7th among the 26 African countries and A politicized judiciary, uneven treatment under the law, and
77th of 144 countries in the world in the Economic Freedom of abundant corruption characterize the political institutions
the World index. It ranked 9th in the Global Competitiveness of Kenya. In the Legal System and Property Rights area of
Report and 10th in the Doing Business report. Kenya’s chain- the EFW index, Kenya ranks 12th among the African coun-
linked summary EFW rating made large gains between 1990 tries. Similarly, it is in the “moderately not free” group in
and 2005, increasing from 5.43 in 1990 to 6.72 in 2000 and the Freedom House political rights measure. In the Polity
7.09 in 2005. However, it receded to 6.89 in 2010. Despite IV measure of democracy it ranks 3rd, and 1st in the con-
this decline, Kenya has consistently placed in the top ten straints on the executive component. However, Kenya ranks
in the region. 20th in the region and 139th of 183 countries worldwide in
Kenya ranked in the top ten in the region in four areas Transparency International’s Corruption Perceptions Index,
of the EFW Index, Sound Money, Regulation, Freedom to indicating that corruption is widespread.
Trade Internationally, and Size of Government. Its highest Of the 26 countries in the region, Kenya ranks 8th in the
area ranking, 5th, was in EFW Area 3. The inflation rate in the Reporters without Borders Press Freedom Index. Its ranking
most recent year was moderate, 4%, and citizens are permit- was similar, 10th in the region, in Freedom House’s Freedom
ted to own foreign currency bank accounts. Kenya ranked 7th of the Press. Kenya is in the “moderately not free” group in
in the region in EFW Area 5 with few hiring and firing regu- the Freedom House civil liberties measure. Kenya’s police
lations (component 5Bii) and licensing restrictions (compo- force is often cited for using undue force to subdue and
nent 5Cv), and no conscription (component 5Bvi). However, interrogate suspects, women in Kenya frequently confront
it takes 4.5 years to settle an undisputed debt in Kenya. discriminatory treatment, often in the form of sexual abuse,
In EFW Area 4, Kenya ranked 8th in the region. The mean and the continued presence of refugees has exacerbated
tariff rate in Kenya is relatively low for the region, 12.5%, but many ongoing conflicts in the country.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 199

Madagascar
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10 (1st)
8.97 (10th)
7.85
8 (14th)
8 (12th)
(20th) (17th)
(12th) (17th) 6.38 6.16 6.39
5.96 5.79 5.89
6 (19th) (18th) 6
4.49 4.61
(23rd)
4 4 3.10

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth this component (5Bi), and the length of conscription is
Madagascar is one of the poorest countries in the region. In between 12 and 18 months (component 5Bvi). In EFW Area 4,
2011, per-capita income in Madagascar was $966, 21st among Madagascar ranked 20th in the region and 128th worldwide
the 26 African countries. From 2000 to 2010, real GDP per with a mean tariff rate of 11.7%. There are extensive controls
capita declined at an annual rate of −0.19%, next to last in on the movement of capital and people (components 4Dii
the region. Madagascar’s population was 20.7 million in 2010. and 4Diii).

Economic institutions and analysis Political institutions and civil liberty

th
In 2010, Madagascar ranked 12 among the 26 African coun- The political institutions of Madagascar are largely undem-
tries in the Economic Freedom of the World index. Its ranking ocratic. Military interference in politics and the legal sys-
was a little lower, 14th in the region, in the Doing Business tem is common (component 2D) and courts are plagued
report and even lower in the Global Competitiveness Report, by political manipulation (components 2A and 2C). In the
19th. Madagascar’s chain-linked summary EFW rating Legal System and Property Rights area of the EFW index,
has increased steadily in the past two decades. Its rating Madagascar ranks 23rd among African countries and 135th
climbed from 4.49 in 1990 to 5.96 in 2000 to 6.38 in 2010. worldwide. In a similar fashion, it is in the “not free” group
This corresponds to a ranking increase from 19th in 1990 to in the Freedom House political rights measure. According
14th in 2010. to Freedom House, “the judiciary remains susceptible to
Madagascar ranked in the top ten in the region in two corruption and executive influence”. In the Polity IV mea-
areas of the EFW Index, Size of Government and Access sure of democracy Madagascar ranks 16th, and 9th in the
to Sound Money. In EFW Area 1, Madagascar ranked first constraints on the executive component. Madagascar ranks
among African countries and worldwide. Government con- 15th in the region in Transparency International’s Corruption
sumption is relatively small, 9.8%, and there are no trans- Perceptions Index.
fers and subsidies. The top marginal income-tax rate is also Of the 26 countries in the region, Madagascar ranks 8th
small, 23%. In EFW Area 3, Madagascar ranked 10th in the in the Reporters without Borders Press Freedom Index. It
region and 93rd among 144 countries in the world. Inflation ranks much lower, 18th in the region, in Freedom House’s
in 2010 was 9.3%. In addition, there are some restrictions on Freedom of the Press. It is a member of the “not free” group
the ownership of foreign currency bank accounts. in the Freedom House civil liberties measure. During the
In the areas of Freedom to Trade Internationally and period from 2000 to 2010 many media outlets were raided.
Regulation, Madagascar ranked much lower. It ranked 17th According to Freedom House, “the independent outlets
among African countries and 128th worldwide for Regulation. that have remained in operation are subject to censorship,
Madagascar has very strict hiring regulations and a rela- harassment, and intimidation … and practice varying levels
tively high minimum wage, ranking 24th in the region in of self-censorship”.

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200 E Economic Freedom of the World: 2013 Annual Report

Malawi
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10
(7th)
8 8 7.45 (17th) (9th)
th
(13 ) 6.98 (14th) (9th)
6.90 6.61
(8th) (21st) 6.39 th
(9 ) 6.27
6 5.40 (21st) 5.41 6 5.47
(19th) 4.95
4.57
4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth to start a business in Malawi and extra payments, bribes,
Malawi is one of the poorest countries in the region. In 2011, and favoritism (component 5Civ) play a large role in the
Malawi’s per-capita income was $893, 22nd among the 26 conduct of business.
African countries. From 2000 to 2010, real GDP per capita Malawi’s regional rankings in the areas of Freedom to
grew at an annual rate of 1.62%. Malawi’s population was Trade Internationally and Sound Money are lower, 14th and
14.9 million in 2010. 17th, respectively. It takes 43 days for a standard container
to clear customs, and 34 days to complete the necessary
Economic institutions and analysis procedures to export goods, one of the longest periods of
In 2010, Malawi ranked 9th among the 26 African countries time in the region. Also, the mean tariff rate is high, 12.7%.
in the Economic Freedom of the World index. Its ranking was Inflation in 2010 was moderate for the region, 7.4%, but
drastically different for the other two measures of economic there are some restrictions on the ownership of foreign cur-
institutions. Malawi ranked 17th in the region in the Doing rency bank accounts.
Business report and even lower in the Global Competitiveness
Report, 19th. Economic freedom declined in Malawi in the Political institutions and civil liberty
1990s, but this trend was reversed in the most recent decade. Malawi is an electoral democracy with a legal system rel-
Malawi’s chain-linked summary EFW rating fell from 5.40 in atively free from political manipulation (components 2A
1990 to 4.57 in 1995, corresponding to a decrease in its rank and 2B). In the Legal System and Property Rights area of
from 8th in 1990 to 19th in 1995. However, Malawi’s rating rose the EFW index, Malawi ranks 9th among African countries.
to 4.95 in 2000 and to 6.39 in 2010, increasing its ranking It is in the “moderately free” group in the Freedom House
from 21st in 2000 to 13th in 2010. political rights measure. In the Polity IV measure of democ-
Malawi ranked 7th in the region and 37th among 144 racy it ranks 11th, and 5th in the constraints on the executive
countries worldwide in the area of Size of Government. component. Malawi ranks 6th in the region in Transparency
Government consumption as a share of total consump- International’s Corruption Perceptions Index.
tion is large compared to the rest of the region, 22%, and Of the 26 countries in the region, Malawi ranks 22nd in the
the top marginal income-tax rate is moderate, 30% with Reporters without Borders Press Freedom Index. Excessive
or without the payroll tax. Regionally, Malawi ranked 9th in use of force on the part of the police during the July 2011
Area 5, Regulation and 77th worldwide. There is no conscrip- protests was a contributing factor to this low ranking. It
tion in Malawi (component 5Bvi) but hiring and firing reg- ranks slightly higher in Freedom House’s Freedom of the
ulations (component 5Bi) are onerous and the minimum Press, 15th. It is in the “moderately free” group in the Freedom
wage (component 5Bii) is relatively high. It takes 39 days House civil liberties measure.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 201

Mali
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10

8 8 (19th) (11th)
(8th) (13th) 6.86 (18th) (16st)
(14th) (16th) 6.44 6.47
th 6.19 6.03 6.09 6.14 6.08
(12th) (12 ) 6
6 5.22 (14th)
5.11
4.49
4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth (components 5Bi and 5Bii) are onerous. Inflation in 2010 was
Mali’s per-capita income in 2011 was $1,091, placing it 20th low, 1.11%. However, citizens of Mali are not permitted to
among the 26 African countries. From 2000 to 2010, real GDP own foreign currency bank accounts.
per capita grew at an annual rate of 2.48%, 12th most rapid in
the region. Mali’s population was 15.4 million in 2010. Political institutions and civil liberty
Prior to 2012, the political institutions of Mali were consid-
Economic institutions and analysis ered strong for the region. In the Legal System and Property
In 2010, Mali ranked 16th among the 26 African countries in the Rights area of the EFW index, Mali ranked 14th among African
Economic Freedom of the World index and, similarly, 15th in the countries. It is part of the “free” group in the Freedom House
region in the Doing Business report. Its ranking in the Global political rights measure. In the Polity IV measure of democ-
Competitiveness Report was slightly lower, 18th. Mali’s chain- racy and the constraints on the executive component, Mali
linked summary EFW rating rose considerably in the 1990s, ranked 6th and 9th, respectively. Its ranking was lower, 13th
from 5.11 in 1990 to 6.19 in 2000. But this trend reversed during in the region, in Transparency International’s Corruption
the most recent decade. By 2010, its rating fell to 6.09, pushing Perceptions Index. However, Mali’s rank for political institu-
its ranking down in the region from 8th in 2000 to 16th in 2010. tions has fallen sharply since the military coup of March 2012.
Mali’s highest area ranking was 11th for Freedom to In the most recent edition of Freedom in the World, it is in the
Trade Internationally. The mean tariff rate is moderate for “not free” group in the political rights measure.
the region, 11.9%, and revenues derived from tariffs sum to Civil liberties in Mali were also strong prior to 2012. Of the
only 3% of the trade sector. Mali ranked 13th in Area 1, Size of 26 countries in the region, Mali ranked 1st in the Reporters
Government. Government consumption as a share of total without Borders Press Freedom Index and Freedom House’s
consumption is large, 21.9%. Government enterprises are Freedom of the Press. It was in the “free” group in the Freedom
widespread and government investment makes up 37.6% House civil liberties measure. According to Freedom House,
of total investment. However, transfers and subsidies are “Mali’s media were considered among the freest in Africa
small, less than half a percent of GDP. before the 2012 rebellion and coup”. However, as in the case
In the areas of Regulation and of Sound Money, Mali of political freedom, Mali’s civil liberties have also deterio-
ranks lower, 18th and 19th, respectively. It only takes eight rated substantially. In the most recent edition of Freedom
days and four procedures to start a business in Mali, one of in the World, Freedom House notes that in the aftermath
the shortest processes among African nations. However, it of the coup, “an unprecedented number of journalists were
takes 3.6 years to collect on an undisputed debt in Mali, one illegally detained and tortured”, and militants have “harshly
of the longest times in the region, and conscription periods suppressed fundamental rights in areas under their control”.
exceed 18 months (component 5Bvi). Furthermore, Mali’s hir- As additional evidence becomes available, further deterio-
ing and firing regulations and minimum wage requirements ration in Mali’s institutional ratings is likely.

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202 E Economic Freedom of the World: 2013 Annual Report

Mauritius
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
(1st)
10 10 9.28 (1st)
(1st) th
(5 ) 8.31 (2nd) (1st)
(1st) (1st) (1st) 7.97 7.93
7.93 7.89
8 7.55 7.60 7.57 8
(1st) (3rd)
6.06 6.21
6 6

4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth In the area of Regulation, Mauritius ranked 2nd among
Mauritius has one of the highest levels of GDP per capita African countries and 22nd in the world. It only takes 6 days
in the region. In 2011, the per-capita income of Mauritius to start a business in Mauritius, and it only takes 1.7 years
was $14,420, 3rd among 26 African countries. From 2000 to to resolve insolvency, the shortest time frame in the region.
2010, real GDP per capita grew at an annual rate of 3%, the Furthermore, interest rates are positive and determined
8th most rapid in the region. The population of Mauritius mostly by market forces (component 5Aiii), and there are few
was 1.3 million in 2010, the smallest of the 26 African nations regulations hampering the hiring of workers (component
included in this analysis. 5Bi). Mauritius’ lowest area ranking is for Size of Government,
5th in the region and 24th worldwide. Government consump-
Economic institutions and analysis tion as a share of the total (15.9%) and transfers and subsidies
Mauritius is the most economically free nation in the African as a share of GDP (6.2%) are relatively high for the region, but
region. In 2010, Mauritius ranked first among the 26 African moderate compared to worldwide standards. Mauritius has
countries in the Economic Freedom of the World index the lowest top marginal income-tax rates in the region, 15%,
and the Doing Business report. Its ranking in the Global and 26% when the payroll tax is included.
Competitiveness Report was similar, 2nd. The country also
ranked in the top ten in the EFW Index worldwide, 8th of 144 Political institutions and civil liberty
countries. Mauritius has led the region in economic liberal- Mauritius is an electoral democracy and elections since the
ization since 1990. Its chain-linked summary EFW rating has country’s independence have been free, fair, and competi-
consistently risen during the past two decades from 6.06 in tive according to Freedom House. In the Legal System and
1990 to 7.60 in 2000 and to 7.93 in 2010. Property Rights area of the EFW index, Mauritius ranks 3rd
Mauritius ranked in the top five in the region and top among African countries. Likewise, it is in the “free” group
50 worldwide in all areas of the EFW index. It ranked first in in the Freedom House political rights measure. It ranks 6th
the region in the Sound Money area, with an inflation rate in the Polity IV measure of democracy and 9th in the Polity
in 2010 of 2.9% and there are no restrictions on the own- IV constraints on the executive component. In Transparency
ership of foreign currency bank accounts. In the area of International’s Corruption Perceptions Index, Mauritius ranks
Freedom to Trade Internationally, Mauritius ranked first in 2nd in the region. Mauritius is first in the overall measure of
the region and 12th worldwide. The mean tariff rate (1.4%) is political institutions and 3rd in the overall measure of civil
the lowest in the region and even low compared to world liberties. Of the 26 countries in the region, Mauritius ranked
standards, and revenues derived from tariffs sum to only 3rd in Freedom House’s Freedom of the Press and is included
half a percent of the trade sector. Though there are a con- in the “free” group in Freedom House’s civil liberties mea-
siderable number of capital controls (component 4Dii), sure. Data is unavailable for Mauritius from the Reporters
it is relatively easy for foreigners to obtain visiting visas without Borders Press Freedom Index. Mauritius serves as an
(component 4Diii). example of feasible civil liberties for the rest of Africa.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 203

Morocco

Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10

8 (14th) (9th)
8 (10th) 7.07 (11th)
(4th) (9th) (15th) (14th) (4th) 6.79 (21st)
6.28 6.37 6.37 6.25 6.42
th
(11 ) 6.14 5.97 5.99
6 5.18
6

4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth Morocco’s lowest regional ranking was in Area 5,

Morocco’s per-capita income of $4,952 in 2011 was 7th among Regulation, where it was 21st in the region and 123rd of
the 26 African countries. From 2000 to 2010, real GDP per 144 worldwide. In the hiring regulations and minimum
capita grew at an annual rate of 3.80%, 5th most rapid in the wage component (5Bi), Morocco ranked last in the region.
region. The population of Morocco was 31.95 million in 2010. Moreover, the mandated cost of worker dismissal is bur-
densome (component 5Bv) and the length of conscription
Economic institutions and analysis ranges from 12 to 18 months (component 5Bvi). However, it
In 2010, Morocco ranked 11th among the 26 African coun- only takes 1.8 years to settle an undisputed debt in Morocco,
tries in the Economic Freedom of the World index. Its rank- the second fastest in the region.
ing was higher, 7th in the region, in the Doing Business report
and yet higher still in the Global Competitiveness Report, Political institutions and civil liberty
4th. Morocco made significant gains in economic freedom Morocco is a monarchy, and the royal authority has com-
between 1990 and 1995 but the gains have leveled off since plete power over national and foreign policy, the armed
then. Its chain-linked summary EFW rating rose from 5.18 in forces, and the judicial system. Nonetheless, its protection
1990 to 6.28 in 1995. Since 1995, its rating has been relatively of property rights are relatively secure. In the Legal System
constant, falling to 6.14 in 2000 and a little higher, 6.37, in and Property Rights area of the EFW index, Morocco ranks 4th
2005 and 2010. among African countries. Similarly, it ranks 6th in the region
Morocco ranked 9th in the region in Area 4, Freedom in Transparency International’s Corruption Perceptions Index
to Trade Internationally. The mean tariff rate is high, 18.1%, (CPI). Despite these moderately high rankings for Area 2 of
and varies substantially with a standard deviation of 20.5. the EFW Index and the CPI, it is a member of the “moderately
However, revenues derived from tariffs sum to 2.6% of the not free” group in the Freedom House political rights mea-
trade sector and it is relatively easy for foreigners to obtain sure. In the Polity IV measure of democracy, Morocco ranks
the necessary visas to visit Morocco (component 4Diii). It 23rd and 18th in the constraints on the executive component.
ranked 14th among African countries in both Area 1, Size of Of the 26 countries in the region, Morocco ranked 19th in
Government, and Area 3, Sound Money. Government con- the Reporters without Borders Press Freedom Index and in
sumption as a share of the total is very large compared to Freedom House’s Freedom of the Press. It is in the “moderately
other African nations, 23.4%. The top marginal income- not free” group in the Freedom House civil liberties measure.
tax rate is also high, 44% with or without the payroll tax. Though the press has a significant amount of freedom to
However, Morocco had the lowest inflation rate in the report on economic and social issues, authorities are strict
region in 2010, 1%, but there are extensive restrictions on on stories about the royal family, using various mechanisms
the ownership of foreign currency bank accounts. to punish journalists who portray the monarchy negatively.

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204 E Economic Freedom of the World: 2013 Annual Report

Nigeria
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10
(8th)
8 8 (22nd) (12th) 7.11
th
(14 ) th
(17 ) (15th) 6.59 (17th)
6.16 6.39
(19th) 6.03 5.98 6.04
6 5.30 6
(25th) (20th)
(23rd) 3.76 3.95
4 3.31 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth However, government enterprise and investment as a share

The per-capita income of Nigeria was $2,533 in 2011, 9th of total investment is high, 46.8%. Nigeria’s lowest area rank-
among the 26 African countries. From 2000 to 2010, real GDP ing, 22nd in the region and 119th of 144 countries worldwide,
per capita grew at an annual rate of 3.85%, 4th most rapid in was in Area 3, Sound Money. In 2010, the inflation rate in
the region. In 2010, population of Nigeria, the most popu- Nigeria was 13.7%, the fifth highest in the region, and there
lous among African countries, was 158.4 million. are some restrictions on the ownership of foreign currency
bank accounts.
Economic institutions and analysis
In 2010, Nigeria ranked 17th among the 26 African countries Political institutions and civil liberty
in the Economic Freedom of the World index. Its ranking The political institutions of Nigeria are largely undemocratic
was much higher, 11th in the region, in the Doing Business and elections since 2000 “have by and large been chaotic
report and similar in the Global Competitiveness Report, affairs often marked by vote-rigging and violence”, accord-
13th. While Nigeria’s EFW rating is still low, it has made dra- ing to Freedom House. In the Legal System and Property
matic improvements in economic freedom in the past two Rights area of the EFW index, Nigeria ranks 20th among
decades. Its chain-linked summary EFW rating rose steadily African countries. It is a part of the “moderately not free”
from 3.31 in 1990 to 5.30 in 2000 to 5.98 in 2010. However, group in the Freedom House political rights measure. In
Nigeria’s ranking in the region has only risen modestly from the Polity IV measure of democracy it ranks 14th, and 9th in
23rd in 1990 to 17th in 2010. the constraints on the executive component. Nigeria ranks
Nigeria’s highest regional rankings were in Area 4, 20th in the region in Transparency International’s Corruption
Freedom to Trade Internationally, and Area 5, Regulation, Perceptions Index.
where it ranked 12th and 8th, respectively. The mean tariff The overall state of civil liberties in Nigeria is characterized
rate in Nigeria is 11.7%, fairly low compared to the rest of by uncertainty and questionable conduct. Many freedoms
the region. Yet, it is quite difficult for foreigners to obtain are constitutionally guaranteed but often not respected in
the necessary visas to travel to Nigeria (component 4Diii). practice. Of the 26 countries in the region, Nigeria ranks 17th in
Nigeria ranked first in the region in the hiring and firing the Reporters without Borders Press Freedom Index, indicat-
regulations component (5Bii), but it takes 34 days to start ing that journalists face threats and acts of violence. Nigeria
a business in Nigeria, the 6th longest in the region. It takes ranks 9th in Freedom House’s Freedom of the Press and is in the
956 hours per year to prepare and pay taxes in Nigeria, the “moderately not free” group in the Freedom House civil lib-
longest time required of any African country in this analysis. erties measure. According to Freedom House, “protests are
Nigeria ranked 15th among African countries in Area 1, often suppressed by state and private security forces, espe-
Size of Government. Government consumption as a share cially demonstrations organized by youth groups or in the
of the total is moderate, 19.6% and top marginal income-tax Niger Delta … dozens of activists have been killed in recent
rates are low, 25%, and 37% when the payroll tax is included. years and hundreds have been detained”.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 205

Rwanda
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 (2nd)
10 9.05 (1st)
8.30 (2nd)
th
8 (4 ) 8 (2nd) (7th)
7.22 6.86 7.30
(16th) 6.72
(18th) (18th)
(14th) 5.85 6 5.57
6 5.40
5.02
(24th)
4 3.78 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth In EFW Area 3, Rwanda ranked 2nd in the region and 49th
th
In 2011, Rwanda’s per-capita income was $1,282, ranking 19 worldwide with an inflation rate of 2.3%. There are no restric-
among the 26 African countries. From 2000 to 2010, real GDP tions on the ownership of foreign currency bank accounts.
per capita grew at an annual rate of 5.14%, the fastest in the In Area 4, Freedom to Trade Internationally, Rwanda ranked
region. The population of Rwanda was 10.6 million in 2010. 7th in the region. The mean tariff rate is moderately high,
12.5%, but there are a minimal number of capital controls
Economic institutions and analysis (component 4Dii). Rwanda ranked 18th in the region and
Rwanda is one of the most economically free nations in the 106th worldwide for Area1, Size of Government. Government
region. In 2010, Rwanda ranked 2nd among the 26 African enterprise and investment accounts for more than 51% of
countries in the Economic Freedom of the World index, and the total, severely crowding out private investment.
ranked 48th among 144 countries worldwide. Its ranking was
similar in both the Doing Business report and in the Global Political institutions and civil liberty
Competitiveness Report, 3rd in the region. Rwanda’s chain- Rwanda’s political institutions are largely undemocratic
linked summary EFW rating has seen dramatic movements and the “2003 constitution grants broad powers to the
in the past two decades. There was a severe decline in eco- president”, according to Freedom House. Rwanda’s rank-
nomic freedom from 5.02 in 1990 to 3.78 in 1995 but this ings in the region vary significantly among the alternative
trend was reversed soon after and the rating increased to measures of political institutions. Freedom House’s political
5.40 in 2000 and to 7.22 in 2010. During the past decade, no rights measure classifies Rwanda as “not free”. In the Polity IV
African nation has moved more rapidly towards economic measure of democracy it ranks 23rd in the region, and 20th in
freedom than Rwanda. the constraints on the executive component. Yet, Rwanda
Rwanda ranks in the top five in the region in three areas, ranks 2nd in the Legal System and Property Rights area of the
Regulation, Legal System and Property Rights, and Sound EFW index and 3rd in Transparency International’s Corruption
Money. In EFW Area 5, Rwanda ranked 1st among African Perceptions Index.
nations and 13th worldwide. In the hiring regulations and Rwanda’s civil liberties rankings are more consistent.
minimum wage component (5Bi), Rwanda ranked 1st in the Freedom House places it in the “not free” group in its civil
region, and the country does not use conscription (com- liberties measure due to numerous legal restrictions and
ponent 5Bvi). In Rwanda, it only takes 3 days to start a busi- informal controls on the media. Of the 26 countries in the
ness, the shortest in the region, and 134 hours a year to region, Rwanda ranked in the bottom five in two mea-
prepare and pay taxes, the shortest time required among sures, Freedom House’s Freedom of the Press, 25th, and the
African countries. Reporters without Borders Press Freedom Index, 23rd.

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206 E Economic Freedom of the World: 2013 Annual Report

Senegal
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10

8 (15th) (10th)
8 7.03 6.72 (20th) (19th)
(14th) (18th) th
(20 ) th
(20 ) 6.10
(9th) 5.88 5.72 5.93
6 5.68 6 5.40
5.31 (20th) (16th)
4.56 4.39
4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth Senegal ranked 20th in the region in both Area 1, Size of
th
In 2011, Senegal’s per-capita income was $1,967, 11 highest Government and Area 5, Regulation. Top marginal income-
among the 26 African countries. From 2000 to 2010, real GDP tax rates are the highest in the region, 61% with or without
per capita grew at an annual rate of 1.32%. The population the payroll tax, and government investment and enterprises
of Senegal was 12.4 million in 2010. are sizable, 37.2% of the total. However, government con-
sumption as a share of total consumption is the lowest in
Economic institutions and analysis the region, 9.8%. It takes 666 hours per year to prepare and
In 2010, Senegal ranked 19th among the 26 African coun- pay taxes in Senegal, second most lengthy in the region,
tries in the Economic Freedom of the World index. Its rank- and the length of conscription exceeds 18 months (compo-
ing was similar, 20th in the region, in the Doing Business nent 5Bvi). Yet, it only takes five days to start a business in
report. However, its ranking in the Global Competitiveness Senegal, the second shortest time frame in the region.
Report was higher, 14th in the region. Senegal’s chain-linked
summary EFW rating has fluctuated substantially in recent Political institutions and civil liberty
decades. A decrease in the rating from 5.31 in 1990 to 4.56 in Senegal is an electoral democracy. In the Legal System and
1995 was followed by an increase to 5.88 in 2000. In the next Property Rights area of the EFW index, Senegal ranks 16th
decade, the rating fell to 5.72 in 2005 and dropped again to among African countries. Likewise, it is in the “moderately
5.68 in 2010. free” group in the Freedom House political rights measure.
Senegal’s highest regional ranking was 10th in Area Senegal ranks 6th, in the Polity IV measure of democracy
4, Freedom to Trade Internationally. The mean tariff rate and 9th in the constraints on the executive component. In
is moderate for the region, 11.9%, but capital controls are Transparency International’s Corruption Perceptions Index,
extensive (component 4Dii). Senegal ranked 15th in the Senegal ranks 9th in the region.
region in Area 3, Sound Money. In 2010, the inflation rate in Of the 26 countries in the region, Senegal ranked 7th in
Senegal was 1.3%, the 3rd lowest in the region, but there are the Reporters without Borders Press Freedom Index. Freedom
extensive restrictions on the ownership of foreign currency House places it in the “moderately free” group in the civil lib-
bank accounts. erties measure and ranks it 11th in Freedom of the Press.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 207

Sierra Leone
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10

8 8 (16th)
(12th) (10th) 7.02
th
(13 ) 6.68 (19th) (19th) (18th)
6.06 6.41 6.04 6.13
th
(20 ) 5.97
6 5.23
6
(21st) (19th)
(21st) 4.33
3.86 4.00
4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth third highest in the region, and there are some restrictions
rd
The per-capita income of Sierra Leone was $871 in 2011, 23 on the ownership of foreign currency bank accounts.
among the 26 African countries. From 2000 to 2010, real Sierra Leone ranked 19th in both Area 4, Freedom to
GDP per capita grew at an annual rate of 2.88%, the 10th Trade, and Area 5, Regulation. Restrictions on international
most rapid in the region. Sierra Leone’s population was 5.9 exchange are widespread. The country ranked 123rd among
million in 2010. 144 countries worldwide in EFW Area 4. The mean tariff rate
is high, 13.6%. Capital controls are strict and it is difficult
Economic institutions and analysis for foreigners to obtain visiting visas (component 4Diii). In
The measures of economic institutions differ a great deal EFW Area 5, Sierra Leone ranked 119th in the world, largely
for Sierra Leone. In 2010, Sierra Leone ranked 18th among due to the burdensome mandated cost of worker dismissal
the 26 African countries in the Economic Freedom of the (component 5Bv) and the small proportion of deposits in
World index. Its ranking was higher, 13th in the region, in the privately owned banks (component 5Ai).
Doing Business report. However, its ranking in the Global
Competitiveness Report was lower, 23rd. Sierra Leone has Political institutions and civil liberty
made steady improvements in economic freedom since Sierra Leone is an electoral democracy. In the Legal System
1990. Its chain-linked summary EFW rating increased from and Property Rights area of the EFW index, Sierra Leone
3.86 in 1990 to 5.23 in 2000 and to 6.41 in 2010. Sierra Leone ranks 18th among African countries. It ranks 17th in the region
saw the largest gain in economic freedom between 1995 in Transparency International’s Corruption Perceptions Index.
and 2000 when its chain-linked summary rating increased On the other hand, it is a part of the “moderately free” group
by 0.9 units. in the Freedom House political rights measure. In the Polity
Sierra Leone’s highest regional ranking is in Area 1, Size IV measure of democracy it ranks 6th, and 5th in the con-
of Government. Government consumption as a share of straints on the executive component.
total consumption is low, 12.7%, and transfers and subsidies Sierra Leone’s civil liberties performance is more positive.
are miniscule. However, government enterprises and invest- Of the 26 countries in the region, Sierra Leone ranks 6th in the
ments are sizable, 49.1% of the total. Reporters without Borders Press Freedom Index and is in the
Sierra Leone ranked in the bottom ten in the region “moderately free” group in the Freedom House civil liberties
and bottom 50 in the world in the other four areas of the measure. It ranks 7th in Freedom House’s Freedom of the Press.
EFW index, Legal Systems and Property Rights, Sound According to Freedom House, “the Special Court for Sierra
Money, Freedom to Trade Internationally, and Regulation. Leone (SCSL), a hybrid international and domestic war crimes
It ranked 16th in the region and 106th worldwide in Area 3, tribunal, has been working since 2004 to convict those respon-
Sound Money. In 2010, the inflation rate was 16.6%, the sible for large-scale human rights abuses during the civil war”.

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208 E Economic Freedom of the World: 2013 Annual Report

South Africa
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10
(9th)
8.18 (6th)
rd
(3 ) th
(6 ) 8 (5th)
8 (2nd) (8th)
6.99 7.21 (8th)
7.08 7.00 6.85 th 6.72
th
(5 ) 6.57 (19th) (6 )
6 5.50 6 5.52 5.70

4 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth the ownership of foreign currency bank accounts. South
The per-capita income of South Africa in 2011 was $10,960, Africa’s lowest regional area ranking was in Area 1, Size of
the fourth highest among the 26 African countries. From Government, where it ranked 19th in the region and 109th
2000 to 2010, real GDP per capita grew at an annual rate of in the world. Government consumption as a share of total
2.22%, ranking 13th in the region. South Africa’s population consumption is high, 26.5%, and so are the top marginal
was 50 million in 2010. income-tax rates, 40%, and 41% when the payroll tax is
included. Government enterprise and investment as a share
Economic institutions and analysis of the total are large, 39.2%.
In 2010, South Africa ranked 1st and 2nd among the 26 African
countries in the Global Competitiveness Report and the Political institutions and civil liberty
Doing Business report, respectively. Its ranking was much South Africa is an electoral democracy though the ruling
lower in the Economic Freedom of the World index, 8th. South political party, the African National Congress, continues to
Africa made substantial gains in economic freedom during dominate political life. In the Legal System and Property
the 1990s but the country’s chain-linked summary EFW rat- Rights area of the EFW index, South Africa ranked 6th among
ing has leveled off since then. It increased from 5.50 in 1990 African countries. It ranked similarly, 5th, in Transparency
to 6.57 in 1995 to 7.08 in 2000. However, it decreased to 7.00 International’s Corruption Perceptions Index. It is in the “free”
in 2005 and fell further to 6.85 in 2010. group in the Freedom House political rights measure. In the
South Africa’s highest regional ranking, 5th, was in Area 4, Polity IV measure of democracy, it ranked 2nd, and 1st in the
Freedom to Trade Internationally. The mean tariff rate, 7.7%, constraints on the executive component.
is the third lowest in the region, but capital controls are The protection of civil liberties in South Africa is also rel-
extensive (component 4Dii). South Africa ranked 6th in the atively good. Of the 26 countries in the region, South Africa
region and 55th among 144 countries worldwide in Area 5, ranked 4th in the Reporters without Borders Press Freedom
Regulation. In the hiring and firing regulations component Index and Freedom House’s Freedom of the Press. It is in the
(5Bii), South Africa ranked 22nd among 26 African countries. “free” group in the Freedom House political rights measure.
In the area of Sound Money, South Africa ranked 9th According to Freedom House, “freedoms of expression and the
among African countries and 80th worldwide. In 2010, the press are protected in the constitution and generally respected
inflation rate was 4.3%, a moderate rate for the region, in practice. A number of private newspapers and magazines
but there are a considerable number of restrictions on are sharply critical of powerful figures and institutions”.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 209

Tanzania
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10
(11th)
8 7.71 (12th)
8 (11th) (17th) (13th)
(9th) 6.68
(10th) 6.44 6.46 (17th) (5th) 6.13 6.37
(10th) 6.07 5.60 5.73
6 5.43 6
(20th)
3.87 4
4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth worldwide. Government consumption as a share of total

Tanzania’s per-capita income was $1,512 in 2011, ranking 17th consumption is high, 22%, and the top marginal income-
among the 26 African countries. From 2000 to 2010, real GDP tax rates are also high, 48% when the payroll tax is included.
per capita grew at an annual rate of 4.07%, the 2nd most rapid For Freedom to Trade Internationally, Tanzania ranked 119th
in the region. Tanzania’s population was 44.8 million in 2010. worldwide with a mean tariff rate of 12.5%. Revenue derived
from tariffs sums to 11.9%, the fourth highest in the region,
Economic institutions and analysis and capital controls are extensive, earning Tanzania a rating
In 2010, Tanzania ranked 13th among the 26 African coun- of zero for this component (4Dii).
tries in the Economic Freedom of the World index. Tanzania’s
ranking was similar, 12th in the region, in the Doing Business Political institutions and civil liberty
report. Its ranking in the Global Competitiveness Report was Tanzania is an electoral democracy though the ruling polit-
lower, 16th. Tanzania made large improvements in economic ical party, Chama cha Mapinduzi, continues to dominate
freedom from 1990 to 2005. The chain-linked summary EFW political life. In the Legal System and Property Rights area
rating increased from 3.87 in 1990 to 6.07 in 2000 and to 6.48 of the EFW index, Tanzania ranks 5th among African coun-
in 2005. However, since 2005, there has been little change. tries. It is in the “moderately free” group in the Freedom
Tanzania ranked 11th among African countries and 94th House political rights measure and ranks 11th in the region
among 144 countries worldwide in Area 3, Sound Money. In in Transparency International’s Corruption Perceptions Index.
2010, the inflation rate was 6.2%, moderate for the region. Tanzania ranked 20th in the Polity IV measure of democracy
However, there are some restrictions on the ownership of for- and in the constraints on the executive component.
eign currency bank accounts. In Area 5, Regulation, Tanzania Of the 26 countries in the region, Tanzania ranked 2nd in
ranked 12th in the region and 93rd worldwide. Tanzania ranked the Reporters without Borders Press Freedom Index. It ranked
last in the region in the hiring regulations and minimum lower in Freedom House’s Freedom of the Press, 7th, and is
wage component (5Bi) and it takes 26 days to start a busi- part of the “moderately free” group in Freedom House’s civil
ness in Tanzania, the 15th longest time required in the region. liberties measure. According to Freedom House, “although
Tanzania ranked 17th in the region in both EFW Areas 1 the constitution provides for freedom of speech, it does not
and 4. In the Size of Government, Tanzania ranked 103rd specifically guarantee freedom of the press”.

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210 E Economic Freedom of the World: 2013 Annual Report

Uganda
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010

10 10 (6th)
(6th) 8.71 (3rd)
(3rd) (3rd) 7.66 (3rd) (3rd)
8 (5th) 7.41 8 7.64
7.13 7.13 7.24
6.83
(14th) 6 (11th)
6 5.05
5.15

4 (26th) 4
2.86
2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth In Area 1, Size of Government, Uganda ranked 6 th

th
Uganda’s per-capita income in 2011 of $1,345 places it 18 among 26 African countries and 28th among 144 countries
among the 26 African countries. From 2000 to 2010, real GDP worldwide. Government consumption as a share of total
per capita grew at an annual rate of 4.05%, 3rd most rapid in consumption is relatively low, 13.7%. The top marginal
the region. The population of Uganda was 33.4 million in 2010. income-tax rates are moderate, 30%, and 41% when the
payroll tax is included. Uganda ranked 6th in the region
Economic institutions and analysis and 64th worldwide in Area 3, Sound Money. In 2010, the
The measures of economic institutions differ significantly for inflation rate in Uganda was low, 4%, and there are no
Uganda. In 2010, Uganda ranked 3rd among the 26 African restrictions on the ownership of foreign currency bank
countries in the Economic Freedom of the World index accounts.
and 52nd among 144 countries worldwide. Its ranking was
much lower, 9th in the region, in the Doing Business report Political institutions and civil liberty
and even lower in the Global Competitiveness Report, 17th. Uganda’s political institutions are largely undemocratic
Uganda has made dramatic strides in economic liberaliza- and its most recent elections were marred by govern-
tion in the recent decades. Its chain-linked summary EFW ment favoritism and allegations of voter fraud. In the
rating increased from 2.86 in 1990 to 6.83 in 2000 and to 7.41 Legal System and Property Rights area of the EFW index,
in 2010. This corresponds to a ranking increase from 26th in Uganda ranked 11th among African countries. It is a member
1990 to 5th in 2000 and to 3rd in 2010. of the “moderately not free” group in the Freedom House
In four of the five areas of the EFW Index, Uganda ranked political rights measure. Uganda ranked 18th in the region in
6th or higher in the region. Area 2, Legal System and Property Transparency International’s Corruption Perceptions Index. It
Rights, is the exception, where it ranks 11th in the region ranked even lower in both the Polity IV measure of democ-
and 89th among 144 countries worldwide. It ranked 3rd in racy and constraints on the executive component, 20th in
the region in both EFW Area 4 and Area 5. For Freedom to the region.
Trade Internationally, Uganda ranked 74th in the world with Of the 26 countries in the region, Uganda ranked 20th
a relatively low mean tariff rate for the region, 12.5%, and in the Reporters without Borders Press Freedom Index, and
few capital controls (component 4Dii). Uganda ranked 24th slightly higher in Freedom House’s Freedom of the Press,
worldwide for Regulation. In the hiring regulations and min- 13th. It is a member of the “moderately not free” group in
imum wage component (5Bi) and the hiring and firing regu- the Freedom House civil liberties measure. According to
lations component (5Bii), Uganda ranked first and second in Freedom House, “independent journalists are often critical
the region, respectively. However, it takes 15 procedures to of the government, but in recent years they have faced sub-
start a business, the most in the region, and the bureaucracy stantial, escalating government restrictions and intimidation,
costs of doing business are high (component 5Cii). which encourage self-censorship”.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 211

Zambia
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10 (3rd)
(3rd) 8.87
(2nd)
(2nd) 7.77 7.99 (4th) (3rd)
8 (4th) 7.73 8 (14th)
6.90 7.02 7.24
(7th) 6.64
6 (17th) 6 5.70
4.76
4 (24th)
3.09 4

2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth Freedom to Trade Internationally. The mean tariff rate is
In 2011, Zambia’s per-capita income was $1,621, 15th among moderate for the region, 13.4%.
the 26 African countries. From 2000 to 2010, real GDP per Zambia ranked 14th in the region and 95th worldwide
capita grew at an annual rate of 3.15%, 7th most rapid in the in Area 5, Regulation. It takes 17 days to start a business in
region. The population of Zambia was 12.9 million in 2010. Zambia, 12th longest in the region, and the mandated cost of
worker dismissal is burdensome (component 5Bv). However,
Economic institutions and analysis it only takes 132 hours per year for a business to prepare and
In 2010, Zambia ranked 3rd among the 26 African countries pay taxes, the shortest amount of time required in the region.
and 52nd among 144 countries worldwide in the Economic
Freedom of the World index. Its ranking was lower, 6th in Political institutions and civil liberty
the region, in the Doing Business report and similar in the Zambia is an electoral democracy. Elections in 2011 were
Global Competitiveness Report, 7th. In the last two decades, considered free and credible. In Area 2, Legal System and
the economic institutions of Zambia have become increas- Property Rights of the EFW index, Zambia ranked 6th among
ingly more liberal. Zambia’s chain-linked summary EFW rat- African countries. It is in the “moderately free” category in
ing has steadily increased from 3.09 in 1990 to 6.90 in 2000 Freedom House’s political rights measure. In the Polity IV
and to 7.77 in 2010. This corresponds to a ranking increase measure of democracy it ranked 6th, and it ranked 9th in
among the 26 African nations in the region from 24th in 1990 the constraints on the executive component. Zambia also
to 4th in 2000 and to 2nd in 2010. ranked 6th in the region in Transparency International’s
Zambia ranked 3rd in the region in Area 1, Size of Corruption Perceptions Index.
Government and Area 3, Sound Money. In Area 1, Zambia Of the 26 countries in the region, Zambia ranked 10th
ranked 20th among 144 countries worldwide. The top mar- in the Reporters without Borders Press Freedom Index. It
ginal income-tax rate is moderate, 30% without the pay- ranked lower in Freedom House’s Freedom of the Press, 15th
roll tax. However, government consumption is relatively in the region, but it is a member of the “moderately free”
high for the region, 19.4% of total consumption. In Area group in Freedom House’s civil liberties measure. According
3, Zambia ranked 58th in the world. The inflation rate in to Freedom House, “journalists continue to face intimida-
2010 was fairly high, 8.5%, but there are no restrictions on tion from law enforcement officials … as well as the threat
the ownership of foreign currency bank accounts. Zambia of legal action, and there have been numerous cases of
ranked 4th in the region and 76th worldwide in Area 4, attacks on journalists by opposition supporters”.

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212 E Economic Freedom of the World: 2013 Annual Report

Zimbabwe
Changes across Time: Chain-linked Summary Rating (Ranking) Comparison of EFW Area Ratings (Rankings) in 2010
10 10

8 8
(7th)
6 (16th) 5.77 6 (25th) (25th) (25th)
(24th) 4.93 (26th)
4.83 4.60 (26th) 4.90 st
(21 ) 4.70
4.18 4.26
th
(26 ) 3.90 (26th)
4 4
2.88 2.87
2 2

0 0
1990 1995 2000 2005 2010 Area 1 Area 2 Area 3 Area 4 Area 5 Summary

Income and growth last in the hiring and firing regulations component (5Bii).
Zimbabwe is the second poorest nation among the 26 Furthermore, the mandated cost of worker dismissal is
African countries in the region. In 2010, its per-capita income daunting (component 5Bv) and it takes 90 days to start a
was $500. Further, its growth rate was the worst in the business in Zimbabwe, the second longest in the region.
region. Real GDP per capita declined at a −4.58% annual Zimbabwe’s ranking for Area 3, Sound Money was last in
rate during the past decade. In 2010, Zimbabwe’s popula- both the region and the world. Zimbabwe’s money growth
tion was 12.6 million. policies of the past decade have led to hyperinflation.
Inflation as measured by consumer prices skyrocketed to
Economic institutions and analysis more than 432% in 2003 to 1,097% in 2006, and continued to
Zimbabwe ranked last among the 26 African countries in climb to 24,411% in 2007. The hyperinflation led to the aban-
the Economic Freedom of the World index in 2010 and next donment of the domestic currency in the latter part of 2008
to last, 143rd, of the 144 countries worldwide. Its ranking was and subsequent informal dollarization of the economy. In
a little higher, 22nd in the region, in both the Doing Business 2010, the inflation rate was 17.5%.
report and the Global Competitiveness Report. Zimbabwe
made modest moves toward economic freedom from 1990 Political institutions and civil liberty
to 1995 and the country’s chain-linked summary EFW rat- The political institutions of Zimbabwe are authoritarian
ing increased from 4.83 in 1990 to 5.77 in 1995. Yet, the sit- and state-sponsored violence is a serious problem. The
uation has reversed dramatically during the last decade. measures of political institutions confirm this point. In the
By 2005, its rating had plunged to 2.88. Though its rating Legal System and Property Rights area of the EFW index,
increased to 4.18 in 2010, it still ranks last in the region in Zimbabwe ranked 21st among African countries. It is a mem-
economic freedom. ber of the “not free” group in the Freedom House political
Zimbabwe consistently ranked in the bottom five in rights measure. In the Polity IV measure of democracy, it
the region and the bottom 20 worldwide in all areas of the ranked 19th and 20th in the constraints on the executive com-
EFW Index. It ranked 25th in the region in three areas, Size ponent. Zimbabwe ranked 25th in the region in Transparency
of Government, Freedom to Trade, and Regulation. The top International’s Corruption Perceptions Index.
marginal income-tax rates are high, 36%, and 42% when Of the 26 countries in the region, Zimbabwe ranked 24th
the payroll tax is included. The mean tariff rate is 19.5%, the in the region in Freedom House’s Freedom of the Press, and
highest in the region. It takes 53 days to fulfill the require- is a member of the “not free” group in the Freedom House
ments to export a standard container and 73 days for a stan- civil liberties measure. Freedom of the press is radically
dard shipment container to clear customs, the longest in restricted in Zimbabwe. The government dominates the
the region, and capital controls are cumbersome (compo- broadcast sector through the state-controlled Zimbabwe
nent 4Dii). In Area 5, Regulation, Zimbabwe ranked 141st in Broadcasting Corporation and the NewZiana news agency.
the world. It ranked last in the region in the hiring regula- Reporters without Borders ranked Zimbabwe a bit higher,
tions and minimum wage component (5Bi), and second to 15th in the region, in the Press Freedom Index.

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 Chapter 3: Institutions and Economic, Political, and Civil Liberty in Africa E 213

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Economic Liberalization? European Journal of Political Economy 28, 4: 607–619.

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214 E Economic Freedom of the World: 2013 Annual Report

Schwab, Klaus (ed.) (2012). Global Competitiveness Report 2011-2012. Centre for
Global Competitiveness and Performance. World Economic Forum. <http://www3.
weforum.org/docs/WEF_GCR_Report_2011-12.pdf>.

Transparency International (2012). Corruption Perceptions Index. <http://cpi.

transparency.org/cpi2011/results/>.

World Bank (2013). Doing Business. World Bank Publications. <http://www.

doingbusiness.org/reports/global-reports/doing-business-2012>.

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Chapter 4 Economic Freedom, Democracy,
and Life Satisfaction
Martin Rode, Bodo Knoll, and Hans Pitlik

1 Introduction
For a long time, the main economic interest of politicians and scientists has been
to focus on the determinants of growth and income as a means of providing guide-
lines for the policymaking process. Due to the relative scarcity of available infor-
mation on factors such as life satisfaction, this was quite a natural starting point;
and it was driven by some obvious questions on differences in cross-country living
standards: What important features distinguish between fast- and slow-growing
countries? Why have some nations with a rather low capital stock achieved much
higher growth rates than others despite better starting conditions? In the quest for
answers, recent research suggests the general quality of institutions is one of the
most important factors for long-term growth and economic development. In par-
ticular, empirical studies have provided overwhelming evidence that economic free-
dom and deregulation of markets have a positive impact on growth and income.1
In a parallel manner, improved material well-being in industrialized societies
has changed people’s attitudes towards income, and more weight has recently been
ascribed to the non-monetary aspects of the Western economic and social order.
Together with the recurrent criticism of GDP as an imperfect, flawed, and per-
haps even misleading measure of welfare, this shift in values is reflected in current
political attempts to create alternative indicators to reflect the “quality of life”. A
prominent example in this area is the work of the Stiglitz-Sen-Fitoussi Commission
(2009), which proposed to add a set of indicators on social and ecological develop-
ment to the usual growth measures, in order to reflect a country’s welfare adequately.
Similarly, research on happiness (or life satisfaction)2 has employed a broader con-
cept of individual welfare for a number of years now. This research allows for the
identification of monetary and non-monetary effects upon individual well-being,
using survey questions about a person’s happiness.

Citation Martin Rode, Bodo Knoll, and Hans Pitlik (2013). Economic Freedom, Democracy, and Life
Satisfaction. In James Gwartney, Robert Lawson, and Joshua Hall, Economic Freedom of the
World: 2013 Annual Report (Fraser Institute): 215–233.
1 For an overview, see surveys by Berggren (2003) and de Haan et al. (2006).
2 An explanation of both terms is given in the next section.

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216 E Economic Freedom of the World: 2013 Annual Report

Typical policy recommendations derived from these investigations aim at a gen-

eral change in the objectives for policymaking and usually call for more government
intervention in the economy. The arguments are generally along the following lines.
Free markets may be effective instruments for an optimal allocation of resources,
but income only exerts a small effect on people’s individual happiness (Frey and
Stutzer, 2002).3 Hence, the policy objective of growth is overrated, especially in the
highly developed industrial nations of Europe and North America. Unemployment
was also found to be detrimental to life satisfaction, far beyond the pure income loss
that is associated with losing one’s job (Frey, 2008). From this viewpoint, providing
people with government-created employment would enhance “welfare” in almost
any case. In addition, environmental quality contributes considerably to individual
life satisfaction, even if people do not report any willingness to pay for the avoid-
ance of damages (e.g., Silva et al., 2012).
As a consequence of this line of argument, the economics of happiness usually
tends to favor government interventions over market-friendly policies, for the sake
of raising citizens’ subjective well-being or overall welfare. The positive effects of
economic freedom appear to be limited to benefits that are incorporated into the
price system and income growth. Besides the potential correction of market failures,
regulatory activities seem to provide additional non-monetary benefits.
Recent research on happiness finds that this kind of reasoning systematically over-
estimates the welfare effects of government interventions, while underestimating the
benefits of economic freedom, democratic decision-making, and deregulation for
individual well-being. These effects seem to be considerable. A more balanced per-
spective would recognize these non-monetary effects on personal well-being and
incorporate them into this relatively young field of economic research. In the follow-
ing, we will focus on the happiness outcomes of economic freedom and democracy,
showing that there is indeed a welfare effect derived from living in an economi-
cally free and politically democratic society that goes well beyond its pure income-
enhancing effects. This pattern is confirmed by simple cross-country comparisons.
The individual well-being associated with economic freedom is valued by people
in its own right, above and beyond the material wealth that it produces for society.

2 What is happiness or life satisfaction?

Generally speaking, the economics of happiness is the theoretical and quantita-
tive study of subjective well-being, life satisfaction, or related concepts. It typically
combines economics with other fields, such as psychology and sociology. Empirical
studies on the economic determinants of happiness normally make use of large-scale
surveys, such as the World Values Survey (WVS), to measure the overall life satis-
faction of individuals or groups. In a series of six waves, the WVS has interviewed
different people in a large number of countries since the early 1980s, employing
a very similar methodology in every wave. Responses can be analyzed on an indi-
vidual level or they can be aggregated at the country level, thereby relating them to
a host of individual and social determinants of happiness.
The following question is adopted in the WVS survey: “All things considered,
how satisfied are you with your life as a whole these days?” Respondents answer on
a ten-point scale, ranging from dissatisfied (1) to satisfied (10). Though some have

3 It is likely that cross-sectional studies suffer from rather severe endogeneity problems. Natural
experiments and instrumental variable techniques tend to indicate much larger effects.

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 Chapter 4: Economic Freedom, Democracy, and Life Satisfaction E 217

questioned whether people answer this question truthfully and whether responses
are comparable across individuals and countries, there is now a widespread con-
sensus among scholars that these measures capture relevant and comparable infor-
mation on human well-being (e.g., Frey, 2008). In recent years, these important
objections to happiness surveys have been largely ruled out.
The reader will note that we have so far used the terms “happiness” and “life-
satisfaction” interchangeably, even though they refer to two different survey ques-
tions that measure very similar concepts. In fact, both are considered to reflect a
notion that has become known as subjective well-being. Throughout the whole chap-
ter, we will only employ the question about life satisfaction for empirical analysis.
Both concepts are so closely related that they are often referred to interchangeably in
the literature but we will use “life-satisfaction” when discussing our empirical work.
The life-satisfaction data in this chapter stems exclusively from the integrated
file of the European Values Study and the World Values Survey (2009), which is
freely available to all users. Generally, the surveys are all conducted for a represen-
tative sample of the adult population of each country. Therefore, the country mean
of life satisfaction can be viewed as a rough measure of “national happiness”. We
employ average country values, which is also the approach taken by many other
scientists,4 though this information is clearly not as detailed as data on an individual
level. Nonetheless, comparing microdata results by Helliwell (2003), who analyzes
individual responses, with those of country averages by Helliwell and Huang (2008)
suggests that national averages are good approximations for individual happiness
across countries.5 In other words, we use average country life satisfaction for our
empirical comparisons, assuming that values are representative of the “average indi-
vidual” in a certain country.
Regarding the life-satisfaction scale, the WVS reports the results of its life satis-
faction question in two ways: as a share of the population answering in the top three
categories, or as the mean value corresponding to the ten-point scale. The first argu-
ably makes responses more insensitive to cultural differences in answering, while
the latter could contain more statistical information. According to the findings of
Bjørnskov et al. (2010), both methods produce very similar results. As our objective
is to make comparisons between the life satisfaction of different nations, we will use
country averages throughout this chapter.

Overview of life satisfaction in seven countries

Having clarified some of these rather academic questions on the general signifi-
cance of our inquiry and the aggregation of microdata, we now give an overview of
happiness across different nations and over time. Figure 4.1 illustrates some styl-
ized facts, comparing the average life satisfaction of a selection of seven countries
over the course of roughly ten years. These are: Russia, Japan, the People’s Republic
of China, Chile, Germany, the United Kingdom, and the United States. The time
frame we are looking at is pretty much the decade between 1995 and 2005, which is
covered by the last three waves of the WVS. In part, these nations were chosen pre-
cisely because life satisfaction data for them is available for all three of these waves.
Furthermore, they offer a selection of important industrial nations and developing

4 For example, Helliwell and Huang (2008), Bjørnskov et al. (2010).

5 Even taking into account individual policy preferences does not notably change the large similar-
ity between microdata and country averages, as shown by Knoll et al. (2013).

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218 E Economic Freedom of the World: 2013 Annual Report

Figure 4.1: The distribution of life satisfaction across the world and time
Life satisfaction
1 2 3 4 5 6 7 8 9 10

1995 4.5
Russia 1999 4.7
2005 6.1

1995 6.7
Japan 2000 6.5
2005 7.0

1995 6.8
China 2001 6.5
2005 6.8

1996 6.9
Chile 2000 7.1
2005 7.2

1997 6.9
Germany 1999 7.4
2005 7.1

1998 7.6
United Kingdom 1999 7.4
2005 7.6

1995 7.7
United States 1999 7.7
2005 7.3

Source: World Values Survey, 2009.

countries from a variety of continents. The years observed coincide with some very
relevant political and economic developments and, as a consequence, some aston-
ishing patterns are easily visible to the reader.
Each horizontal bar in figure 4.1 represents average life satisfaction of the cor-
responding country and survey year, labeled on the left hand side. First, let us focus
our attention on comparing life satisfaction across different countries. Here, it can
be seen that there are some quite significant differences in average life satisfaction
across the world. For example, with a score of 4.5 in 1995 people in Russia are sub-
stantially less happy than those in all other nations of our sample. Most authors
ascribe this phenomenon to the political, social, and economic instability, caused by
the breakdown of the USSR and the transition to a market economy (e.g., Bjørnskov
et al., 2010). In fact, a review by Dolan et al. (2008) identifies per-capita income
as the most important variable to explain varying life satisfaction across countries,
which would suggest that in this case economic instabilities are largely behind the
observed gap.
Nonetheless, it is obviously not simply a question of economic development
and income level: comparing the scores of the People’s Republic of China (6.8) and
that of its much richer neighbor Japan (6.7) in 1995 illustrates this point. The same
is true for Chile’s average life satisfaction in 1996, as compared to that of the much
richer Germany in 1997, where both register an identical score of 6.9. For some rea-
son, most Latin American countries generally have a much higher life satisfaction
than their income per capita would predict. So far, there is no convincing explana-
tion for this phenomenon and most authors therefore ascribe it to some unobserved
cultural factors (e.g., Inglehart et al., 2008).

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 Chapter 4: Economic Freedom, Democracy, and Life Satisfaction E 219

Another distinctive feature of our cross-country comparison is that the scores

of the United Kingdom and the United States are so much higher, compared to the
other countries in our selection. Both the UK score of 7.6 in 1998 and the US score
of 7.7 in 1995 reveal countries very close to the happiest in the world; these scores
are certainly much higher than those of most industrialized democracies. One goal
of research like this is to determine whether this might, at least in part, be due to the
fact that especially during the late 1990s both the United Kingdom and the United
States were among the most economically free societies around the world.
Regarding the evolution of life satisfaction over time, it can be observed that
average life satisfaction in most countries changes only very little over the course
of these ten years. The variation is in fact so small that it could be caused by differ-
ences in sampling. This coincides with the observation in some studies that under
normal circumstances life satisfaction varies to a small degree over time and is sur-
prisingly stable on an individual and cross-country level (e.g., Frey, 2008; Easterlin
and Angelescu, 2012). In our graph, the only great exception to this trend is Russia:
with scores at only 4.5 in 1995 and 4.7 in 1999, average life satisfaction had been
comparatively low in the Russian Federation but then jumped to 6.1 in 2005. This
may be a consequence of the widespread political and economic stabilization that
the country experienced between 2000 and 2004. Just like individuals, who recover
from traumatic experiences and over time return to their base level of life satisfac-
tion, countries might also return to such a base level after going through major eco-
nomic and political transitions that cause substantial uncertainty and depression
among the population.
In the following, a comparison of the world’s five happiest countries with the
world’s five unhappiest countries (table 4.1) reinforces the points made above:
while income per capita is the single most important element that determines aver-
age national life satisfaction there are a number of other non-monetary factors that
have a considerable impact on the patterns observed. The table employs average
life satisfaction values from the fourth wave of the WVS, conducted between 1999
and 2001.
According to the average ratings, the world’s happiest countries were Denmark,
Ireland, and Malta, all with an average score of 8.2. Close behind in fourth position
was Iceland, with a score of 8.1. This does not really come as a surprise, as all four are
small European nations with comparably high GDP per capita. Except for Malta, all
of them also show high levels of economic freedom and little regulation. In the case
of Denmark, and to some degree Iceland, they are also characterized by very high
social trust. According to Bjørnskov (2003), this informal institution with strong
historical and cultural roots is the principal reason behind their elevated national
life satisfaction. On the other hand, to find that Mexico also has a score of 8.1 for life
satisfaction might be a surprise to the reader. Mexico is not known to be an economi-
cally and politically stable high-income country, but its relative rank simply reflects
the positive life-satisfaction effect of Latin America.
Of the world’s five countries with the lowest level of life satisfaction during the
same time period, three are post-communist countries that were part of the USSR
before 1992. Roughly ten years after the demise of the latter, Russia exhibits a score
of 4.7 while Moldova and the Ukraine follow closely behind with a score of 4.6.
Interestingly, in terms of income none of these three is among the poorest 25% of
the fourth WVS wave: Russia and Moldova have levels of per-capita GDP similar to
those of many of the larger Latin American nations of the sample. This again shows

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220 E Economic Freedom of the World: 2013 Annual Report

Table 4.1: Nations with the highest and lowest levels of life satisfaction

Greatest life satisfaction Least life satisfaction

Denmark 8.2 Russia 4.7

Ireland 8.2 Moldova 4.6

Malta 8.2 Ukraine 4.6

Iceland 8.1 Tanzania 3.9

Mexico 8.1 Zimbabwe 3.9

Source: World Values Survey, 2009: fourth wave.

that income is obviously only one important factor among many that influence
average life satisfaction. Perhaps just as relevant, Russia and Ukraine show some
of the lowest EFW scores of the whole sample, and all three countries were under
autocratic rule.
Only two countries were less happy at this point in time: Tanzania and Zimbabwe,
which have an average life-satisfaction score of only 3.9. While both are among the
poorest countries of the world, they were still substantially unhappier than a num-
ber of other low-income African nations such as Ethiopia (5.0), Rwanda (5.0), and
Uganda (5.6). In comparison with these, both Zimbabwe and Tanzania also exhib-
ited extremely low levels of economic freedom and both are known for their noto-
riously repressive political regimes.

3 The relation of life satisfaction to economic

freedom, democracy, and income
Some of the overall life-satisfaction patterns across the world were described in the
previous section; this section describes the estimation model and explains the con-
struction of the dataset. In the following, we turn to the overall relationship between
life satisfaction and income, life satisfaction and political regimes, and life satisfac-
tion and economic freedom.
The choice of control variables for our baseline model follows the specification of
Bjørnskov et al. (2010), using Social trust, Average memberships, Importance of God, GDP per
capita, the Unemployment rate, and the Divorce rate. This model was originally specified
by Helliwell (2003). Social trust is added as a good proxy for informal institutions
(Bjørnskov, 2003).6 If it is not included in the model, the effect of formal institu-
tions might be overestimated. Social trust is measured as the percentage of respon-
dents answering “yes” to the WVS question: In general, do you think most people
can be trusted? It is expected to exert a positive effect on life satisfaction.
The model employs two further control variables from the WVS: Average mem-
berships is an index derived from the number of memberships that citizens report
having in nine types of voluntary organizations. According to Helliwell (2003)
and Bjørnskov et al. (2010), it captures the effect of social capital as networks and
is expected to have a positive influence on life satisfaction. In turn, Importance of
God is supposed to measure the intensity of religious beliefs. Research by positive

6 The model is further identical to the one by Rode (2013).

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 Chapter 4: Economic Freedom, Democracy, and Life Satisfaction E 221

psychologists indicates intensity of beliefs to be of great importance for individual

happiness (Frey, 2008). It is measured as the average of citizens’ responses to the
following question: How important is God in your life? Interviewees answer on a
ten-point scale, ranging from not at all important (1) to very important (10). We
expect it to be positively related to life satisfaction.
Due to the importance of income as a source of life satisfaction, GDP per capita is
also included in the basic model. Generally, the relation between income and life
satisfaction seems to be complex and a lot of research has been undertaken to clarify
contradicting theoretical assumptions. Results largely suggest positive but diminish-
ing marginal returns of income on happiness (Clark et al., 2008). This means that
beyond a certain income level the importance of money for happiness will relatively
diminish. As a consequence, the variable is introduced in a logarithmic form and in
our model we expect it to show a positive relation with life satisfaction. Purchasing
power parity (PPP) standards are used for two reasons. First, since high inflation
also seems to reduce life satisfaction, as highlighted by Dolan et al. (2008), using
PPP will account for relatively recent changes in income that are due to inflation,
without having to introduce another flow variable to the model. Second, in most
cases, what matters to individuals is the quantity of goods that their income will buy,
rather than what they earn in nominal terms.
Another important economic control variable is the Unemployment rate (Frey,
2008). According to Dolan et al. (2008), unemployment is one of the greatest
depressors of individual life satisfaction and it mainly affects the people who actu-
ally lose their job. Nonetheless, Helliwell (2003) demonstrates that it also has an
important impact on a societal level: observing high unemployment in society
depresses citizens’ happiness, even if the observer has not lost his or her own job.
National unemployment rates are used in this investigation, as they should ade-
quately capture both effects. Unemployment is expected to have a negative impact
on life satisfaction.
Marriage is another important determinant of individual happiness and being
married is strongly associated with life satisfaction (Stutzer and Frey, 2006a). In
contrast, being divorced or separated is associated with some of the lowest levels
of happiness. To account for this fact, national divorce rates are incorporated into
the basic model and they are expected to exert a negative impact on life satisfaction.
Regarding political institutions and economic freedom, a number of authors
have argued that the utility derived from political and economic participation is
potentially large and we should therefore expect countries with a high degree of
democratization or economic freedom to show higher levels of life satisfaction,
other factors being equal. This seems to be the case: according to previous studies
democracy and economic freedom are positively related to happiness.7
Economic freedom is measured by the EFW index published in Economic Freedom
of the World: 2012 Annual Report (Gwartney et al., 2012). To distinguish between
political regimes, we use the democracy-dictatorship (DD) dataset by Cheibub et
al. (2010). According to its creators, the DD dataset avoids the problems inherent in
the Freedom House rating or Polity IV scores, which they argue are based on overly
subjective evaluations and inadequate operational rules. Cheibub et al. (2010) claim
that the middle categories of the Freedom House and Polity IV variables add little

7 E.g., Stutzer and Frey (2006b), Ovaska and Takashima (2006), Dorn et al. (2007), Knoll et al.
(2013), and Rode (2013).

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222 E Economic Freedom of the World: 2013 Annual Report

Table 4.2: Descriptive statistics and data sources for key variables

Variable Mean SD Min Max Source

Life Satisfaction 6.60 1.05 3.90 8.30 World Values Survey, 2009

Social trust 0.26 0.15 0.03 0.74 World Values Survey, 2009

Average memberships 0.08 0.06 0 0.31 World Values Survey, 2009

Importance of God 7.33 1.93 3.60 10 World Values Survey, 2009

GDP per capita (PPP) 14.239 12.233 423 62.591 World Bank, 2010

Unemployment rate 9.27 6.48 0.6 40 World Bank, 2010

Divorce rate 1.72 1.20 0.20 7.40 United Nations, 2001, 2010

Economic freedom 6.59 1.04 3.44 8.64 Gwartney et al., 2012

Democracy 0.77 0.42 0 1 Cheibub et al., 2010

information useful in distinguishing between political regimes. They also argue that,
contrary to frequent practice, the two measures are not interchangeable in regres-
sion analysis. As an alternative, they propose a dichotomous variable that takes the
value of one, if a country’s legislative and executive offices are chosen by contested
and popular elections, and zero, otherwise.8
Data for Life satisfaction, Social trust, Average memberships, and Importance of God are
taken from the last three waves of the WVS. From this we constructed a pooled
dataset of 87 countries and 160 observations for empirical analysis. Control vari-
ables that do not stem from the WVS are all from the corresponding survey year.
An overview of the variables, descriptive statistics, and sources is given in table 4.2.

Life satisfaction and income

Turning to the overall relationship of life satisfaction with income, political regimes,
and economic freedom, the remainder of this section graphically relates these
variables for an approximation. Figure 4.2 connects life satisfaction to per-capita
income in terms of purchasing power parity. The 160 country observations in our
dataset are divided into three groups: the first group consists of countries with a per-
capita GDP below $7, 500; countries in the second group all have an annual GDP
per capita between $7,500 and $15,000; and the third group, an annual GDP per
capita above $15,000. We then calculated the corresponding average life satisfaction
for each group. As one can observe in figure 4.2, countries with an annual per-cap-
ita income below $7,500 also have the lowest average life-satisfaction score of 5.98.
Life satisfaction in the second group is somewhat higher, showing a life-satisfaction
level of 6.45 for countries with an annual income between $7,500 and $15,000. As
one would expect, the group of countries with an income above $15,000 is also
the happiest, having an average life-satisfaction score of 7.37. These differences are
quite notable, especially if we consider that the standard deviation of the whole

8 Reproducing different studies, Cheibub et al. (2010) further show that the choice of a democracy
measure in different empirical studies does matter, and that it has important implications for the
results obtained.

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 Chapter 4: Economic Freedom, Democracy, and Life Satisfaction E 223

Figure 4.2: Life satisfaction and income

10

8
7.37
7

Life satisfaction
6.45
5.98
6

1
< $7,500 $7,500 - $15,000 > $15,000
Annual GDP per capita (PPP)

Sources: World Values Survey, 2009; World Bank, 2010.

sample is only 1.05. So, as we have already stated, the impact of per-capita GDP for
national life satisfaction is considerable, even though there are other variables that
influence this relationship.

Life satisfaction, democracy, and autocracy

Just as impressive as the average differences in life satisfaction among income groups
is the asymmetry between different political regimes. The latter is illustrated in
figure 4.3. Here, we divide the countries of our dataset into autocracies and democ-
racies, according to the DD variable by Cheibub et al. (2010). This exercise demon-
strates that the life satisfaction of democratic nations is substantially above the level
found in autocracies. According to our dataset, the average life-satisfaction score of
autocratic countries is 5.96. In turn, the average life-satisfaction score of democratic
countries is 6.79. The difference suggests that the potential utility derived from free
and fair elections is large and significant for the average citizen. One might specu-
late that the positive effect for happiness will be stronger, the more institutionalized
the democracy. This is obviously not captured by the binary DD variable. Similarly,
it also seems plausible that, the more repressive an autocratic regime, the larger the
expected detrimental effect on life satisfaction will be.

Life satisfaction and economic freedom

Finally, all observations in the dataset are divided into three groups, according to
their level of economic freedom. The first group consists of countries that have a
score on the EFW index below 6; countries of the second group have EFW scores
between 6 and 7.5, and countries in the third group have an EFW score above 7.5.
As with the different income categories, we calculate the corresponding average life
satisfaction for each group. As one can observe in figure 4.4, countries with a score
for economic freedom below 6 also have the lowest average life-satisfaction score
of 5.85. Life satisfaction in the second group is somewhat higher: the average life-
satisfaction score is 6.61 for countries with an economic freedom score between 6
and 7.5. The group of countries with an economic freedom level above 7.5 is also the

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224 E Economic Freedom of the World: 2013 Annual Report

Figure 4.3: Life satisfaction and political regime

10

7 6.79

Life satisfaction 5.96

6

1
Autocracy Democracy
Political regime

Sources: World Values Survey, 2009; Cheibub et al., 2010.

Figure 4.4: Life satisfaction and economic freedom

10

8 7.64

7 6.61
Life satisfaction

6 5.85

1
<6 6 – 7.5 > 7.5
Economic freedom rating

Sources: World Values Survey, 2009; Gwartney et al., 2012.

happiest, with an average life-satisfaction score of 7.64. Again, these differences are
quite notable and they suggest that there is an intrinsic value to living in an economi-
cally free society. Of course, the observed life-satisfaction effect might be driven by
the high correlation between EFW scores and GDP per capita, which is not con-
trolled for in these simple graphics. This issue will be dealt with in the next section.

4 Economic freedom, democracy, and life satisfaction

In this section, the relationship between economic freedom and democracy on the
one hand and life satisfaction on the other is analyzed empirically. The estimated
model has the following functional form:

LSi,t = ß0 + ß1 EFWi,t + ß2 Xi,t + ui,t

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 Chapter 4: Economic Freedom, Democracy, and Life Satisfaction E 225

where ß0 is a constant term, Xi,t is a vector of control variables, and ui,t is an error term
for country i in period t. With this model, we can simultaneously control for the effect
of our variables on life satisfaction, and we do not have to be overly concerned about
the effect of one variable really being reflected by another. Put differently, we are filter-
ing out the independent impact of economic freedom on life satisfaction, while simul-
taneously taking into account the impact of all other variables described above (e.g.,
GDP per capita). In terms of the functional model, the economic freedom effect will
be indicated by the coefficient ß1. Regarding methodology, the impact of economic
freedom on average national life satisfaction is estimated with ordinary least squares
analysis, using robust standard errors to account for possible heteroscedasticity.

Equation 1
Estimation results that use the basic model are shown in table 4.3. In equation 1,
all variables from the baseline specification are highly significant and present the
expected sign. Social trust, Average memberships, Importance of God, and GDP per capita
are all positively associated with life satisfaction, which tentatively means that an
increase in one of these factors will also increase average national life satisfaction,
other factors being equal. In turn, Unemployment rate and Divorce rate are negatively
associated with life satisfaction, meaning that an increase in one of these variables
has the potential to reduce average life satisfaction, all else being equal. Our results
therefore highlight the relevance of social capital and informal institutions for life
satisfaction, as is also shown by Bjørnskov (2003) and Bjørnskov et al. (2010).
Turning to our main variables of interest, the EFW index and the DD variable
for democracy are both positive and highly significant (1% level) as determinants
of the variation in average life satisfaction. The coefficients illustrate that a one unit
increase in economic freedom, which is exactly the variable’s standard deviation, is
associated with an almost 0.3 points higher average life satisfaction. Therefore, a one
standard deviation shock in economic freedom, which roughly amounts to the dif-
ference between the United States and Japan in the year 2000, corresponds to an
increase in life satisfaction of about three percentage points, all else being equal. In
turn, a transition from an autocratic to a democratic regime is associated with an
increase in average life satisfaction of about 0.4, which is about the average difference
in life satisfaction between the autocratic Singapore and the democratic Great Britain.
Regarding the fit of our basic model, one can observe at the bottom of equation
1 that the adjusted R2 is 0.58. This means that the paradigm currently explains 58%
of the variation in cross-country average life satisfaction.

Equation 2
In equation 2, two period dummies are introduced to account for joint macro-
trends in the data. We take 1995 as a reference point and control for the years 2000
and 2005. This leaves our estimation results practically unchanged: all variables,
including economic freedom and democracy, remain significant with the expected
sign and their coefficients are almost identical. Of the two period dummies, only
the year 2000 is significant at the 10% level.

Equation 3
In equation 3, two regional dummy variables are introduced, one for Latin America,
and another for post-communist countries. They control for the already men-
tioned fact that Latin American countries systematically present higher levels of

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226 E Economic Freedom of the World: 2013 Annual Report

Table 4.3: Basic outcomes for economic freedom

Dependent variable: Life Satisfaction

(1) (2) (3) (4)
Economic freedom 0.283 *** 0.295 *** 0.240 *** 0.225 ***
(3.579) (3.711) (3.063) (2.755)

Democracy 0.406 *** 0.388 ** 0.311 ** 0.308 **

(2.728) (2.580) (2.262) (2.248)

Social trust 1.499 *** 1.510 *** 1.732 *** 1.763 ***
(3.622) (3.767) (4.092) (4.218)

Average memberships 1.958 * 2.098 * 1.117 1.281

(1.735) (1.956) (1.136) (1.311)

Importance of God 0.171 *** 0.172 *** 0.061 0.060

(3.600) (3.479) (1.583) (1.519)

log GDP per captia (PPP) 0.453 *** 0.447 *** 0.365 *** 0.421 ***
(5.053) (4.964) (4.714) (3.456)

Unemployment rate −0.020 ** −0.016 * −0.009 −0.007

(−2.134) (−1.714) (−0.971) (−0.743)

Divorce rate −0.157 ** −0.150 * −0.118 ** −0.117 **

(−2.057) (−1.906) (−2.411) (−2.365)

Latin America 0.883 *** 0.878 ***

(5.183) (5.105

Post-communist −0.453 ** −0.445 **

(−2.385) (−2.319)

Period 2000 −0.230 * −0.053

(−1.732) (−0.407)

Period 2005 −0.025 0.105

(−0.184) (0.866)

Adj. R² 0.58 0.58 0.68 0.68

F-Statistic 49.2 37.9 47.3 38.3

N 160 160 160 160

Countries 87 87 87 87

Note: all regressions include a constant term; t-statistics in parentheses; * significant at 10%; ** significant at 5%; *** significant at 1%.

unexplained life satisfaction, while post-communist countries systematically pres-

ent lower levels of life satisfaction (Inglehart et al., 2008). Studies by Bjørnskov et
al. (2010) and others show these dummies to be highly significant in similar mod-
els, making them an adequate tool to control for unexplained cultural differences
in cross-country life satisfaction levels.
Unlike the period dummies, these regional controls result in slight changes
in the estimation results: the variables Average memberships, Importance of God, and

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 Chapter 4: Economic Freedom, Democracy, and Life Satisfaction E 227

Unemployment rate become insignificant in this model. At the same time, the coeffi-
cients associated with GDP per capita, Economic freedom, and Democracy are somewhat
smaller. Both regional dummies are highly significant and present the expected sign.
Living in Latin America has a strongly positive impact on life satisfaction, while liv-
ing in a post-communist country exerts a strongly negative impact. In addition, the
introduction of the regional controls raises the adjusted R2 to 0.68, meaning that
this model explains 68% of the cross-country variation in average life satisfaction.
Furthermore, the introduction of these dummies eliminates the significance of
the control variables Average memberships, Importance of God, and Unemployment rate: The
communist regimes of Eastern Europe were known for their anti-religious ideology,
which would explain the connection to the control variable for overall religiosity.
Furthermore, the breakdown of these regimes is known to have left many coun-
tries in the region without a functioning volunteer infrastructure and a crumbling
civil society, both of which are factors that are intimately associated with the vari-
able for Average memberships (Meier and Stutzer, 2008). In addition, these countries
have experienced high unemployment rates as a consequence of changing from a
communist to a market-based economy. It seems that the introduction of the post-
communist dummy variable would be picking up these three factors, at least in part.

Equation 4
Finally, equation 4 jointly introduces both period and regional dummies. Results
are almost identical to equation 3: variables Average memberships, Importance of God,
and Unemployment rate again become insignificant, while coefficients for GDP per capita,
Economic freedom, and Democracy are somewhat lower. Both regional dummy variables
are again highly significant, while the period dummies are not. Also in this model,
the R2 remains at 0.68.

Influence of economic freedom and democracy on life satisfaction

Having laid out the general dynamics of economic freedom and democracy on life
satisfaction, this leaves us with an open question regarding the total influence of
both variables on life satisfaction. As mentioned above, it is quite well known that
economic freedom fosters long-term growth and thereby produces higher per-capita
income (Pitlik, 2002; Berggren, 2003; de Haan et al., 2006; Rode and Coll, 2012).
In addition, unemployment is known to be consistently lower in economically free
societies (Feldman, 2010). It is more debatable whether democratic institutions
also generate similar indirect effects, but there is some research indicating that this
is the case (Rodrik, 2000; Benyishay and Betancourt, 2010; Rode and Gwartney,
2012). If economic freedom and democracy simultaneously exert an independent
impact on GDP per capita and unemployment rates, and both of these are in turn
responsible for higher average ratings of life satisfaction, then our research design
in table 4.3 does not capture the total impact of economic freedom and democracy
on life satisfaction. Part of their effects on life satisfaction will flow through the
impact of higher per-capita GDP and lower rates of unemployment. Put differently,
economic freedom and democracy will exert an indirect effect on life satisfaction as
the result of their impact on GDP per capita and on the rate of unemployment. Our
model will not register these indirect effects and, as a result, it will tend to understate
the full impact of economic freedom and democracy on life satisfaction.
To assess the complete contribution of economic freedom and democracy to
variations in life satisfaction across countries, we employ a methodology used

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228 E Economic Freedom of the World: 2013 Annual Report

by Gwartney et al. (2006) to deal with a similar problem: estimation of the full
impact of economic freedom on the growth of real GDP, including the indirect
effects through investment. These authors used a residual model to capture the total
impact of economic freedom on cross-country growth rates, including the indirect
effects transmitted through private and public investment. As one would expect, the
resulting coefficients for economic freedom on growth were higher when estimated
by a procedure that captured the indirect effects through investment as well as the
direct effects through improved efficiency and higher productivity. In the follow-
ing, we employ a similar research design to capture the direct and indirect effects of
economic freedom and democracy upon life satisfaction.
Estimation results that make use of this technique are shown in table 4.4.
Following Gwartney et al. (2006), we first estimate the independent impact of our
basic model on GDP per capita (equation 1) and on the unemployment rate (equa-
tion 2); then we use the residuals from both estimations to explain life satisfaction
(equation 3).

Equation 1
Equation 1 takes the logarithm of GDP per capita in PPP terms as dependent vari-
able. The independent variables are identical to the life satisfaction model except, of
course, for both of the economic variables. It can be observed in equation 1 that in
this specification Social trust does not significantly explain cross-country variations
in income. Average memberships and Importance of God both present a significantly nega-
tive relationship with income per capita, the first at the 10% level and the second at
the 1% level. In the case of Average memberships, an explanation for the negative sign
might be that many underdeveloped countries in the WVS show surprisingly high
levels of memberships in different societal organizations. It is yet unclear as to why
this is the case. Something similar is true for the Importance of God, which mainly has
high levels in developing countries. This result coincides quite well with the com-
mon logic that religious beliefs among the population are reduced in the process of
economic development. In turn, Divorce rate shows a positive and significant relation
with income per capita at the 10% level. This also makes sense as a more liberal rela-
tion among the sexes and divorce is more common in economically affluent coun-
tries. Both Economic freedom and Democracy are highly significant and positively related
to income per capita, as one would expect. Of course, it is important to keep in mind
that our estimation procedure can say nothing about causality in all of these cases.

Equation 2
Equation 2 uses the unemployment rate as dependent variable. Here, Social trust and
Average memberships show a significantly negative association with unemployment,
the first at the 10% level and the second at the 1% level. Theoretically, it would
make sense that countries with higher levels of social trust have fewer unemploy-
ment problems, as a consequence of reducing information asymmetries that can
lead to failure of labor markets. In an analogous manner, it also seems plausible that
countries with higher average memberships in voluntary organizations have lower
unemployment rates. This should largely be a consequence of a well-functioning
volunteer infrastructure, which might absorb individuals who would otherwise be
on the labor market. The two remaining control variables, the Importance of God and
the Divorce rate are unrelated to unemployment. This is also true for our Democracy
variable, which has no statistically significant relation with unemployment across

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 Chapter 4: Economic Freedom, Democracy, and Life Satisfaction E 229

Table 4.4: Compound outcomes of Economic Freedom

Dependent variable: Log GDP per capita (PPP) Unemployment rate Life satisfaction
(1) (2) (3)
Economic freedom 0.505 *** −0.870 * 0.529 ***
(7.700) (−1.702) (8.916)

Democracy 0.565 *** 0.140 0.659 ***

(3.407) (0.087) (4.510)

Social trust 0.165 −6.741 * 1.707 ***

(0.396) (−1.875) (4.252)

Average memberships −1.778 * −17.890 *** 1.508

(−1.835) (−6.795) (1.342)

Importance of God −0.205 *** −0.046 0.079 *

(5.931) (−0.151) (1.842)

Residual log GDP per capita 0.453 ***

(5.053)

Residual unemployment −0.020 **

(−2.134)

Divorce rate 0.101 ** −0.140 −0.108

(2.115) (−0.313) (−1.407)

Adj. R² 0.63 0.08 0.58

F-Statistic 48.3 6.1 49.2

N 160 160 160

Countries 87 87 87

Note: all regressions include a constant term; t-statistics in parentheses; * significant at 10%; ** significant at 5%; *** significant at 1%

countries. In turn, Economic freedom shows the expected negative sign, being signifi-
cant at the 10% level. This means that economically freer countries indeed show
lower unemployment rates in our sample.

Equation 3
The residuals from equations 1 and 2 were then incorporated into equation 3. This
procedure includes in the model the values of GDP per capita and unemploy-
ment that are not correlated with Economic freedom and Democracy. In turn, the indi-
rect impact of Economic freedom and Democracy on Life satisfaction through per-capita
income and unemployment will now be captured by the coefficients for the Economic
freedom and Democracy variables. Therefore, the coefficients for these variables in
equation 3 will reflect both their direct and indirect effects on Life satisfaction. The
first works via intrinsic evaluations of having a free life (e.g., Knoll et al., 2013), while
the second is due to the economic improvements of being free.
Comparing equation 3 of this table with equation 1 from the previous table, the
signs, coefficients, and significance levels of all control variables, including GDP per
capita and the Unemployment rate, are practically identical. Only the coefficients for

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230 E Economic Freedom of the World: 2013 Annual Report

Economic freedom and Democracy are substantially higher. In the case of economic free-
dom, the impact rises from 0.28 to 0.53. This indicates that a one standard devia-
tion shock in economic freedom has the potential to raise average life satisfaction
by more than 5 percentage points via direct and indirect channels. This roughly
amounts to the difference in average life satisfaction between the United States
and Italy in 2000. Like the United States, Italy is also a Western industrial society,
meaning that both do not differ overly in terms of income per capita. In terms of
economic freedom, Italy scores much lower than the United States though, reflect-
ing Italy’s especially large public sector and its comparatively high levels of labor
market regulation. Both have been shown to influence cross-country levels of life
satisfaction. In the case of democracy, the impact rises from 0.41 to 0.57. Likewise,
this indicates that a change from autocratic to democratic leadership could raise
average life satisfaction by almost 6 percentage points, when taking into account the
direct and indirect effect. While the estimated joint effects of economic freedom
and democracy on life satisfaction across countries are not huge, they are substan-
tial. On a more intuitive level, they demonstrate the welfare generated by living in
an economically free and democratic society.

5 Conclusions
For a long time, economic happiness research has focused on the question: “Does
money make people happy?” This is an important and interesting subject, but it
has certainly not made use of the full potential that measures of life satisfaction
have to offer for economic investigation. As a consequence, researchers have broad-
ened the scope of questions in recent years, asking if political, social, and economic
events might produce outcomes that have an impact that goes beyond pure mone-
tary effects. For example, periods of unemployment are not only detrimental for life
satisfaction due to the loss of labor income and the reduced consumption levels of
the unemployed. They have additional psychological welfare effects both for those
who are unemployed and for those who observe more unemployment in society.
The quality of economic and political institutions matters for life satisfaction basi-
cally for two reasons. First, free markets, and possibly also democracy, are important
determinants of growth, thereby contributing to life satisfaction via higher income
levels and lower unemployment rates. Second, risk aversion and freedom of choice
as values in themselves may explain why positive effects on life satisfaction remain,
even after controlling for income levels and other socioeconomic variables. This
non-monetary impact seems to be quite important for the individual and collective
evaluation of welfare. Economic freedom, therefore, not only makes people richer,
but it also makes them happier.

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 Chapter 4: Economic Freedom, Democracy, and Life Satisfaction E 231

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Fraser Institute ©2013 E www.fraserinstitute.org E www.freetheworld.com
Appendix Explanatory Notes and Data Sources

Area 1 Size of Government

A Government consumption
This component is measured as general government consumption spending as a
percentage of total consumption. The rating for this component is equal to: (Vmax −
Vi) / (Vmax − Vmin) multiplied by 10. The Vi is the country’s actual government con-
sumption as a proportion of total consumption, while the Vmax and Vmin were set at
40 and 6, respectively. The 1990 data were used to derive the maximum and mini-
mum values for this component. Countries with a larger proportion of government
expenditures received lower ratings. In contrast, as the ratio approaches the maxi-
mum value, the ratio moves toward zero.

Sources World Bank, World Development Indicators (various issues); International

Monetary Fund, International Financial Statistics (various issues); United Nations
National Accounts.

B Transfers and subsidies

This component is measured as general government transfers and subsidies as a per-
centage of GDP. The rating for this component is equal to: (Vmax − Vi) / (Vmax − Vmin)
multiplied by 10. The Vi is the country’s ratio of transfers and subsidies to GDP, while
the Vmax and Vmin values are set at 37.2 and 0.5, respectively. The 1990 data were used
to derive the maximum and minimum values for this component. The formula will
generate lower ratings for countries with larger transfer sectors. When the size of a
country’s transfer sector approaches that of the country with the largest transfer sec-
tor during the 1990 benchmark year, the rating of the country will approach zero.

Sources International Monetary Fund, Government Finance Statistics Yearbook

(various years); World Bank, World Development Indicators (various issues); Inter-
national Monetary Fund, International Financial Statistics (various issues); United
Nations National Accounts.

C Government enterprises and investment

Data on government investment as a share of total investment were used to con-
struct the zero-to-10 ratings. Countries with more government enterprises and
government investment received lower ratings. When government investment

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236 E Economic Freedom of the World: 2013 Annual Report

was generally less than 15% of total investment, countries were given a rating of 10.
When government investment was between 15% and 20% of the total, countries
received a rating of 8. When government investment was between 20% and 25%
of the total, countries were rated at 7. When government investment was between
25% and 30% of the total, countries were assigned a rating of 6. When government
investment was generally between 30% and 40% of the total, countries received a
rating of 4. When government investment was between 40% and 50% of the total,
countries were rated at 2. A rating of zero was assigned when government invest-
ment exceeded 50% of total investment.
In cases where government investment data were unavailable, we used qualita-
tive data on the scope of SOEs to assign ratings. Also, in some cases, this rating was
estimated from the Global Competitiveness Report questions: “State-owned enter-
prises in your country: 1 = Play a dominant role in the economy; 7 = Have little or
no role in the economy”; and “State-owned enterprises in your country: 1 = Are
heavily favoured over private sector competitors; 7 = Compete on an equal basis
with the private sector”.

Sources International Monetary Fund, Government Finance Statistics Yearbook (vari-

ous issues); World Bank, World Development Indicators (various issues); International
Monetary Fund, International Finance Statistics (various issues); World Economic
Forum, Global Competitiveness Report (various issues); United Nations National
Accounts; European Bank for Reconstruction and Development, Transition Indicators.

D Top marginal tax rate

i Top marginal income tax rate

Countries with higher marginal tax rates that take effect at lower income thresh-
olds received lower ratings based on the matrix below. The income threshold data
were converted from local currency to 1982/1984 US dollars (using beginning-of-
year exchange rates and the US Consumer Price Index). These figures include sub-
national rates if applicable.

ii Top marginal income and payroll tax rates

Countries with higher marginal income and payroll (wage) tax rates that take effect
at lower income thresholds received lower ratings based on the matrix below. The
income threshold data were converted from local currency to 1982/1984 US dollars
(using beginning-of-year exchange rates and the US Consumer Price Index). These
figures include sub-national rates if applicable.

Source PricewaterhouseCoopers, Worldwide Tax Summaries Online, via <http://

www.pwc.com/extweb/pwcpublications.nsf/docid/9B2B76032544964C8525717E00606CBD>;
PricewaterhouseCoopers, Individual Taxes: A Worldwide Summary (various issues).

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 Appendix: Explanatory Notes and Data Sources E 237

Income Threshold at Which the Top Marginal

Rate Applies (1982/1984 US$)
< $25,000 $25,000 – $50,000 $50,000 – $150,000 > $150,000
< 20% 10 10 10 10
21% – 25% 9 9 10 10
26% – 30% 8 8 9 9
Top Marginal Tax Rate

31% – 35% 7 7 8 9
36% – 40% 5 6 7 8
41% – 45% 4 5 6 7
46% – 50% 3 4 5 5
51% – 55% 2 3 4 4
56% – 60% 1 2 3 3
61% – 65% 0 1 2 2
66% – 70% 0 0 1 1
> 70% 0 0 0 0

Area 2 Legal System and Property Rights

Note The ratings for Area 2 from 1970 to 1995 are the same as the Area V ratings
from Economic Freedom of the World: 2001 Annual Report. Please see that report for
methodological details.

A Judicial independence
This component is from the Global Competitiveness Report question: “Is the judiciary
in your country independent from political influences of members of government,
citizens, or firms? No—heavily influenced (= 1) or Yes—entirely independent
(=  7)”. The question’s wording has varied slightly over the years. All variables from
the Global Competitiveness Report were converted from the original 1-to-7 scale to
a 0-to-10 scale using this formula: EFWi = ((GCRi – 1) ÷ 6) × 10.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

B Impartial courts
This component is from the Global Competitiveness Report question: “The legal
framework in your country for private businesses to settle disputes and challenge
the legality of government actions and/or regulations is inefficient and subject to
manipulation (= 1) or is efficient and follows a clear, neutral process (= 7)”. The
question’s wording has varied slightly over the years.

Note The “Rule of Law” ratings from the World Bank’s Worldwide Governance Indica-
tors have been used to fill in country omissions in the primary data source since 1995.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>; World Bank, Worldwide Gover-
nance Indicators (various years), <http://info.worldbank.org/governance/wgi/index.asp>.

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238 E Economic Freedom of the World: 2013 Annual Report

C Protection of property rights

This component is from the Global Competitiveness Report question: “Property
rights, including over financial assets, are poorly defined and not protected by law
(= 1) or are clearly defined and well protected by law (= 7)”.

Note This replaces a previous Global Competitiveness Report question on protec-

tion of intellectual property.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

D Military interference in rule of law and politics

This component is based on the International Country Risk Guide Political Risk
Component G. Military in Politics: “A measure of the military’s involvement in
politics. Since the military is not elected, involvement, even at a peripheral level,
diminishes democratic accountability. Military involvement might stem from an
external or internal threat, be symptomatic of underlying difficulties, or be a full-
scale military takeover. Over the long term, a system of military government will
almost certainly diminish effective governmental functioning, become corrupt, and
create an uneasy environment for foreign businesses”.

Note The “Political Stability and Absence of Violence” ratings from the World
Bank’s Worldwide Governance Indicators Project have been used to fill in omitted
country in the primary data source since 1995.

Sources PRS Group, International Country Risk Guide (various issues), <http://www.
prsgroup.com/ICRG.aspx>; World Bank, Worldwide Governance Indicators (various
years), <http://info.worldbank.org/governance/wgi/index.asp>.

E Integrity of the legal system

This component is based on the International Country Risk Guide Political Risk
Component I for Law and Order: “Two measures comprising one risk component.
Each sub-component equals half of the total. The ‘law’ sub-component assesses
the strength and impartiality of the legal system, and the ‘order’ sub-component
assesses popular observance of the law”.

Source PRS Group, International Country Risk Guide (various issues), <http://www.
prsgroup.com/ICRG.aspx>.

F Legal enforcement of contracts

This component is based on the World Bank’s Doing Business estimates for the time
and money required to collect a clear-cut debt. The debt is assumed to equal 200%
of the country’s per-capita income where the plaintiff has complied with the con-
tract and judicial judgment is rendered in his favor. Zero-to-10 ratings were con-
structed for (1) the time cost (measured in number of calendar days required from
the moment the lawsuit is filed until payment) and (2) the monetary cost of the
case (measured as a percentage of the debt). These two ratings were then averaged
to arrive at the final rating for this sub-component. The formula used to calculate
the zero-to-10 ratings was: (Vmax − Vi) / (Vmax − Vmin) multiplied by 10. Vi represents

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 Appendix: Explanatory Notes and Data Sources E 239

the time or money cost value. The values for Vmax and Vmin were set at 725 days and
82.3% (1.5 standard deviations above average) and 62 days (1.5 standard deviations
below average), and 0%, respectively. Countries with values outside the Vmax and
Vmin range received ratings of either zero or 10 accordingly.

Source World Bank, Doing Business (various issues), <http://www.doingbusiness.org/>.

G Regulatory restrictions on the sale of real property

This sub-component is based on the World Bank’s Doing Business data on the time
measured in days and monetary costs required to transfer ownership of property
that includes land and a warehouse. Zero-to-10 ratings were constructed for (1) the
time cost (measured in number of calendar days required to transfer ownership) and
(2) the monetary cost of transferring ownership (measured as a percentage of the
property value). These two ratings were then averaged to arrive at the final rating
for this sub-component. The formula used to calculate the zero-to-10 ratings was:
(Vmax − Vi) / (Vmax − Vmin) multiplied by 10. Vi represents the time or money cost
value. The values for Vmax and Vmin were set at 265 days and 15% (1.5 standard devia-
tions above average) and 0 days and 0%, respectively. Countries with values outside
the Vmax and Vmin range received ratings of either zero or 10 accordingly.

Source World Bank, Doing Business (various issues), <http://www.doingbusiness.org/>.

H Reliability of police
This component is from the Global Competitiveness Report question: “To what extent
can police services be relied upon to enforce law and order in your country? (1 =
Cannot be relied upon at all; 7 = Can be completely relied upon)”.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

I Business costs of crime

This component is from the Global Competitiveness Report question: “To what extent
does the incidence of crime and violence impose costs on businesses in your coun-
try? (1 =To a great extent; 7 = Not at all)”.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

Area 3 Sound Money

A Money growth
The component measures the average annual growth of the money supply in the last five
years minus average annual growth of real GDP in the last ten years. The M1 money-
supply figures were used to measure the growth rate of the money supply. The rating is
equal to: (Vmax − Vi) / (Vmax − Vmin) multiplied by 10. Vi represents the average annual
growth rate of the money supply during the last five years adjusted for the growth of
real GDP during the previous ten years. The values for Vmin and Vmax were set at zero

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240 E Economic Freedom of the World: 2013 Annual Report

and 50%, respectively. Therefore, if the adjusted growth rate of the money supply dur-
ing the last five years was zero, indicating that money growth was equal to the long-
term growth of real output, the formula generates a rating of 10. Ratings decline as the
adjusted growth of the money supply increases toward 50%. When the adjusted annual
growth of the money supply is equal to (or greater than) 50%, a rating of zero results.

Sources World Bank, World Development Indicators (various issues); International

Monetary Fund, International Financial Statistics (various issues); United Nations
National Accounts.

B Standard deviation of inflation

The component measures the standard deviation of the inflation rate over the last
five years. Generally, the GDP deflator was used as the measure of inflation for this
component. When these data were unavailable, the Consumer Price Index was used.
The following formula was used to determine the zero-to-10 scale rating for each
country: (Vmax − Vi) / (Vmax − Vmin) multiplied by 10. Vi represents the country’s
standard deviation of the annual rate of inflation during the last five years. The val-
ues for Vmin and Vmax were set at zero and 25%, respectively. This procedure will
allocate the highest ratings to the countries with least variation in the annual rate of
inflation. A perfect 10 results when there is no variation in the rate of inflation over
the five-year period. Ratings will decline toward zero as the standard deviation of
the inflation rate approaches 25% annually.

Sources World Bank, World Development Indicators (various issues); International

Monetary Fund, International Financial Statistics (various issues).

C Inflation: most recent year

Generally, the CPI was used as the measure of inflation for this component. When
these data were unavailable, the GDP deflator inflation rate was used. The zero-to-10
country ratings were derived by the following formula: (Vmax − Vi) / (Vmax − Vmin)
multiplied by 10. Vi represents the rate of inflation during the most recent year. The
values for Vmin and Vmax were set at zero and 50%, respectively—the lower the rate
of inflation, the higher the rating. Countries that achieve perfect price stability earn
a rating of 10. As the inflation rate moves toward a 50% annual rate, the rating for
this component moves toward zero. A zero rating is assigned to all countries with
an inflation rate of 50% or more.

Sources World Bank, World Development Indicators (various issues); International

Monetary Fund, International Financial Statistics (various issues).

D Freedom to own foreign currency bank accounts

When foreign currency bank accounts were permissible without restrictions both
domestically and abroad, the rating was 10; when these accounts were restricted, the
rating was zero. If foreign currency bank accounts were permissible domestically but
not abroad (or vice versa), the rating was 5.

Sources International Monetary Fund, Annual Report on Exchange Arrangements

and Exchange Restrictions (various issues).

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 Appendix: Explanatory Notes and Data Sources E 241

Area 4 Freedom to Trade Internationally

A Tariffs

i Revenue from trade taxes (% of trade sector)

This sub-component measures the amount of tax on international trade as a share
of exports and imports. The formula used to calculate the ratings for this sub-
component was: (Vmax − Vi) / (Vmax − Vmin) multiplied by 10. Vi represents the
revenue derived from taxes on international trade as a share of the trade sec-
tor. The values for Vmin and Vmax were set at zero and 15%, respectively. This for-
mula leads to lower ratings as the average tax rate on international trade increases.
Countries with no specific taxes on international trade earn a perfect 10. As the
revenues from these taxes rise toward 15% of international trade, ratings decline
toward zero. (Note that, except for two or three extreme observations, the rev-
enues from taxes on international trade as a share of the trade sector are within
the 0%-to-15% range.)

Sources International Monetary Fund, Government Finance Statistics Yearbook

(various issues); International Monetary Fund, International Financial Statistics
(various issues).

ii Mean tariff rate

This sub-component is based on the unweighted mean of tariff rates. The for-
mula used to calculate the zero-to-10 rating for each country was: (Vmax − Vi) /
(Vmax − Vmin) multiplied by 10. Vi represents the country’s mean tariff rate. The
values for Vmin and Vmax were set at 0% and 50%, respectively. This formula will
allocate a rating of 10 to countries that do not impose tariffs. As the mean tar-
iff rate increases, countries are assigned lower ratings. The rating will decline
toward zero as the mean tariff rate approaches 50%. (Note that, except for two
or three extreme observations, all countries have mean tariff rates within this
range from 0% to 50%.)

Sources World Trade Organization, World Tariff Profiles (various issues).

iii Standard deviation of tariff rates

Compared to a uniform tariff, wide variation in tariff rates exerts a more restric-
tive impact on trade and, therefore, on economic freedom. Thus, countries with
greater variation in their tariff rates should be given lower ratings. The formula
used to calculate the zero-to-10 ratings for this component was: (Vmax − Vi) /
(Vmax − Vmin) multiplied by 10. Vi represents the standard deviation of the coun-
try’s tariff rates. The values for Vmin and Vmax were set at 0% and 25%, respectively.
This formula will allocate a rating of 10 to countries that impose a uniform tariff.
As the standard deviation of tariff rates increases toward 25%, ratings decline
toward zero. (Note that, except for a few very extreme observations, the stan-
dard deviations of the tariff rates for the countries in our study fall within this
0%-to-25% range.)

Sources World Trade Organization, World Tariff Profiles (various issues).

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242 E Economic Freedom of the World: 2013 Annual Report

B Regulatory trade barriers

i Non-tariff trade barriers

This sub-component is based on the Global Competitiveness Report survey ques-
tion: “In your country, tariff and non-tariff barriers significantly reduce the ability
of imported goods to compete in the domestic market”. The question’s wording has
varied slightly over the years.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

ii Compliance costs of importing and exporting

This sub-component is based on the World Bank’s Doing Business data on the time
(i.e., non-money) cost of procedures required to import a full 20-foot container of
dry goods that contains no hazardous or military items. Countries where it takes
longer to import and export are given lower ratings. Zero-to-10 ratings were con-
structed for (1) the time cost to export a good (measured in number of calendar
days required) and (2) the time cost to import a good (measured in number of
calendar days required). These two ratings were then averaged to arrive at the final
rating for this sub-component. The formula used to calculate the zero-to-10 rat-
ings was: (Vmax − Vi) / (Vmax − Vmin) multiplied by 10. Vi represents the time cost
value. The values for Vmax and Vmin were set at 62 and 80 days (1.5 standard devia-
tions above average) and 2 days (1.5 standard deviations below average) and 0 days,
respectively. Countries with values outside the Vmax and Vmin range received ratings
of either zero or ten accordingly.

Source World Bank, Doing Business (various issues), <http://www.doingbusiness.org/>.

C Black-market exchange rates

This component is based on the percentage difference between the official and the
parallel (black) market exchange rates. The formula used to calculate the zero-to-10
ratings for this component was the following: (Vmax − Vi) / (Vmax − Vmin) multiplied
by 10. Vi is the country’s black-market exchange-rate premium. The values for Vmin
and Vmax were set at 0% and 50%, respectively. This formula will allocate a rating of
10 to countries without a black-market exchange rate—that is, those with a domes-
tic currency that is fully convertible without restrictions. When there are controls
on the exchange rate and a black market exists, the ratings will decline toward zero
as the black-market premium increases toward 50%. A zero rating is given when the
black-market premium is equal to, or greater than, 50%.

Source MRI Bankers’ Guide to Foreign Currency (various issues).

D Controls of the movement of capital and people

i Foreign ownership/investment restrictions

This sub-component is based on the following two Global Competitiveness Report
questions: “How prevalent is foreign ownership of companies in your country? 1 =
Very rare , 7 = Highly prevalent”; and “How restrictive are regulations in your country
relating to international capital flows? 1 = Highly restrictive, 7 = Not restrictive at all”.

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 Appendix: Explanatory Notes and Data Sources E 243

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

ii Capital controls
The International Monetary Fund reports on up to 13 types of international capital
controls. The zero-to-10 rating is the percentage of capital controls not levied as a
share of the total number of capital controls listed multiplied by 10.

Source International Monetary Fund, Annual Report on Exchange Arrangements

and Exchange Restrictions (various issues).

iii Freedom of foreigners to visit

This component measures the percentage of countries for which this country
requires a visa from foreign visitors. It reflects the freedom of foreigners to travel
to this country for tourist and short-term business purposes. The formula used to
calculate the zero-to-10 ratings was: (Vi − Vmin) / (Vmax − Vmin) multiplied by 10.
Vi represents the component value. The values for Vmax and Vmin were set at 47.2
(1 standard deviation above average) and 0. Countries with values outside the Vmax
and Vmin range received ratings of either zero or 10 accordingly.

Source Robert Lawson and Jayme Lemke, Travel Visas, Public Choice (2011),
<http://www.springerlink.com/content/n0n2x00164v74123/>.

Area 5 Regulation

A Credit market regulations

i Ownership of banks
Data on the percentage of bank deposits held in privately owned banks were used
to construct rating intervals. Countries with larger shares of privately held depos-
its received higher ratings. When privately held deposits totaled between 95%
and 100%, countries were given a rating of 10. When private deposits constituted
between 75% and 95% of the total, a rating of 8 was assigned. When private depos-
its were between 40% and 75% of the total, the rating was 5. When private deposits
totaled between 10% and 40%, countries received a rating of 2. A zero rating was
assigned when private deposits were 10% or less of the total.

Sources James R. Barth, Gerard Caprio, Jr., and Ross Levine, Bank Regulation
and Supervision (various years); James R. Barth, Gerard Caprio, and Ross Levine,
Rethinking Bank Regulation: Till Angels Govern (2006).

ii Private sector credit

This sub-component measures the extent to which government borrowing crowds
out private borrowing. If available, this sub-component is calculated as the gov-
ernment fiscal deficit as a share of gross saving. Since the deficit is expressed as a
negative value, higher numerical values result in higher ratings. The formula used to
derive the country ratings for this sub-component was (−Vmax − Vi) / (Vmax + Vmin)

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244 E Economic Freedom of the World: 2013 Annual Report

multiplied by 10. Vi is the ratio of deficit to gross investment, and the values for Vmax
and Vmin are set at 0 and −100.0%, respectively. The formula allocates higher ratings
as the deficit gets smaller (i.e., closer to zero) relative to gross saving.
If the deficit data are not available, the component is instead based on the share
of private credit to total credit extended in the banking sector. Higher values are
indicative of greater economic freedom. Thus, the formula used to derive the coun-
try ratings for this sub-component was (Vi − Vmin) / (Vmax − Vmin) multiplied by 10.
Vi is the share of the country’s total domestic credit allocated to the private sector
and the values for Vmax and Vmin are set at 99.9% and 10.0%, respectively. The 1990
data were used to derive the maximum and minimum values for this component.
The formula allocates higher ratings as the share of credit extended to the private
sector increases.

Note In editions of Economic Freedom of the World published before 2010, this sub-
component was based only on the ratio of private credit to total credit in the banking
sector. The database has been updated back to 1990 using this new methodology.

Sources World Bank, World Development Indicators (various issues); International

Monetary Fund, International Financial Statistics (various issues).

iii Interest rate controls/negative real interest rates

Data on credit-market controls and regulations were used to construct rating inter-
vals. Countries with interest rates determined by the market, stable monetary policy,
and reasonable spreads between real deposit and lending rates received higher rat-
ings. When interest rates were determined primarily by market forces as evidenced
by reasonable spreads between deposit and lending rates, and when real interest
rates were positive, countries were given a rating of 10. When interest rates were
primarily market-determined but the real rates were sometimes slightly negative
(less than 5%) or the differential between the deposit and lending rates was large
(8% or more), countries received a rating of 8. When the real deposit or lending rate
was persistently negative by a single-digit amount or the differential between them
was regulated by the government, countries were rated at 6. When the deposit and
lending rates were fixed by the government and the real rates were often negative by
single-digit amounts, countries were assigned a rating of 4. When the real deposit or
lending rate was persistently negative by a double-digit amount, countries received
a rating of 2. A zero rating was assigned when the deposit and lending rates were
fixed by the government and real rates were persistently negative by double-digit
amounts or hyperinflation had virtually eliminated the credit market.

Source World Bank, World Development Indicators (various issues); International

Monetary Fund, International Financial Statistics (various issues).

B Labor market regulations

i Hiring regulations and minimum wage

This sub-component is based on the World Bank’s Doing Business “Difficulty of Hiring
Index”, which is described as follows: “The difficulty of hiring index measures (i)
whether fixed-term contracts are prohibited for permanent tasks; (ii) the maximum
cumulative duration of fixed-term contracts; and (iii) the ratio of the minimum wage

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 Appendix: Explanatory Notes and Data Sources E 245

for a trainee or first-time employee to the average value added per worker. An econ-
omy is assigned a score of 1 if fixed-term contracts are prohibited for permanent
tasks and a score of 0 if they can be used for any task. A score of 1 is assigned if the
maximum cumulative duration of fixed-term contracts is less than 3 years; 0.5 if it is
3 years or more but less than 5 years; and 0 if fixed-term contracts can last 5 years or
more. Finally, a score of 1 is assigned if the ratio of the minimum wage to the average
value added per worker is 0.75 or more; 0.67 for a ratio of 0.50 or more but less than
0.75; 0.33 for a ratio of 0.25 or more but less than 0.50; and 0 for a ratio of less than
0.25”. Countries with greater difficulty of hiring are given lower ratings.

Source World Bank, Doing Business (various issues), <http://www.doingbusiness.org/>.

ii Hiring and firing regulations

This sub-component is based on the Global Competitiveness Report question: “The
hiring and firing of workers is impeded by regulations (= 1) or flexibly determined
by employers (= 7)”. The question’s wording has varied slightly over the years.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

iii Centralized collective bargaining

This sub-component is based on the Global Competitiveness Report question: “Wages
in your country are set by a centralized bargaining process (= 1) or up to each indi-
vidual company (= 7)”. The question’s wording has varied slightly over the years.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

iv Hours regulations
This sub-component is based on the World Bank’s Doing Business “Rigidity of Hours
Index”, which is described as follows: “The rigidity of hours index has 5 compo-
nents: (i) whether there are restrictions on night work; (ii) whether there are restric-
tions on weekly holiday work; (iii) whether the workweek can consist of 5.5 days;
(iv) whether the work-week can extend to 50 hours or more (including overtime)
for 2 months a year to respond to a seasonal increase in production; and (v) whether
paid annual vacation is 21 working days or fewer. For questions (i) and (ii), when
restrictions other than premiums apply, a score of 1 is given. If the only restriction
is a premium for night work and weekly holiday work, a score of 0, 0.33, 0.66, or 1
is given according to the quartile in which the economy’s premium falls. If there are
no restrictions, the economy receives a score of 0. For questions (iii), (iv), and (v),
when the answer is ‘no’, a score of 1 is assigned; otherwise a score of 0 is assigned”.
Countries with less rigid work rules receive better scores in this component.

Source World Bank, Doing Business (various issues), <http://www.doingbusiness.org/>.

Note In editions of Economic Freedom of the World published before 2010, this sub-
component was called “Mandated cost of hiring a worker” and was based on the
World Bank’s Doing Business data on the cost of all social security and payroll taxes
and the cost of other mandated benefits including those for retirement, sickness,

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246 E Economic Freedom of the World: 2013 Annual Report

health care, maternity leave, family allowance, and paid vacations and holidays
associated with hiring an employee. Because of pressure from the International
Labour Organization this measure was dropped from the Doing Business project. In
recent years, the entire labor market area has been dropped from the Doing Business
project; however, they continue to present the data in a separate section. In order
to maintain as much consistency over time as possible, we have revised the dataset
back to 2002 with these data replacing the previous values.

v Mandated cost of worker dismissal

This sub-component is based on the World Bank’s Doing Business data on the cost
of requirements for advance notice, severance payments, and penalties due when
dismissing a redundant worker with tenure of ten years. The formula used to cal-
culate the zero-to-10 ratings was: (Vmax − Vi) / (Vmax − Vmin) multiplied by 10. Vi
represents the dismissal cost (measured in weeks of wages). The values for Vmax
and Vmin were set at 58 weeks (1.5 standard deviations above average) and 0 weeks,
respectively. Countries with values outside the Vmax and Vmin range received ratings
of either zero or ten accordingly.

Note Earlier editions used the value for Vmax of an employee with tenure of 20 years.

Source World Bank, Doing Business (various issues), <http://www.doingbusiness.org/>.

vi Conscription
Data on the use and duration of military conscription were used to construct rating
intervals. Countries with longer conscription periods received lower ratings. A rat-
ing of 10 was assigned to countries without military conscription. When length of
conscription was six months or less, countries were given a rating of 5. When length
of conscription was more than six months but not more than 12 months, countries
were rated at 3. When length of conscription was more than 12 months but not more
than 18 months, countries were assigned a rating of 1. When conscription periods
exceeded 18 months, countries were rated zero. If conscription was present, but
apparently not strictly enforced or the length of service could not be determined,
the country was given a rating of 3. In cases where it is clear conscription is never used,
even though it may be possible, a rating of 10 is given.If a country’s mandated national
service includes clear non-military options, the country was given a rating of 5.

Source International Institute for Strategic Studies, The Military Balance (various
issues); War Resisters International, World Survey of Conscription and Conscientious
Objection to Military Service, <http://www.wri-irg.org/programmes/world_survey/>.

C Business regulations

i Administrative requirements
This sub-component is based on the Global Competitiveness Report question:
“Complying with administrative requirements (permits, regulations, reporting)
issued by the government in your country is (1 = burdensome, 7 = not burdensome)”.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

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 Appendix: Explanatory Notes and Data Sources E 247

ii Bureaucracy costs
This sub-component is based on the Global Competitiveness Report question:
“Standards on product/service quality, energy and other regulations (outside envi-
ronmental regulations) in your country are: (1 = Lax or non-existent, 7 = among
the world’s most stringent)”.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

iii Starting a business

This sub-component is based on the World Bank’s Doing Business data on the amount
of time and money it takes to start a new limited-liability business. Countries
where it takes longer or is more costly to start a new business are given lower rat-
ings. Zero-to-10 ratings were constructed for three variables: (1) time (measured
in days) necessary to comply with regulations when starting a limited liability com-
pany; (2) money costs of the fees paid to regulatory authorities (measured as a share
of per-capita income); and (3) minimum capital requirements, that is, funds that
must be deposited into a company bank account (measured as a share of per-capita
income). These three ratings were then averaged to arrive at the final rating for this
sub-component. The formula used to calculate the zero-to-10 ratings was: (Vmax −
Vi) / (Vmax − Vmin) multiplied by 10. Vi represents the variable value. The values for
Vmax and Vmin were set at 104 days, 317%, and 1,017% (1.5 standard deviations above
average), and 0 days, 0%, and 0%, respectively. Countries with values outside the
Vmax and Vmin range received ratings of either zero or ten accordingly.

Source World Bank, Doing Business (various issues), <http://www.doingbusiness.org/>.

iv Extra payments/bribes/favoritism
This sub-component is based on the Global Competitiveness Report questions: “In
your industry, how commonly would you estimate that firms make undocumented
extra payments or bribes connected with the following: A – Import and export per-
mits; B – Connection to public utilities (e.g., telephone or electricity); C – Annual
tax payments; D – Awarding of public contracts (investment projects); E – Getting
favorable judicial decisions. Common (= 1) Never occur (= 7)”; “Do illegal pay-
ments aimed at influencing government policies, laws or regulations have an impact
on companies in your country? 1 = Yes, significant negative impact, 7 = No, no
impact at all”; and “To what extent do government officials in your country show
favoritism to well-connected firms and individuals when deciding upon policies and
contracts? 1 = Always show favoritism, 7 = Never show favoritism”.

Source World Economic Forum, Global Competitiveness Report (various issues),

<http://www.weforum.org/en/initiatives/gcp/index.htm>.

v Licensing restrictions
This sub-component is based on the World Bank’s Doing Business data on the time
in days and monetary costs required to obtain a license to construct a standard
warehouse. Zero-to-10 ratings were constructed for (1) the time cost (measured in
number of calendar days required to obtain a license) and (2) the monetary cost of
obtaining the license (measured as a share of per-capita income). These two ratings

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248 E Economic Freedom of the World: 2013 Annual Report

were then averaged to arrive at the final rating for this sub-component. The formula
used to calculate the zero-to-10 ratings was: (Vmax − Vi) / (Vmax − Vmin) multiplied
by 10. Vi represents the time or money cost value. The values for Vmax and Vmin were
set at 363 days and 2,763% (1.5 standard deviations above average), and 56 days
(1.5 standard deviations below average) and 0%, respectively. Countries with val-
ues outside the Vmax and Vmin range received ratings of either zero or 10 accordingly.

Source World Bank, Doing Business (various issues), <http://www.doingbusiness.org/>.

vi Cost of tax compliance

This sub-component is based on the World Bank’s Doing Business data on the time
required per year for a business to prepare, file, and pay taxes on corporate income,
value added or sales taxes, and taxes on labor. The formula used to calculate the
zero-to-10 ratings was: (Vmax − Vi) / (Vmax − Vmin) multiplied by 10. Vi represents the
time cost (measured in hours) of tax compliance. The values for Vmax and Vmin were
set at 892 hours (1.5 standard deviations above average) and 0 hours, respectively.
Countries with values outside the Vmax and Vmin range received ratings of either zero
or 10 accordingly.

Source World Bank, Doing Business (various issues), <http://www.doingbusiness.org/>.

Fraser Institute ©2013 E www.fraserinstitute.org E www.freetheworld.com

 About the Authors

James D. Gwartney James Gwartney holds the Gus A. Stavros Eminent Scholar Chair at Florida State
University, where he directs the Stavros Center for the Advancement of Free
Enterprise and Economic Education. He is the coauthor of Economics: Private and
Public Choice (Cengage/South-Western Press, 2013), a widely used text on the prin-
ciples of economics that is now in its14th edition. He is also coauthor of an econom-
ics primer, Common Sense Economics: What Everyone Should Know about Wealth and
Prosperity (St. Martin’s Press, 2010). His publications have appeared in both profes-
sional journals and popular media such as the Wall Street Journal and the New York
Times. He served as Chief Economist of the Joint Economic Committee of the US
Congress during from 1999 to 2000. In 2004, he was the recipient of the Adam
Smith Award of the Association of Private Enterprise Education for his contribu-
tion to the advancement of free-market ideals. He is a past President of the Southern
Economic Association and the Association for Private Enterprise Education. His
Ph.D. in economics is from the University of Washington.

Robert A. Lawson Robert Lawson holds the Jerome M. Fullinwider Chair in Economic Freedom in the
O’Neil Center for Global Markets and Freedom in the Cox School of Business at
Southern Methodist University. Prior to SMU, he taught at Auburn University, Capital
University, and Shawnee State University. He has numerous professional publica-
tions in journals such as Public Choice, Journal of Economic Behavior and Organization,
Cato Journal, Kyklos, Journal of Labor Research, Journal of Institutional and Theoretical
Economics, and European Journal of Political Economy. He has served as president of
the Association of Private Enterprise Education and is a member of the Mont Pelerin
Society. He earned his B.S. in economics from the Honors Tutorial College at Ohio
University and his M.S. and Ph.D. in economics from Florida State University.

Joshua C. Hall Joshua Hall is an associate professor of economics at West Virginia University. He
earned his bachelor and master degrees in economics from Ohio University and his
Ph.D. from West Virginia University in 2007. Prior to returning to his alma mater,
he was the Elbert H. Neese, Jr. Professor of Economics at Beloit College. Hall is
currently serving as the Vice President of the Association of Private Enterprise
Education. He is author of over 50 articles in journals such as Contemporary
Economic Policy, Journal of Economic Behavior and Organization, Journal of Labor
Research, Southern Economic Journal, Public Finance Review, and Journal of Public
Administration Research and Theory.

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 About the Contributors

Alice M. Crisp Alice M. Crisp is currently working on a Ph.D. in Economics from Florida State
University in Tallahassee, Florida. As a Charles G. Koch Doctoral Fellowship recipi-
ent, she serves as a research assistant for Dr. James Gwartney. Ms. Crisp has pub-
lished in the Journal of Economics and Finance Education and the Journal of Public
Finance and Public Choice, forthcoming. She earned her B.B.A in Economics from
Mercer University in Macon, Georgia, USA. Mercer University awarded her the
Algernon Sydney Sullivan Award for exemplary scholarship, character, leadership,
and service. As an undergraduate, she participated in the Koch Internship Program,
working for the Atlas Economic Research Foundation in Washington, DC as coordi-
nator for the Sound Money Project. She also worked as an intern for the Foundation
for Economic Education in Atlanta, Georgia.

Bodo Knoll Bodo Knoll is currently a research and teaching assistant at the University of
Hohenheim (Germany). In 2007, he was awarded a doctoral degree in Economics
from the University of Hohenheim for his thesis on Robert Nozick’s minimal state.
His research has focused on constitutional economics, the political economy of
the European integration, international tax competition, the empirical assessment
of individual attitudes towards economic freedom, and the determinants of educa-
tional and occupational choice.

Hans Pitlik Hans Pitlik is currently a Senior Researcher in Public Economics at the Austrian
Institute of Economic Research (WIFO), Vienna, Austria, and a lecturer at the
department of Economics at Vienna University. He received a doctoral degree in
Economics (1996) and a postdoctoral lecturer qualification (habilitation) in 2004
from the University of Stuttgart-Hohenheim (Germany) to which he is also still
affiliated. He worked on constitutional economics, fiscal federalism and on the polit-
ical economy of market-oriented policy reforms. The focus of his recent research is
on determinants of individual attitudes towards economic policies and economic
freedom. He has published articles in Public Choice, European Journal of Political
Economy, Kyklos, and Public Finance Review.

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 Economic Freedom of the World: 2013 Annual Report E 251

Martin Rode Martin Rode is currently an Assistant Professor at the University of Navarra in
Pamplona, Spain. He received a doctoral degree in Economics from the University
of Cantabria (Spain) in 2012. During his doctoral studies, he spent a year at Florida
State University (USA). His research has focused on the relationship between
economic and political institutions and the performance of economies. His pub-
lications have appeared in Constitutional Political Economy, the European Journal of
Political Economy, and the Journal of Happiness Studies.

Acknowledgments

As always, we are grateful for the intellectual and financial assistance of the Fraser
Institute. Without the assistance and guidance of both Michael Walker, former
Executive Director of the Fraser Institute, and the late Milton Friedman, this proj-
ect would never have gotten off the ground.

The members of the Economic Freedom Network again provided valuable support
for this report. Our thanks also go to Kathy Makinen of Florida State University,
who provided us with research assistance. We are grateful for the hard work of
many at the Fraser Institute who help with the project, including especially Fred
McMahon and Miguel Cervantes. Also thanks to Ian Vasquez at the Cato Institute
for his continued support.

Thanks also go to the Charles Koch Foundation and Searle Freedom Trust for their
support.

James Gwartney, Robert Lawson & Joshua Hall

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 The Economic Freedom Network
Co-publishers of Economic Freedom of the World

Afghanistan Afghanistan Economic and Legal Studies Organization

The Afghanistan Economic and Legal Studies Organization (AELSO) is a non-
governmental think tank that aims to introduce and promote a free-market economy,
the rule of law and good governance to the people of Afghanistan.
e-mail: info@aelso.org E website: www.aelso.org

Albania Albanian Center for Economic Research

The Albanian Centre for Economic Research (ACER) is the Albania’s first inde-
pendent non-profit, non-governmental organization aiming at high-quality policy-
oriented research in economics with specific emphasis on subjects concerning the
Albanian economy. The ACER’s philosophy is to build bridges between scholars,
policy-makers and public opinion and foster the dialogue in the interest of acceler-
ated the reforming process, economic development, and prosperity. The research
activities at the ACER are divided into five areas: (1) Public Sector, (2) Household
Sector, (3) Corporate Sector, (4) Macroeconomic Analysis and Forecasting Sector
(5) Other Research Projects. Among the objectives of the ACER is to study subjects
of wider economic interest and publish articles in its quarterly academic journal
entitled Albanian Socio-Economic Review.
e-mail: acer@abcom.al E website: www.acer.org.al

Argentina Fundación Libertad

Fundación Libertad is a private, non-profit institution working towards two main
goals: the research and distribution of public-policy issues (specifically in socio-
economic and business areas) and the promotion of the concept of a free-market
society. Founded in Rosario, Argentina, in 1988 by a group of businessmen, pro-
fessionals, and intellectuals, the Foundation has developed its activities with the
support of more than 200 private companies. Its projects include courses, lectures,
seminars, research, studies, and publications as well as a strong permanent presence
in the media, through columns, and television and radio programs produced by the
Foundation. These projects have focused on economic policies, education, regu-
lations, and public spending. Outstanding guest speakers have delivered lectures
and conferences for the Fundación Libertad; these include Peruvian writer Mario
Vargas Llosa, Nobel prize-winning economists such as Gary Becker, Douglass North,
Robert Lucas, and James Buchanan, historian Paul Johnson, Nobel Peace Prize
Laureate Lech Walessa, and other intellectuals like Jean François Revel. Fundación
Libertad has also led the creation of REFUNDAR, a network of Argentine

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 Economic Freedom of the World: 2013 Annual Report E 253

foundations made up of ten organizations located in the country’s major cities. This
network has helped us spread our ideas all over the country and is affiliated with
similar international organizations.
e-mail: fundacion@libertad.org.ar E website: www.libertad.org.ar

Armenia Centre of Political, Legal and Economic Researches and Forecasting

The Centre of Political, Legal and Economic Researches and Forecasting (PLERF)is
a non-governmental organization created in 2002. Its mission is to assist the devel-
opment of an effective socio-economic policy; to establish an economy based on the
free market; and to contribute to the development of democracy in the Republic of
Armenia. PLERF organizes seminars and conferences related to its goals and carries
out research, independent estimations of social and economic reforms, government
policy in certain spheres, and assessment of transition process and surveys among
experts and policy makers.
e-mail: khachatryanvahagn@yahoo.com

Australia Institute of Public Affairs

Established in 1943, the Institute of Public Affairs (IPA) is Australia’s oldest and
largest private-sector think-tank. Its aim is to foster prosperity and full employ-
ment, the rule of law, democratic freedoms, security from crime and invasion, and
high standards in education and family life for the Australian people. To identify
and promote the best means of securing these values, the IPA undertakes research,
organizes seminars, and publishes widely.
e-mail: ipa@ipa.org.au E website: ipa.org.au

Austria TIGRA®
TIGRA® is the premier Austrian think-tank on governance research. Headquartered
in Salzburg, it was founded to study and advance effective and efficient economic
policies. TIGRA® organizes workshops and publishes papers and reports. Their
mission is “From analysis to action.” TIGRA® is a network of experts who provide
effective market solutions to policy-makers. Special emphasis is put on knowledge
management, monitoring the scope and quality of regulations (“cutting red tape”),
and setting benchmarks.
e-mail: bendl@erwin.tc

Azerbaijan Center for Economic and Political Research

The Center for Economic and Political Research, Azerbaijan, is a non-profit, non-
governmental, research institute founded in 1994. Its mission is to facilitate the
country’s democratization and economic liberalization and to increase the role of
civil society. The main objectives of the Center’s activities are analyzing the eco-
nomic situation and progress of market reforms, political processes, foreign political
relations, and regional economic and political tendencies. The Center also conducts
sociological surveys and holds conferences, round-tables, and seminars on different
aspects of economic and political reforms in the country.
e-mail: info@cesd.az E website: www.cesd.az

Bahamas The Nassau Institute

The Nassau Institute is an independent, non-political, non-profit institute that pro-
motes economic growth, employment, and entrepreneurial activity. It believes

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254 E Economic Freedom of the World: 2013 Annual Report

that this can best be achieved with a free-market economy and a decent society—
one that embraces the rule of law, the right of private property, the free exchange
of property and services, and the individual virtues of self-control, commitment,
and good will.
e-mail: joan@nassauinstitute.org E website: www.nassauinstitute.org

Bangladesh Making Our Economy Right

Making Our Economy Right (MOER) began in 1991. It is still the country’s lone
free-market body but never developed as a proper institute for lack of funds. The
Bangladesh government’s complex rules and regulations that supervise charities and
NGOs are in practice mind-boggling government interference that keeps us miles
away from any fund-raising agenda. Under the MOER banner, however, we con-
tinue to support free-market capitalism against all odds.  In the Bangladesh socio-
political and economic context, individual freedom and free markets increasingly
seem the only way to peace and prosperity of the people. Keynes or Marx have lost
ground here. In this scenario, the advent of Facebook has been a strong support and
has made the global libertarian academia, commentators, and activists accessible to
MOER. The online communication with free-market individuals, groups, or politi-
cal parties as well as with those who are not libertarian in thought appears far more
effective and result-oriented than years of newspaper op-eds and seminars.
e-mail: nizam.ahmad@gmail.com

Belarus Scientific Research Mises Center

Scientific Research Mises Center was founded in 2001. Its mission is to advance
ideas and ideals of a free-market democratic society based on individual choice and
personal responsibility and to create an open community of people who share those
ideas. The Center promotes the original ideas of limited government, individual
liberty, and private property through publications and discussion forums and con-
ferences. The goal of the Center is to demonstrate the power of private institutions,
both for-profit and non-profit, to create a good society, and to foster the under-
standing that free choice of a fully informed individual is the foundation for a just,
prosperous, and open society.
e-mail: balance287@gmail.com E website: liberty-belarus.info

Belgium Centre for the New Europe

The Centre for the New Europe (CNE) is a European research institute based in
Brussels that promotes a market economy, personal liberty, and creativity and
responsibility in an ordered society. CNE is founded on the belief that European
integration can work only in a society led by a spirit of democratic capitalism. The
Centre develops policy alternatives, encourages economic growth and deregulation,
seeks new market-based solutions for social and environmental concerns, and pro-
motes individual freedom, choice, and responsibility.
e-mail: info@cne.org

Bolivia Política Publicas para la Libertad

The mission of Política Publicas para la Libertad (POPULI) is to generate and pro-
mote public policies, in accordance with the country’s social and economic reali-
ties, within the field of private enterprise, under the principle of state subsidiarity,

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 Economic Freedom of the World: 2013 Annual Report E 255

preserving property rights, human rights, and strengthening the concept of lib-
erty. Its vision is to generate and promote a benchmark of public policies while
maintaining institutional independence and a strong commitment to the values
of a free society.
e-mail: populi@populi-bo.org E website: www.populi.org.bo

Brazil Instituto Liberal do Rio de Janeiro

Instituto Liberal was founded to persuade Brazilians of the advantages of a liberal
order. It is a non-profit institution supported by donations and the sponsorship of
private individuals and corporations. Its by-laws provide for a Board of Trustees and
forbid any political or sectarian affiliations. The institute publishes books, organizes
seminars, and elaborates policy papers on subjects related to public policy.
e-mail: ilrj@gbl.com.br E website: www.institutoliberal.org.br

Bulgaria Institute for Market Economics

Established in 1993, the Institute for Market Economics (IME) is the first indepen-
dent economic think-tank in Bulgaria. It is a private, registered, non-profit corpo-
ration that receives international support and is widely respected for its expertise.
IME designs and promotes solutions to the problems that Bulgaria is facing in its
transition to a market economy, provides independent assessment and analysis of
the government’s economic policies, and supports an exchange of views on market
economics and relevant policy issues.
e-mail: mail@ime.bg E website: www.ime.bg

Burkina Faso Le Centre des Affaires Humaines

Le Centre des Affaires Humaines (CEDAH) is a free-market educational and
research public-policy think-tank founded in December 2007 in Burkina Faso. The
CEDAH is an independent, non-profit organization with no affiliations to any politi-
cal party. It is financed entirely from contributions from individuals, organizations,
and foundations. In order to protect its research independence, it does not accept
grants from the government of Burkina Faso or political parties. The mission of
CEDAH is to propose original and innovative solutions for the crafting of efficient
public policies, using successful reforms applied elsewhere as models. The CEDAH
studies how markets function with the aim of identifying the mechanisms and insti-
tutions that foster the prosperity and long-term welfare of all the individuals that
make up our society.
e-mail: info@cedah.org E website: www.cedah.org

Cambodia The Cambodia Institute of Development Study

The Cambodia Institute of Development Study (CIDS) is a non-profit, indepen-
dent, local research institute founded in December 2004. The Institute’s mission is
to provide high-quality research on the local and provincial levels in the specialized
areas of economics, natural resources and environment, agriculture and rural devel-
opment, and public finance and governance, within the context of world integration.
Its objectives are to generate and disseminate research on the national and provin-
cial economies, and to enhance the capacity and promote the professional develop-
ment of local resources by providing training and practical research opportunities.
e-mail: info@cids.cambodia.org E website: www.cids-cambodia.org

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256 E Economic Freedom of the World: 2013 Annual Report

Canada Fraser Institute

The vision of the Fraser Institute is a free and prosperous world where individuals
benefit from greater choice, competitive markets, and personal responsibility. Our
mission is to measure, study, and communicate the impact of competitive markets
and government interventions on the welfare of individuals. Founded in 1974, we
are an independent research and educational organization with locations through-
out North America and international partners in over 85 countries. Our work is
financed by tax-deductible contributions from thousands of individuals, organiza-
tions, and foundations. In order to protect its independence, the Institute does not
accept grants from government or contracts for research.
e-mail: info@fraserinstitute.org E website: www.fraserinstitute.org E twitter: @fraserinstitute

Chile Instituto Libertad y Desarrollo

The Instituto Libertad y Desarrollo is a private think-tank wholly independent of
any religious, political, financial, or governmental groups. It is committed to the free
market and to political and economic freedom. It publishes studies and analyses of
public-policy issues.
e-mail: lyd@lyd.org E website: www.lyd.com

China Center for China & Globalization

The Center for China & Globalization (CCG) is a non-profit and independent
think-tank. It has a pool of first-class scholars, business leaders, and experts in gov-
ernment addressing issues on the challenges and opportunities of positioning China
in the process of globalization. CCG conducts timely strategic analysis and feasibil-
ity studies of policy-making options for China’s economic development and social
progress. The top-level experts, Chinese and foreign alike, help assess the regional
and global implications of China’s rise in the context of international political and
economic reconfiguration. CCG aims to become the leading international think-
tank for China’s society and business community and seeks to remain independent,
objective, and constructive in all its research activities.
e-mail: ccg@ccg.org.cn E website: en.ccg.org.cn

Colombia Instituto de Ciencia Politica

Since 1987, the Instituto de Ciencia Política (ICP) has established itself as a center of
democratic thought and as an association of free men and women united by a com-
mon affection for an intellectual identity with the principles, values, and feelings that
constitute democracy as a political, economic, social, and cultural system, and united
also by their desire to act constantly and efficiently towards overcoming the lack of sta-
bility and mistakes of our political sector, in order to achieve economic, political, social,
and environmental development. ICP, as an influential think-tank in the nation, has
been able, through its studies, recommendations, and debates, to mediate decisively in
the new directions and measures taken on different occasions by public authorities, as
well as in the formation of new national political thought favorable to the market econ-
omy, economic openness, necessary privatizations, and the modernization of the State.
The institution is not, nor aspires to be, a new political party or movement, and it is
independent of parties, religions, and governments. Its mission is to establish as funda-
mental principles the free-market economy, competition, and individual initiative, as
well as the reduction of State intervention and control to the minimum indispensable.
e-mail: info@icpcolombia.org E website: www.icpcolombia.org

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 Economic Freedom of the World: 2013 Annual Report E 257

Costa Rica Instituto para la Libertad y el Análisis de Políticas

The Instituto para la Libertad y el Análisis de Políticas (INLAP—the Institute for
Liberty and Public Policy Analysis) is a non-profit, non-partisan organization cre-
ated to defend and promote individual liberty through analysis of public policy
and educational activities. Its specific objectives are to increase awareness of the
moral foundations of liberty and to promote liberty as an individual right necessary
to achieve the highest levels of economic and human development; and to foster
changes in social organization and public policies by influencing the thinking of
policy makers, community leaders, and citizens. INLAP produces timely analyses of
proposed laws, decrees, and regulations, and its recommendations provide guidance
for elected officials who seek to achieve greater individual liberty and creativity and
a more productive economy. It also conducts detailed studies of well-meant public
policies that may ultimately have unintended adverse effects. The Institute’s studies
and recommendations are published in books, journals, and newspapers, appear as
position papers and bulletins, and are also available via our website.
e-mail: inlapp@inlap.org E website: www.inlap.org

Côte d’Ivoire Audace Institut Afrique

Audace Institut Afrique (AIA) is an independant non-profit think tank that strongly
believes that liberty remedies poverty. Through its publications, workshops, con-
ferences, and research works, AIA stimulates the political arena by making propos-
als for reforms based on free-market policies and economic growth, ownership of
private property, the rule of law, and individual freedom. AIA also endeavors to
strenghten the civil society by holding debates where views are put forth and con-
ducting major training programs for students.
e-mail: institut@audace-afrique.org E website: www.audace-afrique.com

Croatia The Institute of Economics

The Institute of Economics, Zagreb, established in 1939, is a major scientific and
research institution for the study of economic processes and the application of con-
temporary theories in economics. The Institute’s objective is the economic and social
advance of Croatia. Research encompasses both macroeconomics and micro-econom-
ics, policy issues (including specialized areas such as business economics), current eco-
nomic trends, methods of economic analysis, development of human resources, spatial
and regional economics, international economics and technological development, and
investment project planning. Researchers from inside and outside the Institute work
together on research projects. The Institute employs 40 full-time researchers, the
majority of whom have completed specialized training courses in foreign countries.
Results of the Institute’s research activities are published in books, reports, and studies
as well as in scientific journals. The Institute maintains close contact with international
organizations, professional associations, institutes, and universities.
Email: eizagreb@eizg.hr E website: www.eizg.hr

Czech Republic Liberální Institut

Liberální Institut is an independent, non-profit organization for the development
and application of classical liberal ideas: individual rights, private property, rule of
law, self-regulating markets, and delineated government functions. It is financed by
its various activities and by donations from individuals and private corporations.
E-mail: eva.horova@libinst.cz E website: www.libinst.cz

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258 E Economic Freedom of the World: 2013 Annual Report

Denmark Center for Politiske Studier

The Center for Politiske Studier (CEPOS—Center for Political Studies) was founded
in 2004 as an independent, non-profit think tank based in Copenhagen. It seeks to pro-
mote a free and prosperous society by conducting research that will foster the policies,
institutions, and culture that will best support a market economy, rule of law, and a
civil society consisting of free and responsible individuals. It does so by producing aca-
demic studies and policy analyses aimed partly at general political debates and partly
at the political process in areas such as welfare, taxation, regulation, education, entre-
preneurship, health care, the environment, and the organization of the public sector.
e-mail: info@cepos.dk E website: www.cepos.dk

Dominican Republic Fundación Economía y Desarrollo, Inc.

The Fundación Economía y Desarrollo, Inc. (FEyD) is a private, non-profit organi-
zation dedicated to fostering competitive markets, private enterprise, and strategies
that promote economic development. To meet its objectives, FEyD has several regu-
lar publications in the most important newspapers in the country. It also produces a
one-hour television program called “Triálogo”, which is broadcast three times a week
and explains studies of the performance of the Dominican economy and its sectors.

Ecuador Instituto Ecuatoriano de Economía Política

The Instituto Ecuatoriano de Economia Politica (IEEP) is a private, independent,
non-profit institution that defends and promotes the classical liberal ideals of indi-
vidual liberty, free markets, limited government, property rights, and the rule of law.
The IEEP achieves its mission through publications, seminars, and workshops that
debate socioeconomic and political issues. The IEEP’s funding comes from volun-
tary donations, membership subscriptions, and income from sales of its publications.
e-mail: info@ieep.org.ec E website: www.ieep.org.ec

Finland Libera Foundation

Libera Foundation is a private, independent, non-political think tank that advances
and supports the principles and values of individual liberty, free enterprise, free mar-
kets, and a free society. Libera is supported solely by contributions from private indi-
viduals, foundations, and businesses, and it accepts no taxpayer money. Libera works
by disseminating information, arranging seminars and events, publishing relevant lit-
erature, supporting and facilitating academic knowledge creation and ideas, conduct-
ing research, and raising public awareness of the current issues related to its mission.
e-mail: info@libera.fi E website: www.libera.fi/en

France Institut Economique Molinari

The Molinari Economic Institute (MEI) is a research and educational think-tank. It
aims to initiate and stimulate an economic approach to the analysis of public policy.
It was named after Gustave de Molinari, a Franco-Belgian economist and journal-
ist who worked all his life to promote this approach. The MEI has set as its mission
to propose alternative and innovative solutions favorable to the prosperity of all
individuals in society. The MEI is a non-profit organization funded by the volun-
tary contributions of its members: individuals, corporations, or other foundations.
Affirming its intellectual independence, it accepts no government funding or sup-
port from political parties.
website: www.institutmolinari.org

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 Economic Freedom of the World: 2013 Annual Report E 259

Georgia Society for Disseminating Economic Knowledge: New Economic School

The Society was founded in 2001. Its goal is to disseminate and promote free-market
ideas and to create a resource center promoting free-market economics for students,
young scientists, teachers, and other interested parties. Through publications, con-
ferences, seminars, lectures, panel workshops, summer and winter schools, scientific
Olympiads, and competitions, the Society seeks to disseminate classical liberal ideas.
Email: office@nesgeorgia.org E website: www.nesgeorgia.org

Germany Liberales Institut

The Liberales Institut (Liberty Institute), based in Potsdam, is the think tank of the
Friedrich-Naumann-Foundation for Freedom. It spreads free-market ideas through
the publication of classical liberal literature, the analysis of current political trends,
and the promotion of research. The Institute organizes conferences and workshops
to stimulate an intellectual exchange among liberals around the world.
e-mail: libinst@freiheit.org E www.freiheit.org

Ghana The Institute of Economic Affairs

The Institute of Economic Affairs (IEA), Ghana, was founded in October 1989 as
an independent, non-governmental institution dedicated to the establishment and
strengthening of a market economy and a democratic, free, and open society. It
considers improvements in the legal, social, and political institutions as necessary
conditions for sustained economic growth and human development. The IEA sup-
ports research and promotes and publishes studies on important economic, socio-
political, and legal issues in order to enhance understanding of public policy.
e-mail: iea@ieagh.org E website: www.ieagh.org

Guatemala Centro de Investigaciones Económicas Nacionales

The Centro de Investigaciones Económicas Nacionales (CIEN—the Center for
Research on the National Economy) was established in Guatemala in 1982. It is a
private, non-partisan, not-for-profit, public-policy institute, funded by the sale of
its books and periodical publications, income from conferences and seminars, and
the support it receives from its members and the public. The Center’s program is
devoted to the technical study of economic and social problems that impede the
stable development of the nation. Its members, staff, research associates, and sup-
porters share the principles of a social order of free and responsible individuals inter-
acting through a market economy functioning within the rule of law.
e-mail: cien@cien.org.gt E website: www.cien.org.gt

Guinea InafEcon—Institute of African Economics

The Institute of African Economics aims to promote and stimulate economic research
and training in Guinea and other African countries by organizing conferences, con-
gresses, seminars, and courses; publishing technical and scientific studies; grant-
ing scholarships and prizes; and advising sound economic policy. By doing so, the
Institute would like to help reverse the tendencies of afro-pessimism and the margin-
alization of the African continent in worldwide cultural, scientific, and commercial
exchanges through the ownership by the African public (academics, political leaders,
civil servants, corporate managers, and civil society) of the development challenges
in a world integrated globally between the North, the South, the East, and, the West.
e-mail: inafecon@inafecon.org E website: www.inafecon.org/

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260 E Economic Freedom of the World: 2013 Annual Report

Haiti Institut de Recherche pour la Liberté Économique et la Prospérité

L’Institut de Recherche pour la Liberté Économique et la Prospérité (IRLEP), Haiti,
was founded in 2004. It is a non-partisan, non-profit, research and educational orga-
nization devoted to improving the quality of life in Haiti through economic growth
and development. Through publications and conferences, IRLEP promotes the
principles and concepts of individual rights, limited government, competition, free
trade, and physical and intellectual property rights. IRLEP does not accept funding
and subsidies from public institutions and political parties.
e-mail: irlephaiti@yahoo.com

Honduras Fundación Eléutera

The Fundación Eléutera is a new think tank that began operations in 2013, focused on
properly defending and promoting classical liberal ideas, both social and economic,
within Honduras. This organization seeks to reverse the trend from overreaching and
weak institutions to those that respond to the needs of Honduras’ residents but, more
importantly, that allow for individual growth and creativity, strengthen the social fabric
through trust between individuals, and allow and promote successful entrepreneurship.
e-mail: gp@eleutera.org E website: www.eleutera.org

Hong Kong Hong Kong Centre for Economic Research

The Hong Kong Centre for Economic Research is an educational, charitable trust estab-
lished in 1987 to promote the free market in Hong Kong by fostering public understand-
ing of economic affairs and developing alternative policies for government. The Centre
publishes authoritative research studies and is widely recognized as the leading free-
market think tank in Asia. It has been influential in persuading public opinion and the
government in Hong Kong to liberalize telecommunications, open up air-cargo-handling
franchises, privatize public housing, adopt a fully funded provident scheme instead of a
pay-as-you-go pension scheme, remove the legally sanctioned fixing of deposit interest
rates by banks, and adopt market mechanisms for protecting the environment.
e-mail: hkcer@econ.hku.hk
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www.hku.hk/hkcer

Hungary Szazadveg Foundation

The Szazadveg Foundation is a non-profit organization performing political and eco-
nomic research, and advisory and training activities. This think-tank is independent
of the government or any political parties and has been operating as a foundation
since its establishment in 1990. Szazadveg publishes the results of its research to
the public at large and also provides professional services to economic institutions,
political and civil organizations, political parties, and the government.
e-mail: varkonyi@szazadveg.hu E website: www.szazadveg.hu

Iceland Centre for Social and Economic Research

The Centre for Social and Economic Research (RSE) is an independent, non partisan,
non-profit organization in Reykjavik, Iceland, founded in 2004. Its mission is to promote
an understanding of private property and free-market ideas for a progressive, democratic
society. RSE achieves its mission through programs of publication and conferences. Its
work is assisted by a council of academic advisors of the highest standard from various
academic fields. RSE is funded entirely by voluntary contributions from its supporters.
website: www.rse.is

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 Economic Freedom of the World: 2013 Annual Report E 261

India Centre for Civil Society

The Centre for Civil Society (CCS) is a public-policy think tank advancing per-
sonal, social, economic, and political freedoms. The Centre seeks to promote choice,
competition, and community-based policy reforms. Through research, advocacy,
and outreach, they are reinvigorating civil society and right-sizing political society.
CCS advocates for effective public-policy reform through evidence-based research,
stakeholder engagement, and outreach to current and future leaders through semi-
nars, conferences, and public-policy courses. Their main focus areas are increasing
access to affordable quality education through their School Choice Campaign and
ensuring livelihood freedom for the enterprising poor through their Jeevika: Law,
Liberty and Livelihood Campaign.
e-mail: ccs@ccs.in E website: www.ccsindia.org

Indonesia The Institute for Development of Economics and Finance

Indonesian Development of Economics and Finance (INDEF) is an NGO founded
in Jakarta in 1996. It is a source of information in economics for policy makers, press,
students, and business.
e-mail: indef95@yahoo.co.id E website: www.indef.or.id

Iraq Iraqi Institute for Economic Reform

The Iraqi Institute for Economic Reform (IIER) is registered in Iraq as a Civil
Society, non-profit organisation, established in 2004. The Trustees are nation-
ally and internationally renowned in their fields and have successfully delivered
programs with significant impact in assisting the Government of Iraq, such as the
Federal Budget Analysis, World Bank Doing Business Survey, private-sector develop-
ment training programs, weekly TV programs, monthly seminars, and many other
achievements. IIER’s mission and strategic objectives are to support Iraq socio-
economic transformation, promote the rule of law, and build sound institutions,
by stimulating vigorous public debate among citizens and institutions that have
a stake in Iraq’s future and to influence government policy through research, evi-
dence-based policy development, and dissemination of information. IIER is widely
recognized as the leading independent think tank on Iraq’s economy. The Institute
has developed a responsive work program; and engages with many national and
international organizations, such as USAID, USIP, World Bank, the Fraser Institute,
Transparency International, UNDP, UNESCO, Revenue Watch Institute, CIPE,
Friedrich Naumann Foundation, universities, and many others. We are regularly
called upon to participate in, and contribute to, various economic debates on the
future of Iraq. Our monthly seminars and workshops are often attended by inter-
national missions in Iraq.
e-mail: info@iier.org E website: www.iier.org

Ireland Open Republic Institute

The Open Republic Institute (ORI) is Ireland’s only platform for public-policy dis-
cussion that is specifically interested in individual rights within the context of open-
society and open-market ideas. The ORI works within a non-political framework
to provide public-policy analysis and new policy ideas to government, public rep-
resentatives, civil servants, academics, students, and citizens.
website: www.openrepublic.ie

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262 E Economic Freedom of the World: 2013 Annual Report

Israel Jerusalem Institute for Market Studies

The Jerusalem Institute for Market Studies ( JIMS) is an independent, non-profit
economic policy think tank whose mission is to promote social progress in Israel
through economic freedom and individual liberty. JIMS was founded in 2003 by
Robert Sauer and Corinne Parenti-Sauer and has become Israel’s most influential
free-market economic think tank. JIMS regularly publishes economic policy papers
and editorials on current issues, runs a number of innovative private educational
projects, calculates Tax Freedom Day for Israel, and administers a unique public
opinion survey called the Israel Panel Study of Opinion Dynamics (IPSOD).
e-mail: corinne.sauer@jims-israel.org E website: www.jims-israel.org

Italy Centro Einaudi

The Centro di Ricerca e Documentazione “Luigi Einaudi” is an independent non-
profit research institute based in Turin. Its mission, inspired by Luigi Einaudi’s work
and his dictum “conoscere per deliberare” (knowledge must come before delibera-
tion), is to conduct independent research, and, based on that research, to provide
innovative recommendations in the fields of political economy, government and
the markets, and public policies. The Centro Einaudi’s research areas are liberal
theory, global economy and finance, international relations, law, politics and cul-
ture, politics and comparative public policy, Italian policies and reform, and regional
development. Since 1963, the Centro has been a beacon of liberalism and one of
the most influential Italian think-tanks. Many of its members hold prominent posi-
tions in academia, government, business, and the media. The Centro trains young
scholars and researchers, organizes seminars, conferences and lectures, and pub-
lishes monographs, books, and on-line newsletters, including: the quarterly journal,
Biblioteca della libertà; Rapporto sull’economia globale e l’Italia (Annual Report on
the Global Economy and Italy); Indagine sul risparmio e sulle scelte finanziarie degli
italiani (Annual Survey on Savings and Savers in Italy); Rapporto “Giorgio Rota” su
Torino, Roma, Napoli (“Giorgio Rota” Report on Italian Cities); Agenda Liberale,
Lettera Economica, and The Italian Job (on-line).
e-mail: segreteria@centroeinaudi.it E website: www.centroeinaudi.it

Jordan Young Entrepreneurs Association

The Young Entrepreneurs Association (YEA) is a non-profit organization that aims
to help small and medium-sized Jordanian companies become investor- and market-
ready, and develop their ideas to facilitate the growth of their businesses. The YEA
aims to foster fellowship and the exchange of ideas between entrepreneurs; educate
and train entrepreneurs; and be the voice for the entrepreneurial community as a
whole. For entrepreneurial activities to succeed in Jordan, the YEA must act as an
advocate for legislative change, thereby helping shape, through rules and regulation,
a favorable business environment for startups and expanding businesses.
Email: director@yea.com.jo E website: www.yea.com.jo

Kazakhstan Central Asian Free Market Institute

The Central Asian Free Market Institute (CAFMI) promotes principles of free mar-
kets, rule of law and minimal government through education, research, and reforms
in Central Asia. CAFMI is TOP 30 Best Advocacy Think-Tank in the World in the
University of Pennsylvania’s Global Go To Think Tanks Index Report.
email: info@cafmi.kg E website: www.cafmi.kg

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 Economic Freedom of the World: 2013 Annual Report E 263

Kenya African Research Center for Public Policy and Market Process
The African Research Center for Public Policy and Market Process, Kenya, is the first
research center founded in Africa by the African Educational Foundation for Public
Policy and Market Process, an independent educational organization registered in
the United States. The primary mission of the Center and the Foundation is to pro-
mote ideas about free markets and voluntary associations in Africa. The Center con-
ducts research on all aspects of free markets, voluntary association, and individual
liberty, and publishes the results to as wide an audience as possible. The Center also
organizes seminars and conferences to examine liberty and enterprise in Africa.
e-mail: kimenyi@kippra.or.ke

Korea Center for Free Enterprise

The Center for Free Enterprise (CFE) is a foundation committed to promoting free
enterprise, limited government, freedom and individual responsibility, the rule of
law, and restraint of violence. Funded by the members of the Federation of Korean
Industries (FKI), the CFE was founded as a non-profit, independent foundation on
April 1, 1997, at a time of economic crisis in Korean society. The CFE has concen-
trated on championing a free economy through books and reports on public policies,
statistics, and analyses. In workshops and policy forums, the CFE has put forward
alternatives to policies proposed as solutions for issues facing Korean society.
e-mail: csn@cfe.org E website: eng.cfe.org

Kosovo Group for Legal and Political Studies

The Group for Legal and Political Studies is a non-profit organization, based in
Kosovo. The Group’s main aim is to provide a qualitative and highly competitive
research environment with the intention to offer a new perspective for the reform,
democratization, and development of the governing system of Kosovo.
e-mail: office@legalpoliticalstudies.org E website: legalpoliticalstudies.org

Kyrgyz Republic Economic Policy Institute—Bishkek Consensus

The Economic Policy Institute—Bishkek Consensus (EPI), Kyrgyzstan, was cre-
ated in December of 2003 as a non-profit, non-partisan, independent institute with
developed partnerships and cooperative relationships with government, business,
the international community, civil society, and the news media. EPI’s mission is to
promote economic, social, and governance reforms in Kyrgyzstan, involving institu-
tions of civil society to elaborate and execute the reforms, developing local potential
and using the best international experience. Its strategic position is to be an inde-
pendent and highly objective source of information and research on public-policy
issues, as well as an unbiased forum for collaboration of diverse interest groups in
the reform of public policy.
e-mail: office@epi.kg

Lithuania Lithuanian Free Market Institute

The Lithuanian Free Market Institute (LFMI) is an independent, non-profit organiza-
tion established in 1990 to advance the ideas of individual freedom and responsibility,
free markets, and limited government. Since its inception, LFMI has been at the fore-
front of economic thought and reform in Lithuania. Not only has LFMI helped frame
policy debates by conducting research and creating reform packages on key issues, it
has also conducted extensive educational campaigns and played a key role “behind

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264 E Economic Freedom of the World: 2013 Annual Report

the scenes” in helping to craft and refine legislative proposals. LFMI promoted the
idea of a currency board and provided decisive input to the Law on Litas Credibility;
it led the creation of the legal and institutional framework for the securities market
and contributed significantly to the country’s privatization legislation; and it initiated
and participated in the policy-making process on private, fully funded pension insur-
ance. LFMI’s recommendations were adopted in legislation on commercial banks,
the Bank of Lithuania, credit unions, insurance, and foreign investment. LFMI sig-
nificantly influenced the improvement of company, bankruptcy, and competition law.
e-mail: lfmi@freema.org E website: www.freema.org

Malaysia Institute for Democracy and Economic Affairs

The Institute for Democracy and Economic Affairs (IDEAS) is Malaysia’s first think-
tank dedicated to promoting market-based solutions to public policy challenges. We
are an independent, not-for-profit organization. As a cross-partisan think-tank, we
work across the political spectrum. Our purpose is to advance market-based prin-
ciples, and we are not bound by party politics, race, or religion. Our office is in Bukit
Tunku, Kuala Lumpur, just minutes away from Parliament. We achieve our aims by
working with an extensive network of experts who share our ideals.
e-mail: admin@ideas.org.my E website: ideas.org.my

Mexico Caminos de la Libertad

Caminos de la Libertad seeks to promote the discussion and reflection about the dif-
ferent aspects of freedom. We strive to generate critical thinking and policies as well
as creating awareness among those who have not yet realized the value of their own
freedom. Caminos de la Libertad has become an international effort that includes
competitions, symposiums, conferences, and round-table discussions emphasizing
the importance of freedom. With our different activities, we try to introduce aca-
demics, politicians, youth, and the general society to the liberal perspective.
e-mail: caminosdelalibertad@tvazteca.com.mx E website: www.caminosdelalibertad.com

Mongolia Open Society Forum

The Open Society Forum is an independent, non-governmental, organization
founded in 2004. The Forum’s goals are to provide quality policy research and analy-
sis and broad public access to information resources pertaining to governance, eco-
nomic, and social policies. It focuses on economic freedom, land reform, rule of
law, freedom of media, campaign financing, nomadic pastoralism, privatization, the
shadow economy, and education policy. The Forum conducts research and holds
conferences to encourage public participation in policy formulation.
e-mail: osf@forum.mn E website: www.forum.mn

Montenegro The Center for Entrepreneurship and Economic Development

The Center for Entrepreneurship and Economic Development (CEED) is the first
non-governmental, non-partisan free-market center established in Montenegro. Its
mission is to educate entrepreneurs about private ownership, democratic society,
free markets, and the rule of law through a number of programs, initiatives, publi-
cations, and events. The Center was established to meet the demand for business
knowledge by pioneering entrepreneurs who needed training to operate in a new
environment after the break-up of the former Yugoslavia.
e-mail: ceed@t-com.me E website: www.visit-ceed.org.me

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 Economic Freedom of the World: 2013 Annual Report E 265

Nepal The Prosperity Foundation

Samriddhi, The Prosperity Foundation, envisions a free and prosperous Nepal
where individuals can live a dignified life in a vibrant and democratic society with
equal access to opportunities and respect for the rule of law. Its mission is to pro-
mote ideas of freedom—civil, political, and economic—through public-policy rec-
ommendations (based on independent research), educational programs, and public
participation for a free and prosperous Nepal.
e-mail: info@samriddhi.org E website: www.samriddhi.org

New Zealand New Zealand Business Roundtable

The New Zealand Business Roundtable is made up of the chief executives of about
60 of New Zealand’s largest businesses. Its aim is to contribute to the development
of sound public policies that reflect New Zealand’s overall interests. It has been a
prominent supporter of the country’s economic liberalization.
e-mail: nzbr@nzbr.org.nz E website: www.nzbr.org.nz

Nigeria Initiative of Public Policy Analysis

The Initiative of Public Policy Analysis (IPPA) is a private, non-profit organization
involved in research, education, and publication on matters affecting the freedom
of individuals. Its objective is to provide market-oriented analysis of current and
emerging policy issues, with a view to influencing the public debate and the politi-
cal decision-making process.
e-mail: info@ippanigeria.org E website: www.ippanigeria.org

Norway Center for Business and Society Incorporated

The Center for Business and Society Incorporated (Civita), the first market-oriented
think-tank in Norway, was established in 2004. It strives for increased consensus on
important market economic principles and their implications for welfare, freedom,
and democracy. Civita is also dedicated to promoting personal responsibility and
civil society to achieve larger, more important roles in society’s development. To
communicate its ideas to the public, it conducts research, publishes reports, and
holds seminars and conferences.
e-mail: civita@civita.no E website: www.civita.no

Oman International Research Foundation

The International Research Foundation (IRF), Sultanate of Oman, was estab-
lished in 2005 as a non-governmental, independent, non-profit “Think-Tank”
based in Oman to conduct research on domestic and international economic
issues with emphasis on the Arab World. The IRF has set its research and pub-
lic-affairs agenda on a collegial basis, relying on the input of its research staff,
its editorial board, and its Senior Fellows. It maintains a working arrangement
with governmental and non-governmental organizations in the region and other
parts of the world. IRF is the regional member of the Fraser Institute’s Economic
Freedom Network.
The vision of International Research Foundation is to create wealth and jobs
through the promotion of economic freedom. Its mission is to measure, research,
and communicate to a global audience the impact of competitive markets on the
welfare of individuals. The Board of Trustees of the IRF consists of high-pro-
file private-sector members from different organizations. IRF has initiated the

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266 E Economic Freedom of the World: 2013 Annual Report

establishment of a network of academic researchers to facilitate research projects,

which will help in its endeavor to research economic issues affecting the daily life
of individuals.
e-mail: azzan@paiped.com E website: <www.irfoman.org

Pakistan Alternate Solutions Institute

Alternate Solutions Institute, founded in 2003, is the first free-market think tank in
Pakistan. Its mission is (1) to seek solutions to challenges pertaining to the economy,
law, education, and health in accordance with the principles of classical liberalism
and (2) to promote the implementation of these solutions. The Institute aims to
promote the concept of a limited, responsible government in Pakistan under the
rule of law protecting life, liberty, and property of all of its citizens without any dis-
crimination. The Institute conducts research and holds seminars, workshops, and
conferences to educate interested students, teachers, and journalists about the prin-
ciples of classical liberalism.
e-mail: info@asinstitute.org E website: asinstitute.org

Palestine Pal-Think for Strategic Studies

Pal-Think for Strategic Studies is an independent, non-profit, institute in Gaza,
Palestine. It was established in March 2007. Pal-Think’s mission is to promote peace,
freedom, and prosperity through debates on public issues, producing policy recom-
mendations for the decision-makers in Palestine and the Middle East. The main
objective of Pal-Think is to conduct research on thematic issues that serve as a basis
for policy debates on matters that are important to the Palestinians, the region, and
the international community.
To achieve its vision of being a leading think tank in Palestine and the Middle
East, Pal-Think also organizes conferences, workshops, round-table discussions, and
other events on specific issues in Palestine and the region to deepen the understand-
ing of the various constituencies and to provide appropriate policy solutions.
e-mail: info@palthink.org E website: www.palthink.org

Panama Fundación Libertad

The Fundación Libertad, Panama, is a non-profit foundation engaged in the promo-
tion and development of liberty, individual choice, and voluntary cooperation, and
in the reduction of the size of government. Fundación Libertad was founded in 2001
by members of professional and business organizations to promote free enterprise
and democracy and to address issues affecting the freedom of the common citizen,
including the increasing discretionary power of the state and the proliferation of
legislation fostering discrimination and establishing privileges, all of which are con-
trary to the spirit of democratic capitalism.
Email: info@fundacionlibertad.org.pa E website: www.fundacionlibertad.org.pa

Peru Centro de Investigación y Estudios Legales

The Centro de Investigación y Estudios Legales (CITEL) was organized in
1989. Its principal field is the economic analysis of law. To that end, it conducts
research on different legal institutions, publishes books, and organizes seminars
and colloquia.
e-mail: info@citel.org E website: www.citel.org

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 Economic Freedom of the World: 2013 Annual Report E 267

Philippines Center for Research and Communication

The Center for Research and Communication (CRC) has, since 1967, conducted
research and published works on domestic and international economic and politi-
cal issues that affect the Asia-Pacific region. It provides forums for discussion and
debate among academicians, businessmen, civil officials, and representatives of
other sectors that shape public opinion and chart the course of policies. The Center
for Research and Communication is the main research arm of the University of Asia
and the Pacific in Metro Manila.
e-mail: crc@uap.asia; crcfoundationinc@gmail.com E website: uap.asia/crc

Poland Centrum im. Adama Smitha

The Centrum im. Adama Smitha (the Adam Smith Research Centre—ASRC) is a pri-
vate, non-partisan, non-profit, public-policy institute. It was founded in 1989 and was
the first such institute in Poland and in Eastern Europe. The ASRC promotes a free
and fair market economy, participatory democracy, and a virtuous society. Its activi-
ties in research and development, education, and publishing cover almost all impor-
tant issues within the areas of economy and social life. The ASRC acts as a guardian
of economic freedom in Poland. More than 50 experts are associated with the ASRC.
e-mail: 1989@smith.pl E website: www.smith.org.pl

Portugal Causa Liberal

Causa Liberal is an independent, non-partisan, non-profit organization of
Portuguese individuals who share the principles of the classical liberal tradition
and wish to further its application in modern-day Portugal. Its mission is to de-
fend the principles of the free society and its building blocks: individual rights, the
rule of law, free markets, and private property. Its primary goals are to establish and
consolidate a network of individuals with an interest in the study, discussion, and
promotion of the classical liberal tradition, and to advance free-market ideas and
policies in Portugal.
e-mail: Geral@causaliberal.net E website: www.causaliberal.net

Romania The Center for Institutional Analysis and Development—

Eleutheria Foundation (CADI)
The Center for Institutional Analysis and Development—Eleutheria Foundation
(CADI) is a research, advocacy, and consulting organization engaged in the defense
and furtherance of economic and civil rights. Built as a platform of academic and
entrepreneurial cooperation, CADI is now the nexus of a wide and vibrant net-
work of researchers, public intellectuals, experts and students spanning the fields
of social sciences.
e-mail: office@cadi.ro E website: www.cadi.ro

Russia Institute of Economic Analysis

The Institute of Economic Analysis is an institute for macroeconomic research that
analyzes the current economic situation and policies, and provides expert analysis
of acts, programs, and current economic policy. It offers advice to Russian gov-
ernment bodies, enterprises, and organizations; and prepares and publishes scien-
tific, research, and methodological economic literature. It also conducts seminars,
conferences, and symposia on economic topics. The Institute is an independent,

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268 E Economic Freedom of the World: 2013 Annual Report

non-governmental, non-political, non-profit research center that works closely with

leading Russian and international research centers. Its research focuses on macro-
economic, budget, and social policies.
e-mail: iea@iea.ru E website: www.iea.ru

Slovak Republic F.A. Hayek Foundation

The F.A. Hayek Foundation is an independent and non-partisan, non-profit organi-
zation that provides a forum for the exchange of opinions among scholars, business-
men, and policy-makers on the causes of, and solutions to, economic, social, and
political problems. It proposes practical reforms of the economy, education, social
security, and legislation as the Slovak Republic is transformed into an open society.
Education of high-school and university students is a large part of its activities. The
F.A. Hayek Foundation promotes the ideas of classical liberalism, virtually absent
until 1989: market economy, reduced role for the government, rule of law and indi-
vidual choice, responsibilities, and rights to life, liberty, and property.
e-mail: hayek@hayek.sk E website: www.hayek.sk

Slovenia Svetilnik
Svetilnik—društvo za promocijo svobode—is an independent, non-partisan, non-
profit organization founded in 2008. Its aim is the dissemination of classical liberal
ideas in Slovenia. To that end, Svetilnik has been organizing a spectrum of events
and providing a platform for open and informative discussion on the classical liberal
solutions to economic and political issues.
e-mail: info@svetilnik-slovenija.org E website: www.svetilnik-slovenija.org

South Africa Free Market Foundation of Southern Africa

The Free Market Foundation of Southern Africa (FMF) is an independent, non-profit
organisation, created in 1975 to work for a non-racial, free, and prosperous South Africa.
Our mission is to promote and advocate human rights and democracy based on clas-
sical liberal principles, including: access to media and a free press; the philosophy of
the open society, the rule of law and personal and economic freedom; an environment
that will facilitate the achievement of high economic growth and the reduction of pov-
erty and unemployment; the development and fostering of free enterprise and market
economies on a national and international basis; and the education of the general public
regarding sound economic principles. The FMF is financed by membership contribu-
tions, donations, and sponsorships from private individuals, companies, and institutions.
e-mail: fmf@mweb.co.za E website: www.freemarketfoundation.com

Spain Fundacio Catalunya Oberta

Fundació Catalunya Oberta (Open Catalonia Foundation) was founded in 2001 with
the objective of promoting, analyzing, and extending the values of the open society,
freedom, democracy, and the market economy. The Foundation also defends the
rights of Catalonia as a nation, especially in the cultural and economic fields. It is a pri-
vate foundation, espousing liberal ideology, with no political connections, whose aim
is to influence the public opinion of civil society. The Open Catalonia Foundation
organizes a range of activities every year and publishes a number of reports. The
Foundation also awards a yearly prize of €10,000 to prestigious journalists from all
over the world to reward their endeavors on behalf of democracy and freedom.
e-mail: fund@fco.cat E website: www.catalunyaoberta.cat

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 Economic Freedom of the World: 2013 Annual Report E 269

Sri Lanka Pathfinder Foundation

The Pathfinder Foundation has replaced the Center for Policy Research. Through
informed and well-researched information, it seeks to challenge old ideas and con-
ventional wisdom, stimulate debate, change public attitudes, and seek new and inno-
vative solutions to the economic and social problems of Sri Lanka.
e-mail: pm@pathfinderfoundation.org E website: www.pathfinderfoundation.org

Sudan Nile Institute of Economic Studies

The mission of the Nile Institute of Economic Studies is to serve as one of the lead-
ing promoters of economic and social freedom. We look to promote the public’s
understanding of free-market principles such as individual liberty, rights to private
property, rule of law, limited government, and free enterprise in Khartoum. Our pri-
mary focus is to achieve a considerable level of influence as a catalyst in Khartoum
within the policy community and to establish a reputation for intellectual honesty,
providing reliable, non-biased policy research that will help drive understanding of
Sudan’s development.
e-mail: nileinstitute@gmail.com

Sweden Timbro
Timbro is a Swedish think-tank that encourages public opinion to favor free enterprise,
a free economy, and a free society. Timbro publishes books, papers, reports, and the
magazine, Smedjan. It also arranges seminars and establishes networks among peo-
ple. Founded in 1978, Timbro is owned by the Swedish Free Enterprise Foundation,
which has as its principals a large number of Swedish companies and organizations.
e-mail: info@timbro.se E website: www.timbro.se

Switzerland Liberales Institut

The Liberales Institut is a forum where the basic values and concepts of a free soci-
ety can be discussed and questioned. The Institute’s aim is the establishment of free
markets as the best way towards the goals of openness, diversity, and autonomy.
The Liberales Institut is not associated with any political party. Through publica-
tions, discussion forums, and seminars, it seeks to develop and disseminate classi-
cal liberal ideas.
e-mail: libinst@libinst.ch E website: www.libinst.ch

Tajikistan Tajikistan Free Market Centre

The long-term objectives of the Tajikistan Free Market Center are: advancement
and protection of values of individualism and personal freedom; dissemination
and advocacy of ideas about the priority of private property and the free market;
advancement of the principle of a limited state (non-interference of the state in the
personal and economic life of the individual); training and support of activists and
the organizations that are supporters of ideas of individual and economic freedom.
e-mail: freemarket.tj@gmail.com E website: www.freemarket.tj

Trinidad and Tobago Arthur Lok Jack Graduate School of Business, University of the West Indies
The Arthur Lok Jack Graduate School of Business was created in 1989 as a channel
partner for developing managerial talent for the business community in Trinidad and
Tobago. Its mission is to empower people and organizations in developing nations
to optimize their performance capabilities and international competitiveness

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270 E Economic Freedom of the World: 2013 Annual Report

through development and deployment of consulting; education, research, and train-

ing resources. One of the Institute’s core services are business and academic research
in areas of real concern to business managers, enabling them to improve their ability
to manage successfully in the face of increasingly complex markets.
e-mail: r.balgobin@gsb.tt E website: www.lokjackgsb.org

Turkey Association for Liberal Thinking

The Association for Liberal Thinking is a non-profit, non-governmental organization
seeking to introduce the liberal democratic tradition into Turkey. The Association
promotes the understanding and acceptance of ideas like liberty, justice, peace,
human rights, equality, and tolerance. It also encourages academic writing on lib-
eral themes to help the Turkish people assess contemporary domestic and interna-
tional changes and attempts to find effective solutions to Turkey’s problems within
liberal thought. The Association for Liberal Thinking is not involved in day-to-day
politics and has no direct links to any political party or movement. Instead, as an
independent intellectual group, it aims to set broader political agendas so as to con-
tribute to the liberalization of economics and politics in Turkey.
e-mail: info@liberal-dt.org.tr E website: www.liberal.org.tr

Ukraine Ukrainian Center for Independent Political Research

The Ukrainian Center for Independent Political Research (UCIPR) was established
in early 1991 as a non-profit, non-partisan, and non-governmental research institu-
tion that would increase awareness of democracy among the Ukrainian people and
analyze domestic and international politics and security. The UCIPR is politically
independent; it does not accept any funding from either the state or any politi-
cal party. The UCIPR publishes books and research papers on Ukraine’s domestic
and foreign policy, the economy in transition, security, relations with neighboring
states, the Crimean dilemma, interethnic relations, and the freedom of the news
media. The Center has hosted a number of national and international conferences
and workshops.
e-mail: ucipr@ucipr.kiev.ua E website: www.ucipr.kiev.ua

United Kingdom Institute of Economic Affairs

The mission of the Institute of Economic Affairs (IEA) is to improve public under-
standing of the foundations of a free and harmonious society by expounding and
analyzing the role of markets in solving economic and social problems, and bringing
the results of that work to the attention of those who influence thinking. The IEA
achieves its mission by a high-quality publishing program; conferences, seminars,
and lectures on a range of subjects; outreach to school and college students; broker-
ing media introductions and appearances; and other related activities. Incorporated
in 1955 by the late Sir Antony Fisher, the IEA is an educational charity, limited by
guarantee. It is independent of any political party or group, and is financed by sales
of publications, conference fees, and voluntary donations.
e-mail: iea@iea.org.uk E website: www.iea.org.uk

United States of America Cato Institute

Founded in 1977, the Cato Institute is a research foundation dedicated to broaden-
ing debate about public policy to include more options consistent with the tradi-
tional American principles of limited government, individual liberty, free markets,

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 Economic Freedom of the World: 2013 Annual Report E 271

and peace. To that end, the Institute strives to achieve greater involvement by the
intelligent, concerned, lay public in questions of policy and the proper role of gov-
ernment through an extensive program of publications and seminars.
e-mail: ivasquez@cato.org E website: www.cato.org

Venezuela Center for the Dissemination of Economic Knowledge

The Center for the Dissemination of Economic Knowledge (CEDICE) is a non-
partisan, non-profit, private association dedicated to the research and promotion of
philosophical, economic, political, and social thinking that focuses on individual ini-
tiative and a better understanding of the free-market system and free and responsible
societies. To this end, CEDICE operates a library and bookstore; publishes the series,
Venezuela Today, and other studies of public policy with a special focus on property
rights and individual liberty; provides economic training for journalists and young
people; and conducts special events, workshops, and grass-roots programs.
e-mail: cedice@cedice.org.ve E website: www.cedice.org.ve E twitter: @cedice

Vietnam Research Center for Entrepreneurship Development

The Research Center for Entrepreneurship Development, founded in 2004, is a non-
government research and educational organization devoted to the entrepreneurial
development of the private sector in Vietnam. Its mission is to study the develop-
ment of policies that create the most favorable institutional and policy environment
for entrepreneurial development of the private sector in Vietnam. Through publi-
cations, discussion forums, and conferences, the Center seeks to disseminate and
encourage appropriate policies and entrepreneurial development.
e-mail: rced@rced.com.vn E website: www.rced.com.vn

Zambia Zambia Institute for Public Policy Analysis

The mission of the Zambia Institute for Public Policy Analysis (ZIPPA) is to pro-
mote wider appreciation of the key role of free markets and competition in eco-
nomic development. ZIPPA wants to play a constructive role by promoting realistic
economic policies and by suggesting solutions that have been successfully applied
in other countries to similar economic problems.
e-mail: zippamail@gmail.com E website: www.zippa.co.zm

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272 E Economic Freedom of the World: 2013 Annual Report

Associate members
The Economic Freedom Network accepts only one member per jurisdiction as a full member
of the network and co-publisher of the report but the network also has a number of associate
members. Although they are not co-publishers of Economic Freedom of the World, they work
with the network and the Fraser Institute on special projects to promote economic freedom.

Bolivia NOTORIA, Agenda para una Sociedad Libre

NOTORIA, Agenda para una Sociedad Libre was created with the main purpose of
supporting civil society in the defense and promotion of liberty, human rights, indi-
vidual endeavor, free markets, property rights, and democratic values. NOTORIA
has no political affiliation and is not subordinated to any social, political, religious,
or economic group. Our vision is to be the main referent in the promotion of liberty
in Bolivia. Our mission is to be the link between academia, policy makers, and the
private sector by promoting debate and presenting applied research and analysis
useful for decision makers. The general objective is to promote debate, analysis, and
research regarding public policies, as well as to present alternatives that can help to
make better and more informed decisions.
e-mail: notoria@notoriasociedadlibre.org
E
A/,=3>/
www.notoriasociedadlibre.org

Brazil The Instituto Liberdade

The Instituto Liberdade is an independent Brazilian, private, non-profit, and free-
market think tank, headquartered at Tecnopuc (Science and Technology Park from
the Pontifical Catholic University of Rio Grande do Sul), in the city of Porto Alegre.
It was created in 1986 and its major purpose is to foster the research, creation and
dissemination of educational and cultural assets displaying the advantages to all
individuals of an organized society based on the principles of individual rights, lim-
ited and representative government, and respect for private-property rights, rule of
law, contracts, and free initiative.
e-mail: il-rs@il-rs.org.br
E
A/,=3>/
www.il-rs.org.br/ingles/homeing.php

Hong Kong The Lion Rock Institute

Founded in 2004, The Lion Rock Institute believes in the potential of the individual
and free-market values to provide the strongest base for guiding successful govern-
ment policy in Hong Kong. The Institute was created to ensure that freedom and
prosperity would continue to thrive in Hong Kong. The Institute’s mission is to
promote free-market ideas throughout Hong Kong to improve the lives of Hong
Kongers. The Institute does this through having a direct and demonstrable impact
on government policy by advancing concrete solutions to keep government small,
taxes low, and restrictions on business and the individual minimal. It educates policy
makers, active political participants, and the general public on the virtues of free
enterprise in building a prosperous Hong Kong through various media outlets. The
Institute globally promotes Hong Kong’s excellence in public policy that exempli-
fies free-market values.
e-mail: info@lionrockinstitute.org
E
A/,=3>/
www.lionrockinstitute.org

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 Economic Freedom of the World: 2013 Annual Report E 273

Mongolia Mongolian National Chamber of Commerce and Industry

The Mongolian National Chamber of Commerce and Industry (MNCCI) was
established in 2004 when it designed the first-ever red-tape perception index as a
“naming and shaming” tool for the government institutions. It is based on an annual
survey among the business community. MNCCI has published a business confi-
dence index on an annual basis, as well as various publications, statements, opin-
ions, and proposals on macroeconomic and sectorial policies, based on the views
on business, environment, and legal frameworks of more than 40 councils and sub-
councils. The MNCCI also sponsors meetings, conferences, and seminars on busi-
ness development issues. The MNCCI is an independent and neutral institution
and does not take financing from either government or international organizations
apart from joint project activities.
e-mail: demberel@mongolchamber.mn
E
A/,=3>/
www.mongolchamber.mn

Pakistan Policy Research Institute of Market Economy

The Policy Research Institute of Market Economy (PRIME) is an independent think
tank based in Islamabad, Pakistan with a vision of an open, free, and prosperous
Pakistan. It improves political decision-making by advocating free-market policy
reforms through high-quality research and intellectual training. The organization
partners with the Friedrich Naumann Foundation for Freedom, Atlas Economic
Research Foundation, and the Center for International Private Enterprise (CIPE) on
various research and advocacy projects. The PRIME has a staff of five with expertise
in economics, trade, policy, and business and is governed by a three-member Board.
e-mail: ali@primeinstitute.org
E
A/,=3>/
www.primeinstitute.org

United States Atlas Network

Atlas Network (also known as the Atlas Economic Research Foundation) has the
mission of strengthening the worldwide freedom movement. Atlas connects a net-
work of more than 400 think tanks in 90 countries, and creates value for these
partners via training programs, policy conferences, grant and prize programs, and
collaborative projects. It also runs projects in a dozen languages to discover new
allies for advancing its vision of a free, prosperous, and peaceful world where lim-
ited governments defend the rule of law, private property, and free markets.
A/,=3>/
AtlasNetwork.org

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 Publishing history

Prepatory studies
Walker, Michael A., ed. (1988). Freedom, Democracy, and Economic Welfare:
Proceedings of an International Symposium. (Volume 1.) Fraser Institute.

Block, Walter E., ed. (1991). Economic Freedom: Proceedings of an International

Symposium. (Volume 2.) Fraser Institute.

Easton, Stephen T., and Michael A. Walker, eds. (1992). Rating Global Economic
Freedom. Fraser Institute.

Annual reports—Economic Freedom of the World

Gwartney, James, Robert Lawson, and Walter Block (1996). Economic Freedom of
the World: 1975–1995. Fraser Institute.

Gwartney, James, and Robert Lawson (1997). Economic Freedom of the World:
1997 Annual Report. Fraser Institute.

Gwartney, James, and Robert Lawson (1998). Economic Freedom of the World:
1998/1999 Interim Report. Fraser Institute.

Gwartney, James, and Robert Lawson, with Dexter Samida (2000). Economic
Freedom of the World: 2000 Annual Report. Fraser Institute.

Gwartney, James, and Robert Lawson, with Walter Park and Charles Skipton
(2001). Economic Freedom of the World: 2001 Annual Report. Fraser Institute.

Gwartney, James, and Robert Lawson, with Chris Edwards, Walter Park,
Veronique de Rugy, and Smita Wagh (2002). Economic Freedom of the World:
2002 Annual Report. Preface by Milton Friedman. Fraser Institute.

Gwartney, James, and Robert Lawson, with Neil Emerick (2003). Economic
Freedom of the World: 2003 Annual Report. Fraser Institute.

Note Links to these publications can be found at <www.freetheworld.com>.

Fraser Institute ©2013 E www.fraserinstitute.org E www.freetheworld.com

 Economic Freedom of the World: 2013 Annual Report E 275

Gwartney, James, and Robert Lawson (2004). Economic Freedom of the World:
2004 Annual Report. Fraser Institute.

Gwartney, James, and Robert Lawson, with Erik Gartzke (2005). Economic
Freedom of the World: 2005 Annual Report. Fraser Institute.

Gwartney, James, and Robert Lawson, with William Easterly (2006). Economic
Freedom of the World: 2006 Annual Report. Fraser Institute.

Gwartney, James, and Robert Lawson, with Russell S. Sobel and Peter T. Leeson
(2007). Economic Freedom of the World: 2007 Annual Report. Fraser Institute.

Gwartney, James, and Robert Lawson, with Seth Norton (2008). Economic
Freedom of the World: 2008 Annual Report. Fraser Institute.

Gwartney, James, and Robert Lawson, with Herbert Grubel, Jakob de Haan, Jan-
Egbert Sturm, and Eelco Zandberg (2009). Economic Freedom of the World: 2009
Annual Report. Fraser Institute.

Gwartney, James, Joshua Hall, and Robert Lawson, with Christopher J. Coyne, John
W. Dawson, Horst Feldmann, John Levendis, Russell S. Sobel, and Edward Peter
Stringham (2010). Economic Freedom of the World: 2010 Annual Report. Fraser Institute.

Gwartney, James, Robert Lawson, and Joshua Hall, with Jean-Pierre Chauffour
and Michael D. Stroup (2011). Economic Freedom of the World: 2011 Annual
Report. Fraser Institute.

Gwartney, James, Robert Lawson, and Joshua Hall, with with Scott L. Baier,
Christian Bjørnskov, Matthew Clance, Alice M. Crisp, Axel Dreher, Gerald P.
Dwyer, Nicolai J. Foss, and Kai Gehring (2012). Economic Freedom of the World:
2012 Annual Report. Fraser Institute.

Annual reports—Economic Freedom of North America

Karabegović, Amela, and Fred McMahon, with Glenn Mitchell (2005). Economic
Freedom of North America: 2005 Annual Report. Fraser Institute; National Center
for Policy Analysis.

Karabegović, Amela, and Fred McMahon, with Christy G. Black (2006).

Economic Freedom of North America: 2006 Annual Report. Fraser Institute;
National Center for Policy Analysis.

Karabegović, Amela, and Fred McMahon, with Nathan J. Ashby and Russell S.
Sobel (2008). Economic Freedom of North America: 2008 Annual Report. Fraser
Institute; National Center for Policy Analysis.

Ashby, Nathan J., Amela Karabegović, Fred McMahon, and Avilia Bueno, with
Noel D. Campbell, Joab Corey, Alex Fayman, Deborah Martinez, and Tammy
Rogers (2010). Economic Freedom of North America 2010. Fraser Institute.

www.freetheworld.com E www.fraserinstitute.org E Fraser Institute ©2013

276 E Economic Freedom of the World: 2013 Annual Report

Ashby, Nathan J., Avilia Bueno, and Fred McMahon, with Deborah Martinez
(2011). Economic Freedom of North America 2011. Fraser Institute.

Bueno, Avilia, Ashby, Nathan J., and Fred McMahon, with Deborah Martinez
(2012). Economic Freedom of North America 2012. Fraser Institute.

Annual reports—Economic Freedom of the Arab World

Al Ismaily, Salem Ben Nasser, Amela Karabegović, and Fred McMahon (2007).
Economic Freedom of the Arab World: Report and Index – 2006–07. Fraser Institute.

Al Ismaily, Salem Ben Nasser, Amela Karabegović, and Fred McMahon (2008).
Economic Freedom of the Arab World: 2008 Annual Report. Friedrich Naumann
Foundation for Liberty; International Research Foundation of Oman; Fraser
Institute.

Al Ismaily, Salem Ben Nasser, Amela Karabegović, and Fred McMahon, with
Marisha Warrington (2009). Economic Freedom of the Arab World: 2009 Annual
Report. Friedrich Naumann Foundation for Liberty; International Research
Foundation of Oman; Fraser Institute.

Al Ismaily, Salem Ben Nasser, Fred McMahon, Miguel Cervantes, and Amela
Karabegović (2010). Economic Freedom of the Arab World: 2010 Annual Report.
Friedrich Naumann Foundation for Liberty; International Research Foundation
of Oman; Fraser Institute.

Al Ismaily, Salem Ben Nasser, Miguel Cervantes, and Fred McMahon, (2011).
Economic Freedom of the Arab World: 2011 Annual Report. Friedrich Naumann
Foundation for Liberty; International Research Foundation of Oman; Fraser
Institute.

Al Ismaily, Salem Ben Nasser, Azzam Al-Busaidi, Miguel Cervantes, and Fred
McMahon (2012). Economic Freedom of the Arab World: 2012 Annual Report.
Friedrich Naumann Foundation for Liberty; International Research Foundation
of Oman; Fraser Institute.

Fraser Institute ©2013 E www.fraserinstitute.org E www.freetheworld.com

 China Center for China & Globalization t Colombia Instituto de Ciencia

T he key ingredients of economic freedom are

choice, voluntary exchange, freedom to compete, and
protection of persons and property. The index published
Politica t Costa Rica Instituto para la Libertad y el Análisis de Políticas t
Côte d’Ivoire Audace Institut Afrique t Croatia The Institute of Economics
t Czech Republic Liberální Institut t Denmark Center for Politiske Studier
in Economic Freedom of the World provides the most t Dominican Republic Fundación Economía y Desarrollo, Inc. t Ecuador
Instituto Ecuatoriano de Economía Política t Finland Libera Foundation t
comprehensive and objective measure of economic
France Institut Economique Molinari t Georgia Society for Disseminating
freedom available. Economic Knowledge: New Economic School t Germany Liberales
Institut t Ghana t Guatemala Centro de
Average economic freedom begins climbing again Investigaciones Económicas Nacionales t Guinea InafEcon—Institute of
African Economics t Haiti Institut de Recherche pour la Liberté Économique
The average chain-linked economic freedom rating for the et la Prospérité t Honduras Fundación Eléutera t Hong Kong Hong Kong
102 countries with ratings since 1980 has increased from Centre for Economic Research t Hungary Szazadveg Foundation t Iceland
Economic Freedom of the World 2013 Centre for Social and Economic Research t India Centre for Civil Society t
6.87 in 2011. After seeing the global average drop between Indonesia The Institute for Development of Economics and Finance t Iraq
2007 and 2009, the average summary rating increased Iraqi Institute for Economic Reform t Ireland Open Republic Institute t Israel
The key ingredients of economic freedom
modestly in both 2010 and 2011 though it remains below
are choice, voluntary
Jerusalem exchange, freedom
Institute for Market Studies tto com-
Italy Centro Einaudi t Jordan Young
pete, and protection
its peak level of 6.92 in 2007. of persons and property. The index published
Entrepreneurs in Economic
Association t Freedom
Kazakhstan Centralof
Asian Free Market Institute
t Kenya African Research Center for Public Policy and Market Process t Korea
the World provides the most comprehensive and objective Centermeasure of economic
for Free Enterprise freedom
t Kosovo Group for Legal and Political Studies t
available. Kyrgyz Republic Economic Policy Institute—Bishkek Consensus t Lithuania
Lithuanian Free Market Institute t Malaysia Institute for Democracy and
Nations in the top quartile of economic freedom had an t Mexico Caminos de la Libertad t Mongolia Open Society
averageAverage
per-capitaeconomic freedom
GDP of $36,466 begins
in 2011, climbing
compared to again Forum t Montenegro The Center for Entrepreneurship and Economic
$4,382 for nations in the least-free quartile (in 2011dollars). Development t Nepal The Prosperity Foundation t New Zealand New
In the most-free quartile, the average income of the
The average chain-linked economic freedom rating for the 102Business
Zealand countries witht Nigeria
Roundtable ratings sinceof Public Policy Analysis t
Initiative
poorest 10% was $10,566, compared to $932 in the quartile Norway Center for Business and Society Incorporated t Oman International
1980 has increased from 5.34 in 1980 to 5.82 in 1990 to
with the least economic freedom.
6.74Foundation
Research in 2000t Pakistan
and finally
Alternate toSolutions
6.87 Institute t Palestine Pal-
in 2011. After seeing the global average drop between 2007 and 2009, the average sum-
Think for Strategic Studies t Panama Fundación Libertad t Peru Centro de
Investigación y Estudios Legales t Philippines Center for Research
Thememary rating increased modestly in both 2010 and 2011and
chapters though it remains
Communication t Polandbelow
Centrum its peak Smitha t Portugal
im. Adama
level of
Institutions and6.92 in 2007.
Economic, Political, and Civil Liberty Causa Liberal t Romania The Center for Institutional Analysis and
Development—Eleutheria Foundation (CADI) t Russia Institute of Economic
in Africa by Alice M. Crisp and James Gwartney Analysis t Slovak Republic F.A. Hayek Foundation t Slovenia Svetilnik
Economic freedom benefits t South Africa The Free Market Foundation of Southern Africa t Spain
This chapter takes a close look at the economic, political, Fundacio Catalunya Oberta t Sri Lanka t Sudan Nile
and civil institutions
Nations of 26
in the topAfrican countries.
quartile This analysis
of economic Institute of Economic Studies t Sweden Timbro t Switzerland Liberales
freedom had an average per-capita GDP of $36,466
enhances our knowledge of the interaction among Institut t Tajikistan Tajikistan Free Market Centre t Trinidad and Tobago
in 2011,
institutional compared
factors, to $4,382
and the strengths andfor nations in
weaknesses of the least-free quartile
Arthur (in 2011dollars).
Lok Jack Graduate School of Business, University of the West Indies
t
Turkey Association for Liberal Thinking t Ukraine Ukrainian Center for
each of these African economies.
Independent Political Research t United Kingdom Institute of Economic
In the most-free quartile, the average income of the poorest 10% was $10,566, compared
t United States of America Cato Institute t Venezuela Center for
Economic Freedom, Democracy, and Life Satisfaction
to $932 in the quartile with the least economic freedom. the Dissemination of Economic Knowledge t Vietnam Research Center
by Martin Rode, Bodo Knoll, and Hans Pitlik for Entrepreneurship Development t Zambia Zambia Institute for Public
Policy Analysis
Theme chapters
This research indicates that economic freedom and
democracy increase life satisfaction over and above the Associate members
impactInstitutions and Economic,
of per capita income Political,
levels and other and
indicators Civil LibertyBolivia
in Africa
NOTORIA, Agenda para una Sociedad Libre t Brazil The Instituto
by Alice
of material M. Crisp
well-being. and
This is trueJames Gwartney
even after accounting Liberdade t Hong Kong The Lion Rock Institute t Mongolia Mongolian
National Chamber of Commerce and Industry t Pakistan Policy Research
This chapter takes a close look at the economic, political, and Economy
Institute of Market civil institutions ofNetwork
t United States Atlas

26 African countries. This analysis enhances our knowledge of the interaction among
institutional factors, and the strengths and weaknesses of each of these African econo-
Data available to researchers
mies.
The full data set, including all of the data published in this
report Economic
as well as data omitted due
Freedom, to limited space,
Democracy, can be
and Life Satisfaction
downloaded for free at http://www.freetheworld.com. Printed and bound in Canada
by Martin Rode, Bodo Knoll, and Hans Pitlik
This research indicates that economic freedom and democracy increase life satisfaction
over and above the impact of per capita income levels and other indicators of material
well-being. This is true even after accounting for the influence of marriage, belief in God,
trust, regional differences, and other variables that prior research has identified as impor-
tant determinants of life satisfaction.

Data available to researchers

The full data set, including all of the data published in this report as well as data omitted
due to limited space, can be downloaded for free at http://www.freetheworld.com