Economic freedom index improves despite 'weak governance', 'endemic corruption'

The Heritage Foundation
The Heritage Foundation

Bangladesh has been ranked the 121st out of 180 countries in economic freedom index for 2019, according to US-based Heritage Foundation.

The country was placed at the 128th position in the ranking last year. It scored slightly better this year -- 55.6 points as against 55.1 in 2018.

The Heritage Foundation said Bangladesh has done better due to some factors including property rights, government integrity, labour and monetary freedom.

However, it observed, the country still grapples with poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms.

Bangladesh's overall score is below the regional and world averages, according to the foundation report. The country is ranked 27th among 43 countries in the Asia–Pacific region.

The top six countries in the world are Hong Kong, Singapore, New Zew Zealand, Switzerland, Australia and Ireland.

The report attributed Bangladesh's robust growth of approximately 6 per cent a year for two decades to a rapid increase in private consumption, fixed investment and exports of garments.

The issue of political instability is also mentioned in the report.

It said the fragile rule of law continues to undermine economic development on the one hand while corruption and weak enforcement of property rights force workers and small businesses into the informal economy on the other.

Entrepreneurial activity is also hampered by an uncertain regulatory environment, the foundation said.

"Property laws are outdated, and land disputes are common. The judiciary is slow and lacks independence. Contract enforcement and dispute settlement procedures are inefficient. Endemic corruption and criminality, weak rule of law, limited bureaucratic transparency, and political polarisation have undermined government accountability."

Despite some progress in streamlining business regulations, entrepreneurial activity is hampered by an uncertain regulatory environment and the absence of effective long-term institutional support for private-sector development, the foundation pointed out.