Bulgaria ranks 46th of 162 countries and territories included in “Economic Freedom of the World: 2018 Annual Report” prepared by the Canadian “Fraser Institute”.
The result achieved by Bulgaria in this year’s survey was 7.41 out of the maximum of 10 points (compared to 7.40 last year), which ranked the country again at 46th position. Botswana and Peru are immediately before Bulgaria with a higher result, and Uganda and Mongolia are following. This means that for one year, the economic freedom in Bulgaria has increased by just 0.01 points, which is actually means stagnation.
In 2013, our country occupied the 39th position, but the trend is negative.
Classification is done on the basis of several indicators such as the amount of government expenditure and of state transfers and subsidies, the judicial system and a right of ownership, inflation, international trade and business regulations.
Bulgaria continues to receive the lowest estimate of the independence and impartiality of the court, as well as the protection of the right of ownership. The high level of redistribution and interference by the country, the extremely ineffective judicial system and the stigmatic bureaucracy are once again proven to be the main factors hindering economic freedom in Bulgaria.
Hong Kong and Singapore are again at the top two positions, and Top 10 is complemented by New Zealand, Switzerland, Ireland, the USA, Georgia, Mauritius, Britain, Australia and Canada.
The results of the report are empirically linked to conclusions that higher economic freedom leads to higher income per capita; a higher share of income for the poorest 10 percent of the population; and faster economic growth.
“Fraser Institute” is one of the most influential and cited think-tanks in the world. Since 1996, together with a further seventeen private institutes, it issues each year the Index of Economic Freedom in the World. This is the oldest and most objective index, the methodology of which was developed by the Nobel laureate Milton Friedman.
