Dynamics

 

Benchmarking

Economic Freedom Index - Azerbaijan
Indicators Sub-indicators Essence 2018
67th place
(among 186 countries)		 2017
68th place
(among 186 countries)		 2016
91st place
(among 186 countries)		 2015
85th place
(among 186 countries)		 2014
81st place
(among 186 countries)		 2013 88th place (among 185 countries) 2012 91st place (among 184 countries) 2011 92th place (among 183 countries) 2010 96th place (among 183 countries) 2009 99th place (among 183 countries) 2008 107th place (among 157 countries)
Rule of Low 1. Property Rights The property rights component assesses the extent to which a country’s legal framework allows individuals to acquire, hold, and utilize private property, secured by clear laws that the government enforces efectively. 53,6 93 140 138 139 135 143 146 20,0 25,0 30,0
2. Judicial Efectiveness Judicial efectiveness requires efcient and fair judicial systems to ensure that laws are fully respected and appropriate legal actions are taken against violations. 36,8 120 - - - - - - - - -
3. Government Integrity Of greatest concern is the systemic corruption of government institutions and decision-making by such practices as bribery, extortion, nepotism, cronyism, patronage, embezzlement, and graft. The lack of government integrity caused by such practices reduces public trust and economic vitality by increasing the costs of economic activity. 39,9 94 - - - - - - - - -
GOVERNMENT SIZE 4. Fiscal Health Widening deficits and a growing debt burden, both of which are caused by poor government budget management, lead to the erosion of a country’s overall fiscal health. In theory, debt financing of public spending could make a positive contribution to productive investment and ultimately to economic growth. However, mounting public debt driven by persistent budget deficits, particularly spending that merely boosts government consumption or transfer payments, often undermines overall
productivity growth and leads ultimately to economic stagnation rather than growth.		 95,5 22 33 32 37 45 44 47 79,5 79,7 80,4*
5. Tax Burden Tax burden is a composite measure that reflects marginal tax rates on both personal and corporate income and the overall level of taxation (including direct and indirect taxes imposed by all levels of government) as a percentage of gross domestic product (GDP). 87,5 33 - - - - - - - - -
6. Government Spending An optimal level of government spending will vary from country to country, depending on factors that range from culture to geography to level of economic development. At some point, however, government spending becomes an unavoidable burden as growth in the size and scope of the public sector leads inevitably to misallocation of resources and loss of economic efciency. Volumes of research have shown that excessive government spending that causes chronic budget deficits and the accumulation of public
debt is one of the most serious drags on economic dynamism. Government spending has a major impact on economic freedom, but it is just one of many important components.		 59,4 120 121 116 100 85 95 88 77,5 - -
REGULATORY EFFICIENCY 7. Business Freedom The business freedom component measures the extent to which the regulatory and infrastructure environments constrain the efcient operation of businesses. The business freedom score for each country is a number between 0 and 100, with 100 indicating the freest business environment. 72,3 60 61 43 60 75 80 57 74,6 74,6 61,6
8. Labor Freedom The labor freedom component is a quantitative measure that considers various aspects of the legal and regulatory framework of a country’s labor market, including regulations concerning minimum wages, laws inhibiting layofs, severance requirements, and measurable regulatory restraints on hiring and hours worked, plus the labor force participation rate as an indicative measure of employment opportunities in the labor market. 71,9 26 27 27 40 26 26 31 82,5 87,0 59,2
9. Monetary Freedom Monetary freedom combines a measure of price stability with an assessment of price controls. Price stability without microeconomic intervention is the ideal state for the free market. 55,6 130 96 56 54 109 106 116 62,7 66,3 76,5
OPEN MARKETS 10.Trade Freedom Trade freedom is a composite measure of the extent of tarif and nontarif barriers that afect
imports and exports of goods and services.		 74,6 112 96 95 86 85 88 90 77,1 78,4 78,4
11.Investment Freedom In an economically free country, there would be no constraints on the flow of investment
capital. Individuals and firms would be allowed to move their resources into and out of specific activities, both internally and across the country’s borders, without restriction. Such an ideal country would receive a score of 100 on the investment freedom component of the Index.		 55,0 103 83 96 80 79 77 75 55,0 30,0 30,0
12. Financial Freedom Financial freedom is an indicator of banking efciency as well as a measure of independence
from government control and interference in the financial sector. State ownership of banks and other financial institutions such as insurers and capital markets reduces competition and generally lowers the level of access to credit.		 60,0 70 72 70 69 106 105 106 40 40,0 30,0

Note*: “Fiscal freedom” indicator that was reported in previous years has been replaced with “fiscal health” indicator since 2017.

Note2: The highlighted sub-indicators are the scores assigned to the country (rankings for the sub-indicators were not reported for that period). The minimum and maximum scores that country can attain is in the range of [0;100].

 

 

 

Economic Freedom Index - Azerbaijan
Indicators Sub-indicators Essence 2018
67th place
(among 186 countries)		 2017
68th place
(among 186 countries)		 2016
91st place
(among 186 countries)		 2015
85th place
(among 186 countries)		 2014
81st place
(among 186 countries)		 2013 88th place (among 185 countries) 2012 91st place (among 184 countries) 2011 92th place (among 183 countries) 2010 96th place (among 183 countries) 2009 99th place (among 183 countries) 2008 107th place (among 157 countries)
Rule of Low 1. Property Rights The property rights component assesses the extent to which a country’s legal framework allows individuals to acquire, hold, and utilize private property, secured by clear laws that the government enforces efectively. 53,6 93 140 138 139 135 143 146 20,0 25,0 30,0
2. Judicial Efectiveness Judicial efectiveness requires efcient and fair judicial systems to ensure that laws are fully respected and appropriate legal actions are taken against violations. 36,8 120 - - - - - - - - -
3. Government Integrity Of greatest concern is the systemic corruption of government institutions and decision-making by such practices as bribery, extortion, nepotism, cronyism, patronage, embezzlement, and graft. The lack of government integrity caused by such practices reduces public trust and economic vitality by increasing the costs of economic activity. 39,9 94 - - - - - - - - -
GOVERNMENT SIZE 4. Fiscal Health Widening deficits and a growing debt burden, both of which are caused by poor government budget management, lead to the erosion of a country’s overall fiscal health. In theory, debt financing of public spending could make a positive contribution to productive investment and ultimately to economic growth. However, mounting public debt driven by persistent budget deficits, particularly spending that merely boosts government consumption or transfer payments, often undermines overall
productivity growth and leads ultimately to economic stagnation rather than growth.		 95,5 22 33 32 37 45 44 47 79,5 79,7 80,4*
5. Tax Burden Tax burden is a composite measure that reflects marginal tax rates on both personal and corporate income and the overall level of taxation (including direct and indirect taxes imposed by all levels of government) as a percentage of gross domestic product (GDP). 87,5 33 - - - - - - - - -
6. Government Spending An optimal level of government spending will vary from country to country, depending on factors that range from culture to geography to level of economic development. At some point, however, government spending becomes an unavoidable burden as growth in the size and scope of the public sector leads inevitably to misallocation of resources and loss of economic efciency. Volumes of research have shown that excessive government spending that causes chronic budget deficits and the accumulation of public
debt is one of the most serious drags on economic dynamism. Government spending has a major impact on economic freedom, but it is just one of many important components.		 59,4 120 121 116 100 85 95 88 77,5 - -
REGULATORY EFFICIENCY 7. Business Freedom The business freedom component measures the extent to which the regulatory and infrastructure environments constrain the efcient operation of businesses. The business freedom score for each country is a number between 0 and 100, with 100 indicating the freest business environment. 72,3 60 61 43 60 75 80 57 74,6 74,6 61,6
8. Labor Freedom The labor freedom component is a quantitative measure that considers various aspects of the legal and regulatory framework of a country’s labor market, including regulations concerning minimum wages, laws inhibiting layofs, severance requirements, and measurable regulatory restraints on hiring and hours worked, plus the labor force participation rate as an indicative measure of employment opportunities in the labor market. 71,9 26 27 27 40 26 26 31 82,5 87,0 59,2
9. Monetary Freedom Monetary freedom combines a measure of price stability with an assessment of price controls. Price stability without microeconomic intervention is the ideal state for the free market. 55,6 130 96 56 54 109 106 116 62,7 66,3 76,5
OPEN MARKETS 10.Trade Freedom Trade freedom is a composite measure of the extent of tarif and nontarif barriers that afect
imports and exports of goods and services.		 74,6 112 96 95 86 85 88 90 77,1 78,4 78,4
11.Investment Freedom In an economically free country, there would be no constraints on the flow of investment
capital. Individuals and firms would be allowed to move their resources into and out of specific activities, both internally and across the country’s borders, without restriction. Such an ideal country would receive a score of 100 on the investment freedom component of the Index.		 55,0 103 83 96 80 79 77 75 55,0 30,0 30,0
12. Financial Freedom Financial freedom is an indicator of banking efciency as well as a measure of independence
from government control and interference in the financial sector. State ownership of banks and other financial institutions such as insurers and capital markets reduces competition and generally lowers the level of access to credit.		 60,0 70 72 70 69 106 105 106 40 40,0 30,0

Note*: “Fiscal freedom” indicator that was reported in previous years has been replaced with “fiscal health” indicator since 2017.      

Note2: The highlighted sub-indicators are the scores assigned to the country (rankings for the sub-indicators were not reported for that period). The minimum and maximum scores that country can attain is in the range of [0;100].                    
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