Post by Caslav Klonimirovic on Jan 13, 2009 6:34:14 GMT -5
ZAGREB, CROATIA – Croatia has fallen to the 116th place by the Economic Freedom Index for 2009 among a total of 179 countries of the world, according to research published by the Wall Street Journal and the American conservative institute The Heritage Foundation and by the Adriatic Institute on Public Order in Croatia.
Among the 43 countries of Europe, Croatia is located at the very low 38th spot, while other countries of Eastern Europe, which also have the same problems with corruption and inefficient judiciary, have overtaken Croatia with lower tax rates, a lower share of state expenditures in the GDP and a more flexible legislature.
The index of economic freedom is assessed in ten specific categories: business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom. In 2007 Croatia took up the 55th place, in 2008 it was on the 107th position and this year it has fallen to the 116th place.
Serbia, which was ranked for the first time this year, took up 109th spot, four places ahead of Croatia among all the countries, and the 37th spot, one place ahead of Croatia, in Europe.
- Serbia has a far greater fiscal freedom (85.9) and labour freedom (70), a better assessment for the size of government (46.3) and property rights (40) in relation to Croatia’s fiscal freedom (68.7), labour freedom (43.4), government size (31.7) and property rights (30). In line with this, Croatia should improve its fiscal freedom through decreasing taxes and decreasing the share of tax profits in the GDP, as well as increasing labour freedom although a more flexible labour legislature – Narasa Srdoc, president of the Adriatic Institute on Public Order said. The institute will publish the regional list for Croatia at 13:30 on the television channel of the Heritage Foundation in Washington.
- Croatia has a relatively higher monetary freedom (79), trade freedom (87.6), investment freedom (50) and financial freedom (60) in relation to Serbia, where the monetary freedom is 65.8, trade freedom (78), investment freedom (40) and financial freedom (50). Both Croatia and Serbia primarily have to improve property rights protection, the rule of law and efficiently fight corruption as preconditions for a complete functioning of market economy.
Among the 43 countries of Europe, Croatia is located at the very low 38th spot, while other countries of Eastern Europe, which also have the same problems with corruption and inefficient judiciary, have overtaken Croatia with lower tax rates, a lower share of state expenditures in the GDP and a more flexible legislature.
The index of economic freedom is assessed in ten specific categories: business freedom, trade freedom, fiscal freedom, government size, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labour freedom. In 2007 Croatia took up the 55th place, in 2008 it was on the 107th position and this year it has fallen to the 116th place.
Serbia, which was ranked for the first time this year, took up 109th spot, four places ahead of Croatia among all the countries, and the 37th spot, one place ahead of Croatia, in Europe.
- Serbia has a far greater fiscal freedom (85.9) and labour freedom (70), a better assessment for the size of government (46.3) and property rights (40) in relation to Croatia’s fiscal freedom (68.7), labour freedom (43.4), government size (31.7) and property rights (30). In line with this, Croatia should improve its fiscal freedom through decreasing taxes and decreasing the share of tax profits in the GDP, as well as increasing labour freedom although a more flexible labour legislature – Narasa Srdoc, president of the Adriatic Institute on Public Order said. The institute will publish the regional list for Croatia at 13:30 on the television channel of the Heritage Foundation in Washington.
- Croatia has a relatively higher monetary freedom (79), trade freedom (87.6), investment freedom (50) and financial freedom (60) in relation to Serbia, where the monetary freedom is 65.8, trade freedom (78), investment freedom (40) and financial freedom (50). Both Croatia and Serbia primarily have to improve property rights protection, the rule of law and efficiently fight corruption as preconditions for a complete functioning of market economy.