Cambodia loses 8 places in the index of economic freedom


Cambodia’s ranking in the Economic Freedom Index fell eight places from last year, a negative sign for a country seeking to develop its economy and become a major player in Southeast Asia.

This year, Cambodia recorded 57.3 points in the Index of Economic Freedom, placing it in 113th place out of 180 countries. Last year, the Kingdom was in 105th place after posting a score of 56.8 points.

Cambodia’s poor performance in the rankings contrasts directly with that of neighboring Vietnam, which improved its ranking by 23 places. Vietnam is now the 105th freest economy in the world after being ranked 128th last year.

Economic freedom has been on the decline in Cambodia since 2017, and this year its economy is again seen as non-free,” the study says.

The decline in rankings was mainly attributed to less investment freedom. In 2019, Cambodia scored 60 points in this category, which fell to 50 points a year later.

The Index of Economic Freedom is co-produced by the Heritage Foundation, a leading American think tank with ties to the Republican Party and conservative causes, and the Wall Street Journal, one of the leading publications in the United States.

The rankings are based on a total of 12 factors: property rights, judicial efficiency, government integrity, business freedom, freedom to work, monetary freedom, tax burden, public expenditure, fiscal health, commercial freedom, freedom of investment and financial freedom.

Cambodia’s position, although decided by reputable organizations, can be challenged on some sides, especially with Cambodia’s continued efforts to open up its economy and the country’s well-deserved reputation as one of the most attractive and best investment destinations in Southeast Asia.

Lower rankings, however, did little to affect Cambodia’s economic performance.

“Economic growth has benefited from the openness of other countries, especially the European Union, to clothing exports and strong demand for travel items and remains strong at 7.1% on average over the years. past five years, “the report continues.

Despite its shortcomings, the Cambodian economy has been one of the most dynamic in the world for the past five years. But the study said Cambodia needs to implement reforms and do more to free up its economy.

“Sustained long-term growth will require the implementation of deep, broad and well-institutionalized reforms to improve the government’s judicial efficiency and integrity scores, as well as improved property rights and a better regulatory environment to improve the national business environment. Says the report.

Despite the low ranking, Cambodia was higher than other countries including India (120), Ukraine (124), Brazil (144), Argentina (149), Lebanon (157) and Iran (164).

Singapore scored 89.4 points overall, making it the freest economy in the world, followed by Hong Kong (89.1) and New Zealand (84.1).

North Korea (4.2 points), Venezuela (25.2) and Cuba (26.9) are ranked among the most repressed economies in the world.

  • Key words: Cambodia, Index of Economic Freedom

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