Iran Ranks 170th Among 177 Countries in Economic Freedom Index
The American Heritage Foundation reported in its latest report a decline of 4.8 places in Iran’s economic freedom index in 2021 compared to the previous year.
According to this report released on Tuesday, February 16, Iran ranks 170th among 177 countries in terms of economic freedom index, with a score of 42.4 in this regard.
The American institution rates countries on the economic freedom index between zero (worst) and 100 (best).
After North Korea, Venezuela, Cuba, Sudan, Zimbabwe, Burundi, and Eritrea, Iran has the worst economic freedom status among the 177 countries assessed by the Heritage Foundation. Although the status of several other countries such as Afghanistan, Libya, Yemen, South Sudan, Iraq, and Yemen remains unclear.
The American institution considered 12 criteria to measure countries’ economic freedom, including investment freedom, which Iran scores only five in, while the global average score is 57.
Also, Iran’s score in terms of financial freedom is 10, while the global average for this index is assessed at 49.
Among the 12 criteria, Iran’s situation in terms of property rights, judicial effectiveness, government commitment and integrity is significantly lower than the global average.
The report adds that Iranians legally have the right to property ownership and establishing private businesses, but powerful institutions such as the Islamic Revolutionary Guards Corps restrict fair competition and entrepreneurial opportunities, and Iran’s judiciary is not independent of the Supreme Leader. The quality and access to administrative services are also limited due to “mismanagement, widespread corruption and bribery,” and efforts by opponents to combat these phenomena are met with repression.
Heritage’s assessment shows that the best countries in terms of economic freedom are Singapore, Switzerland, Ireland, and New Zealand.
However, the report states that the economic freedom index globally experienced the largest decline over the past more than 25 years in the previous year, and half of the 12 criteria for measuring economic freedom worldwide have declined overall. Among these countries, the United States has experienced a dramatic decline. While this country held the fourth position in the world in 1995, it has now dropped to 25th place.
Regarding Iran, Heritage’s assessment shows that Iran has fallen approximately 8.1 ranks in terms of economic freedom index since 2017.
The report states that Iran’s economy was one of the most advanced in the Middle East region before the February Revolution of 1979, but has been weakened under the influence of “mismanagement, international sanctions, and government repression.”
Heritage is not alone in placing Iran at the bottom of the economic freedom table.
In September this year, the Canadian Fraser Institute also classified Iran’s economy among the world’s closed economies in terms of economic freedom and announced that Iran ranks 160th among 165 countries in the world in this regard.
In that institute’s assessment, only five countries—Zimbabwe, Algeria, Libya, Sudan, and Venezuela—rank lower than Iran.
Also, Transparency International in its latest annual report released on February 5 stated that Iran ranks 150th among 180 countries in terms of the extent of financial corruption.
Source: Radio Farda
