The Kyrgyz Republic”s economic freedom score is 61.8, making its economy the 74th freest in the 2009 Index. Its score is 0.7 point better than last year, reflecting increases in business freedom and trade freedom. The Kyrgyz Republic is ranked 12th out of 41 countries in the Asia Pacific region, and its overall score is slightly above the world average, the Washington Profile reported referring to the Heritage Foundation research center.
Heritage Foundation annually composes ratings of economic freedoms across the world.
The 2008 rating covers 183 countries, when in 2007 it covered 162 countries. The survey evaluated freedom of business, trade and society, fiscal and monetary policies, property rights, investments and other factors.
The Kyrgyz Republic”s transition to a more market-driven economy is still in progress. Despite reform measures that have been implemented over the past years, overall progress has been rather slow. The country rates well in business freedom, trade freedom, fiscal freedom, labor freedom, and government size. The labor market is flexible, despite some remaining restrictions, the implementation of a new labor code has helped to tailor employment to free-market conditions. Personal and corporate taxation has become simple and efficient, with a competitive flat tax rate of 10 percent. Government spending is also moderate.
The Kyrgyz Republic”s property rights and freedom from corruption remain weak. Lax rule of law fosters pervasive corruption and insecure property rights, which could jeopardize the country”s prospects for lasting economic development.
