Formal indicators Index of Economic Freedom do not hide problems of the Azerbaijani economy

BAKU/15.01.14/Turan : Yesterday the American Research Center The Heritage Foundation and the newspaper The Wall Street Journal published an annual ranking of countries in terms of economic freedom - Index of Economic Freedom 2014 (Index of Economic Freedom 2014 ) . Azerbaijan formally improved position , moving from last year's list of countries with " non-free economy" in the list of countries with " moderate economic freedom " and took 81 seats with 61.3 points out of 178 countries (last year the country was on the site of 87 185 59 7 points).

Helped to overcome the bar situation with fiscal freedom - the registration of owners in the ministry of taxes under the " single window" and statements in the virtual mode dial allowed the necessary points to go " in the third league " - if by the end of 2012 this item was 24 , now 88 1 out of a maximum 100 points.

The situation with human owners and opposition society of corruption, as expected, was worse - last year was 25 and 24 points, in this - respectively, 20 and 22.7 . According to experts, is the result of political " monologue " of the authorities and their legislative pressure on non-governmental organizations , as well as decisions that are inconsistent with its obligations to international organizations. Moreover, the authorities defiantly violate fundamental rights of the owners , - from 2010 to 2014 many thousands of home owners who are dissatisfied with the level of compensation , were literally thrown out into the streets and the courts decide in favor of the Baku City Executive Power .

The Government of Azerbaijan on the degree of openness and accountability, though gained 64.8 points, but lost last year ( 67.8 ) result. This indicates a formal approach in the presence of some progress (established service ASAN, expanded the range of virtual services part of ministries and agencies have access to the " e-government " , plus a few good points ) and that the Cabinet willing to share information with foreign counterparts , but not by its own citizens .

Worsened position on labor freedom - it was 77.9 against 79.4 a year earlier. This is a consequence of the informal labor market , for many entrepreneurs prefer to have two sets of books , do not enter into individual ( especially collective ) agreement with employees. As a result, social payments are not deducted in the Social Insurance Fund , which leads to high turnover - particularly clearly seen in the construction and public transport . In addition, the natural state monopolies , spending part of the reorganization of accountable institutions , and create conditions for frequent layoffs and recruitment of new labor. Because low level of social security , which leads to high household debt to financial institutions.

Relatively improved several positions - so it became a little more freedom of enterprise (73.5 vs. 69.2 last year) , monetary freedom ( 78.8 vs. 73.5 ) , investment freedom (60 vs. 55 ) , financial freedom ( 50 vs. 40 ) . Position of free trade for the year have not changed - 77.2 vs. 77.2 .

For comparison - Estonia , Lithuania and Georgia recognized countries with a high degree of economic freedom and took 11 , 21 and 22 seats - the best position among the countries of the former USSR. On the same grounds , except Azerbaijan , moderately free economy recognized Armenia, Latvia, Kazakhstan and Kyrgyzstan with 41, 42, 67 and 85 seats. But Moldova , Tajikistan, Russia, Belarus, Ukraine, Uzbekistan and Turkmenistan (110, 139, 140, 150, 155, 163 and 171 line rating ) countries with declared non-free economy . Among neighbors Turkey and Iran are located on lines 64 and 173.

First place in the list with the highest rating held by Hong Kong , Singapore, Australia , Switzerland , New Zealand and Canada , which are assigned to countries " with a free economy ." Outsiders on economic non-freedom became North Korea, Cuba and Zimbabwe.

The Heritage Foundation experts define economic freedom as " the absence of government interference or obstruction of production, distribution and consumption of goods and services , except for the necessary protection of citizens and support freedom itself ." Analysis of economic freedom has been held by the Fund since 1995. Degree of economic freedom is calculated by the arithmetic mean of the ten indicators: business freedom , trade, financial sector , investment, labor , monetary and fiscal freedom, security of property rights , the size of the bureaucracy and the degree of protection against corruption.

Thus, "absolutely free" economy will end up with 100 points, and where there is no freedom in principle , respectively , zero . All countries of the world presented in this report are divided into five groups conditioned in accordance with its rating in the Index of Economic Freedom , " free", " mostly free", " moderately free", " mostly non-free " and "not free ." The index's believe that the economy between freedom and success of its development there is a relationship that can be observed through this study. - 0 -