According to the Economic Freedom Index published by the American Heritage Foundation, Bosnia and Herzegovina (BiH) is ranked 83rd among the world’s 180 countries.
According to analysis, this position represents some progress when it is compared to last year when BiH was on 91stplace.
The total rating of BiH is 61.9, however, it is below the regional but still above the world average, making Bosnia and Herzegovina a “moderately free” country.
In the analysis, it is stated that trade is the growth engine for BiH and that the private sector is one of the most heavily burdened, not only in BiH, but in the region, which prevents its growth and development.
Extremely decentralized government hampers political coordination and reforms while bureaucratic apparatus, lack of rule of law, and market fragmentation reduce the potential for foreign direct investments.
The public perception of corruption and misuse of public money motivated many to stay in the gray economy.
When it comes to the countries in the region, Croatia is on 86th place, Montenegro 92st, Serbia 69th, Slovenia 58th, Albania 52nd, Kosovo 51st and Macedonia 33rd place.
In 2018, index of economic freedom for Bosnia and Herzegovina was 61.4 score. Index of economic freedom of Bosnia and Herzegovina increased from 29.4 score in 1999 to 61.4 score in 2018 growing at an average annual rate of 4.67 %.
Economic freedom is the fundamental right of every human to control his or her own labor and property. In an economically free society, individuals are free to work, produce, consume, and invest in any way they please, with that freedom both protected by the state and unconstrained by the state. In economically free societies, governments allow labor, capital and goods to move freely, and refrain from coercion or constraint of liberty beyond the extent necessary to protect and maintain liberty itself.
