Bangladesh goes up nine rungs in economic freedom index

Bangladesh ranked 128th out of 186 economies in an annual index of economic freedom -- ahead of South Asian neighbours India and Pakistan.

In 2016, Bangladesh came in at No. 137 in the Index of Economic, a flagship publication of Heritage Foundation, an American conservative political think-tank, and The Wall Street Journal.

The index, which is now in its 23rd year, is based on the premise that enhanced economic liberty and individual opportunity are the surest path to greater prosperity.

It is intended to be a guiding principle for policymakers as they shape the laws of society.

Countries are graded and ranked on 12 measures of economic freedom that evaluate the rule of law, government size, regulatory efficiency and the openness of markets. Although Bangladesh performed better than India (143) and Pakistan (141) in the 2017 index, it lagged behind Sri Lanka (112), Bhutan (107) and Nepal (125). 

In fact, all the South Asian economies were put in the category of “mostly unfree” nations.

“The fragile rule of law continues to undermine economic development in Bangladesh,” the report said.

The Washington DC-based think-tank came down hard on the country's property laws, which it termed antiquated. The report said the procedures for contract enforcement and dispute settlement are inefficient.

Despite some streamlining of business regulations, entrepreneurial activity is hampered by an uncertain regulatory environment and the absence of effective institutional support for private sector development, it said.

The think-tank said the government's ownership and interference in the financial sector remain considerable, undermining efficiency and growth.

However, the think-tank commended the country's economic growth over the last decade in the face of political turmoil.

“A decade of fairly rapid economic growth has contributed to progress against persistent poverty,” it added.

Hong Kong, Singapore and New Zealand took up the top three spots in this year's index.