Bangladesh surpasses India in Economic Freedom index

Bangladesh is the only country in South Asia that has seen an improvement in the Heritage Foundation's 2021 Index of Economic Freedom. The country has been placed at the second most economically free nation in the region_ only Bhutan is in front.

Bangladesh's score has increased in government integrity_ tax burden_ business freedom and labour freedom. The increase is mainly contributed by a significant improvement in the tax burden score_ which has been seen as a positive impact on the overall economic freedom of a nation.

According to the Heritage Foundation_ the tax burden includes both the direct tax burden in terms of the top tax rates on individual and corporate incomes_ and the overall amount of tax revenue as a percentage of Gross Domestic Product (GDP).

Bangladesh has made slow but steady progress towards a greater economic freedom over the past decade_ the Washington-based think tank said in its release.

India stands third_ while Nepal ranked the lowest in the region in the economic freedom index. Except Bangladesh_ all South Asian countries have seen their scores decline this year.

However_ globally_ Bangladesh's economy stands 120th in the index released last week_ scoring 56.5 in a scale of 100.

The score is although below the global average economic freedom threshold set in the index_ putting Bangladesh among 63 economies rated as "mostly unfree" along with its all regional neighbours.

Heritage Foundation evaluated a country's economic freedom in four broad policy areas: rule of law_ government size_ regulatory efficiency and open markets.

The index measures 12 specific components: property rights_ judicial effectiveness_ government integrity_ tax burden_ government spending_ fiscal health_ business freedom_ labor freedom_ monetary freedom_ trade freedom_ investment freedom and financial freedom.

Like Bangladesh_ other South Asian countries are suffering from similar problems  poor performance on rule of law and regulatory efficiency. There also exists institutional weakness among the nations and that is clearly reflected in the ranking_ he further added.

Of the 178 economies ranked in the 2021 Index of Economic Freedom_ five including Singapore_ New Zealand and Australia are considered "free_" while 33 including the United Kingdom_ the United States and South Korea are classified as "mostly free."

Spain_ Vietnam and Russia are among 59 economies classified as "moderately free."

On the other hand_ 81 economies received scores below 60 and are rated "mostly unfree" or "repressed".

The world's least economically free nation remains North Korea_ followed closely by Venezuela and Cuba.