The 2017 Index of Economic Freedom, which is developed by the Heritage Foundation in partnership with The Wall Street Journal, ranks Tajikistan 109th among 180 countries of the world.

The Heritage Foundation has been tracking and ranking trade freedom around the world since 1995.   The index categorizes countries in five groups: free; mostly free; moderately free; mostly unfree; and repressed.

According to the editors of the 2017 Index of Economic Freedom, released on February 15, the world economy is “moderately free,” with another rise in economic liberty leading to a fifth annual global increase.  

The world average score of 60.9 is the highest recorded in the 23-year history of the Index.  Forty-nine countries, the majority of which are developing countries, but also including countries like Norway and Sweden, achieved their highest-ever Index scores.  Among the 180 countries ranked, scores improved for 103 countries and declined for 73 (16 of which recorded their lowest Index scores ever).  Since the inception of the Index in 1995, average scores have increased by over 5 percent.

Five economies earned the Index’s designation of “free” (scores of 80 or above), while the next 87 are classified as “mostly free” (70-79.9) or “moderately free” (60-69.9). Yet the number of economically “unfree” economies remains high: 65 are considered “mostly unfree” (50-59.9) and 23 are “repressed” (scores below 50).

Tajikistan ranks in the second last category (mostly unfree) alongside Belarus, 104th; Moldova, 110th; Russia, 114th; and Uzbekistan, 148th.  

Meanwhile, Kazakhstan (42nd), Azerbaijan (68th) and Kyrgyzstan (89th) rank in the “moderately free” category.

Ukraine (166th) and Turkmenistan (170th) were listed among countries with “repressed” economies.   

Only five post-Soviet countries were listed among “mostly free” countries: Estonia, 6th; Georgia, 13th; Lithuania, 16th; Latvia, 20th; and Armenia, 33rd.  

Hong Kong and Singapore each logged increases in their Index scores, finishing first and second in the rankings for the 23rd consecutive year. Five other frequent top 10 finishers -- New Zealand (3rd globally), Switzerland (4th) and Australia (5th) are also among the five top finishers classified as “free.”  

The report notes that Tajikistan’s many ongoing challenges include rebuilding infrastructure, improving the entrepreneurial environment, and attracting dynamic investment.  Progress on reforms to foster sounder macroeconomic management and improvement of the business climate has been only marginal.  The potential for growth is high, but government interference has left the economy vulnerable in a repressive political environment.

Despite some progress in privatizing small and medium-size public enterprises, private-sector development has been slow.  Remittances continue to be an important source of external financing. Foreign investment is deterred by burdensome bureaucratic regulations and inconsistent administration. Tajikistan remains one of the world’s most corrupt nations, according to the report. 

It is estimated that the illegal drug trade and remittances from migrant workers, primarily in Russia, account for over 45 percent of GDP, the report says, noting that Tajikistan has been negatively affected by the economic slowdown in Russia.