The Heritage Foundation's 2013 Index of Economic Freedom finds that Ukraine has not improved much over the last year, and ranks 161st in economic freedom among 177 nations surveyed. Corruption, lack of rule of law, stifling bureaucracy -- all endemic problems since Ukraine became an independent nation following the collapse of the Soviet Union in 1991 -- continued to weigh down the nation's economic health, according to the conservate think tank based in Washington, D.C.
Here’s what Heritage Foundation found:
“Ukraine’s economic freedom score is 46.3, making its economy the 161st freest in the 2013 Index. Its score is 0.2 point higher than last year, with modest gains in monetary freedom and business freedom that outweigh declines in labor freedom and freedom from corruption. Ukraine is ranked last out of 43 countries in the Europe region, and its overall score is lower than the world average.
“Economic freedom continues to be severely repressed in Ukraine. Previous reforms, including implementation of competitive tax rates and minor regulatory changes, have failed to spur broad-based economic development or the emergence of a more dynamic private sector.
“Such reforms are more than offset by poor policies and weak institutional structures throughout the economy. Corruption is pervasive, laws are poorly administered, and contract enforcement and protection of property rights are seriously deficient. Progress in privatization and attracting foreign investment has been meager. The primarily cash-based economy is plagued by a lack of sufficient capitalization in the state-controlled financial sector. The potential benefits of trade freedom are undermined by institutional controls on capital and investment.”
