MONGOLIA'S BUSINESS FREEDOM INDEX RISES

Ulaanbaatar /MONTSAME/ Mongolia's economic freedom score is 61.7, making its economy the 75th freest in the 2013 Index, the www.heritage.org website published Sunday. Its overall score is 0.2 point higher than last year, with a large improvement in regulatory efficiency outweighing a decline in the management of public finance. Mongolia is ranked 12th out of 41 countries in the Asia-Pacific region, and its overall score is above the regional average. Mongolia has gradually moved toward a more modern and vibrant economy, with double-digit economic growth driven by the booming mining sector. The trade regime is increasingly open, and the regulatory framework has become more efficient, supporting the development of a growing private sector. The Fiscal Sustainability Law, which places ceilings on spending growth, structural budget deficits, and public debt in an effort to ensure fiscal discipline and long-term economic growth, is expected to take effect in phases beginning in 2013. Despite notable strides made over the past decade, the momentum for swift structural reform has largely stalled. Prospects for enhancing economic freedom remain curtailed by a lack of institutional commitment to the strong protection of property rights and ineffectiveness in fighting systemic corruption. The judicial framework remains vulnerable to political interference, undermining respect for the rule of law. The world average score is 59.6; the Asian regional average is 57.4. Mongolia ranked seven places below Kazakhstan but above Slovenia, Ghana, Croatia and Uganda. For the 19th consecutive year, Hong Kong was ranked #1 globally (89.3 points), followed by #2 Singapore, #3 Australia and #4 New Zealand. North Korea ranked last, #177 of 177 with a point score of 1.5. By way of comparison to Mongolia at #75, Russia ranked #139, China #136, India #119, South Korea #34, Japan #24, USA #10, and Canada #6. Launched in 1995, the Index evaluates countries in four broad areas of economic freedom: rule of law; regulatory efficiency; limited government; and open markets. Based on its aggregate score, each of the 177 countries graded was classified as “free” (i.e. combined scores of 80 or higher); “mostly free” (70-79.9); “moderately free” (60-69.9); “mostly unfree” (50-59.9); or “repressed” (under 50). The world average score of 59.6 was only one-tenth of a point above the 2012 average. Since reaching a peak in 2008, the Index editors noted, global economic freedom has continued to stagnate. The overall trend for last year, however, was positive: Among the 177 countries ranked in the 2013 Index, scores improved for 91 countries - including Mongolia - and declined for 78. B.Khuder