Tajikistan has shown improvement in its economic freedom index, with a 0.7 point increase, now scoring 51.3 points and ranking 137th out of 184 countries worldwide. Despite this progress, Tajikistan's economy remains "mostly unfree."
In the Central Asia region, Kazakhstan leads with 62.1 points, being the only country categorized as "moderately free." Uzbekistan (55.9) and Kyrgyzstan (55.2) also have "mostly unfree" economies, while Turkmenistan's index of 46.3 places it among the "repressed" countries.
Tajikistan ranks third in property rights within the region, after Kazakhstan and Uzbekistan, highlighting the importance of property rights for capital accumulation. However, the country struggles with low judicial effectiveness, scoring 17.7 points, with Turkmenistan at the bottom with 8.1 points.
Corruption remains a significant issue in Tajikistan, affecting businesses' ability to operate without bribery and nepotism. The more a state regulates economic activities, the higher the risk of corruption among officials.
Kazakhstan leads in freedom from corruption with a score of 34.4, while other Central Asian countries face challenges: Uzbekistan and Kyrgyzstan at 13.0, Tajikistan at 11.7, and Turkmenistan at 9.7.
High tax burdens negatively impact economic development by reducing entrepreneurs' motivation to work. Tajikistan and Kyrgyzstan both face a tax burden of around 92.0 and 95, respectively.
Business freedom reflects the ease of starting and operating a business with minimal government intervention. Kazakhstan and Tajikistan scored 64.6 and 56.8, respectively, showing improvements over previous years.
Uzbekistan excels in trade and investment freedom, surpassing Tajikistan significantly. The annual research is conducted by the Wall Street Journal and the Heritage Foundation, highlighting Tajikistan's lag in economic development compared to other developing countries.
