Libek: Small progress of Serbia on economic freedoms list

The Economic Freedom in the World Index is published by the Fraser Institute of Canada and measures the level to which property is protected and how much individuals are involved in voluntary transactions.

"As in previous editions of the Economic Freedoms Index, Serbia is poorly evaluated in the area of the rule of law, which is the cornerstone of a market economy", Lubec said in a statement.

It added that in such economic environment, "there are no adequate mechanisms for the protection of private property, which directly leads to low levels of domestic investment, low rates of economic growth, low living standards and high emigration rates are the consequences of this environment."

Hong Kong and Singapore are at the top of this year's Index, followed by New Zealand, Switzerland, Australia, the United States, Mauritius, Georgia, Canada and Ireland.

The worst-ranked countries are Venezuela, Sudan, Libya, Angola, Iran, Algeria, Congo, Zimbabwe, DR Congo and the Central African Republic.

Serbia's neighbouring countries are ranked as follows: Romania as 23rd, Bulgaria 32nd, Croatia 61st, Slovenia 62nd, Northern Macedonia 71st, Montenegro 80th and Bosnia and Herzegovina 82nd.

Belgarde's total score on the Economic Freedoms Index list is 7.05, slightly lower than the world average.

"Serbia's poor result is still in the area of business regulation - in addition to the very nature of regulation which in some cases restricts competition and creates rent for interest groups close to the government. A big problem is the implementation of the law… A major problem is the unequal treatment of different economic players by the law due to corruption or political pressure," the statement said.

It adds that the public sector is still oversized compared to the private sector.

"Besides it's costly, the public sector is also very inefficient compared to European countries. Due to the high rate of corruption, public companies are seen as party booty and not as a service to citizens. At the same time, the state administration is weak due to party interests in employment," Libek said.

It added that even in areas where Serbia was relatively highly ranked, such as freedom in international trade, many problems remained and harmed the level of freedoms.

"Serbia is still not a member of the World Trade Organization (as the only European country along with Bosnia and Herzegovina and Belarus), while regulations concerning technical standards are not yet fully in line with European rules, and the customs administration uses outdated technical solutions in slow procedures," Libek statement said.

It added that "Serbia is still a country where inefficient state-owned companies are big employers, subsidies are almost three times higher than in other countries in transition, and total public spending is not only high but also inefficient. Free trade, although proclaimed in principle, is practically hampered by bad regulations, and business regulation stifles entrepreneurial initiative by imposing high administrative costs."