The 2007 Index of Economic Freedom, jointly published by the Heritage Foundation and The Wall Street Journal, was released this month. Hong Kong and Singapore are the world's two economically freest countries with scores of 89 and 86 percent free respectively. At the bottom of the pile are North Korea and Cuba with freedom scores of 3 percent and 30 percent respectively.
According to the index, Cameroon’s economy is 54.4 percent free, making it the world’s 117th freest economy. Cameroon is also ranked 22nd out of 40 countries in sub-Saharan Africa:
Cameroon scores well in freedom from government and somewhat well in fiscal freedom. Both the top income tax rate and the top corporate tax rate are 38.5 percent, but total tax revenue is relatively small as a percentage of GDP. Government expenditures are also relatively low. Economic development has been spurred by privatization, which needs to proceed more extensively. Cameroon faces problems similar to those faced by other developing African nations. Because corruption is extensive and the rule of law is weak, neither property rights nor justice in the courts can be guaranteed. Employment regulations are costly and restrictive, and firing a worker is difficult. Business licenses are difficult to obtain. Foreign investment remains heavily restricted, although the government has promised reforms.
The annual Index of Economic Freedom - which is on its 13th edition - examines 10 economic characteristics of 157 countries. These characteristics include labor freedom, property rights, government corruption, freedom from Government, investment and trade freedom. The annual rankings are based on these characteristics.
Click here to read the complete Cameroon country report (Click here for PDF version).
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