angladesh has improved its ranking in the 2024 Index of Economic Freedom by seven spots, reaching 116th place among 176 countries. It’s noted as the second most economically free nation in South Asia, trailing behind Bhutan. Despite maintaining the same economic freedom score of 54.4 as the previous year, Bangladesh’s climb is attributed to underperformance in other countries.
Economic freedom is defined as individual autonomy in acquiring and using economic goods and resources. Bangladesh ranks 25th out of 39 countries in the Asia-Pacific region, with its economy consistently labeled as “mostly unfree” since 2010.
The Heritage Foundation’s report indicates fragile foundations of economic freedom in Bangladesh, citing corruption, judicial inefficiency, weak governance, and government interference as major challenges. Labor laws enforcement, inflation, rising fuel prices, and underdeveloped financial sectors also hinder progress.
The index evaluates countries based on four policy areas: rule of law, government size, regulatory efficiency, and open markets, encompassing 12 specific categories. Singapore retains its position as the world’s most-free economy, while North Korea, Cuba, Venezuela, Sudan, and Zimbabwe remain the least economically free nations.
Bangladesh’s rank surpasses other South Asian nations, including India, Nepal, Pakistan, Sri Lanka, and the Maldives. Bhutan leads the region despite dropping in global rankings, followed by India, Nepal, and others, all categorized as “mostly unfree” economies. Maldives, Sri Lanka, and Pakistan are notably behind Bangladesh in the global ranking of economic freedom.
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