The 2012 Index of Economic Freedom, which looks at a series of factors, including the rule of law, limited government, regulatory efficiency and open markets, ranked Dominica at number eight in the Caribbean and 80 the world.
The report said, “Dominica’s economic freedom score is 61.6, making its economy the 80th freest in the 2012 Index. Its overall score is 1.7 points lower than last year, with deteriorated ratings in seven of the 10 economic freedoms, including freedom from corruption, property rights, and investment freedom. Dominica is ranked 16th out of 29 countries in the South and Central America/Caribbean region, and its overall score is above the world average.”
The report continues, “Dominica’s record on institutional reforms has been uneven, and more vibrant economic growth is constrained by lingering structural weaknesses that continue to undercut some of the four pillars of economic freedom. The rule of law is not strongly supported by the judicial system, particularly because of growing corruption. Inefficient and high public spending has resulted in a considerable fiscal burden imposed on the population.
A series of pro-business reforms, including simplification of the business start-up process and reduction of the corporate tax rate, have led to increased regulatory efficiency. However, the pace of reform has slowed in recent years, and policies to open markets further have not been advanced.”