Cambodia

Cambodia's economic freedom score is 56.6, making its economy the 106th freest in the 2009 Index. Its overall score is 0.8 point better than last year, primarily as a result of a much improved trade freedom score. Cambodia is ranked 21st out of 41 countries in the Asia–Pacific region, and its overall score is slightly lower than the regional average.

Cambodia has gradually moved toward a market-based economic system, experiencing solid economic growth in recent years. The country scores noticeably well in fiscal freedom and government size, and moderately well in monetary freedom. Low income and corporate tax rates contribute to a low overall tax burden, giving the country a high fiscal freedom score. Government spending is low, and with improved budget management, authorities aim to increase efficiency in the system and better allocate revenues.

Other institutional weaknesses still hold down Cambodia's overall economic freedom score, however. Business freedom, trade freedom, property rights, and freedom from corruption all receive notably low scores. The formal labor market is not fully developed, and its rigidity is partly responsible for the existence of an underground dual labor market. Pervasive corruption contributes to the high costs of entrepreneurial activity, and the weak rule of law in many areas makes it difficult to resolve commercial disputes.