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How Do We Measure Economic Freedom?See page 455 for an explanation of the methodology

or visit theIndexWeb site at heritage.org/index.2010 data unless otherwise noted.Data compiled as of September 2011.

Quick Facts

Ppulti: 22.0 million

GDP (PPP): $37.0 billion

2.6% growth in 2010

5-year compound annual growth 2.2%

$1,681 per capita

Uemplymet: n/a

Ifti (CPI): 1.4%FDI Ifw: $417.9 million

Public Debt: 66.8% of GDP

Economic Freedom Score

Least Mostfree free

50

25 75

0 100

0 20 40 60 80 100

Country Comparisons

Freedom Trend

Country

WorldAverage

RegionalAverage

FreeEconomies

2008 2009 2010 20122011

52

53

54

55

56

57

54.3

59.5

53.7

84.7

54.3

Cte dIvoires economic freedom score is 54.3, making its

economy the 126th freest in the 2012 Index. Its score is 1.1

points lower than last year, reflecting a significant decline in

property rights. Cte dIvoire is ranked 24th out of 46 coun-

tries in the Sub-Saharan Africa region, and its overall score is

slightly above the regional average.

Cte dIvoire has demonstrated little progress in strength-ening the four pillars of economic freedom, despite some

efforts to improve macroeconomic stability and growth

potential. Measures aimed at strengthening management of

public finances and reforming outmoded government eco-

nomic structures have the potential, if implemented deter-

minedly, to foster a more dynamic private sector. Although

overall progress in public-sector reform has been slow, the

government has maintained its policy of divesting state-

owned enterprises.

Social and political instability continue to prevent meaning-ful progress in economic development, and conditions have

deteriorated over the past year. The overall business climate

remains unfavorable for long-term private investment and

productivity growth. Property rights are severely undercut

by a weak judiciary, and corruption is debilitating.

BaCkGroUnD: In 2002, civil war split Cte dIvoire between

a rebel-controlled North and a government-controlled South.

Despite the 2007 Ouagadougou Accord and the presence of

U.N. peacekeepers, the country remains in crisis. President

Laurent Gbagbo was ousted in April 2011 by French-backed

rebels and detained in the North for trial. Cte dIvoire is the

worlds leading producer of cocoa. The agricultural sector

employs over 60 percent of the population and accounts for

about 25 percent of GDP. Much economic activity, including

regional trade, has moved to the informal sector, and most

businesses are operating at far below capacity. Cte dIvoires

announcement in July 2011 that it would not pay interest to

its bondholders was a serious setback for the financial and

banking sectors.

World Rank:126 Regional Rank:24

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The rule of law has been weakened since the nation descended into war early in 2011. Protec-tion of property rights is fragile. The judiciary is constitutionally independent but remainsinefficient and vulnerable to political interference. Laws to combat corruption are not enforcedeffectively. Government corruption affects judicial proceedings, as well as customs and taxenforcement, and erodes accountability within the security forces.

Despite the recognized need for business law reforms, action has been marginal. Starting abusiness takes more than the world averages of seven procedures and 30 days, as well as mini-mum capital equal to twice the level of annual average income. With development of a modernlabor market lagging, the informal sector is a growing source of employment. Inflation has beenmodest, but the government regulates the prices of many goods and services.

The trade weighted average tariff rate is 7.3 percent, and non-tariff barriers further limit tradefreedom. The investment regime is almost irrelevant in light of ongoing political and socialinstability. Despite some modernization and restructuring before the 2011 crisis, the bankingsector lacks the capacity to support a more vibrant private sector. The government has sold itsshares in smaller banks but maintains holdings in several larger institutions.

The top income tax rate is 36 percent, and the top corporate tax rate is 25 percent. Other taxesinclude a value-added tax (VAT) and a tax on interest, and the overall tax burden is equal to16.5 percent of total domestic income. Government spending is equivalent to 21.1 percent oftotal domestic output, with deficits widening to 2.3 percent of GDP and public debt hoveringaround 67 percent of GDP.

Property Rights

Freedom fromCorruption

Fiscal Freedom

GovernmentSpending

Business Freedom

Labor Freedom

Monetary Freedom

Trade Freedom

Investment Freedom

Financial Freedom

Score Changes

Business Freedom

Labor Freedom

Monetary Freedom

REGULATORY

EFFICIENCY

OPEN

MARKETS

Trade Freedom

Investment Freedom

Financial Freedom

LIMITED

GOVERNMENT

Fiscal Freedom

Government Spending

RULE OF LAW Property Rights

Freedom from Corruption

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

0 20 40 60 80 100

Country World Average Rank

RULE OF LAWLIMITED

GOVERNMENT

REGULATORY

EFFICIENCY

OPEN MARKETS

10.0

+1.0

0.4

1.8

0.6

+0.4

+1.5

1.9

0

0

143rd

148th

91st

26th

157th

111th

24th

122nd

123rd

72nd

20.0

22.0

78.1

86.6

42.7

56.1

81.7

70.3

35.0

50.0

THE TEN ECONOMIC FREEDOMS

CTE DIVOIRE(continued)