2015 Index of Economic Freedom

Chad

overall score45.9
world rank165
Rule of Law

Property Rights20.0

Freedom From Corruption19.0

Limited Government

Government Spending83.6

Fiscal Freedom46.2

Regulatory Efficiency

Business Freedom27.1

Labor Freedom47.7

Monetary Freedom75.6

Open Markets

Trade Freedom55.2

Investment Freedom45.0

Financial Freedom40.0

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Quick Facts
  • Population:
    • 11.0 million
  • GDP (PPP):
    • $28.0 billion
    • 3.6% growth
    • 6.0% 5-year compound annual growth
    • $2,539 per capita
  • Unemployment:
    • 8.6%
  • Inflation (CPI):
    • 0.2%
  • FDI Inflow:
    • $538.4 million
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Chad’s economic freedom score is 45.9, making its economy the 165th freest in the 2015 Index. Its overall score is 1.4 points better than last year, reflecting improvements in five of the 10 economic freedoms, particularly in policy areas related to regulatory efficiency such as monetary freedom, labor freedom, and business freedom. Chad is ranked 40th out of 46 countries in the Sub-Saharan Africa region, and its overall score is lower than the regional average.

Over the past five years, Chad’s economic freedom has advanced by 0.6 points, but with a trend that has seen it bounce between yearly score gains and losses. Score improvements have been modest and evenly spread among four of the 10 economic freedoms: freedom from corruption, business freedom, labor freedom, and monetary freedom. Price stability has improved the most.

Despite these modest improvements, the state continues to interfere heavily but ineffectively in the economy, and the quality of governance is low. Price controls continue to distort the markets for essential goods, and poor maintenance of the rule of law causes uncertainty, corruption, and lax enforcement of property rights. These factors gravely undermine the prospects for long-term economic development that could combat rampant poverty.

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Background

President Idriss Déby, who seized power in 1990, won a fourth term in 2011 in a highly dubious election. President Déby continues to face armed revolt by the opposition as well as charges of corruption. Security forces foiled coup plots in 2006, 2008, and 2013. Chad has sent troops to assist peacekeeping forces in Darfur, the Central African Republic, and the Democratic Republic of Congo to reduce cross-border violence and instability. Conflict in eastern Chad and unrest in Sudan’s Darfur region have created hundreds of thousands of refugees. In January 2014, Chad began a two-year rotation on the U.N. Security Council.

Rule of LawView Methodology

Property Rights 20.0 Create a Graph using this measurement

Freedom From Corruption 19.0 Create a Graph using this measurement

Although several high-profile officials were arrested on corruption charges in 2013, Chad remains one of the world’s most corrupt countries. The president’s inner circle continues to siphon off the nation’s oil wealth. The rule of law is weak, and most key officials in the constitutionally independent judiciary are named by the president. Protection of private property is inadequate, and fraud is common in property transactions.

Limited GovernmentView Methodology

Chad’s top individual income tax rate is the world’s highest: 60 percent. Its top corporate tax rate is 45 percent. Other taxes include a value-added tax and a property tax. Lax enforcement results in an overall tax burden of just 5.1 percent of domestic income. Government expenditures equal 23.4 percent of gross domestic product, and public debt equals 30 percent of the domestic economy.

Regulatory EfficiencyView Methodology

Burdensome regulations continue to hinder private-sector development. The regulatory system lacks transparency and clarity, and regulations are enforced inconsistently. The formal labor market is underdeveloped. Inflation has fallen, but the state continues to subsidize state-owned enterprises such as an oil refinery, a tractor assembly plant, and electricity, water, and cotton companies.

Open MarketsView Methodology

Chad’s average tariff rate is 14.9 percent. Chad is a member of the Central African Economic and Monetary Community. Exports may be subject to taxation, and state-owned enterprises operate in several sectors of the economy. The high cost of credit and scarce access to financing hold back private-sector development. A large part of the population remains outside of the formal banking sector.

Country's Score Over Time

Bar Graph of Chad Economic Freedom Scores Over a Time Period

Country Comparisons

Bar Graphs comparing Chad to other economic country groups Download Charts

Regional Ranking

rank country overall change
1Mauritius76.4-0.1
2Botswana69.8-2.2
3Cabo Verde66.40.3
4Rwanda64.80.1
5Ghana63-1.2
6South Africa62.60.1
7Madagascar61.70.0
8Swaziland59.9-1.3
9Uganda59.7-0.2
10Namibia59.60.2
11Benin58.81.7
12Zambia58.7-1.7
13Burkina Faso58.6-0.3
14Côte d'Ivoire 58.50.8
15Gabon58.30.5
16Senegal57.82.4
17Tanzania57.5-0.3
18Djibouti57.51.6
19The Gambia57.5-2.0
20Seychelles57.51.3
21Mali56.40.9
22Nigeria55.61.3
23Kenya55.6-1.5
24Mozambique 54.8-0.2
25Malawi54.8-0.6
26Niger54.6-0.5
27Burundi53.72.3
28Mauritania53.30.1
29São Tomé and Príncipe 53.34.5
30Togo533.1
31Liberia52.70.3
32Comoros52.10.7
33Guinea52.1-1.4
34Guinea-Bissau520.7
35Cameroon51.9-0.7
36Sierra Leone51.71.2
37Ethiopia51.51.5
38Lesotho49.60.1
39Angola47.90.2
40Chad45.91.4
41Central African Republic45.9-0.8
42Democratic Republic of Congo454.4
43Republic of Congo 42.7-1.0
44Equatorial Guinea40.4-4.0
45Eritrea38.90.4
46Zimbabwe37.62.1
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