Slovenia

	Score	Rank
Financial Standards Index	60.83 out of 100	13
Business Indicator Index	9.73 out of 12	39

Business Indicators Summary

With an overall score of 9.73/12, Slovenia is at standard on the economic, legal, and political indicators that make up our Business Index. Slovenia has a market-based, mixed economy, in which total government expenditure, including consumption and transfer payments, is high. Slovenia welcomes foreign investment and provides tax incentives for job creation, advanced technology, and research and development investments. Foreign investors are provided with national treatment. The law guarantees protection of private property, but enforcement is weak. There are good intellectual property-rights protection laws. Corruption is of no concern, as reflected in Slovenia's ranking of 26th out of 180 countries in Transparency International's 2008 Corruption Perceptions Index.

Business Indicators

Economic Model
Forex Regulations
- Capital Controls
- Exchange Controls
Foreign Investment Law
Trade Regulation
Tax Regime
Tax Rates
Bankruptcy Indicators
International Dispute Settlement
Political Environment
Political Stability
Corruption
Adherence to global labor standards

Economic ModelMarket-based mixed economy

The 2008 Economic Freedom of the World (EFW) Annual Report compiled by J. Gwartney, et al. assigns to Slovenia a score of 0.0 for the factor "Government Enterprises and Investment" as a percentage of total investment. For the EFW ratings, the range is from 0 to 10, with a higher value signifying greater economic freedom. A rating of zero is assigned when the economy is dominated by state-owned enterprises (SOEs) and government investment exceeds 50% of total investment. The Heritage Foundation's 2009 Index of Economic Freedom indicates that Slovenia has high total government expenditures (including consumption and transfer payments), equaling 45.3% of GDP. It is noted that privatization efforts have slowed.

The U.S. Department of State asserts that since Slovenia gained independence in 1991, the country diversified its trade toward the West and pursued integration into Western and transatlantic institutions. This has contributed to substantial progress in its transition to a market economy. The report also cautions that "the current government's ability to follow through on pledges to accelerate privatization of a number of large state holdings and increase FDI will be key to Slovenia's economic future." Promising in this context was that in late 2005, the government's Committee for Economic Reforms was elevated to cabinet-level status with a program including plans for "lowering the tax burden, privatizing state-controlled firms, improving the flexibility of the labor market, and increasing the government's efficiency."

Sources

U.S. Department of State, "Background Note: Slovenia," August 2008. Available from U.S. Department of State website. Accessed on January 28, 2009. (U.S. DoS 2008)
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Heritage Foundation, "2009 Index of Economic Freedom," 2009. Available from Heritage Foundation website. Accessed on January 28, 2009. (Heritage 2009)
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Gwartney, J., et al., "Economic Freedom of the World: 2008 Annual Report," 2008. Available from Frazer Institute website. Accessed on January 23, 2009. (Gwartney et. al 2008)
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