Cuba, North Korea, and Venezuela at the bottom

1) North Korea remains an unreformed and closed state as Kim Jong-un maintains a despotic regime that resists economic reform.

The government has experimented with a few market reforms but mainly administers a system of centralized planning and state control of the economy.

The impoverished population is heavily dependent on food rations and government housing subsidies.

2) Venezuela’s economy has been stifled by blatant disregard for both the rule of law and the principle of limited government.

The private sector has been severely marginalized by institutional impediments related to government encroachment into the marketplace. The judicial system has become more vulnerable to political interference, and corruption is prevalent.

3) Cuba’s potential entrepreneurs have long been shackled by tight government control and institutional shortcomings.

No courts are free of political interference, and private property is strictly regulated.

Excessive bureaucracy and lack of regulatory transparency continue to limit trade and investment.