For a country to form a climate beneficial to economic success and freedom within, property rights are critical. As such, the developed countries throughout the entire world have established the importance of property rights and guarantee their security. What this means is that those at the top of the list of scores for solid property rights protection are Western countries. On the other hand, those countries that have fragile property rights also find it hard to develop strong and inventive economic markets.
Today, African and Middle Eastern countries are the ones who struggle the most in acquiring property rights, which affects a population of about 1.4 billion. These countries which represent a massive portion of the world’s population, is hopeful that the following index, case studies and statistical connections will offer them a way towards the improvement of their property rights together with personal and economic openings.
THE IMPORTANCE OF INTERNATIONAL PROPERTIES RIGHT INDEX
Since its birth, the International Properties Right Index or IPRI has demonstrated the influence of property rights on economics. In a 2015 index research done by the Hernando De Soto Fellow, Sary Levy Carciente, paved way to adding four additional countries; Bosnia and Herzgovina, Ecuador, Liberia and Benin. Together with the countries that were included in the past issues, the 2016 IPRI covers a much comprehensive breakdowns and understandings of 128 countries.
Four countries may have been added, but there were a few countries that were no longer able to offer the required information to be explored and involved in the index. The IPRI has the capabilities to showcase a country’s inadequacies in order to build an air of sovereignty and success.
The index is on its way to a full decade since its inception, constant trends and data demonstrate the structure of the index is suitable and legitimate. Countries can observe their growth and monitor their progress. Also, additional years of data will provide those observers with more figures to advert the trends and ways of states in constantly providing property rights.
INTERNATIONAL PROPERTY RIGHTS INDEX’S COMPONENTS
The Legal and Political Environment, Intellectual Property Rights, and Physical Property Rights are the three chief mechanisms of a comprehensive property rights that the index measures. These three components that comprise the International Property Rights Index is additionally subdivided into subcomponents. The Physical Property Rights has three subcomponents namely the Protection of Physical Property Rights, the Ease of Success of Loans and the Registration of Property. The Intellectual Property Rights also comprises of three subcomponents; they are the Protection of Intellectual Property Rights, Copyright Protection and Patent Protection. The last one, the Legal and Political Environment comes with four subcomponents which are the Rule of Law, the Judicial Independence, the Control of Corruption and the Political Stability.
THE GOOD NEWS
Throughout the world, creativity and revolution flourish the markets; the latest globalized economy entails property rights. The study provides good news as the general average score of the included countries in the index has increased by at least .1 over the past year while each of the individual components had an increase. This positive news of increase on property security is welcoming. Moreover, the index will be vital to countries around the world to work towards the improvement of their protections and therefore permitting an affluent and sovereign country.
Allen Fortier is an author of this article and expert in stock trading and norske nettcasinoer forecasting.