2007 International Property Rights Index (IPRI)

Scott A. LaGanga, PRA Executive DirectorScott A. LaGanga, PRA Executive Director

Study conducted by Alexandra Horst, 2006 Hernando de Soto FellowStudy conducted by Alexandra Horst, 2006 Hernando de Soto Fellow

A Project of the Hernando de Soto Fellowship Program A Project of the Hernando de Soto Fellowship Program at the Property Rights Alliance (PRA)at the Property Rights Alliance (PRA)

www.propertyrightsalliance.org

PRA Hernando de Soto Fellowship“And what we have to do is make sure that it works for the majority, which it's not. What we see in the West, which is the reason why it works, is that capitalism is essentially all about property rights, rights that can be transacted in a market to further the distribution of work, the division of labor. And what occurs in at least 80% to 85% of a population of the third world and former communist nations is that that part of the population has assets. They do have assets, as a matter of fact, trillions of dollars, but they're not paper rights in a property rights system, so their value cannot travel and actually insert itself into a diversified market.”

-Hernando de Soto, Online Newshour, October 17, 2000.

Objectives for the 2007 IPRI• To develop a measure that categorizes countries according to their protection of private property rights

• To generate a measure that integrates both physical AND intellectual property rights

• To fully integrate an annual global ranking for usage by our partners in the United States and around the world

Our Intention• Allows us to comparatively rank countries on their

physical and intellectual property rights systems

Provides the basis for future studies that analyze countries according to their property rights’ strengths and weaknesses

Will assist countries in identifying flaws in their existing property rights policies and legal structure

Other International Indices: The Brick Layers

• Heritage/Wall Street Journal Index of Economic Freedom

• Fraser Institute Economic Freedom of the World Report

The IPRI Distinction

• IPRI emphasizes the inter-related role of physical AND intellectual property rights in the global community

• Combines the knowledge of existing indices/data sets

• Works collaboratively with thirty-eight global partners on six continents

2007 IPRI Partners

StructureThree Pillars:

1. Legal and Political Environment (LP)

2. Physical Property Rights (PPR)

3. Intellectual Property Rights (IPR)

• Judicial Independence

• Confidence in Courts

• Political Stability

• Corruption

1. Legal and Political Environment (LP)

2. Physical Property Rights (PPR)

• Protection of PR

• Registering Property

• Access to Loans

3. Intellectual Property Rights (IPR)

• Protection of IPR

• Patent Strength

• Copyright Piracy

• Trademark Protection

2007 International Property Rights Index

Results

Seventy Countries Representing Ninety-Five Percent of world GDP

North America: 3North America: 3

South America: 17South America: 17

Africa: 7Africa: 7

Middle East/North Middle East/North Africa: 4Africa: 4

Central/Eastern Central/Eastern Europe: Europe: 77

Western Western Europe: 16Europe: 16

Asia: 12Asia: 12

Oceania: 2Oceania: 2

Russia/Ukraine: 2Russia/Ukraine: 2

Countries By Quartile Ranking

 

Quartile Rankings 

Top Five and Bottom Five

Strongest  IPRI LP PPR IPR

          

Norway New Zealand Norway Germany

Netherlands Switzerland Sweden Finland

Denmark Norway Netherlands Austria

Sweden Denmark United Kingdom Australia

New Zealand Sweden Finland United Kingdom

Venezuela Ecuador Egypt Bangladesh

Nicaragua Pakistan Bolivia Paraguay

Ethiopia Russia Poland Guatemala

Bolivia Venezuela Nicaragua Ethiopia

 weakest Bangladesh Bangladesh Bangladesh Bolivia

IPRI Average by Region

IPRI per region

0

1

2

3

4

5

6

7

8

North America Latin America Africa MiddleEast/Northern

Africa

WesternEurope

CEE andRussia

Asia/Oceania

IPIR

ran

k

IPRI and GDP per capita

IPRI and GDP p.c.

0

10000

20000

30000

40000

50000

0.0 2.0 4.0 6.0 8.0 10.0

IPRI rank

GD

P p

.c.

Average GDP p.c. per Quartile

Quartile av. GDP p.c.

Top 25 percent $32,994

2nd Quartile $15,679

3rd Quartile $7,665

Bottom 25 percent $4,294

Variable TrendsIPRI and GDP p.c.

0

10000

20000

30000

40000

50000

0.0 2.0 4.0 6.0 8.0 10.0IPRI rank

GD

P p

.c. (

PP

P in

$))

Africa Asia/Oceania CEE and Russia Western Europe Latin America Middle East/Northern AfricaNorth America

Physical Property Rights and GDP p.c.

0

10000

20000

30000

40000

50000

0.0 2.0 4.0 6.0 8.0 10.0PPR rank

GD

P p

.c. (

PP

P in

$))

Africa Asia/Oceania CEE and RussiaWestern Europe Latin America Middle East/Northern AfricaNorth America

Intellectual Property Rights and GDP p.c.

0

10000

20000

30000

40000

50000

0.0 2.0 4.0 6.0 8.0 10.0IPR rank

GD

P p

.c.

(PP

P i

n $

)

Africa Asia/Oceania CEE and RussiaWestern Europe Latin America Middle East/Northern AfricaNorth America

Legal and Political Environment and GDP p.c.

0

10000

20000

30000

40000

50000

0.0 2.0 4.0 6.0 8.0 10.0LP rank

GD

P p

.c. (

PP

P in

$))

Africa Asia/Oceania CEE and RussiaWestern Europe Latin America Middle East/Northern AfricaNorth America

Key Findings

• As expected, industrialized nations have stronger IPRI results

• Countries utilized in the IPR Index represent 95% of world GDP

• Positive relationship between property rights strength and GDP per capita

• Citizens of countries in the top quartile in the IPRI ranking enjoy a per capita income seven times that of their counterparts in the bottom quartile.

2007 IPRI Report

• IPRI Report will be universally released around the globe in the beginning of March 2007

• PRA will also present the IPRI with a consideration for gender equality

• PRA has already partnered with a global team of over 35 think

tanks and business organizations to disseminate the study

• The IPRI, in its entirety, will be available on the IPRI website (www.InternationalPropertyRightsIndex.org) in March 2007

Future Plans for IPRI

• Each year forward, the Hernando de Soto Fellow will be updating and expanding the International Property Rights Index (IPRI)

• PRA will begin partnering with our allies in the global community to distribute and market the Index each year.

• Individual country case studies will be developed to further examine private property rights and its effects on the IPR Index

For More Information:

• Scott A. LaGanga

Property Rights Alliance Executive Director

slaganga@propertyrightsalliance.org+1.202.390.6978

www.InternationalPropertyRightsIndex.org

Thank you for your Attention

www.InternationalPropertyRightsIndex.org