Property Rights should be stronger in densely populated countries.
Jul 29, 2020
World Population Day, observed on July 11 every year, follows more an ideological and leftist agenda that views humans as a scourge rather than focusing on the relation between economic development and population. In fact, this day is a great opportunity to turn world’s attention to the demand for the protection of citizens and its property rights. World Population day should also promote new and useful ideas and knowledge (intellectual property rights) that are of decisive importance for economic growth. A greater spectrum of rights protection will promote innovation and creativity, which in turn generates jobs and improves competitiveness
The International Property Rights Index (IPRI) is the world’s only index dedicated to the measurement of intellectual and physical property rights. It is a tool scoring the underlining institutions of a strong property rights regime. Covering 129 countries the 2019 IPRI reports on the property rights systems affecting 98 percent of world Gross Domestic Product. The 2019 sample of 129 countries has a population of 6.93 billion people – representing 93.83% of world population. The index shows that the 71.17% sample population live in 74 countries with an IPRI between 4.5 and 6.4. It is interesting that almost half of the sample population (48.36%) live in 30 countries with a middle range of this index: [5.5-6.4]. According to professor Sary Levy, Hernando De Soto fellow and economist: “The aim is to foster property rights system in densely populated countries, because what we want it’s the promotion of citizens’ rights”.
Prosperity and property rights are inherently linked. Over the course of history, the implementation of property rights formalization has increased human prosperity and social security. These rights are embraced by all sectors of industry. Peace cannot be fully achieved if land and property rights are not well addressed, potentially triggering a second round of conflict. Property regime is a general concept supporting several possible combinations of rights.
On the two extremes of the sample the 14.19% enjoy higher levels of property rights protection in 33 countries [6.5-9.4]; and 14.64% of the sample population live in 22 countries with lower levels of property rights [2.5-4.4].
Property rights and efficient land registration give confidence to individuals and businesses to invest in land. Unfortunately, a mere 30% of the global population has legally registered rights to their land and homes. Property rights guarantees freedom. The right and freedom to property allows personal freedom and provides an incentive allowing people to live and work for a purpose.
According to Hernando de Soto “Without an integrated formal property system, a modern market economy is inconceivable”. Property’s real breakthrough is that it radically improved the flow of communications about assets and their potential.”
Photo credits: San Fermin Pamplona