Lahore February 24, 2009: In a study released today in Pakistan by Alternate Solutions Institute, Pakistan’s first free market think tank, data shows that countries that protect physical and intellectual property rights enjoy nearly nine times higher GDP per capita than countries ranking lowest in property rights protections. The study, the 2009 International Property Rights Index (IPRI), compared the protections of physical and intellectual property to economic stability in 115 countries representing 96 per cent of the world’s GDP.

Well being of the poor linked to the protection of property rights – 3rd International Property Rights Index 2009

Pakistan ranks at 90 out of 115 countries; India at 46th; Bangladesh at the bottom

In Legal and Physical Environment, Bangladesh is ahead of Pakistan

In Gender Equality for property rights, Pakistan ranks 81 out of 90 countries

Lahore February 24, 2009: In a study released today in Pakistan by Alternate Solutions Institute, Pakistan’s first free market think tank, data shows that countries that protect physical and intellectual property rights enjoy nearly nine times higher GDP per capita than countries ranking lowest in property rights protections. The study, the 2009 International Property Rights Index (IPRI), compared the protections of physical and intellectual property to economic stability in 115 countries representing 96 per cent of the world’s GDP. Alternate Solutions Institute and 54 organizations from six continents as members of the Property Rights Alliance based in Washington, D.C. which through its Hernando de Soto Fellowship program prepares the Index, are releasing the IPRI 2009 today.

“It is protection of one’ property that incentives the creation of wealth, whereas in Pakistan in the absence of an efficient system of justice, not only the protection of property rights but protection of property itself continues to be a CHALLENGE for the government,” said Dr. Khalil Ahmad, Executive Director of the Institute.

This year Pakistan’s score on the scale of IPRI rose to 4.0 from last year’s 3.9 (out of 10), and its rank improved to 90 from 93 (out of 115 countries). But in “Legal and Political Environment” component that studies Judicial Independence, Rule of Law, Political Stability, and Control of Corruption, Pakistan performed badly. In this component, Pakistan’s score declined from 3.0 to 2.7. Though in other two components, Physical Property Rights and Intellectual Property Rights Pakistan has improved its position from 5.8 to 6.0 and 2.8 to 3.3 respectively, but as the authors of the Index too admit, “Pakistan has slightly improved the overall IPRI score and climbed up the ranking, however, for the greater improvement of the protection of the property rights, the legal and the political environment is a main contributory factor.”

In Gender Equality for property rights, Pakistan and Bangladesh are in close affinity: Pakistan is ranked at 81 out of 90 countries with a score of 4.9, and Bangladesh at 89 with a score of 5.0. In the same area, India is far ahead of Pakistan with a score of 6.6 and ranking at 49. In Intellectual Property Rights, India ranks at 49, Pakistan and Bangladesh lagging behind at 97 and 111 respectively. In Physical Property Rights, India is at 36, whereas Pakistan at 48 and Bangladesh at 115. Surprisingly, in Legal and Political Environment, Bangladesh is ahead of Pakistan with its ranking at 108, while Pakistan stands at 107th position. In the same area India is at 53.

This year too the top country is Finland with 8.6 score whereas the bottom country is Bangladesh with 2.5.

Hernando De Soto, whose seminal work on property rights led to the conception of the IPRI, said this year’s results “continue to point out the relationship between a strong property rights system and a country’s economic well-being, revealing that much still needs to be done to extend property rights to more people, especially the poor.”

The International Property Rights Index provides the public, researchers and policymakers, from across the globe, with a tool for comparative analysis and future research on global property rights. The Index seeks to assist underperforming countries to develop robust economies through an emphasis on sound property law.

Download the full report (PDF)

For more information, such as a country-by-country analysis, list of global partner organizations, or the report in its entirety, visit www.InternationalPropertyRightsIndex.org.

Khalil Ahmad
Executive Director