Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up...
Economic Freedom Property Rights and Economic Freedom In an economically free society, individuals are free to work, produce, consume, and invest in any way that they please; with that freedom they are both protected by the state and also unconstrained by the state. With a view to achieving that aim, some important analyses have been carried out by the International Property Rights Index (IPRI) to provide guidelines for taking future necessary steps in order to increase economic freedom and overall economic growth.
The International Property Rights Index 2012 (IPRI), was Except for Slovenia and Croatia, Macedonia had the best score published by the Property Rights Alliance in April. Sixty- in the field of intellectual property rights; it achieved a score of 4. nine international organizations partnered with the Washington, DC-based Property Rights Alliance and its Hernando de Soto Graph 1: Regional countries’ scores, by IPRI Fellowship program to produce the sixth annual IPRI. 6.4 7 6.3 5.7 5.4 5.7 Some of the great economic disparities between countries that 5.7 5.6 6 5.3 5.1 5.2 5.3 4.8 4.4 5 4.2 have strong property rights and those that do not, appear as a 4.3 4 4.1 3.7 3.5 3.4 4 3.3 result of the International Property Rights Index. 3 2
For the first time this year Montenegro was included in the ranking, according to IPRI. It was awarded 72nd place. There are three measures that the IPRI utilizes in order to achieve its final score. The first one includes the legal and political environment, the second one relates to physical property rights, and the third concerns intellectual property rights.
1 0 Legal and Political
Physical Property Rights
Montenegro Bosnia And Herzegovina Albania
Intellectual Property Rights
Croatia Serbia
Slovenia Macedonia
Source: www.internationalpropertyrightsindex.org
The final overall IPRI score is the average of the total component The section regarding the legal and political environment scores, as shown in Graph 2 (legal and political environment, includes judicial independence (70th place), rule of law (68th physical property rights and intellectual property rights). place), control of corruption (61st place) and political stability According to the overall final score, Slovenia was placed highest (90th place); overall Montenegro was awarded 54th place out with a score of 5.9, followed by Croatia 5.3, Montenegro 5.1, of 130 ranked countries. The physical property rights section Macedonia 4.,7, Albania 4.4, Bosnia and Herzegovina 4.3 and includes the protection of physical property rights (59th place), Serbia 4.2. All of the figures were calculated according to the registering property (88th place) and access to loans (37th scale (0-10) which was used in the IPRI report for 2012. place); here Montenegro was ranked as 52nd out of 130 ranked countries. The section on intellectual property rights includes Graph 2: Overall score, by IPRI the protection of intellectual property rights (65th place), patent protection (0) and copyright piracy (60th place); in this section 4.4 Montenegro was ranked as 109th out of 130 ranked countries. 5.3 Albania
All of the rankings are observed from the perspective of global ranking. According to regional rank, Montenegro was placed 13th out of 24 countries. In comparison with other countries in the region, Montenegro was ahead of Macedonia (87th), Albania (102nd), Serbia (113rd) and Bosnia and Herzegovina (107th). However, Slovenia (49th) and Croatia (65th) were awarded higher positions. According to the IPRI`s report scale which ranges from 0 to 10, with 10 representing the strongest level of property rights protection and 0 reflecting a complete non-existence of secure property rights in a country, Slovenia was placed higher than Montenegro because it had better scores in the areas of legal and political environment and also in the field of intellectual property rights; Croatia had a much better score in the field of intellectual property rights, as is shown in Graph 1.
5.9 Overall score by country
Slovenia
4.7
Macedonia
4.3
Bosnia and Herzegovina
4.2
Serbia Montenegro
5.1 0
2
4
Croatia
6
Source: www.internationalpropertyrightsindex.org
The fact that Montenegro was placed 72nd indicates that it still has a substantial amount of work to do on improving its policy regarding property rights if its goal is to achieve economic growth and prosperity. It also needs to develop and intensify its activities in the area of intellectual property where it scored the lowest marks.
Montenegro’s results, as shown in the International Property Rights Index, provided the country with guidelines for taking Montenegro had the best score in the field of physical property future action and for carrying out research in areas of weakness. rights when compared with Serbia, Bosnia and Herzegovina, Acting on these results would help to improve economic Macedonia, Slovenia, Croatia and Albania; it achieved an overall development and growth in general; they would also ensure better result of 6.3 according to the official scale. Montenegro was ahead results in the future. The Center for Entrepreneurship and of Serbia, Bosnia and Herzegovina, Macedonia and Albania in the Economic Development is the partner of the Property Rights field of legal and political environment and obtained a score of 5.3. Alliance in Montenego.
4