A Letter From
Hernando de Soto
The past four years have seen an economic downturn across the globe. Because we are at risk of recession in many countries, better to say something like “to help move toward a stable recovery”, a reaffirmation of physical and intellectual property rights is key. That assertion of property rights is also now taking place. Thanks to Dr. Sary Levy-Carciente, Hernando de Soto, 2023 PRA
IPRI’s 2023 sample set represents 125 countries - 93% of the world population, and 98% of the world GDP.
The Average Per Capita Income disparity between IPRI’s top quintile and bottom quintile countries is 19x.
Finland leads in the IPRI (8.1), LP (8.8), and PPR (8.4) scores. The USA is leading in the world in terms of protection of IPR (8.6).
IPRI’s 2023 sample set represents 125 countries - 93% of the world population, and 98% of the world GDP.
The Average Per Capita Income disparity between IPRI’s top quintile and bottom quintile countries is 19x.
Finland leads in the IPRI (8.1), LP (8.8), and PPR (8.4) scores. The USA is leading in the world in terms of protection of IPR (8.6).
Correlations with the International Property Rights Index reveal crucial relationships between property rights and thriving societies.
The IPRI shows a very strong correlation with the Global Entrepreneurship Index (0.9) showing its crucial role in driving free enterprise.
The IPRI shows an outstanding correlation of 0.89 with the Network Readiness Index, 0.81 with the Global Innovation Index, and 0.8 with The World Energy Trilemma Index, insisting on the appropriateness and relevance of property rights systems for emerging societies.
The relevance of property rights and accountability is shown given the strongly negative correlation with the Atlas of Impunity (-0.87).
The IPRI shows a very strong correlation with the Global Entrepreneurship Index (0.9) showing its crucial role in driving free enterprise.
The IPRI shows an outstanding correlation of 0.89 with the Network Readiness Index, 0.81 with the Global Innovation Index, and 0.8 with The World Energy Trilemma Index, insisting on the appropriateness and relevance of property rights systems for emerging societies.
The relevance of property rights and accountability is shown given the strongly negative correlation with the Atlas of Impunity (-0.87).
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As an expert deeply entrenched in the realms of economic development, property rights, and global indices, I bring forth a wealth of knowledge to shed light on the significance of the letter from Hernando de Soto and the insights gleaned from the International Property Rights Index (IPRI) of 2023.
Firstly, it's imperative to recognize Hernando de Soto as a renowned economist and advocate for property rights. His influence on global economic policies, particularly in addressing economic downturns, is formidable. Now, let's delve into the evidence presented in the letter and the IPRI report:
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IPRI's Extensive Sample Set: The IPRI's 2023 sample set covers a staggering 125 countries, representing 93% of the world's population and a substantial 98% of the global GDP. This extensive coverage ensures a comprehensive understanding of the state of property rights on a global scale.
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Per Capita Income Disparity: A key highlight from the IPRI is the revelation that the average per capita income disparity between the top and bottom quintile countries is a staggering 19 times. This statistic underscores the economic inequality that exists globally, emphasizing the role of property rights in influencing economic outcomes.
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Leaders in IPRI Scores: Finland emerges as a leader in multiple categories with scores of 8.1, 8.8, and 8.4 in IPRI, LP (Legal and Political Environment), and PPR (Physical Property Rights) respectively. Meanwhile, the USA takes the lead in the protection of Intellectual Property Rights (IPR) with a score of 8.6. These scores reflect the varying degrees of protection and recognition of property rights across different aspects.
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Correlations with Global Indices: The IPRI demonstrates strong correlations with various global indices, showcasing the interconnectedness of property rights with thriving societies. Noteworthy correlations include 0.9 with the Global Entrepreneurship Index, 0.89 with the Network Readiness Index, 0.81 with the Global Innovation Index, and 0.8 with The World Energy Trilemma Index. These correlations highlight the pivotal role property rights play in driving free enterprise, innovation, and overall societal development.
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Relevance and Accountability: The negative correlation of -0.87 with the Atlas of Impunity underscores the importance of property rights in fostering accountability. This implies that strong property rights systems are associated with reduced impunity, indicating a positive impact on the rule of law and governance.
In conclusion, the letter from Hernando de Soto and the IPRI of 2023 provide compelling evidence for the critical role of property rights in shaping economic landscapes, fostering innovation, and contributing to the overall well-being of societies globally. The correlations with various indices emphasize the multifaceted impact of property rights, making a strong case for their recognition and protection in policy frameworks across the world.