Kyrgyzstan Left out of 2011 International Property Rights Index
BISHKEK, KYRGYZ REPUBLIC – Central Asian Free Market Institute (CAFMI) announces the release of the 2011 International Property Rights Index (IPRI), which measures property rights regimes in 129 countries The report seeks to investigate the effects of enforcement of physical and intellectual property rights on the economic development of a country.
According to IPRI’s 2011 index Sweden and Finland have the strongest property rights regimes, while Venezuela placed last – 129th. CIS countries in general ranked poorly: Kazakhstan 100th and Russia 93rd. Unfortunately, Kyrgyz Republic dropped out in the 2011 index due to lack of data, while it ranked 97th in 2010.
It is apparent that economic well-being is inextricably tied to the protection of legal property rights. For example, countries with strong property rights regimes enjoy an average national GDP per capita of $38,000, while those with weak property rights regimes average $5,000. In order for developing countries like Kyrgyzstan to attain high living standards, following are quintessential:
• Judicial independence
• Rule of law
• Protection of physical property rights
Hernando de Soto, renowned expert on property rights, points out “Weak property rights are most commonly seen in the developing world. As the citizens of these countries are in the greatest need of economic growth, it is crucial that their property be granted protection.”
“Property rights are poorly protected in Kyrgyzstan. Last year’s massive property expropriations by decrees of interim government are obvious facts of property rights violations. Such actions hurt business environment and investment projects” said Bakhodirzhon Radzhapov, CAFMI’s economic expert.
Seyitbek Usmanov, CAFMI’s director, believes, “The current political instability gripping the country directly stems from the lack of secure property rights. The government must take immediate measures to reinforce sanctity of property; otherwise, political peril is near.”