EghtesadOnline: Iran’s International Property Rights Index score increased by 0.22 points in 2018 compared with 2017 to stand at 4.74 (out of 10) for 2018.
Iran ranked 91st out of 125 countries under study, improving eight spots compared with the previous year, according to a report released by Tehran Chamber of Commerce, Industries, Mines and Agriculture citing Property Rights Alliance.
Iran was placed 12th from among 15 countries in the Middle East and North Africa region over the same period.
Iran’s overall score is below the global average of 5.63, according to Financial Tribune.
US-based PRA is an advocacy organization dedicated to the protection of physical and intellectual property rights, both domestically and internationally.
The International Property Rights Index is the flagship publication of PRA. IPRI scores the underlining institutions of a strong property rights regime: the legal and political environment, physical property rights and intellectual property rights. It is the world’s only index entirely dedicated to the measurement of intellectual and physical property rights.
“This index was developed to serve as a barometer of the state of property rights in all countries. After a broad review of the literature on the subject, a solid conceptualization was achieved. Finally, several experts and professionals in the field of property rights were consulted, establishing the set of main categories [hereinafter, "components" or "sub-indices"] and the items included in each,” the report reads.
PRA's previous report showed Iran's IPRI score increased by 0.28 compared with 2016 to stand at 4.52 (out of 10) for 201, as the country was ranked 99th out of 127 countries under study, showing no change compared with the previous year (2016).
The following are the three components of IPRI: Legal and Political Environment, LP; Physical Property Rights, PPR; and Intellectual Property Rights, IPR.
The LP component of IPRI provides information on the strength of a country’s institutions and respect for the "rules of the game" among citizens. This component has a significant influence on the development and protection of physical and intellectual property rights.
The other two components of the index, PPR and IPR, reflect two crucial forms of property rights for countries’ economic development. Items included in these two categories represent de jure rights and de facto results in each country.
As a result, IPRI comprises 10 items, each grouped under one of the three components: LP, PPR or IPR. While there are numerous items related to property rights, the final IPRI is specific to core factors directly associated with the strength and defense of physical and intellectual property rights.
In the ‘Legal and Political’ sub-index, Iran’s score increased by 0.24 to reach 3.84 in 2018, placing it 92nd in the world. In this sub-index, ‘judicial independence’, ‘rule of law’, ‘political stability’ and ‘control of corruption’ are surveyed, in which Iran scored 4.37, 3.57, 3.87 and 3.56 respectively.
Iran’s 'physical property rights' sub-index increased by 0.01 to stand at 5.78 in 2018 with scores of 4.74 in ‘property rights’, 9.56 in ‘registering property’ and 3.05 for ‘ease of access to loans’. The country came in 94th globally in this category.
As for the ‘intellectual property rights’ sub-index ranking of 83rd, the country’s score increased by 0.43 to reach 4.61 in 2018.
Iran scored 4.08 in ‘intellectual property protection’ and 5.13 in ‘patent protection’. There were no data for ‘copyright protection’, the report reads.
Covering 125 countries, the 2018 IPRI reported on the property rights systems affecting 98% of world gross domestic product and 93% of world population.
The world’s IPRI average increased only 1.95% to 5.74 in 2018. Finland traded places with New Zealand for the top spot by improving access to loans and patent protection.
As a tool for policymakers, business communities and civic activists, IPRI highlights the essential role property rights play in creating a prosperous economy and just society.