INTERNATIONAL PROPERTY RIGHT INDEX – 2009 REPORT

ANALYSIS

REPUBLIC OF MACEDONIA

WORLD RANK: 97 out of 115
REGIONAL RANK: 18th out of 24

The OHRID Institute for Economic Strategies and International Affairs as partner organization of the Property Right Alliance has the honor to announce the 2009 International Property Rights Index (IPRI).   In the International Property Right Index, data shows that countries that protect the physical and intellectual property of their people enjoy nearly nine times higher GDP per capita than countries ranking lowest in property rights protections. The International Property Right Index compares the protections of physical and intellectual property to economic stability in 115 countries representing 96 per cent of the world’s GDP. 

With regard to Republic of Macedonia the protection of property rights continues to be a challenge. Republic of Macedonia in the International Property Right Index takes the 97th place, which is the same as in 2008.

            According to the IPRI ranking Republic of Macedonia has 3.8 score which is the same score as in 2008. The 2009 IPRI comprises a total of ten variables, which are divided into the three main components: Legal and Political Environment (Political Stability, Rule of Law, Corruption, Confidence in Courts, Judicial Independence), Physical Property Rights (Ease of Loan Access, Registering Property, Property Rights Protection), and Intellectual Property Rights (Copyright Piracy,  Strength of Patent Rights, Intellectual Property Rights Protection). Besides these three factors this year Index encompasses a Gender Equality component as well.

 Despite a large number of property rights related variables considered by the authors, the final IPRI study focuses only on core factors that directly relate to the strength and protection of private property rights. According to the core components of the International Property Right Index in the ranking of Legal and Political Environment (LP) Republic of Macedonia has 3.8 score which is for one percent bigger of the IPRI 2008 (3.7) and it's on the 83rd place. In terms of the Physical Property Rights (PPR) score Republic of Macedonia has 4.6 which is better than the score (4.9) in 2008, namely it's on the 94th place out from 115. And in the Intellectual Property Rights variable (IPR), Macedonia has 2.9 which is one percent more than in 2008 IPR Index or it is on the 104th place.

From the core components of the Index can be seen that Republic of Macedonia is neither in the top 10 countries nor in the bottom 10 countries of the 115 listed in the Property Right Index 2009. From the country of the region Republic of Macedonia is ranked before Serbia (100), Albania (104), and Bosnia and Herzegovina (108). Croatia is ranked 60, whether Bulgaria 59th which make them ranked 30 places higher than Macedonia.

For more elaborated analysis of the Property Right Index the data in the exhibition graphs below can be reviewed.

Republic of Macedonia is mostly concerned in the part of the Judicial Independence and the in the part of Ease of Loan Access. From the graph it can be seen that in accordance of these variables, Republic of Macedonia has 2.5 and 2.3 score which is the lowest score of all categories and it's ranked on the 97the place and 94th place in the world rank, whereas 20th and 23rd place out of 24 in the regional rank. The Intellectual Property Rights are the least protected in Republic of Macedonia. According to this category Republic of Macedonia has world rank of 104 out of 115 countries and regional rank 17 out of 24 countries. Republic of Macedonia according to the world rankings, in this category has the worst rank of all variables of the Index. Regarding corruption, Republic of Macedonia takes the 64th place in the world rank, whereas 15th place in the regional ranking. In this segment Republic of Macedonia has made considerable progress from last year, namely in the Index 2008 the place of Republic of Macedonia in the world rank was 84th which is a leap of 20 places.  Republic of Macedonia out of 115 countries is ranked 94th in the Physical Property Rights Category, which makes her 22nd in the regional country list.

In general, Republic of Macedonia has steadily progressed in the part of the Political Stability, and this year is ranked on the 82nd place which is five places higher than last year. 

According to the Internationally Property Right Index, Republic of Macedonia has best ranking in the part of the Gender Equality.

The Index seeks to assist underperforming countries to develop robust economies through an emphasis on sound property law.

The freedom of the market, the freedom for entrepreneurship, as well as the property rights are fundamental values outlined in the Constitution of the Republic of Macedonia.
“The OHRID Institute considers that physical and intellectual property is equally important in nature, and must be protected” states Janeva, OHRID Institute’s executive director. “Property rights contribute to increased levels of stability and provide people with the knowledge and comfort that their property will remain theirs. The OHRID Institute will continue to point out the relationship between a strong property rights system and a country’s economic well-being, revealing that still much needs to be done to extend property rights to more people. As property rights continue to face challenges around the world, we hope this study will be a useful tool for policymakers, think tanks, academics, and investors by highlighting the importance of property rights as a key building block for economic growth,” continued Janeva.

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