Property

Rights
Layug, Rhem Fatima
Manalo, Diana Mae
 Definition:
- the property rights component is an
assessment of the ability of individuals
to accumulate private property, secured
by clear laws that are fully enforced by
the state.
- are theoretical socially-enforced
constructs in economics for determining
how a resource or economic good is used
and owned.
Bundle of
Rights
1. The right to use the good.
2. The right to earn income
from the good.
3. The right to transfer the
good to others.

4. The right to enforce

property rights.
 Types of
Property Rights
 A. Physical Property
Rights
- also known as tangible property, is,
literally, anything which can be touched,
and includes both real property and
personal property (or moveable
property), and stands in distinction to
intangible property.
 « Public Property
- is property that is
dedicated to public use and
is a subset of state
property. The term may be
used either to describe the
use to which the property is
put, or to describe the
character of its ownership
(owned collectively by the
population of a state).
 « Public Property
•Socialism
-under socialism, government agents
exercise control over resources
-the rights of these agents to make
decisions about the property they
control are highly restricted
•Communism
-common ownership of resources
-problems arise as scarcity increases
« Private Property
Private property
is a legal
designation for
the ownership of
property by non-
governmental legal
entities.
 « Private Property
•Capitalism
-free enterprise system
-individuals in a market economy act
in their own self interest when making
economic decisions
-producers make goods and services
to make as much profit as possible
 B. Intangible Property
Rights
- also known as incorporeal property,
describes something which a person
or corporation can have ownership of and
can transfer ownership to another person
or corporation, but has no physical
substance.
 « Intellectual Property
Intellectual property (IP) refers to
creations of the mind, such as inventions;
literary and artistic works; designs; and
symbols, names and images used in commerce.

IP is protected in law by, for

example, patents, copyright and trademarks,
which enable people to earn recognition or
financial benefit from what they invent or
create.
 Purpose of
Property Rights
 Purpose of Property
Rights
The fundamental purpose of property
rights is that they eliminate destructive
competition for control of economic
resources. Well-defined and well-
protected property rights replace
competition by violence with competition
by peaceful means.
 « Threats
1. Opportunism may be encouraged

2. Misuse of scarce resources

3. Over-use of resources

4. Limited Development

5. Political Instability
 « Remedy
Granting or extending property rights
Grading
•100—Private property is guaranteed by the government.
The court system enforces contracts efficiently and quickly.
The justice system punishes those who unlawfully confiscate
private property. There is no corruption or expropriation.

•90—Private property is guaranteed by the government. The

court system enforces contracts efficiently. The justice
system punishes those who unlawfully confiscate private
property. Corruption is nearly nonexistent, and expropriation
is highly unlikely.

•80—Private property is guaranteed by the government. The

court system enforces contracts efficiently but with some
delays. Corruption is minimal, and expropriation is highly
unlikely.

•70—Private property is guaranteed by the government. The

court system is subject to delays and is lax in enforcing
contracts. Corruption is possible but rare, and expropriation
is unlikely.
•60—Enforcement of property rights is lax and subject to
delays. Corruption is possible but rare, and the judiciary
may be influenced by other branches of government.
Expropriation is unlikely.

•50—The court system is inefficient and subject to delays.

Corruption may be present, and the judiciary may be
influenced by other branches of government. Expropriation
is possible but rare.

•40—The court system is highly inefficient, and delays are

so long that they deter the use of the court system.
Corruption is present, and the judiciary is influenced by
other branches of government. Expropriation is possible.

•30—Property ownership is weakly protected. The court

system is highly inefficient. Corruption is extensive, and
the judiciary is strongly influenced by other branches of
government. Expropriation is possible.
•20—Private property is weakly protected. The court
system is so inefficient and corrupt that outside
settlement and arbitration is the norm. Property rights
are difficult to enforce. Judicial corruption is extensive.
Expropriation is common.

•10—Private property is rarely protected, and almost all

property belongs to the state. The country is in such
chaos (for example, because of ongoing war) that
protection of property is almost impossible to enforce.
The judiciary is so corrupt that property is not protected
effectively. Expropriation is common.

•0—Private property is outlawed, and all property belongs

to the state. People do not have the right to sue others
and do not have access to the courts. Corruption is
endemic.
« Top five (5)
countries
► Denmark
Property Rights 95

Protection of property
rights is strongly enforced.
Intellectual property rights are
respected, and enforcement is
consistent with world standards.
► New Zealand
Property Rights 95

Private property rights

are strongly protected, and
contracts are notably secure.
► Australia
Property Rights 90

Property rights are

secure, and enforcement of
contracts is reliable.
Expropriation is highly
unusual.
► Austria
Property Rights 90

The independent judiciary

provides effective protection for
the property and contractual rights
of nationals and foreigners. The land
registry is a reliable and publicly
accessible system for recording
interests in property.
► Canada
Property Rights 90

Although 89 percent of Canada’s

land area is owned by the state, the 11
percent that is privately owned property
is well protected. Enforcement of
contracts is very secure, and
expropriation is highly unusual.
Protection of intellectual property rights
meets world standards.
« Bottom five (5)
countries
 ► Myanmar
(Burma)
Property Rights 10

Burma has a legal system that

protects and facilitates the acquisition
and disposition of real property, but such
judicial decisions can often be influenced
by government interference, personal
relationships, or bribes.
 ► Bolivia
Property Rights 10

The judicial system faces

ongoing systemic challenges.
Indigenous communities have seized
numerous privately owned rural and
mining properties in recent years.
► Venezuela
Property Rights 5

Expropriations, weak public-

sector institutions, and lack of
judicial independence undermine
property rights.
► Turkmenistan
Property Rights 5

The legal system does not

enforce contracts and property
rights effectively. Judges are
poorly trained and open to bribery.
All land is owned by the
government and other ownership
rights are limited.
 ► North Korea
Property Rights 5

Almost all property belongs

to the state. Government
control extends even to chattel
property (domestically produced
goods and all imports and
exports).
Philippines
 Ranked 118 out of
186 countries.
Property Rights 30

Corruption and cronyism are rife

in business and government. A few
dozen leading families hold a
disproportionate share of land,
corporate wealth, and political
power.
http://internationalpropertyrightsindex.org/countries

http://www.heritage.org/index/property-rights

http://extension.illinois.edu/lcr/propertyrights.cfm

http://www.treasury.govt.nz/publications/research-
policy/wp/2003/03-02/01.htm

http://www.libertarianism.org/publications/essays/property-
rights-key-economic-development

http://wws14points.blogspot.com/2011/03/relationship-
between-property-rights.html
Thank you!