The fall in ranking, however, has not affected the country´s score which stands at 4.4 out of 10, which is the same as last year´s.[break]
The 2012 Report on International Property Rights Index, made public in Kathmandu on Thursday by Samriddhi - The Prosperity Foundation, was prepared based on surveys conducted in 130 countries. Only 129 economies were included in the global index last year.
“Nepal´s standing in the global index shows that the country has failed to uphold physical and intellectual property rights, which are fundamental rights of every citizen,” Chiranjibi Nepal, a renowned economist, told a gathering at a function held to launch the report. “The failure to ensure property rights is stifling innovation and entrepreneurship in the country,” Nepal said.
Nepal´s overall ranking was low because of weak performance in legal and political environment category. Nepal obtained a score of 3.2 in the segment, which was calculated based on factors like country´s judicial independence, rule of law, political stability and corruption level.
“Without improvement in legal and political environment the country cannot introduce better laws. And even if such laws are introduced they cannot be enforced properly,” Suresh Kumar Basnet, president of Nepal Chamber of Commerce, said. “In a situation like that no one can guarantee safety of investment and properties, including physical and intellectual.”
Property Rights Alliance, a Washington-based organization, which produced the report, had graded countries based on performances in three core categories -- legal and political environment, physical property rights and intellectual property rights.
Nepal´s highest score was in physical property rights category with 5.9 points, up by a notch from last year´s 5.8. The component takes into account parameters like protection of physical property rights, property registration process and access to loans.
“The country may have obtained a moderate gain in score as registration and ownership transfer of properties take place in a relatively shorter period of time,” former secretary Dr Bhola Nath Chalise said. “But considering the recent practice of forceful grabbing of lands, it could be said that physical property rights are eroding in the country. This can have negative impact on wealth creation process.”
Nepal´s standing in another core category, intellectual property rights (IPR), was also poor, with the country securing a score of 4.1. But Madhu Soodan Paudyal, a property rights expert, called the score an overstatement “as over 90 percent of the goods available in the market are counterfeit”.
“We should have gotten much lower marks,” he argued. The intellectual property rights (IPR) category includes variables like protection of IPR, patent protection and copyright piracy.
Related story
Nepal 97th in terms of strength of property rights
