As we celebrate the Global Entrepreneurship Week, we are reminded time and again that making entrepreneurship work takes an entire ecosystem of supporting factors. CIPE’s recent report, “Creating the Environment for Entrepreneurial Success,” highlighted the complexities involved and focused on many elements needed for entrepreneurs to succeed. Property rights and institutions that create healthy property markets are among such crucial elements of building vibrant entrepreneurship ecosystems.
Property rights are key building blocks of modern market economies. They are also a fundamental human right, enshrined in Article 17 of the United Nations Universal Declaration of Human Rights, which states that:
- (1) Everyone has the right to own property alone as well as in association with others.
- (2) No one shall be arbitrarily deprived of his property.
These simple statements seem self-evident. Yet, it takes a multitude of intertwined and interacting laws, rules, and institutions to ensure that property rights are accessible to all members of the society and adequately protected so that they can become equal stakeholders in their country’s future.
The International Property Markets Scorecard, a tool jointly developed by the Center for International Private Enterprise (CIPE) and the International Real Property Foundation (IRPF), takes such a holistic view of property rights in their broader context. The Scorecard maps the institutional components of property markets and evaluates their effectiveness, providing a methodology to investigate the six core elements necessary for sustainable property market development:
- property rights laws and enforcement,
- access to credit,
- efficiency of governance,
- rational dispute resolution,
- financial transparency,
- appropriate regulations.
The Scorecard is a tool for in-country reformers, international policy advisors, and market analysts as it provides comprehensive snapshots of market conditions, identifying key areas for reform as well as market risks. CIPE and IRPF have been using this methodology to conduct research and support local partners’ advocacy efforts over the last few years in countries ranging from Armenia to the Philippines. Today we finally brought all the findings together under the newly launched International Property Markets Scorecard website, www.propertymarketsscorecard.com.