Property Rights and the Night Skies of the Korean Peninsula

By Sandra Aistars
Copyright Alliance | Article Link

Richard E. Wagner, a Professor of Economics at George Mason University, writes a memorable and meaningful introduction to the Property Rights Alliance’s annual report released today analyzing intellectual and physical property rights in 129 countries.

“If you go to Google Images and type in ‘Korean Peninsula at night,’ you will see a variety of satellite photos that show South Korea brightly illuminated, while North Korea is dark….It is said that a picture is worth a thousand words. In this respect, those pictures from space tell a tale of how private property promotes human flourishing, while collective property impairs it.”

Now in its fifth edition, the PRA’s International Property Rights Index (IPRI) measures the intellectual and physical property rights of countries around the world in three areas – Legal and Political Environment, Physical Property Rights and Intellectual Property Rights.

The visual Professor Wagner draws is an effective illustration of what continues to be the standout observation from this research: the connection between property rights and economic wellbeing.

The countries scoring in the top 20 percent on the property rights index have an average per capita income exceeding $38,000, while the bottom 20 percent have an average per capita income of less than $5,000.

Equally telling, developing countries with stronger property rights protection experience higher GDP growth, on average.

Having the right to determine how your property is used, bought, sold, or changed – whether physical property or intellectual property – empowers, inspires and influences individuals and their behavior. As the report’s authors point out, “A farmer will treat a parcel of land or a tractor or a hat differently if she is the one reaping the benefits. A baker is more likely to bake breads and pastries for sale if he knows that someone else will not confiscate the profits of his activity.”

In the case of intellectual property, the physical view of the Korean Peninsula’s night skies are also metaphorically relevant to the cultural, educational and civic aspects of human progress. The original copyright laws were put in place to provide incentive for individuals to write down and disseminate knowledge and ideas, knowing they would retain rights to their works while also inspiring others.

In a country like the United States, which has benefited from copyright laws dating back to our nation’s founding, it may be easy to discount or forget how integral they are to freedom and progress. The PRA’s work provides a timely reminder that these kinds of rights are fundamental to illuminating not only our cultural lives, but to lighting up our economy.

Read the complete report.
Read the executive summary.