Private property rights are the basis of individual freedom and economic security. Without private property rights there is no incentive to work or produce more and earn more. When there is control over private property by other people or the state, the ability to create wealth declines which thereby leads to low national income and poverty. There are many examples how lack of property rights lead to less development. One of the examples is its relation with nation's per capita income.
The figure indicates the relation between ‘property right index’ and per capita income of the country. The upward graph shows countries having higher international property right index have higher per capita income (PPP term). This is a lesson to the countries like Nepal
Sources:
World Economic Outlook Database-September 2011, International Monetary Fund.
