Central among these are property rights and the legal institutions needed for enforcing contracts.[6] The question of enforceable property rights plays as an important role for evaluating markets in countries with weak governance structures.
The country scored lower for starting businesses and enforcing contracts.
But enforcing contracts can be tricky, and the new law does not help much.
Like covenant, debt never succeeded in becoming the principal means of enforcing contracts.
For him, the state should be stripped to a "residual government functioning of maintaining law and order, enforcing contracts".
In Greece, acquiring construction permits, registering property, and enforcing contracts in courts require vast amounts of paperwork and time.
The annual survey assesses factors like construction permits, electricity supply, access to credit, protecting investors, enforcing contracts and trading across borders.
But laissez-faire advocates nonetheless argued that government had an essential role in enforcing contracts as well as ensuring civil order.
This is because outside lenders fear that it will exploit its inside knowledge and the cost of enforcing contracts to repay less than it should.
Most economists believe that governments need to help markets work efficiently: enforcing contracts, resolving insolvencies, hooking up firms to the power grid, and the like.
Large numbers of private and state-owned businesses have significant assets outside Russia, providing them with a way of enforcing contracts without reference to Russian law.
