Global Index Highlights How Corruption Stymies Poorest Economies

Naming and Shaming

Transparency International (TI) has established a strong reputation over the years for its work assessing corruption and providing resources to counter it. Its highest-profile publication is the Corruption Perceptions Index (CPI), the 2009 edition of which came out yesterday. The index draws upon surveys and expert opinions of a range of organisations including IHS Global Insight. It does not measure incidents of corruption, but rather perceptions of levels. The former is almost impossible to assess as most instances are never revealed. The index always receives great media interest and can cause individual governments grave discomfort if their countries slip down the ranking. International donors also look closely at the results, and will cite them when deciding on priorities and setting requirements for recipients.

TI has chosen to highlight the danger that corruption poses to global economic recovery in 2009/10. Many governments are pouring stimulus funds into their economies to escape the worst recession in decades, but the effectiveness of this will be greatly diminished if the funds are diverted via corruption. While it tends to be poorer economies that figure strongly at the lower end of the table, the authors stress that no country is immune and that complacency is dangerous.

Corruption tends to be most pervasive in countries scarred by war and ongoing conflict. Somalia, Afghanistan, Sudan, and Iraq are notable on this front. Governance structures have been destroyed and there is little to prevent officials from lining their pockets. These countries also tend to be major recipients of foreign aid, the effectiveness of which is compromised by corruption. The situation locks these countries into a vicious cycle from which it is very difficult to escape. High levels of corruption undermine public trust in young governments, undermining their legitimacy and political stability more widely. TI calls on international donors to focus on strengthening institutions in these countries and to demand transparency and accountability. There also needs to be an onus on foreign investors not to feed the cycle by paying bribes in order to secure contracts and favourable treatment.

At the top end of the scale are clustered many of the most developed economies, with Western Europe particularly well represented. New Zealand nonetheless edges out Denmark for the top spot this year, the top five being rounded out by Singapore, Sweden, and Switzerland. All have very well-established public institutions, high stability, and a strong anti-corruption culture.

Transparency International - 2009 Corruption Perceptions Index
Rank	Country	Score	Rank	Country	Score	Rank	Country	Score
1	New Zealand	9.4	61	Cuba	4.4	120	Bolivia	2.7
2	Denmark	9.3	61	Turkey	4.4	120	Ethiopia	2.7
3	Singapore	9.2	63	Italy	4.3	120	Kazakhstan	2.7
3	Sweden	9.2	63	Saudi Arabia	4.3	120	Mongolia	2.7
5	Switzerland	9.0	65	Tunisia	4.2	120	Vietnam	2.7
6	Finland	8.9	66	Croatia	4.1	126	Eritrea	2.6
6	Netherlands	8.9	66	Georgia	4.1	126	Guyana	2.6
8	Australia	8.7	66	Kuwait	4.1	126	Syria	2.6
8	Canada	8.7	69	Ghana	3.9	126	Tanzania	2.6
8	Iceland	8.7	69	Montenegro	3.9	130	Honduras	2.5
11	Norway	8.6	71	Bulgaria	3.8	130	Lebanon	2.5
12	Hong Kong	8.2	71	FYR Macedonia	3.8	130	Libya	2.5
12	Luxembourg	8.2	71	Greece	3.8	130	Maldives	2.5
14	Germany	8.0	71	Romania	3.8	130	Mauritania	2.5
14	Ireland	8.0	75	Brazil	3.7	130	Mozambique	2.5
16	Austria	7.9	75	Colombia	3.7	130	Nicaragua	2.5
17	Japan	7.7	75	Peru	3.7	130	Nigeria	2.5
17	United Kingdom	7.7	75	Suriname	3.7	130	Uganda	2.5
19	United States	7.5	79	Burkina Faso	3.6	139	Bangladesh	2.4
20	Barbados	7.4	79	China	3.6	139	Belarus	2.4
21	Belgium	7.1	79	Swaziland	3.6	139	Pakistan	2.4
22	Qatar	7.0	79	Trinidad and Tobago	3.6	139	Philippines	2.4
22	St Lucia	7.0	83	Serbia	3.5	143	Azerbaijan	2.3
24	France	6.9	84	El Salvador	3.4	143	Comoros	2.3
25	Chile	6.7	84	Guatemala	3.4	143	Nepal	2.3
25	Uruguay	6.7	84	India	3.4	146	Cameroon	2.2
27	Cyprus	6.6	84	Panama	3.4	146	Ecuador	2.2
27	Estonia	6.6	84	Thailand	3.4	146	Kenya	2.2
27	Slovenia	6.6	89	Lesotho	3.3	146	Russia	2.2
30	United Arab Emirates	6.5	89	Malawi	3.3	146	Sierra Leone	2.2
31	St Vincent and the Grenadines	6.4	89	Mexico	3.3	146	Timor-Leste	2.2
32	Israel	6.1	89	Moldova	3.3	146	Ukraine	2.2
32	Spain	6.1	89	Morocco	3.3	146	Zimbabwe	2.2
34	Dominica	5.9	89	Subscribe  |  Archives Most Viewed Articles Key US Data Releases and Events US January Employment Report Is Far Stronger Than Expected Global Economic Impact of the Japanese Earthquake, Tsunami, and Nuclear Disaster Preliminary Figures on Russian 2011 GDP Growth Surprise on the Upside Argentina Shows Mixed Response to Falklands Tensions Key US Data Releases and Events EU Member States Agree On Fiscal Treaty; UK and Czech Republic Refuse to Sign Fitch's Six Rating Downgrades Spare Triple-AAA Euro Sovereigns But Highlight Restricted Reserve Currency Benefits Bank of England Policy Decision Heads up UK Economic Week for the Commencing 6 February Deal Signed on Burgas-Alexandroupolis Pipeline; Construction to Begin in 2008 Related Content Country Intelligence IHS Capabilities Energy & Power Design & Supply Chain EHS & Sustainability Defense, Risk & Security Commodities, Pricing & Cost Country & Industry Forecasting Industry Solutions Aerospace & Defense Agriculture Automotive Chemicals Construction Consumer & Retail Electronics & Telecommunications Energy Oil & Gas Financial Government Healthcare Metals & Mining Military & Security Shipping & Transportation Products & Services Industry Standards & Regulations Product Design, Sourcing & Logistics Maintenance, Repair & Ops Management (MRO) Environmental, Health and Safety & Sustainability Maritime Intelligence & Publications: IHS Fairplay IHS Global Scenarios Consulting & Advisory Services Recent Acquisitions Purvin & Gertz Seismic Micro-Technology CMAI Dyadem International, Ltd. Syntex Management Systems Inc. Atrion International Inc. Access Intelligence Chemical & Energy Products More About IHS Contact Us Careers Investors Site Map A-Z Product Index Privacy Policy Legal Statement 2012 IHS Inc. All Rights Reserved. Close window To change the font size, press Ctrl and (- or +) Help, that didn't work To change the font size, Ctrl + (- or +) If that didn’t work, try the following: Microsoft Internet Explorer From the View menu, select Text Size Select an option from Smallest to Largest Firefox or Netscape From the View menu, select Zoom or Text Size Select Increase or Decrease Google Chrome Click the wrench icon next to the address bar. Next to Zoom, select + or - Welcome to the new IHS Petrodata ODS-Petrodata has a new web presence following our acquisition by IHS. Our look has changed, but the quality our information and insight remains the same. Our addition to IHS gives you access to a larger array of world-class information and analysis. Enjoy your visit, and please don't hesitate to contact us with any questions regarding our new online presence. To log in to your ODS-Petrodata account, click on the Customer Login link found at the top of every page. Please review the privacy policy and terms of use for our new website. 1/31/2012 11:59:00 AM