A look at the Corruption Perceptions Index 2012

Corruption can happen anywhere. When politicians put their own interests above those of the public. When officials demand money and favours from citizens for services that should be free. Corruption is not just an envelope filled with money, though – these people make decisions that affect our lives.

We know corruption is a problem around the world. But how bad is it and what can be done? The Corruption Perceptions Index measures the perceived levels of public sector corruption in countries worldwide.

Based on expert opinion, countries are scored from 0 (highly corrupt) to 100 (very clean). Some countries score well, but no country scores a perfect 100.

Two-thirds of the 176 countries ranked in the 2012 index score below 50, showing that public institutions need to be more transparent, and powerful officials more accountable.

The Corruption Perceptions Index forces governments around the world to take notice of corruption – their country’s score reflects on them. But recognising the problem is only the first step towards a solution. That is why we help citizens to demand accountability from their leaders. And we show governments what they can do to tackle corruption. Together, we can make corruption a thing of the past.

From a culture of transparency to a deficit of rights and security

In the Corruption Perceptions Index 2012 Denmark, Finland and New Zealand tie for first place with scores of 90, helped by strong access to information systems and rules governing the behaviour of those in public positions. Read more about these countries here.

Afghanistan, North Korea and Somalia once again cling to the bottom rung of the index. In these countries the lack of accountable leadership and effective public institutions underscore the need to take a much stronger stance against corruption. Read about how finishing bottom plays out in daily life in this blog post on Afghanistan.

Financial crisis and failing revolutions

Underperformers in the Corruption Perceptions Index 2012 also include the Eurozone countries most affected by the financial and economic crisis. In a June 2012 report on corruption in Europe, Transparency International warned Europe that the crisis should be a wake-up call on the need to address corruption risks in the public sector to tackle the financial crisis. Read more on the challenges faced by the lowest-ranking EU countries Greece, Bulgaria and Italy.

Genuine transparent political reforms after democratic elections have not taken hold in Arab Spring countries, as they continue to languish towards the end of the scale even after the onset of the revolutions – especially Egypt, which significantly dipped in its ranking.

A warning for businesses

While the Corruption Perceptions Index measures how corrupt experts think public sectors are, businesses need to take careful note of the results. Doing business in a country where corruption is rife means higher costs, delays and losing business to competitors who pay bribes. All but one of the world’s fastest growing economies score less than 40 out of 100.

To keep the global economy corruption-free, strong enforcement of global standards like the G20 anti-corruption action plan and rules criminalising foreign bribery will be vital. Multinational companies, meanwhile, must be transparent about their operations. Of the world’s 105 biggest companies, 85 do not disclose income tax payments in any foreign country of operation on their corporate website, according to a Transparency International report from July 2012.

Further reading

BBC: http://www.bbc.co.uk/news/business-20605869

Al Jazeera: http://www.aljazeera.com/news/middleeast/2012/12/2012125884268449.html

Financial Times: http://www.ft.com/intl/cms/s/0/fd67f3f4-3e30-11e2-91cb-00144feabdc0.html#axzz2E9htzEDj

Bloomberg: http://www.businessweek.com/news/2012-12-05/euro-crisis-feeds-corruption-as-greece-slides-in-rankings

CNBC: http://www.cnbc.com/id/100277670

Reuters: http://www.reuters.com/article/2012/12/05/us-corruption-transparency-egypt-idUSBRE8B406Q20121205

Reuters: http://www.reuters.com/article/2012/12/05/us-corruption-transparency-global-idUSBRE8B406G20121205

AFP: http://www.google.com/hostednews/afp/article/ALeqM5gZYFWn7hzPf4nXSrlQjXfK60UJdw?docId=CNG.d917c167f7fe74f6218d1d2600dd085a.2c1

Guardian Data Blog: http://www.guardian.co.uk/news/datablog/2012/dec/05/corruption-index-2012-transparency-international#

Radio Free Europe/Radio Free Asia: http://www.rferl.org/content/transparency-corruption-index/24789674.html

Voice of America: http://www.voanews.com/content/report-corruption-remains-widespread-global-problem/1558610.html

The index is drawn from 13 surveys carried out by independent institutions such as the World Bank and Bertelsmann Foundation. Read more about how the index is prepared here.