07 February 2012

Corruption


Position of economics in a global economy, besides factors described last time, depends on business environment. One of the crucial factor for business activity is transparency or on the other hand corruption.

Among entities which deal with the topic of corruption is Transparency International. It is a the global civil society organization, which was founded in 1993 in Berlin, leading the fight against corruption.1


According Transparency International corruption is the abuse of entrusted power for private gain, including bribes, kickbacks, tax avoidance, selling influence, embezzlement of public funds etc.2 Full statistics about corruption are unknown. Even the best prediction do not show real amounts.


Corruption Perceptions Index, prepared and developed by Transparency International, is a trial of measuring of administrative and political aspects of corruption. The Index ranks countries according to their perceived levels of public-sector corruption (0 - highly corrupt, 10 - very clean). The 2011 index draws on different assessment sand business opinion surveys carried out by independent and reputable institutions.3 Interesting short movie about Corruption Perceptions Index is here: 

20 countries with the highest score in Corruption Perceptions Index 2011, which means with the lowest level of corruption, have been shown below.
Country
Corruption Perceptions Index 2011
Score
Doing Business 2012 Rank
New Zealand
1
9,5
3
Denmark
2
9,4
5
Finland
3
9,4
11
Sweden
4
9,3
14
Singapore
5
9,2
1
Norway
6
9,0
6
Netherlands
7
8,9
31
Australia
8
8,8
15
Switzerland
9
8,8
26
Canada
10
8,7
13
Luxembourg
11
8,5
50
Hong Kong
12
8,4
2
Iceland
13
8,3
9
Germany
14
8,0
19
Japan
15
8,0
20
Austria
16
7,8
32
Barbados
17
7,8
-
United Kingdom
18
7,8
7
Belgium
19
7,5
28
Ireland
20
7,5
10
Source: www.transparency.org/content/download/64426/1030807 , www.doingbusiness.org/rankings  , 4.02.2012.

Apart of corruption, black market activity and overabundance of regulation are reasons of weakness of the economies. Very often they go hand in hand and we can see clear correlation between place in Corruption Perceptions Index and Doing Business Ranking.

Corruption Perceptions Index 2011



List of the largest economies in the world and their position in the Corruption Perceptions Index 2011 is presented below.


Country
GDP Rank
Corruption Perceptions Index 2011
Score
United States
1
24
7,1
China
2
75
3,6
Japan
3
14
8,0
Germany
4
14
8,0
France
5
25
7,0
United Kingdom
6
16
7,8
Brazil
7
73
3,8
Italy
8
69
3,9
Canada
9
10
8,7
India
10
95
3,1
Russia
11
143
2,4
Spain
12
31
6,2
Australia
13
8
8,8
Mexico
14
100
3,0
South Korea
15
43
5,4
Netherlands
16
7
8,9
Turkey
17
61
4,2
Indonesia
18
100
3,0
Switzerland
19
8
8,8
Poland
20
41
5,5
Source: www.transparency.org/content/download/64426/1030807 , 4.02.2012.

References:
1. Transparency International, www.transparency.org/about_us , 4.02.2012.
2. Transparency International, Global Corruption Report: Climate Change, foreword, 2011.
3. Transparency International, cpi.transparency.org/cpi2011/results , 6.02.2012.

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