Who Are You Calling Corrupt? The 2009 Corruption Perception Index

The spin masters got a great opening yesterday when Transparency International (TI) published its 2009 Corruption Perception Index (CPI), which measures perceived levels of public sector corruption (see http://www.transparency.org/policy_research/surveys_indices/cpi/2009). Note that this is merely perceptions, from a range of surveys, not evidence of actual corruption. Note also that it does not cover the huge area of potentially corrupt practices in the the private sector.

Huguette Labelle, TI's Chair, stressed that political stability and well functioning government are important in the battle against corruption and that this is reflected in the top countries. New Zealand is ranked number 1, and it is notable that Singapore has risen to number 3 (from 4). Lee Kwon Yew's legacy rolls from strength to strength.

But, Ms. Labelle was concerned that the vast majority of the world is perceived to be more corrupt: about 130 (out of 180) countries scored under 5, on a index from 1-10, with 10 being best. See the map and note that the more corrupt areas have the darker blues. Listen carefully to her commentary.





Some in the UK press screamed about how Britain had fallen one notch, to 17th place (see Daily Telegraph report); no one was really concerned about the difference between perception and reality, with discussion of the MPs' expenses scandal fresh on tongues. TI said that it blamed the poor showing on a collapse in confidence in politicians triggered by The Daily Telegraph’s own revelations about MPs’ expenses.

But, look, 'little England' is right on big England's tail, as Barbados rolls in there with many of the world's most developed nations, at number 20 (from 22 in 2008), one place behind the USA (20), but nipping ahead of Belgium (21) and France 24, but topping the region, just ahead of St. Lucia in 22nd equal.

Jamaica, poor souls, limped in at 99th equal (96 in 2008), in company with a very wide bunch including Bosnia and Herzegovina, Tonga, Madagascar and Senegal.

Fragile, unstable states which have been scarred by war were at the bottom of the index, so it should be no surprise that Somalia is right at the bottom at 180.

It's worth thinking about what Ms. Labelle said that it was “essential to identify where corruption blocks good governance and accountability, in order to break its corrosive cycle...Stemming corruption requires strong oversight by parliaments, a well performing judiciary, independent and properly resourced audit and anti-corruption agencies, vigorous law enforcement, transparency in public budgets, revenue and aid flows".

It is ironic that despite its lowly position on the TI CPI, Jamaica has many of the necessary elements in place to deal with public sector corruption, and legal cases currently alive concerning MPs are testimony to that. By contrast, Barbados lacks some of these same safeguards, though rumours abound and intimations of malfeasance are made about corruption in the public sector: look at the recent Accountant General's report and its lament about parliamentary oversight as well as poor auditing and lack of transparency in budgets.

I always take the TI index with a pinch of salt. It tends to flag poor government control in cases where substantial aid flows exist. It does not touch private sector corruption. This has always struck me as odd as a significant source of corruption comes from private sector pressure on public officials as well as private sector corruption within the sector itself. I do not know why the surveys do not cover this and give us a complete picture of national perceptions.

Despite the high ranking of the public sector in many richer, developed countries, we should never forget that many of these same countries have private firms and public officials who are indeed deeply involved in corruption in poorer, developing countries. Greasing palms is unfortunately seen as a part of doing business worldwide.