Corruption Perceptions Index (CPI)

The Corruption Perceptions Index (CPI) is an annual report that ranks the world's governments by their perceived level of corruption. Transparency International, a Berlin-based anticorruption watchdog organization, created the index. The CPI uses data from a number of international sources and ranks each nation on a scale of 1 to 100—with lower scores corresponding to the most perceived corruption. Since it was first issued in 1995, the CPI has shown that democratic nations with a free press tend to score better on the index, while war-torn nations or dictatorships score lower.

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Overview

In the early 1990s, Peter Eigen, then a regional director for the World Bank, returned from an assignment in Africa concerned about the amount of corruption he had witnessed there. Believing there was a need to combat the issue, Eigen joined other members of the international financial community in Berlin, Germany, to found Transparency International (TI), an organization dedicated to fighting corruption. In 1995, TI released its first Corruption Perceptions Index, an attempt to gauge public sector corruption present in nations worldwide.

Knowing that it was impossible to truly measure corruption in a definitive manner, TI used polling data from seven surveys that were completed over several years, and ranked the countries on a scale of 1 to 10. Because the original CPI only listed nations that were included in more than one survey, it was limited to forty-five countries. New Zealand topped the list of least corrupt nations with a score of 9.55, while Denmark, Singapore, and Finland also scored above 9. Indonesia was last in the rankings with 1.4. China, Pakistan, and Venezuela also finished near the bottom. The index gained the attention of worldwide media and is credited with helping to keep the issue of corruption in the public eye and lead to international action.

By the mid-2020s, the CPI included information from 180 countries and territories and relied on polling data and surveys from organizations such as the World Bank, World Economic Forum, Economic Intelligence Unit, Freedom House, and World Justice Project. The survey also ranked countries on a scale of 1 to 100. TI defines corruption as the "abuse of entrusted power for private gain."

Data from the CPI generally indicates that open democracies with an independent judicial system and the free flow of information tended to have lower levels of corruption. Historically, Denmark, Finland, Sweden, New Zealand, the Netherlands, Norway, Switzerland, and Singapore have very high scores, usually 85 or above. Countries that traditionally score very low include Somalia, North Korea, Venezuela, Syria, South Sudan, Yemen, and Nicaragua. Somalia has struggled to maintain order for decades as rival warlords and religious factions have fought over the country. Abuse of power, embezzlement, and bribery were rampant in Somalia, and the court system was often subject to political interference. In Communist North Korea, one of the most secretive societies in the world, strongman Kim Jong-un headed an oppressive regime where kickbacks, bribes, and graft were commonplace. While corruption in these countries remained prevalent in the 2020s, globally, over two-thirds of the world's nations received a score below 50. In the 2023 CPI, twenty-three countries reached the lowest score on record.

International organizations, decision-makers, and journalists trust and rely on TI’s data concerning public sector corruption levels. The CPI data have driven international action for change in governments and corporations, such as the 2003 United Nations Convention against Corruption (UNCAC) and the 2019 European Union directive on whistleblower protection. These types of measures discourage corrupt behaviors that contribute to climate change, human trafficking, organized crime, and global inequality.

The Corruption Perception Index is but one tool TI uses to address global corruption at all levels. For example, TI began a public opinion survey on corruption in 2003 called the Global Corruption Barometer to document individuals’ experiences of corruption. In twenty years, the survey reached over 850,000 people in 150 countries.

Bibliography

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