2006 Corruption Perceptions Index – Correlation Between Corruption & Poverty
Author: Womens UN Report Network
Date: October 30, 2006
their ability to claim their rights, ending feminized poverty has always been a
core UNIFEM priority. Not only do women bear a disproportionate burden of the
world’s poverty, but in some cases, globalization has widened the gap, with
women losing more than their share of jobs, benefits and labour rights. >From
tax systems to trade regimes, however, economic policies and institutions still
mostly fail to take gender disparities into account.
between poverty and corruption
well-oiled, despite improved legislation
The 2006 Corruption Perceptions Index (CPI), launched today by
Transparency International (TI), points to a strong correlation between
corruption and poverty, with a concentration of impoverished states at the
bottom of the ranking.
“Corruption traps millions in poverty,” said Transparency International Chair
Huguette Labelle. “Despite a decade of progress in establishing anti-corruption
laws and regulations, today’s results indicate that much remains to be done
before we see meaningful improvements in the lives of the world’s poorest
citizens.”
The 2006 Corruption Perceptions Index is a composite index that draws on
multiple expert opinion surveys that poll perceptions of public sector
corruption in 163 countries around the world, the greatest scope of any CPI to
date. It scores countries on a scale from zero to ten, with zero indicating high
levels of perceived corruption and ten indicating low levels of perceived
corruption.
A strong correlation between corruption and poverty is evident in the results
of the CPI 2006. Almost three-quarters of the countries in the CPI score below
five (including all low-income countries and all but two African states)
indicating that most countries in the world face serious perceived levels of
domestic corruption. Seventy-one countries – nearly half – score below three,
indicating that corruption is perceived as rampant. Haiti has the lowest score
at 1.8; Guinea, Iraq and Myanmar share the penultimate slot, each with a score
of 1.9. Finland, Iceland and New Zealand share the top score of 9.6.
Countries with a significant worsening in perceived levels of corruption
include : Brazil, Cuba, Israel, Jordan, Laos, Seychelles, Trinidad and Tobago,
Tunisia and the United States. Countries with a significant improvement in
perceived levels of corruption include : Algeria, Czech Republic, India, Japan,
Latvia, Lebanon, Mauritius, Paraguay, Slovenia, Turkey, Turkmenistan and
Uruguay.
A concentration of so-called ‘failed states’ is apparent at the bottom of the
ranking. Iraq has sunk to second-to-last place, with pre-war survey data no
longer included in this year’s CPI. Intermediaries who began operating during
the United Nations Oil-for-food programme continue to play a central role in
driving corruption. The Volcker Commission reported that 2,392 companies paid
kickbacks or made other illicit payments to the Saddam Hussein regime in the
context of the programme, often through intermediaries.
While the industrialised countries score relatively high on the CPI 2006, we
continue to see major corruption scandals in many of these countries. Although
corruption in this context may have less of an impact on poverty and development
than in developing countries, these scandals demonstrate that there is no room
for complacency.
The Facilitators
The weak performance of many countries indicates that the facilitators of
corruption continue to assist political elites to launder, store and otherwise
profit from unjustly acquired wealth, which often includes looted state assets.
The presence of willing intermediaries – who are often trained in or who operate
from leading economies — encourages corruption; it means the corrupt know there
will be a banker, accountant, lawyer or other specialist ready to help them
generate, move or store their illicit income.
Kenya’s Anglo-Leasing and related scandals presents a case in point, where
the misappropriation of public funds was enabled through fraudulent contracts
using sophisticated shell companies and bank accounts in European and off-shore
jurisdictions, according to John Githongo, Kenya’s former anti-corruption tsar.
And according to TI Kenya’s Kenya Bribery Index, bribery costs Kenyans about US
$1 billion each year, yet more than half live on less than US $2 per day.
Acts of corruption involve a giver (the supply side) and a taker (the demand
side). TI advocates strong measures to curb bribery’s supply side, including the
criminalisation of overseas bribery under the OECD Anti-Bribery Convention, as
well as its demand side, including disclosure of assets for public officials and
adoption of codes of conduct.
But the transaction is often enabled by professionals from many fields.
Corrupt intermediaries link givers and takers, creating an atmosphere of mutual
trust and reciprocity; they attempt to provide a legal appearance to corrupt
transactions, producing legally enforceable contracts; and they help to ensure
that scapegoats are blamed in case of detection.
“Firms and professional associations for lawyers, accountants and bankers
have a special responsibility to take stronger action against corruption,” said
Transparency International Chief Executive David Nussbaum. “Led by prosecuting
attorneys, forensic auditors and compliance officers, they can be the stalwarts
of a successful fight against corruption.”
================================================================
To
leave the list, send your request by email to:
wunrn_listserve-request@lists.wunrn.com. Thank you.
Categories: Releases