IT’S GOOD TO KNOW...HOW CORRUPTION IS MEASURED26 October 2010

WHAT IS TRANSPARENCY INTERNATIONAL?

• Global network of non profit organisations• Offering support• Diagnosing corruption risks• Campaigning for action and reform

HOW DO WE DEFINE CORRUPTION?

The abuse of entrusted power for private gain

WHAT IS THE CORRUPTION PERCEPTIONS INDEX?

• Poll of polls• Measuring business perceptions of public sector corruption • Relative ranking – no absolute measure• Not measuring ‘legal corruption’ or ‘private sector

corruption’

HOW WE COMPILE THE INDEX

• Up to 13 different surveys• Over two years• Standardise data – create common scale from ranks and

scores of countries reported by each source • Average values • 90 % confidence range

WHY DOES IT MATTER?

• 35%Control Risks Group (2006)

• 45%PricewaterhouseCoopers

• Ability to trade Habib and Zurawicki

CORRUPTION PERCEPTIONS INDEX 2010

WHAT DOES IT MEAN?

• We’re not faced with the kind of “petty” corruption people in low income countries are

• Teachers, doctors, traffic police and airport security not demanding bribes

• Rule of law largely observed. Relatively strong, stable institutions.

LEGAL CORRUPTION COMPONENT 2004Netherlands 79.2Norway 78.6Denmark 74.7Finland 72.6Singapore 72.6Iceland 69.6New Zealand 68.7

United Arab Emirates 68.2United Kingdom 67.4Germany 62.4Sweden 60.0

Jordan 59.4Hong Kong SAR 59.1Switzerland 59.1Luxembourg 57.2Austria 57.2Belgium 54.1Chile 53.5Bahrain 52.3Australia 50.3China 49.4Tunisia 48.8Botswana 47.3Ghana 47.2Malaysia 47.1South Africa 46.5Japan 46.2Taiwan 44.6Canada 42.9Ireland 42.6

WORLD BANK INSTITUTE 2004

WHAT OTHERS SAY

• 78% of respondents believed the government’s efforts to combat corruption were ineffective (Eurobarometer). • 32% of respondents believed the prosecution rate for bribery offences was a sufficient deterrent.

(Eurobarometer)

• In 2007, trust in business amongst Irish opinion leaders was at 50%. (Edelman) • Ireland is the only EU country to see a decline rather than a rise in trust in business when the figures for 2010

are compared with those for 2009. (Edelman)

 

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