The new Transparency International CPI 2018
- On January 29, 2019, Transparency International published the Corruption Perceptions Index (CPI) for the year 2018.
- The CPI 2018 shows a worldwide increase in perceived corruption. More than two-thirds of the countries surveyed scored less than half of the achievable score (100) and thus show a critical propensity to corruption. The global average score is 43 points. According to Transparency International, this presents a gloomy picture.
- Germany deteriorated by one point to 80 points, but improved with 11th place in the overall ranking by one place compared to 2017.
- The USA deteriorated significantly, dropping four points to 71 points compared to the previous year.
- In practice, this means: In particular, business relationships with countries whose scores or CPI rankings have deteriorated noticeably should be critically reviewed, as new or increased compliance risks may have developed here.
Overview Corruption Perceptions Index 2018
On January 29, 2019, the international anti-corruption organization Transparency International published the CPI for the year 2018. This index summarizes the results of 13 surveys, expert evaluations and studies to measure corruption in the public sector of 180 countries as perceived in business, politics and administration. It ranges from zero points (“very corrupt”) to 100 points (“very integer”).
The CPI 2018 shows a worldwide increase in perceived corruption over the past year. More than two-thirds of the countries surveyed scored less than 50 points with a global average score of only 43.
In the context of the publication of the CPI 2018, Transparency International emphasized that this development reveals a clear link between increasing corruption and the deterioration of democracies and constitutional structures. Corruption flourishes wherever the rule of law and democratic institutions are weakened and the freedom for civil society and independent media is shrinking – examples in Europe are Hungary and Turkey.
Development of corruption perception
Overall, corruption in the public sector is least perceived as a problem in Europe, while the situation is significantly worse in Africa and Asia.
Denmark leads the CPI 2018 with 88 points, ahead of New Zealand (87 points) and Finland (85 points), while Southern Sudan (13 points), Syria (13 points) and Somalia (10 points) are at the bottom of the index.
Compared to previous year’s results, Azerbaijan recorded the strongest drop, falling from 122nd to 152nd rank after it became public last year that representatives of several European countries, including Germany, had accepted bribes in return for efforts to mute the European Council’s criticism of Azerbaijan’s human rights record.
Notable is also the poor performance of the USA. Compared to the previous year, the result dropped four points to 71 points and thus the country declined from 16th to 22nd place. Corruption is therefore perceived as an increasing problem in the US economy and state institutions.
Compared to last year, Brazil lost two points to arrive at 35, its lowest CPI in seven years, although Brazil’s new president, Jair Bolsonaro, after winning the presidential election in 2018, declared the fight against corruption to be his main priority.
With eleventh place in the overall ranking, Germany scores one place better than 2017 because it benefited from the poorer performance of Great Britain. However, with an overall result of 80 points, Germany deteriorated one point and is therefore considered less ethical than in 2017. In the view of German CEOs, corruption and bribery are on the rise in the German economy and public institutions. This is the finding of the “World Economic Forum Executive Opinion Survey” (EOS), which is based on annual executive surveys and is also included in the determination of the CPI.
Effects of the Corruption Perception Index on Companies
The results of the updated CPI should also be taken into account in day-to-day business, as they provide important risk indicators for compliance risk analyses and risk-based business partner checks, both of which are essential elements of an effective and efficient compliance management system (“CMS”). In particular, business relationships with countries whose scores or CPI rankings have deteriorated noticeably should be critically reviewed, as new or increased compliance risks may have developed here.
Go to the Transparency International Website.