Fifth Global Forum on Reinventing Government Mexico City Miklos Marschall Executive Director Transparency International mmarschall@transparency.org November 5, 2003 www.transparency.org

Corruption is the abuse of What is corruption? Corruption is the abuse of entrusted power for private gain

Why fight corruption? Corruption undermines good government. It fundamentally distorts public policy. It leads to the misallocation of resources. It harms the private sector and private sector development. It particularly hurts the poor.

The Concept of a National Integrity System SUSTAIN- ABLE DEVELOP- MENT RULE OF LAW QUALITY OF LIFE N A T I O N A L I N T E G R I T Y LEGISLATURE EXECUTIVE JUDICIARY AUDITOR GENERAL OMBUDSMAN WATCHDOG AGENCIES PUBLIC SERVICE MEDIA CIVIL SOCIETY PRIVATE SECTOR INTERNATIONAL ACTORS P U B L I C A W A R E N E S S S O C I E T Y’ S V A L U E S

The Concept of a National Integrity System PRIVATE S O C I E T Y’ S V A L U E S P U B L I C A W A R E N E S S QUALITY LIFE OF RULE LAW AUDITOR GENERAL OMBUDSMAN WATCHDOG AGENCIES PUBLIC SERVICE LEGISLATURE EXECUTIVE JUDICIARY N A T I O N A L I N T E G R I T Y CIVIL SECTOR SOCIETY INTERNATION L ACTORS MEDIA SUSTAIN-ABLE DEVELOP-MENT

Corruption Perceptions Index (CPI) It ranks countries in terms of the degree to which corruption is perceived to exist among public officials and politicians. The 2003 CPI ranks 133 countries. It is a composite index, drawing on 17 different polls and surveys from 13 independent institutions carried out among business people and country analysts, including surveys of residents, both local and expatriate

Countries perceived as being most corrupt CPI 2003 Ranking Countries perceived as being least corrupt Rank Country Score Surveys used 1. Finland 9.7 8 2. Iceland 9.6 7 3. Denmark New Zealand 9.5 9 Countries perceived as being most corrupt Rank Country Score Surveys used 131. Haiti 1.5 5 132. Nigeria 1.4 9 133. Bangladesh 1.3 8

CPI 2003 Ranking - I Country rank Country CPI 2003 score Surveys used 1 Finland 9.7 8 2 Iceland 9.6 7 3 Denmark 9.5 9 New Zealand 5 Singapore 9.4 12 6 Sweden 9.3 11 Netherlands 8.9 Australia 8.8 Norway Switzerland Canada 8.7 Luxembourg United Kingdom 13 14 Austria 8.0 Hong Kong 16 Germany 7.7 17 Belgium 7.6

CPI 2003 Ranking – II Country rank Country CPI 2003 score Surveys used 18 Ireland 7.5 9 USA 13 20 Chile 7.4 12 21 Israel 7.0 10 Japan 23 France 6.9 Spain 11 25 Portugal 6.6 26 Oman 6.3 4 27 Bahrain 6.1 3 Cyprus 29 Slovenia 5.9 30 Botswana 5.7 6 Taiwan 32 Qatar 5.6

CPI 2003 Ranking – III Country rank Country CPI 2003 score Surveys used 33 Estonia 5.5 12 Uruguay 7 35 Italy 5.3 11 Kuwait 4 37 Malaysia 5.2 13 United Arab Emirates 3 39 Tunisia 4.9 6 40 Hungary 4.8 41 Lithuania 4.7 10 Namibia 43 Cuba 4.6 Jordan Trinidad and Tobago 46 Belize 4.5 Saudi Arabia

CPI 2003 Ranking – IV Country rank Country CPI 2003 score Surveys used 48 Mauritius 4.4 5 South Africa 12 50 Costa Rica 4.3 8 Greece 9 South Korea 53 Belarus 4.2 54 Brazil 3.9 Bulgaria 10 Czech Republic 57 Jamaica 3.8 Latvia 7 59 Colombia 3.7 11 Croatia El Salvador Peru Slovakia

CPI 2003 Ranking – V Country rank Country CPI 2003 score Surveys used 64 Mexico 3.6 12 Poland 14 66 China 3.4 13 Panama 7 Sri Lanka Syria 4 70 Bosnia and Herzegovina 3.3 6 Dominican Republic Egypt 9 Ghana Morocco 5 Thailand 76 Senegal 3.2 77 Turkey 3.1

CPI 2003 Ranking – VI Country rank Country CPI 2003 score Surveys used 78 Armenia 3.0 5 Iran 4 Lebanon Mali 3 Palestine 83 India 2.8 14 Malawi Romania 12 86 Mozambique 2.7 Russia 16 88 Algeria 2.6 Madagascar Nicaragua 7 Yemen

CPI 2003 Ranking – VII Country rank Country CPI 2003 score Surveys used 92 Albania 2.5 5 Argentina 12 Ethiopia Gambia 4 Pakistan 7 Philippines Tanzania 6 Zambia 100 Guatemala 2.4 8 Kazakhstan Moldova Uzbekistan Venezuela Vietnam

CPI 2003 Ranking – VIII Country rank Country CPI 2003 score Surveys used 106 Bolivia 2.3 6 Honduras 7 Macedonia 5 Serbia & Montenegro Sudan 4 Ukraine 10 Zimbabwe 113 Congo, Republic of the 2.2 3 Ecuador 8 Iraq Sierra Leone Uganda 118 Cote d’Ivoire 2.1 Kyrgyzstan Libya Papua New Guinea

CPI 2003 Ranking – IX Country rank Country CPI 2003 score Surveys used 122 Indonesia 1.9 13 Kenya 7 124 Angola 1.8 3 Azerbaijan Cameroon 5 Georgia 6 Tajikistan 129 Myanmar 1.6 Paraguay 131 Haiti 1.5 132 Nigeria 1.4 9 133 Bangladesh 1.3 8

Bribe Payers Index This survey ranks 21 leading countries in terms of the degree to which their corporations are perceived to be paying bribes abroad. The BPI is undertaken for TI by Gallup International (GIA) in 15 leading emerging and transition market economies. It shows that companies from many leading exporting nations are widely seen as using bribes to win business.

BPI 2002 Ranking Country’s companies least likely to pay bribes Score 1. Australia 8.5 2. Sweden 8.4 Switzerland Country’s companies most likely to pay bribes Rank Country Score 19. Taiwan 3.8 20. China 3.5 21. Russia 3.2

Sectors most prone to bribery Source: TI Bribe Payers Index 2002

Global Corruption Barometer Commissioned from Gallup International by TI with Fredrik Galtung Measures attitudes towards corruption and expectations of future corruption levels Over time, it will be able to measure trends in attitudes Covers 47 countries globally

Global Corruption Barometer - Trends Corruption‘s impact on personal life businesss environment political life

Global Corruption Barometer - Trends Most corrupt sectors/branches as perceived by the public 1. Political parties (29.7%) 2. Courts (13.7%) 3. Police (11.5%)

Optimists and Pessimists The optimists: Columbia, Croatia, Indonesia and Ireland The uncertain: Costa Rica and Nigeria The pessimists: Cameroon, Georgia, India, Israel, Netherlands, Norway, South Africa and Turkey