Corruption Perception Index David Fenjves and Matias Molina.

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Presentation transcript:

Corruption Perception Index David Fenjves and Matias Molina

What is the CPI The Publication of Transparency International. They rank countries annually by their perceived levels of corruption Corruption  “The misuse of public power for private benefit.” They rank 182 nations, 1 to 10: 0 = highly corrupt 10 = very clean

How it is measured 13 different surveys and tests from 10 different institutions. Business people opinion surveys Performance assessments from a group of analysts. Countries must be asserted by at least 3 sources in order to appear in the survey. It measures perception of corruption NOT absolute measures.

Is it valid/reliable? Strong correlation between the Corruption Perception Index other indicators of corruption Black Market Activity Overabundance in Regulations

Notable Countries Top 5: 1.New Zealand 2.Denmark 3.Finland 4.Sweden 5.Singapore Bottom 5: 1.Somalia 2.North Korea 3.Myanmar 4.Afghanistan 5.Uzbekistan Venezuela ranks 172 nd out of 182, scoring 1.9. In the top ten nations which are perceived as most corrupt. In 1998, Venezuela ranked 67 th. The USA ranks 24 th out of 183, scoring 7.1.

2011 CPI Ranking Somalia New Zealand Venezuela

Reasons for positioning Good Scoring Nations: Very transparent Government a)Low levels of bribery to public officials/ taking advantage of public funds. b)Public Sector stands Strong against corruption. Poorly Scoring Nations: Lack of transparency in their governing a)Strong activity in the black market b)Over-abundance in regulations