Corruption Perception IndexDavid 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

http://www.youtube.com/watch?feature=player_embedded&v=Udd2lJ2LZPs

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 172nd out of 182, scoring 1.9. In the top ten nations which are perceived as most corrupt. In 1998, Venezuela ranked 67th.

The USA ranks 24th 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