Does Africa Need the International Monetary Fund?

Dr. Mark Ellyne Challenges in AfricaJuly 2013

Does Africa Need theBretton Woods Institutions?

I have chosen a big question with many great texts 1

Who Are the New Rulers of the World?Africa and the IMF Mark Ellyne7/2/20132

Many mainstream journalists see the IMF & WB as new rulers of the World; This piece from more serious journalist John Pilger, a recognized journalist2

Conspiracy or Cooperation?7/2/2013Africa and the IMF Mark Ellyne3

International Conspiracy to Impose Western Hegemony on Africa/Developing World?orWestern economic support to Africa/low income countriesto raise their economic development?

The questions that we want to consider is:3

Secret Plan For IMF World DictatorshipIdentified by the Illuminati (5/11/2005)4a British-steered attempt to impose the dictatorship of the International Monetary Fund (IMF) on the entire planet, Under this plan, the IMF would dictate the economic policies of all states. The IMF orthodoxy is austerity, sacrifice, deregulation, privatization, union busting, wage reductions, free trade, a race to the bottom, and prohibitions on advanced technologies. These policies would strangle humanity.Source: http://www.conspiracyarchive.com/Blog/ The Illuminati Conspiracy Archive7/2/2013Africa and the IMF Mark Ellyne

You will hear that the IMF is part of conspiracy; from the Illuminati Conspiracy on the web

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Why is Africa so Poor?Africa and the IMF Mark Ellyne57/2/2013

Explain graph--show AfricaHere I leave you with the big question and the many answers to choose from.5

Who Are the Bretton Woods Institutions?Africa and the IMF Mark Ellyne6World Trade Organ.Develop global rules of tradeProvide mechanisms to resolve trade disputesWorld BankPromote economic developmentWorld Bank motto: Our dream is a world free of povertyIMF

Promote global financial stability

Promote macro-economic stability7/2/2013

All created after WWII as part of new world orderPrevent another great depressionFacilitate growth and tradePromote exchange rate stability and convertibilityLender of last resort for balance of payments problemsPolicy based lending

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Purpose of the IMF Africa and the IMF Mark Ellyne7Prevent another great depressionPromote exchange rate stability and convertibility Facilitate growth and tradeLender of last resort for balance of payments problemsPolicy based lending7/2/2013

Forum for econ discussion on international economic issuesCenter for applied researchProvider of specialized technical assistance to governmentsProducer of public dataFund of $500 bn7

World Bank vs. IMFAfrica and the IMF Mark Ellyne8World BankDevelopment projects

Raises money on international markets

Mission is to reduce poverty

IMFPolicy-based lending

Use members contributions

Mission is to maintain financial and economic stability7/2/2013

Can understand IMF by comparing to WB8

IMF Intervention ModelAfrica and the IMF Mark Ellyne9Economic problem/shock affects countrys balance of payments, i.e. ability to pay for importsGovernment invites IMF assistanceIMF proposes loan and demands conditionality7/2/2013

1. Problem can be temporary oil shockeasyOr inflation-depreciation spiral2. IMF send team what I did3. IMF is catalyst4. policeman9

World Bank Intervention ModelAfrica and the IMF Mark Ellyne10Economic development affects countrys income and povertyGovernment asks for loans and technical assistance for large-scale investment projectsWB finances development projects to reduce poverty and raise income7/2/2013

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Poverty is Linked to Growth7/2/2013Africa and the IMF Mark Ellyne11Why hasnt Africa improved as much as Asia?

The downturn in growth beginning in 1980 led Africa to seek advice from the IMF.7/2/2013Africa and the IMF Mark Ellyne12

1960s1970s1980s

Looking back African econ historyProblem emerged in the 1980sGDP/pop is best measure of std of living12

Economic Growth TheoryAfrica and the IMF Mark Ellyne13Y = TFP KL (1-)

Growth depends on:Capital accumulationLabour force growth,Education and skills,Technological progress

7/2/2013

Growth is best way to raise living standards@10% double in 7 years; 3% double in 24 yearsExplains most growth for most countries.

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Africas Growth is Lower than Theory Predicts7/2/2013Africa and the IMF Mark Ellyne14

Sub-Saharan African countries (48) have statistically grown slower than other regions, even after taking account of standard economic variables.

Growth model overpredicts for Africa, Africa underperforms. Sometimes we summarize the problems with Africa by talking about the african dummy, Dumny means that other unidentified factors are reducing growth14

Until the mid-1990s, growth in SSA was driven primarily by factor accumulation in all country groups.

What Makes Africa Different?Why is TFP growth lower than elsewhere?Geography?Demographics?Culture?Resource endowment?Politics: Internal & External? InstitutionsGovernance?Policies?7/2/2013Africa and the IMF Mark Ellyne16

Many are non-quantitative factorsTropics/poor quality land;Ethnic diveristy;Abundant mineral resources;Social conflict;Colonial exploitation & slaveryCold warPoorly developed instituions16

Why Does Africa Grow Slower?Geography(Bloom and Sachs)Geography and Climate: African soils, topography, and disease ecology raise obstacles to growth, including low agricultural productivity and high disease burdens.Geography, Demography, and Economic Growth in Africa (Bloom and Sachs 1998)Mark Ellyne - Do We Need the IMF17

Why Does Africa Grow Slower?GeologyResource Curse Heavy dependence on a small number of primary exports, which have shown long-term price declines (terms of trade declines) and high volatility;Lifting the Oil Curse: Improving Petroleum Revenue Management in Sub-Saharan Africa (IMF 2004)18

The Problem is The Resource CurseThe exploitation of Africas prolific natural resources encourages rent seeking (payments for nonproductive work), and ultimately the Dutch Disease (a high value-added export appreciates the exchange rate and may make traditional exports noncompetitive).Mark Ellyne - Do We Need the IMF19

Why Does Africa Grow Slower?PoliticsExternal politicsThe legacy of the slave trade;Colonial rule; Cold War manipulations of African politics; andForeign aidMark Ellyne - Do We Need the IMF20

The IMF ExplanationAfrica and the IMF Mark Ellyne21Poor economic policies Excessive protectionism--inefficient; Excessive government regulation--slows business and creates rents;Excessive fiscal spending; Tendency for governments to print money, which causes inflation; High economic rents (corruption), andLack of domestic capital.7/2/2013

To Alleviate Capital Shortage,Donors Gave Loans During the 1980s7/2/2013Africa and the IMF Mark Ellyne22

Response to lack of capital diagnosis;Lend capital to raise InvestmentAfr debt 25% -> 70%; Asia 15%->30%22

Bad Government Policies AreOften the Source of the Problem7/2/2013Africa and the IMF Mark Ellyne23

Cant resist highlightling Govs unique ability print moneyI went to Zim in 1997, xr=10:1; 2009 xr=1 trillion:123

The BWI Solution toAfricas Deficient Policies7/2/2013Africa and the IMF Mark Ellyne24Structural Adjustment Programs (SAPs), created in the 1980s, promoted the traditional economic wisdom of the time, which became embodied in what was called the Washington Consensus (1999), which was at the center of adjustment policies. (Neoliberal policies)

The WC was summary for policies used, not a toolkitLets look at WC = neoliberalism; 24

Washington Consensus 7/2/2013Africa and the IMF Mark Ellyne25Fiscal PolicyFiscal discipline is good;Public expenditure priorities should be social infrastructure and public goods;Tax reform should broaden the tax base.

Country like a household25

Implied Policy Prescriptions26Reduce the fiscal deficit To take pressure off interest rates, stop crowding out the private sector, and reduce the current account deficitRaise taxes or cut expenditure Painful

7/2/2013Africa and the IMF Mark Ellyne

WC sounds logical, but what are the implications26

Washington Consensus27Price LiberalizationDeregulation to encourage market-determined prices, which create more efficient allocation. Eliminate price controls and subsidies;Maintain a single exchange rate determined by the market.7/2/2013Africa and the IMF Mark Ellyne

Implied Policy Prescriptions28Depreciate the exchange rate to increase competitivenessTo raise exports and reduce imports, (reduce the trade deficit) and stimulate domestic productionRaises inflationPainful7/2/2013Africa and the IMF Mark Ellyne

Washington Consensus29Free TradeTrade liberalization is good for growth and consumer welfare.Encourage privatization and eliminate barriers to foreign direct investment to encourage more & efficient investment.

7/2/2013Africa and the IMF Mark Ellyne

Washington Consensus30Liberalize the financial sector to obtain efficient allocation of capital, including market interest rates, including free flow of international capital. Create secure property rights to encourage investment.Maintain macroeconomic stability.7/2/2013Africa and the IMF Mark Ellyne

WC sounds reasonable, but what are implication:

Importance of Property rights- Hernando deSoto Polar, PeruvianMystery of Capital (2000)Focussed on granting property rights to peruvian coca farmersLegal reform and land titles to peasants give them stake in system30

Implied Policy Prescriptions31Raise the real interest rateTo reduce inflation, encourage savings, and make efficient use of capital.Hurts business and reduces jobs Painful

7/2/2013Africa and the IMF Mark Ellyne

Results of Policies in Africa7/2/2013Africa and the IMF Mark Ellyne32

I once heard an official in LIC say that taking money from the IMF was like making love to a Gorillayou cant stop until he doesSo why didnt the WC work?

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The Counter Attack to the WCStiglitz (2002)7/2/2013Africa and the IMF Mark Ellyne33

Counter attack against SAP by many, but epitimized by Stiglitz, who was chief econ at WB and Nobel prize winnerThe Stiglitz Attack was important because he was a member of the establishmentAttach began in 1998

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Attack on the Washington Consensus7/2/2013Africa and the IMF Mark Ellyne34We dont live in textbook neoclassical world - incomplete information and imperfect markets.Shock therapy is worse than the gradualist approachespecially for transition economies

Too many prior conditions not metSpeed of implementation is critical34

Attack on the Washington Consensus7/2/2013Africa and the IMF Mark Ellyne35Need to build new institutions, like land titles, commercial courts, and relevant laws before implementing new policies.

Sequencing

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Attack on the Washington Consensus7/2/2013Africa and the IMF Mark Ellyne36Privatization is not always the answerState-owned enterprises may provide socially beneficial services and employment.

Attack on the Washington Consensus7/2/2013Africa and the IMF Mark Ellyne37Fiscal austerity was wrong policy approach for East AsiaAll problems are not fiscal problemsNeed countercyclical fiscal policy

Attack on the Washington Consensus7/2/2013Africa and the IMF Mark Ellyne38Trade liberalization need to done slowly and may not always be goodShould consumers pay more to facilitate domestic employment?Protection may give an infant industry a chance to succeed

Given criticisms: Heard one done say that taking money from the IMF is like making love to a Gorilla...38

Attack on the Washington Consensus7/2/2013Africa and the IMF Mark Ellyne39Financial liberalization:Can be dangerous without appropriate supervisionFree flow of capital may be dangerous, especially for small economies

Given criticisms: Heard one done say that taking money from the IMF is like making love to a Gorilla...39

Trevor Manuel: Market Failureswere the Problem (2003)40

7/2/2013Africa and the IMF Mark Ellyne

Trevor manuel, former Min Fin, noted that domestic and intl market failures were responsible for failure of WCIMF F&D 200340

Trevor Manuel: Market Failureswere the Problem (2003)7/2/2013Africa and the IMF Mark Ellyne41World trade regime not favourable to Africa. External shocks very damaging to undiversified exporters.International financial system and aid practices caused frequent disruptions to developing country marketsGrants were needed in place of loans

Domestic Market Failures42State-owned enterprises can be good (Asia) but the African State was too weak to manage themShortage of social capital--needed more human capital and physical infrastructure Africas rural economy is to dependent on the more modern urban and fiscal sectors7/2/2013Africa and the IMF Mark Ellyne

Does IMF Create Austerity?The IMF Response7/2/2013Africa and the IMF Mark Ellyne43Saying the IMF causes austerity is like saying doctors cause plagues because you often find them around sick people. Emerging-market debtors typically come to the IMF only when their finances are under extreme duress ... and other creditors have turned their backs.

The IMF Strikes Back By Kenneth Rogoff , Economic Counselor and Director of the Research Department International Monetary Fund

Here is how the IMF responds to the attacks that it is at fault. Rogoff is Harvard prof; was chief economist at IMF

Countries would have to cut government budget in any case, and without external support43

What Was Wrong with SAP Advice?7/2/2013Africa and the IMF Mark Ellyne44Fundamentally flawed?Faulty implementation?Reform program not wrong, but incomplete?

New Thinking7/2/2013Africa and the IMF Mark Ellyne45Joseph Stiglitz How to make Globalization WorkJeff Sachs The End of PovertyDembisa Moyo Dead AidPaul Collier The Bottom Billion; Wars, Guns and VotesGovernance

A few important thinkers on Development45

Solutions to the ProblemAfrica and the IMF Mark Ellyne46

7/2/2013

The End of Poverty: Economic Possibilities for Our Time 7/2/2013Africa and the IMF Mark Ellyne47Jeffrey Sachs (2005) argues that extreme povertydefined by the World Bank as incomes of less than 1 dollar per daycan be eliminated globally by the year 2025, through carefully planned development aid, that reaches the "bottom rung" of the ladder.

Sachs: More AidAfrica and the IMF Mark Ellyne48In order to achieve the goal of eliminating global poverty, development aid must be raised from $65 billion globally as of 2002 to between $135 and $195 billion a year by 2015, including debt cancellation for the world's poorest countries.7/2/2013

Dead Aid by Dambisa Moyo(2009)7/2/2013Africa and the IMF Mark Ellyne49

New Commentator with new ideas: Zambian African woman49

Moyos Hypotheses:Africa and the IMF Mark Ellyne50Foreign aid fosters dependence;Foreign aid fosters corruption;Foreign aid encourages bureaucracy;Foreign aid reduces tax revenue;Foreign aid reduces private investment; Foreign aid creates bottlenecks;7/2/2013

Government is less answerable to its citizens than to intl donors50

Donor Aid And Corruption7/2/2013Africa and the IMF Mark Ellyne51Historically:Corrupt governments do not receive less Foreign aid.

Countries that receive more aid, tend to have higher levels of corruption.Source: Do Corrupt Governments Receive Less Foreign Aid? (NBER Working Paper No. 7108)

Corruption is an unproductive tax from poor to rich.51

Moyo: Less Aid - More BusinessAfrica and the IMF Mark Ellyne52Advanced economies should reduce aid while increasing tradeLIC governments should use bond markets to raise fundsnot the central bank or donor grantsLICs should welcome foreign investmentGovernments must make Doing Business easier7/2/2013

On the other handAfrica got only 17 / 400 $bn of FDI to developing countriesDoing business: time to get license, days completing forms;

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Paul Collier7/2/2013Africa and the IMF Mark Ellyne53The Natural Resource Trap - The exploitation of Africas prolific natural resources encourages rent seeking (payments for nonproductive work), and can stifle other economic activity (Dutch Disease). Africa is heavily dependent on a small number of primary exports that have shown long-term price declines (terms of trade declines) and high volatility.

Collier is Scholar at Oxford and former Chief economist at WDutch disease is when one important export tends to appreciate the exchange rates and causes traditional exports to no longer be exportable. e.g. Nigeria was agicultural exporter before oil

TOT volatility is damanging for doing business and for policy53

Paul Collier7/2/2013Africa and the IMF Mark Ellyne54Political risk is results from conflict and is one of the greatest risk factors reducing investment in Africa. Ethnic loyalty to leaders, regardless of their competence/performance, reduce their incentive to perform well.

Other book, Collier talks about conflict and politics

Risk reduce domestic and foreign investment54

Paul Collier7/2/2013Africa and the IMF Mark Ellyne55The Conflict Trap - civil wars and coups have an estimated average cost of $64bn each, according to Collier.

Other book, Collier talks about conflict and politics

Risk reduce domestic and foreign investment55

Political Risk is High in Africa7/2/2013Africa and the IMF Mark Ellyne562009: Index of Failed States

Top 5 failed states were in Africa (Somalia, Chad, Sudan, Zimbabwe, DRC)10 of top 15 in Africa21 of 37 States that US Government has on its Alert list for Failed States are in Africa

Recently found this measure of political risk:Foreign Policy journal and US govern track failed statesCentral Government is weak or ineffective and has little control over much of its territory.Measure of instability56

Average Corruption Perception Index: African Countries in Yellow (2010)7/2/2013Africa and the IMF Mark Ellyne57

Average of WB, AFDB, TI, by Asian Devel Bank178 countries worldwide4: top 509: 50-10019: 100-15011: 150-17857

Has the IMF Changed Since SAPs?7/2/2013Africa and the IMF Mark Ellyne58The 2nd Generation of Reforms:Concern about poverty; creation of the Poverty Reduction and Growth Facility (1999)Emphasis on good governance (accountability and transparency in public finances)Demands government ownership of policies

Good governance means accountability and transparency of public finances58

Has the IMF Changed Since SAP?59Increased concern over financial system regulation and supervisionProvides more capacity building and technical assistanceOffered debt relief for first time (MDRI, 2006)

7/2/2013Africa and the IMF Mark Ellyne

Debt relief: Someone always paysFor IMFif forgiven, less money left to lendSo members voluntarily contributed to buyback fund59

Some Old Messages Persist60Growth is the key to poverty reductionInternational trade and foreign investment (new technology) are critical for long-term growthGovernments must avoid excessive domestic and foreign debtAfrican countries need more flexible exchange rates, and more flexible goods and labour markets7/2/2013Africa and the IMF Mark Ellyne

The Alternatives to the BWIsHold more reserves to protect against shocksNeed more commercial borrowing (expensive)Take more bilateral aid (more political strings attached)Mark Ellyne - Do We Need the IMF61

Africa is Experiencing a Resurgence of Growth Since 20007/2/2013Africa and the IMF Mark Ellyne62

1980 2000 lost decades62

Africas New Growth Surge?7/2/2013Africa and the IMF Mark Ellyne63

Does this mean that IMF/WB are working??63

Since the mid-1990s, TFP growth has Generally Improved

TFP Growth has Improved

Summary of key messages

Until the mid-1990s, growth in SSA was driven primarily by factor accumulation in all country groups. Since the mid-1990s, TFP growth has improved strongly in all country groups, except for fragile countries.

TFP accelerations associated with improvements in terms of trade, higher aid, and lower economic and social instability

CFA zone countries have a propensity for TFP decelerations

Dan Ghura (2007). Growth Accounting in Africa, IMFConclusions and Policy Implications66

Is African Resurging?7/2/2013Africa and the IMF Mark Ellyne67Just a fluke:Just a commodity boomDue to China and IndiaNo real industrializationThis time is different: More democracy and ownership More institutional development More consumerism More beneficiation

BWI/IMF Balance Sheet68PROsFacilitates international cooperationProvides public information on all economiesTechnical assistance and policy adviceProvides lender of last resort financingVoice for Africa (LICs)CONsEconomic policeman/auditorRequires policy conditionality (even if county is not be ready)Favours creditors over debtorsFavours efficiency (private) over equity (government)Overly conservative7/2/2013Africa and the IMF Mark Ellyne

Where do we standLender of last resort reduces need for reservesNeed economic policeman; and lender of last resortIMF represent Africa/LICs at G7 meetingIMF favors rich asysmetrical standardsbut no conspiracy.68

IMF is Disliked by All SidesAfrica and the IMF Mark Ellyne69From the right: Nationalists are dislike supranational institutions;From the left: Socialists dislike polices that hurt poor elements of society;IMF is run by rich countries;IMF follows bad neoliberal policies.7/2/2013

IMF remains disliked by all...Eg USA dislikes UN69

Future of the BWIs in 2006They hoped to avert future crises by setting up multilateral institutions to act as a stabilising influence during the post-war reconstruction. The banks first job was rebuilding Europe; the IMF oversaw the fixed exchange-rate system established at Bretton Woods. Later on, the pair sought new roles as the stewards of global economic development and financial stability. Now the IMF and World Bank have fewer jobs to do. Markets work better, as do other financial institutions. Helped by improved economic theory, the world has grown richer and more stable. As for helping the poorest, a multilateral model of giving poor countries money and advice for running their economies is under fire from both left and right. Conservatives argue that such interventions cause more problems than they solve. The left complains that developing nations get too little money and not enough control over how it is spent. Both sides fear that the institutions structures are outdated, hinting, increasingly loudly, that retirement is due.Economist, September 19, 2006Mark Ellyne - Do We Need the IMF70

Back from the dead:But the IMF is not quite ready for the future

THE International Monetary Fund has had a good crisis. Two years ago the worlds main international economic institution was heading for irrelevance, its homilies ignored by rich countries, its advice despised in poorer ones and its lending unnecessary in a world flush with private capital. Today the fund is widely hailed as a flexible and innovative crisis-responder. It has committed over $160 billion in a host of new loans and credit lines, up from barely more than $1 billion in 2007. Its lending capacity is being trebled to $750 billion.

From The Economist, Sept. 17th 2009Mark Ellyne - Do We Need the IMF71

Discussion72Is the IMF (BWIs) a conspiracy to undermine the economies of low income countries?Are Africas problems a result of discrimination, bad advice, or poor policy implementation?Should the IMF (BWIs) be replaced?And with what?7/2/2013Africa and the IMF Mark Ellyne

I leave you with these questions72

CPI table2010 Country Rank2009 rank2008 rankCountry / TerritoryISO COUNTRY CODECPI 2010 ScoreCPI 2009 ScoreCPI 2008 ScoreSurveys UsedStandard DeviationMinimun Maximum Range90 % Confidence IntervalADB 2009AfDB 2009BF 2009EIU 2010FH 2010GI 2010IMD 2009IMD 2010PERC2009PERC2010WB 2009WEF 2009WEF 2010ADB: Country Performance Assessment Ratings by the Asian Development Bank AFDB: Country Policy and Institutional Assessment by the African Development BankBF: Bertelsmann Transformation Index by the Bertelsmann FoundationEIU: Country Risk Service and CMinMaxLower boundHigher boundrank21countrycpi2010no_sources_aroundstdroundminroundmaxroundbs_btm90roundbs_top90roundstadb2009_beta_d1roundstafdb2009_beta_d1roundstbti2009_beta_d1roundsteiu2010_beta_d1roundstnit2010_beta_d1roundstgi2010_beta_d1roundstimd2009_beta_d1roundstimd2010_beta_d1roundstperc2009_beta_d1roundstperc2010_beta_d1roundstcpia2009_beta_d1roundstwef2009_beta_d1roundstwef2010_beta_d1111DenmarkDK9.309.309.306.000.208.909.509.109.408.909.209.509.509.509.20134New ZealandNZ9.309.409.306.000.208.909.509.209.508.909.209.509.509.509.50165SingaporeSG9.309.209.209.000.208.909.509.209.409.308.909.209.309.209.309.409.309.50431FinlandFI9.208.909.006.000.208.909.509.109.308.909.209.509.409.209.10489SwedenSE9.209.209.306.000.208.909.509.109.408.909.209.209.309.509.40667CanadaCA8.908.708.706.000.308.409.208.709.008.909.208.908.808.408.90789NetherlandsNL8.808.908.906.000.308.509.208.709.008.909.209.008.908.608.50855AustraliaAU8.708.708.708.000.607.509.208.309.008.909.209.209.108.408.907.508.3081114SwitzerlandCH8.709.009.006.000.707.409.108.309.108.907.409.109.108.909.001087NorwayNO8.608.607.906.000.707.409.308.109.008.907.408.108.409.109.30111211IcelandIS8.508.708.905.001.106.809.207.709.206.809.207.909.209.10111212LuxembourgLU8.508.208.305.000.607.409.008.008.907.408.609.009.008.40131416Hong KongHK8.408.208.108.000.507.408.908.108.708.907.408.408.208.908.407.908.90141612IrelandIE8.008.007.706.000.507.408.907.708.308.907.407.908.007.908.00151414AustriaAT7.907.908.106.000.706.808.907.408.406.807.408.108.908.407.90152022GermanyDE7.908.007.906.000.607.208.907.508.308.907.407.508.108.107.20171718BarbadosBB7.807.407.004.000.906.808.907.108.508.907.406.808.10172228JapanJP7.807.707.308.000.606.808.807.508.206.807.407.508.507.507.708.108.80191716QatarQA7.707.006.507.001.604.509.206.608.604.506.809.208.408.309.107.60202523United KingdomGB7.607.707.706.000.506.808.207.307.906.807.407.907.707.508.20212118ChileCL7.206.706.907.000.306.807.707.007.407.006.807.406.907.307.107.70221918BelgiumBE7.107.107.306.000.206.807.406.907.206.807.407.106.907.106.90222523United StatesUS7.107.507.308.001.105.708.906.507.708.907.406.806.707.507.905.705.70242423UruguayUY6.906.706.905.000.406.207.406.507.107.006.807.406.206.70252727FranceFR6.806.906.906.000.605.807.506.407.206.805.807.507.206.706.90262726EstoniaEE6.506.606.608.000.705.107.106.106.807.005.106.805.807.106.807.106.30272731SloveniaSI6.406.606.708.000.905.007.405.906.806.706.806.807.406.205.006.905.20283035CyprusCY6.306.606.404.000.405.806.806.006.606.805.806.106.30283233United Arab EmiratesAE6.306.505.905.001.304.907.505.407.304.905.107.407.506.80303228IsraelIL6.106.106.006.000.705.107.205.706.605.105.806.706.007.206.00303532SpainES6.106.106.506.000.605.306.805.706.506.805.806.606.305.605.30323736PortugalPT6.005.806.106.000.905.007.405.406.706.807.405.305.006.005.60333536BotswanaBW5.805.605.806.000.605.206.805.406.205.606.006.805.805.205.30333739Puerto RicoPR5.805.805.804.000.705.206.805.306.406.805.805.505.20334945TaiwanTW5.805.605.709.000.705.107.105.506.206.705.105.805.807.105.205.405.705.80364536BhutanBT5.705.005.204.000.705.106.605.106.205.105.205.806.6037390MaltaMT5.605.205.803.000.305.305.805.305.805.805.305.50383940BruneiBN5.505.500.003.000.704.706.104.706.104.706.105.70394241Korea (South)KR5.405.505.609.000.504.606.005.105.706.005.104.705.705.805.805.605.204.60394347MauritiusMU5.405.405.506.000.804.706.804.905.904.805.606.804.705.205.20413941Costa RicaCR5.305.305.105.001.004.706.804.706.005.606.804.704.704.70414958OmanOM5.305.505.505.001.603.107.104.106.403.105.104.706.507.10413433PolandPL5.305.004.608.000.404.705.805.005.505.605.105.105.804.904.705.805.10444647DominicaDM5.205.906.003.000.604.705.804.705.805.105.804.70455258Cape VerdeCV5.105.105.104.001.303.406.604.106.105.603.406.605.00464343LithuaniaLT5.004.904.608.001.003.406.804.405.505.606.804.803.404.905.104.704.50464643MacauMO5.005.305.403.001.403.405.803.405.803.405.705.80485455BahrainBH4.905.105.405.001.203.105.904.105.703.105.104.705.905.90494647SeychellesSC4.804.804.803.001.903.006.803.006.803.006.804.70504947HungaryHU4.705.105.108.001.402.306.803.905.505.606.804.805.804.702.303.803.70506380JordanJO4.705.005.107.001.303.106.104.005.503.103.304.706.105.606.104.30505245Saudi ArabiaSA4.704.303.505.002.002.307.303.306.002.303.304.705.907.30536665Czech RepublicCZ4.604.905.208.000.903.305.804.105.105.205.105.105.804.704.003.803.30545554KuwaitKW4.504.104.305.001.802.707.403.305.902.703.307.404.404.50545647South AfricaZA4.504.704.908.000.603.405.104.104.804.803.905.103.404.704.505.104.40565661MalaysiaMY4.404.505.109.000.903.306.303.904.904.503.303.405.206.303.604.604.504.60566158NamibiaNA4.404.504.506.000.803.305.103.904.903.704.903.304.705.105.10565652TurkeyTR4.404.404.607.000.703.305.204.004.804.503.304.705.205.204.403.90595652LatviaLV4.304.505.006.000.803.405.103.704.804.905.105.103.403.603.60596562SlovakiaSK4.304.505.008.001.003.105.803.804.905.205.104.505.803.803.603.403.10596662TunisiaTN4.304.204.406.002.002.306.603.005.602.502.303.304.706.606.60627172CroatiaHR4.104.104.408.000.803.405.203.704.505.205.103.804.703.603.703.403.40626967Macedonia, FYRMK4.103.803.605.000.503.304.703.704.504.503.304.004.704.30625662GhanaGH4.103.903.907.001.002.705.103.404.704.803.905.104.704.702.702.706289102SamoaWS4.104.504.403.000.703.404.703.404.704.003.404.70666355RwandaRW4.003.303.005.001.603.006.703.205.103.003.503.403.306.70676667ItalyIT3.904.304.806.000.703.305.103.504.403.303.405.104.603.603.80687580GeorgiaGE3.804.103.907.001.402.105.703.004.702.904.903.302.102.705.205.70696165BrazilBR3.703.703.507.000.902.705.603.204.305.603.303.403.602.703.303.90696985CubaCU3.704.404.303.001.302.605.102.605.103.505.102.60697170MontenegroME3.703.903.405.000.802.604.503.104.303.503.302.604.504.50697172RomaniaRO3.703.803.808.000.802.404.903.304.204.903.304.003.402.403.304.703.80738467BulgariaBG3.603.803.608.000.702.905.203.204.005.203.304.003.403.403.303.202.90738485El SalvadorSV3.603.403.905.000.303.303.903.403.803.903.303.403.903.50737972PanamaPA3.603.403.405.000.703.104.703.204.103.103.304.703.903.207395109Trinidad and TobagoTT3.603.603.604.000.802.804.703.004.303.304.703.602.80737972VanuatuVU3.603.202.903.001.902.305.802.305.802.305.802.70787570ChinaCN3.503.603.609.000.902.305.503.004.002.303.302.602.803.705.503.503.604.10787157ColombiaCO3.503.703.807.000.803.105.203.204.003.103.303.405.203.303.103.30788992GreeceGR3.503.804.706.000.602.904.503.103.903.303.403.804.502.902.90787572LesothoLS3.503.303.206.001.202.405.802.804.403.003.505.803.302.702.40788385PeruPE3.503.703.607.000.203.303.703.403.603.503.303.403.503.703.503.70788480SerbiaRS3.503.503.406.000.602.704.503.103.904.503.303.803.403.302.707889115ThailandTH3.503.403.509.000.702.204.403.203.903.903.303.404.404.402.203.303.503.30858980MalawiMW3.403.302.807.000.902.104.902.803.903.003.903.302.102.704.903.70859585MoroccoMA3.403.303.506.000.802.304.702.903.903.002.303.304.703.403.70878485AlbaniaAL3.303.203.406.000.502.604.103.003.603.103.303.302.603.604.10879996IndiaIN3.303.403.4010.000.402.603.903.003.503.903.302.603.503.702.603.403.303.303.008797138JamaicaJM3.303.003.105.000.302.703.503.003.402.703.303.403.403.50879992LiberiaLR3.303.102.404.000.802.604.302.703.904.303.502.602.7091111102Bosnia and HerzegovinaBA3.203.003.207.000.602.303.902.803.503.903.303.803.402.702.302.9091106158DjiboutiDJ3.202.803.003.001.302.104.702.104.703.004.702.10918496GambiaGM3.202.901.905.001.701.705.001.904.401.702.601.704.905.009111196GuatemalaGT3.203.403.105.000.302.603.503.003.403.503.302.603.403.40919792KiribatiKI3.202.803.103.001.302.304.702.304.702.304.702.70917972Sri LankaLK3.203.103.207.000.602.304.102.903.602.303.103.303.402.703.804.10917980SwazilandSZ3.203.603.604.000.203.003.403.103.403.003.303.403.4098111115Burkina FasoBF3.103.603.506.001.001.904.802.403.804.801.903.403.302.602.40988972EgyptEG3.102.802.806.000.402.503.502.903.402.502.703.303.403.503.509899102MexicoMX3.103.303.607.000.302.703.602.903.303.103.303.403.602.803.202.70101111121Dominican RepublicDO3.003.003.005.000.402.503.402.703.202.703.303.403.002.5010199138Sao Tome and PrincipeST3.002.802.703.000.302.603.302.603.303.002.603.3010199115TongaTO3.003.002.403.000.302.603.302.603.302.902.603.3010111192ZambiaZM3.003.002.807.000.502.103.702.703.303.703.103.302.102.703.502.80105106109AlgeriaDZ2.902.803.206.000.402.303.402.603.203.002.303.303.402.503.20105120145ArgentinaAR2.902.902.907.000.502.403.602.603.203.503.302.602.503.602.502.4010589109KazakhstanKZ2.902.702.208.001.301.405.102.203.702.701.902.001.404.705.102.902.601059985MoldovaMD2.903.302.906.000.402.403.402.703.203.103.302.403.402.702.6010510696SenegalSN2.903.003.407.000.402.103.402.603.103.002.703.302.102.703.103.40110120102BeninBJ2.802.903.106.000.801.703.702.303.303.703.502.603.302.201.7011010696BoliviaBO2.802.703.006.000.502.103.302.503.103.103.302.603.302.102.40110111126GabonGA2.802.903.103.000.602.103.302.103.303.003.302.10110#N/A:explicit#N/A:explicitIndonesiaID2.802.802.609.000.801.604.002.303.203.501.902.603.404.001.601.903.003.00110111109KosovoXK2.803.000.202.703.102.703.103.102.702.70110120126Solomon IslandsSB2.802.802.903.000.502.303.402.303.402.303.402.70116126126EthiopiaET2.702.702.607.000.402.103.302.402.902.502.303.302.602.102.503.2011611196GuyanaGY2.702.602.604.000.202.602.902.602.802.602.702.602.90116120102MaliML2.702.803.106.000.801.503.402.203.203.003.103.403.302.101.50116130126MongoliaMN2.702.703.006.000.502.003.402.403.002.902.703.402.702.002.40116126102MozambiqueMZ2.702.502.607.000.502.003.302.403.002.002.303.302.602.702.803.30116120121TanzaniaTZ2.702.603.007.000.502.103.302.402.903.003.103.302.102.702.502.10116120109VietnamVN2.702.702.709.000.701.904.002.403.104.002.301.902.103.402.702.702.702.60123126126ArmeniaAM2.602.702.907.000.202.302.902.502.802.302.302.902.602.702.902.701239985EritreaER2.602.602.604.001.401.704.701.703.701.702.304.701.70123106115MadagascarMG2.603.003.406.000.502.003.502.202.902.003.502.602.102.602.50123139151NigerNE2.602.902.804.000.402.103.102.302.902.503.102.602.10127146151BelarusBY2.502.402.003.000.502.103.102.103.103.102.402.10127130102EcuadorEC2.502.202.005.000.401.902.802.202.702.701.902.602.402.80127130134LebanonLB2.502.503.004.000.601.903.302.002.901.903.302.602.10127126147NicaraguaNI2.502.502.506.000.401.902.802.202.702.701.902.102.702.802.50127146145SyriaSY2.502.602.105.000.601.803.302.102.801.803.302.602.402.20127130126Timor-LesteTL2.502.202.205.000.601.703.102.102.801.702.102.702.703.10127143158UgandaUG2.502.502.607.000.601.903.502.102.902.503.503.302.102.101.902.20134139147AzerbaijanAZ2.402.301.907.000.502.003.302.102.702.303.302.002.102.102.902.30134130126BangladeshBD2.402.402.107.000.901.504.001.903.004.003.101.902.102.701.501.80134130121HondurasHN2.402.502.606.000.401.903.002.202.702.301.902.102.703.002.60134139141NigeriaNG2.402.502.707.000.402.003.302.202.702.502.303.302.102.702.002.10134146158PhilippinesPH2.402.402.309.000.501.803.402.102.702.701.902.602.101.803.402.702.002.40134111121Sierra LeoneSL2.402.201.905.000.401.902.702.102.602.502.701.902.102.70134146134TogoTG2.402.802.704.000.701.703.401.803.002.501.903.401.70134146166UkraineUA2.402.202.508.000.501.803.102.102.603.101.902.702.601.802.601.802.30134130115ZimbabweZW2.402.201.807.001.001.303.501.803.001.401.503.302.101.303.303.50143130115MaldivesMV2.302.502.803.000.501.702.701.702.701.702.602.70143139134MauritaniaMR2.302.502.806.000.601.703.401.902.702.001.903.402.102.501.70143146141PakistanPK2.302.402.507.000.501.803.302.102.602.301.803.302.102.102.502.40146154151CameroonCM2.202.202.307.000.401.903.002.002.403.002.301.902.102.101.902.10146168177Cte dIvoireCI2.202.102.007.000.501.803.301.902.502.501.803.302.102.101.801.80146168141HaitiHT2.201.801.403.000.102.102.302.102.302.302.102.10146130126IranIR2.201.802.304.001.001.403.701.603.101.801.901.403.70146143121LibyaLY2.202.502.606.000.301.902.602.002.402.002.301.902.602.501.90146154138NepalNP2.202.302.706.000.501.802.901.902.502.901.902.102.701.802.00146154141ParaguayPY2.202.102.405.000.501.702.701.902.502.701.902.601.702.10146158166YemenYE2.202.102.304.000.301.902.702.002.502.301.902.102.70154158151CambodiaKH2.102.001.809.000.301.502.501.902.202.301.501.902.102.502.301.702.201.90154143134Central African RepublicCF2.102.002.004.000.201.902.502.002.302.501.902.102.10154162158ComorosKM2.102.302.503.000.501.702.601.702.601.702.602.10154162158CongoCG2.101.901.905.000.301.802.501.902.302.501.801.902.102.10154146147Guinea-BissauGW2.101.901.903.000.002.002.102.002.102.002.102.10154158151KenyaKE2.102.202.107.000.301.802.702.002.302.501.901.902.102.701.802.10154154151LaosLA2.102.002.004.000.601.502.901.602.602.901.502.101.70154146147Papua New GuineaPG2.102.102.005.000.501.402.701.802.502.302.301.901.402.70154158151RussiaRU2.102.202.108.000.401.402.601.902.302.301.902.001.402.002.102.402.60154162171TajikistanTJ2.102.002.007.000.701.403.301.702.501.701.502.201.401.703.302.70164168173Congo, Dem RepCD2.001.901.704.000.301.702.501.702.302.501.802.101.70164162166GuineaGN2.001.801.605.000.301.702.501.802.202.501.801.902.101.70164162158KyrgyzstanKG2.001.901.807.000.301.602.601.802.302.301.802.002.602.101.601.90164162158VenezuelaVE2.001.901.907.000.201.502.301.802.101.501.902.102.202.001.902.30168168171AngolaAO1.901.901.906.000.201.702.201.802.001.701.901.901.702.102.20168168158Equatorial GuineaGQ1.901.801.703.000.201.702.101.702.101.701.902.10170175173BurundiBI1.801.801.906.000.301.402.301.602.001.702.301.401.701.702.00171176173ChadTD1.701.601.606.000.201.502.101.601.901.701.502.101.701.701.70172168166SudanSD1.601.501.605.000.401.202.101.401.901.701.201.902.101.30172174166TurkmenistanTM1.601.801.803.000.201.401.801.401.801.801.601.40172176178UzbekistanUZ1.601.701.806.000.201.301.901.501.701.701.501.901.601.401.30175179176IraqIQ1.501.501.303.000.401.201.901.201.901.201.901.40176178178AfghanistanAF1.401.301.504.000.301.101.701.201.601.101.201.401.70176180180MyanmarMM1.401.401.303.000.500.901.900.901.900.901.901.40178SomaliaSO1.101.101.003.000.300.901.400.901.400.900.901.40This Excel-sheet presents the Corruption Perceptions Index 2010 and additional background data. For information on data and methodology please consult the press release and the methodology documentation at www.transparency.org/cpiADB: Country Performance Assessment Ratings by the Asian Development Bank AFDB: Country Policy and Institutional Assessment by the African Development BankBF: Bertelsmann Transformation Index by the Bertelsmann FoundationEIU: Country Risk Service and C

CPI 2010 Score - relates to the degree to which corruption is perceived to exist among public officials and politicians by business people and country analysts. Score ranges between 10 (highly clean) and 0 (highly corrupt).Surveys Used - Reflects the number of surveys or assessments used to calculate the CPI score for each country. In 2010 there were 13 surveys and expert assessments used and at least 3 were required for a country to be included in the CPI.Standard Deviation - indicates differences in the values of the sources. The smaller the Standard Deviation the greater the agreement in the valuation of the sources.High-Low Range - provides the highest and lowest values of the sources.The confidence range - provides a range of possible values of the CPI score. This reflects how a country's score may vary, depending on measurement precision. Nominally, with 5 percent probability the score is above this range and with another 5 percent it is below.