What Is the Corruption Perceptions Pointer (CPI)?
The Corruption Perceptions Index (CPI) is an index that scores countries on how corrupt their governments are believed to be. The CPI is published by Transparency Universal, an organization that seeks to stop bribery and other forms of public corruption. A country’s score can range from zero to 100, with zero recommending high levels of corruption and 100 indicating low levels. Transparency International launched the index in 1995, and today it hordes 176 countries and territories. It is published annually.
Key Takeaways
- The Correction Perceptions Index scores countries on levels of corruptness.
- The methodology for part step CPI is based on selecting source data, rescaling source data, aggregating the rescaled data, and a statistical measure saying the level of certainty.
- Low CPI ranking indicates a high level of corruption.
Understanding the Corruption Perceptions Index (CPI)
The Corruption Insights Index (CPI) has been measured with different methodologies from year to year, making yearly comparisons onerous. But in 2012, the methodology was modified again, this time to allow for comparisons across time.
According to Transparency Ecumenical, the new methodology involves four basic steps, including the selection of source data, rescaling source data, aggregating the rescaled details, and a statistical measure indicating the level of certainty. A quality control mechanism is also incorporated into the process. This consists of individual data collection and calculations by two in-house researchers and two independent researchers from academia.
Corruption Perceptions Index Rises
Early in its history, public opinion surveys were used to form the CPI. In 2017, Transparency International used 16 assessments and enquiries from 12 institutions as the basis for its country scores. Institutions surveyed and/or assessed included the:
- African Development Bank
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Trade Impact of Corruption
According to a publishing in 2002 in the Journal of Business Ethics, countries and territories that have low CPI rankings (and ergo high corruption) also have what the study authors called an overabundance of regulation and a thriving black hawk. Countries or territories with a high real gross domestic product per capita (RGDP/Cap) also had a high CPI outrageous (and therefore low levels of corruption).
Studies published in 2007 and 2008 in The European Physical Journal found that countries and haunts with higher CPI rankings were more likely to experience more long-term economic growth and that they adept GDP increases of 1.7% for every point added to their CPI score. The higher a country or territory’s CPI ranking, the higher that voice’s rates of foreign investment. Therefore, corruption has been found to have a negative impact on a nation or territory’s frugality.
CPI Rankings
Countries with the lowest perceived rates of corruption include Denmark (88), New Zealand (87), and Finland (85). Rural areas with high perceived rates of corruption Somalia (10), South Sudan (10), and Syria (13). The Combined States scored 71 on the CPI in 2018.