http://www.transparency.org/layout/set/print/news_room/latest_news/press_releases/2009/2009_11_17_cpi2009_en


Corruption threatens global economic recovery, greatly challenges
countries in conflict
Berlin, 17 November 2009

As the world economy begins to register a tentative recovery and some
nations continue to wrestle with ongoing conflict and insecurity, it
is clear that no region of the world is immune to the perils of
corruption, according to Transparency International’s 2009 Corruption
Perceptions Index (CPI), a measure of domestic, public sector
corruption released today.

“At a time when massive stimulus packages, fast-track disbursements of
public funds and attempts to secure peace are being implemented around
the world, it is essential to identify where corruption blocks good
governance and accountability, in order to break its corrosive cycle”
said Huguette Labelle, Chair of Transparency International (TI).

The vast majority of the 180 countries included in the 2009 index
score below five on a scale from 0 (perceived to be highly corrupt) to
10 (perceived to have low levels of corruption). The CPI measures the
perceived levels of public sector corruption in a given country and is
a composite index, drawing on 13 different expert and business
surveys. The 2009 edition scores 180 countries, the same number as the
2008 CPI.

Fragile, unstable states that are scarred by war and ongoing conflict
linger at the bottom of the index. These are: Somalia, with a score of
1.1, Afghanistan at 1.3, Myanmar at 1.4 and Sudan tied with Iraq at
1.5. These results demonstrate that countries which are perceived as
the most corrupt are also those plagued by long-standing conflicts,
which have torn apart their governance infrastructure.

When essential institutions are weak or non-existent, corruption
spirals out of control and the plundering of public resources feeds
insecurity and impunity. Corruption also makes normal a seeping loss
of trust in the very institutions and nascent governments charged with
ensuring survival and stability.

Countries at the bottom of the index cannot be shut out from
development efforts. Instead, what the index points to is the need to
strengthen their institutions. Investors and donors should be equally
vigilant of their operations and as accountable for their own actions
as they are in demanding transparency and accountability from
beneficiary countries.

“Stemming corruption requires strong oversight by parliaments, a well
performing judiciary, independent and properly resourced audit and
anti-corruption agencies, vigorous law enforcement, transparency in
public budgets, revenue and aid flows, as well as space for
independent media and a vibrant civil society,” said Labelle. “The
international community must find efficient ways to help war-torn
countries to develop and sustain their own institutions.”

Highest scorers in the 2009 CPI are New Zealand at 9.4, Denmark at
9.3, Singapore and Sweden tied at 9.2 and Switzerland at 9.0. These
scores reflect political stability, long-established conflict of
interest regulations and solid, functioning public institutions.

Overall results in the 2009 index are of great concern because
corruption continues to lurk where opacity rules, where institutions
still need strengthening and where governments have not implemented
anti-corruption legal frameworks.

Even industrialised countries cannot be complacent: the supply of
bribery and the facilitation of corruption often involve businesses
based in their countries. Financial secrecy jurisdictions, linked to
many countries that top the CPI, severely undermine efforts to tackle
corruption and recover stolen assets.

“Corrupt money must not find safe haven. It is time to put an end to
excuses,” said Labelle. “The OECD’s work in this area is welcome, but
there must be more bilateral treaties on information exchange to fully
end the secrecy regime. At the same time, companies must cease
operating in renegade financial centres.”

Bribery, cartels and other corrupt practices undermine competition and
contribute to massive loss of resources for development in all
countries, especially the poorest ones. Between 1990 and 2005, more
than 283 private international cartels were exposed that cost
consumers around the world an estimated US $300 billion in
overcharges, as documented in a recent TI report.

With the vast majority of countries in the 2009 index scoring below
five, the corruption challenge is undeniable. The Group of 20 has made
strong commitments to ensure that integrity and transparency form the
cornerstone of a newfound regulatory structure. As the G20 tackles
financial sector and economic reforms, it is critical to address
corruption as a substantial threat to a sustainable economic future.
The G20 must also remain committed to gaining public support for
essential reforms by making institutions such as the Financial
Stability Board and decisions about investments in infrastructure,
transparent and open to civil society input.

Globally and nationally, institutions of oversight and legal
frameworks that are actually enforced, coupled with smarter, more
effective regulation, will ensure lower levels of corruption. This
will lead to a much needed increase of trust in public institutions,
sustained economic growth and more effective development assistance.
Most importantly, it will alleviate the enormous scale of human
suffering in the countries that perform most poorly in the Corruption
Perceptions Index.

To view the CPI 2009 Table click here.
[http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table]

###

Transparency International is the global civil society organisation
leading the fight against corruption.
Media contact(s):
Gypsy Guillén Kaiser
+49 30 34 38 20 19 or + 49 30 34 38 20 662
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