Corruption Perceptions Index 2018 Executive Summary

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CORRUPTION PERCEPTIONS INDEX 2018


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#cpi2018 www.transparency.org/cpi

This work is licensed under CC BY-ND 4.0 Transparency International 2019. ISBN: 978-3-96076-116-7 Printed on 100% recycled paper. Every effort has been made to verify the accuracy of the information contained in this report. All information was believed to be correct as of January 2019. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts. Generous support for the Corruption Perceptions Index 2018 is provided by EY.


CORRUPTION PERCEPTIONS INDEX 2018 The 2018 Corruption Perceptions Index, published by Transparency International, measures the perceived levels of public sector corruption in 180 countries and territories. Drawing on 13 surveys of businesspeople and expert assessments, the index scores on a scale of zero (highly corrupt) to 100 (very clean). The results paint a sadly familiar picture: more than two-thirds of countries score below 50, while the average score is just 43.  Perhaps most disturbing is that the vast majority of countries assessed have made little to no progress. Only 20 have made significant progress in recent years. As long as corruption continues to go largely unchecked, democracy is under threat around the world. “Corruption chips away at democracy to produce a vicious cycle, where corruption undermines democratic institutions and, in turn, weak institutions are less able to control corruption,” said Patricia Moreira, managing director of Transparency International. “With many democratic institutions under threat across the globe – often by leaders with authoritarian or populist tendencies – we need to do more to strengthen checks and balances and protect citizens’ rights.” Citizens demand transparency. Recent anti-corruption protests from Mongolia to Romania to Guatemala have made clear the public’s outrage with politicians’ abuse of office and attempts to limit their own accountability. Voters’ frustration with corruption has also reshaped the politics of several countries in the past few years. The leaders riding waves of discontent to positions of power must pay more than lip-service to anti-corruption; it should enter the DNA of their policies and reforms. “Our research makes a clear link between having a healthy democracy and successfully fighting public sector corruption,” said Delia Ferreira Rubio, chair of Transparency International. “Corruption is much more likely to flourish where democratic foundations are weak and, as we have seen in many countries, where undemocratic and populist politicians capture democratic institutions and use them to their advantage.”


CORRUPTION PERCEPTIONS INDEX 2018

180 COUNTRIES. 180 SCORES. HOW DOES YOUR COUNTRY MEASURE UP? The perceived levels of public sector corruption in 180 countries/territories around the world. SCORE Very Clean

Highly Corrupt 10-19

20-29 30-39 40-49

GLOBAL ANALYSIS

0-9

50-59

60-69

70-79

80-89

SCORE COUNTRY/TERRITORY 88 87 85 85 85 85 84 82 81 81 80 80 77 76 76 76 75 73 73 73 72 71 70 70 68

Denmark New Zealand Finland Singapore Sweden Switzerland Norway Netherlands Canada Luxembourg Germany United Kingdom Australia Austria Hong Kong Iceland Belgium Estonia Ireland Japan France United States United Arab Emirates Uruguay Barbados

90-100

No data

RANK 1 2 3 3 3 3 7 8 9 9 11 11 13 14 14 14 17 18 18 18 21 22 23

68 67 66 65 64 63

Bhutan Chile Seychelles Bahamas Portugal Brunei Darussalam

25 27 28 29 30 31

63 62 61 61 60 60 59 59 59 58 58 58

Taiwan Qatar Botswana Israel Poland Slovenia Cyprus Czech Republic Lithuania Georgia Latvia Saint Vincent and the Grenadines Spain Cabo Verde Dominica Korea, South Costa Rica Rwanda Saint Lucia Malta

31 33 34 34 36 36 38 38 38 41 41 41

58 57 57 57 56 56 55 54

23 25

2

41 45 45 45 48 48 50 51

53 52 52 52 51 50 49 49 48 47 47 47 46 46 46 45 45 45 44 44 44 43 43 43 43 42 41

Namibia Grenada Italy Oman Mauritius Slovakia Jordan Saudi Arabia Croatia Cuba Malaysia Romania Hungary Sao Tome and Principe Vanuatu Greece Montenegro Senegal Belarus Jamaica Solomon Islands Morocco South Africa Suriname Tunisia Bulgaria Burkina Faso

52 53 53 53 56 57 58 58 60 61 61 61 64 64 64 67 67 67 70 70 70 73 73 73 73 77 78


GLOBAL ANALYSIS

41 41 41 41 41 41 40 40 39 39 38 38 38 38 37 37 37 37 37 37 36 36 36 36 36 36

Ghana India Kuwait Lesotho Trinidad and Tobago Turkey Argentina Benin China Serbia Bosnia and Herzegovina Indonesia Sri Lanka Swaziland Gambia Guyana Kosovo Macedonia Mongolia Panama Albania Bahrain Colombia Philippines Tanzania Thailand

78 78 78 78 78 78 85 85 87 87 89 89 89 89 93 93 93 93 93 93 99 99 99 99 99 99

35 35 35 35 35 35 35 35 35 34 34 34 33 33 33 32 32 32 32 31 31 31 31 31 30 30 30

Algeria Armenia Brazil Côte d’Ivoire Egypt El Salvador Peru Timor-Leste Zambia Ecuador Ethiopia Niger Moldova Pakistan Vietnam Liberia Malawi Mali Ukraine Djibouti Gabon Kazakhstan Maldives Nepal Dominican Republic Sierra Leone Togo

105 105 105 105 105 105 105 105 105 114 114 114 117 117 117 120 120 120 120 124 124 124 124 124 129

29 29 29 29 29 29 28 28 28 28 28 28 27 27 27 27 27 26 26 26 25 25 25 25 25 24

129 129

3

Bolivia Honduras Kyrgyzstan Laos Myanmar Paraguay Guinea Iran Lebanon Mexico Papua New Guinea Russia Comoros Guatemala Kenya Mauritania Nigeria Bangladesh Central African Republic Uganda Azerbaijan Cameroon Madagascar Nicaragua Tajikistan Eritrea

132 132 132 132 132 132 138 138 138 138 138 138 144 144 144 144 144 149 149 149 152 152 152 152 152 157

23 23 22 20 20 20 20 19 19 19 18 18 17 17 16 16 16 16 14 14 13 13 10

Mozambique Uzbekistan Zimbabwe Cambodia Democratic Republic of the Congo Haiti Turkmenistan Angola Chad Congo Iraq Venezuela Burundi Libya Afghanistan Equatorial Guinea Guinea Bissau Sudan Korea, North Yemen South Sudan Syria Somalia

158 158 160 161 161 161 161 165 165 165 168 168 170 170 172 172 172 172 176 176 178 178 180


CORRUPTION PERCEPTIONS INDEX 2018

TOP COUNTRIES 100

0 01

DENMARK

88/100

02

NEW ZEALAND

87/100

03

FINLAND

85/100

04

SINGAPORE

85/100

05

SWEDEN

85/100

06

SWITZERLAND

85/100

176

NORTH KOREA

14/100

177

YEMEN

14/100

178

SOUTH SUDAN

13/100

179

SYRIA

13/100

180

SOMALIA

10/100 0

06

BOTTOM COUNTRIES

100 GLOBAL AVERAGE

HIGHEST SCORING REGION

LOWEST SCORING REGION

WESTERN EUROPE & EUROPEAN UNION

SUB-SAHARAN AFRICA

66/100

32/100

AVERAGE REGIONAL SCORE

AVERAGE REGIONAL SCORE

SINCE 2017

SINCE 2017

2/3 OF COUNTRIES SCORE BELOW

THE AVERAGE COUNTRY SCORE IS

50

43

/100

/100

4


GLOBAL ANALYSIS

WITHIN THE LAST 7 YEARS:

20

ARGENTINA

COUNTRIES IMPROVED*

CÔTE D’IVOIRE

8

8

Including:

16

9

Since 2015

Since 2013

Since 2012

HUNGARY

MEXICO

MALTA

COUNTRIES DECREASED*

9

Including:

GUYANA

7

Since 2012

6

Since 2013

Since 2015

THE REMAINING COUNTRIES MADE LITTLE OR NO PROGRESS IN THE FIGHT AGAINST CORRUPTION IN RECENT YEARS *In these six examples, we report the year between 2012 and 2018 from which the score change is statistically significant

RESULTS BY REGION

66 WESTERN EUROPE & EU Average score

Top: Denmark (88/100) Bottom: Bulgaria (42/100)

39 35

MIDDLE EAST & NORTH AFRICA

44

Average score

EASTERN EUROPE & CENTRAL ASIA

Top: United Arab Emirates (70/100) Bottom: Syria (13/100)

Average score

AMERICAS

44

Average score

Top: Canada (81/100) Bottom: Venezuela (18/100)

ASIA PACIFIC Average score

32

Top: New Zealand (87/100) Bottom: North Korea (14/100)

SUB-SAHARAN AFRICA Average score

Top: Seychelles (66/100) Bottom: Somalia (10/100)

5

Top: Georgia (58/100) Bottom: Turkmenistan (20/100)


CORRUPTION PERCEPTIONS INDEX 2018

CORRUPTION AND THE CRISIS OF DEMOCRACY “Our research makes a clear link between having a healthy democracy and successfully fighting public sector corruption. Corruption is much more likely to flourish where democratic foundations are weak and, as we have seen in many countries, where undemocratic and populist politicians capture democratic institutions and use them to their advantage.” Delia Ferreira Rubio, chair of Transparency International

Beating corruption is crucial to healthy democracy. There are no full democracies that score below 50 on the CPI. Similarly, very few countries that have autocratic characteristics score higher than 50.

CORRUPTION UNDERMINES DEMOCRACY

100 Every dot in this graphic represents a country’s CPI score. The numbers in the circles represent the average CPI score for that political system.

75

CPI 2018

75

49

50

34

30

25

0

FLAWED DEMOCRACY

FULL DEMOCRACY

HYBRID REGIME

AUTOCRATIC REGIME

DEMOCRACY INDEX 2018 (ECONOMIST INTELLIGENCE UNIT)

The following countries have experienced a decline in both the health of their democracies* and control of corruption:

TURKEY -29

CHANGE IN DEMOCRACY RATING 2012-2018

CPI SCORE

-8

41/100

* From Freedom House

HUNGARY

CHANGE IN CPI SCORE 2012-2018

-16 6

CHANGE IN DEMOCRACY RATING 2012-2018

CPI SCORE

-9

46/100

CHANGE IN CPI SCORE 2012-2018


REGIONAL ANALYSIS

REGIONAL ANALYSIS AMERICAS

The Americas region continues to fail in making any serious inroads against corruption. Populist leaders are transforming politics across the region, raising red flags through their treatment of the media, civil society and democratic institutions, all of which risk becoming less able to act as checks and balances against corruption.

44/100 AVERAGE SCORE

SCORE COUNTRY/TERRITORY 81 71 70 68 67 65 58 57 56 55 52 47 44 43 41 40

Canada United States Uruguay Barbados Chile Bahamas Saint Vincent and the Grenadines Dominica Costa Rica Saint Lucia Grenada Cuba Jamaica Suriname Trinidad and Tobago Argentina

RANK 9 22 23 25 27 29 41

37 37 36 35 35 35 34 30

45 48 50 53 61 70 73 78

29 29 29 28 27 25 20 18

Guyana Panama Colombia Brazil El Salvador Peru Ecuador Dominican Republic Bolivia Honduras Paraguay Mexico Guatemala Nicaragua Haiti Venezuela

93 93 99 105 105 105 114 129 132 132 132 138 144 152 161 168

85

COUNTRIES TO WATCH The United States (US) dropped four points since last year to earn its lowest score on the CPI in seven years. This decline comes at a time when the US is experiencing threats to its system of checks and balances as well as an erosion of ethical norms at the highest levels of power. 7


CORRUPTION PERCEPTIONS INDEX 2018

ASIA PACIFIC The Asia Pacific region is stagnating in the fight against corruption. A lack of progress is unsurprising given the prevalence of weak democratic institutions, and a lack of laws and enforcement mechanisms, all of which typically contribute to higher rates of corruption. However, with two countries in the top 10, and two in the bottom 10, the region is highly diverse in its anti-corruption approach.

44/100 AVERAGE SCORE

SCORE COUNTRY/TERRITORY 87 85 77 76 73 68 63 63 57 47 46 44 41 39 38

New Zealand Singapore Australia Hong Kong Japan Bhutan Brunei Darussalam Taiwan Korea, South Malaysia Vanuatu Solomon Islands India China Indonesia

RANK 2 3 13 14 18 25 31 31 45 61 64 70 78 87 89

38 37 36 36 35 33 33 31 31 29 29 28 26 20 16 14

Sri Lanka Mongolia Philippines Thailand Timor-Leste Pakistan Vietnam Maldives Nepal Laos Myanmar Papua New Guinea Bangladesh Cambodia Afghanistan Korea, North

Very Clean

89 93 99 99 105 117 117 124 124 132 132 138 149 161 172 176

2014 CPI Score 90 - 100 80 - 89 70 - 79 60 - 69 50 - 59 40 - 49 30 - 39 20 - 29

Highly Corrupt

COUNTRIES TO WATCH

10 - 19 0-9 No data

Massive public mobilisation against corruption and voter turnout resulted in new governments and anti-corruption reforms in India, Malaysia, the Maldives, and Pakistan. Despite these encouraging developments, we are yet to see how they translate into solid action, especially when it comes to combatting elusive forms of grand corruption. 8


REGIONAL ANALYSIS

EASTERN EUROPE & CENTRAL ASIA

35/100

Eastern Europe and Central Asia is the second lowest scoring region in the index, head of Sub-Saharan Africa. With nearly every country scoring 45 or less out of 100, there has been very little progress in combatting corruption. A general lack of political will, weak institutions and few political rights create an environment where corruption flourishes with little opposition.

AVERAGE SCORE

SCORE COUNTRY/TERRITORY 58 45 44 41 39 38

COUNTRIES TO WATCH

37 37 36 35 33 32 31 29 28 25 25 23 20

Armenia is expected to begin enacting anticorruption reforms in 2019. Judicial reform should be at the top of the priority list; a proper separation of powers, as well as the appropriate checks and balances, will go a long way to ensuring these reforms are a success. The role of civil society is also crucial.

9

Georgia Montenegro Belarus Turkey Serbia Bosnia and Herzegovina Kosovo Macedonia Albania Armenia Moldova Ukraine Kazakhstan Kyrgyzstan Russia Azerbaijan Tajikistan Uzbekistan Turkmenistan

Very Clean

Highly Corrupt

RANK 41 67 70 78 87 89

2014 CPI S

93 93 99 105 117 120 124 132 138 152 152 158 161

90 - 10

80 - 89

70 - 79

60 - 69

50 - 59

40 - 49

30 - 39

20 - 29

10 - 19 0-9

No dat


CORRUPTION PERCEPTIONS INDEX 2018

MIDDLE EAST & NORTHERN AFRICA

39/100 AVERAGE SCORE

SCORE COUNTRY/TERRITORY 70 62 61 52 49 49 43 43

United Arab Emirates Qatar Israel Oman Jordan Saudi Arabia Morocco Tunisia

RANK 23 33 34 53 58 58 73 73

41 36 35 35 28 28 18 17 14 13

Kuwait Bahrain Algeria Egypt Iran Lebanon Iraq Libya Yemen Syria

The fight against corruption in the Middle East and Northern Africa remains grim. In a region where civil liberties continue to be under repressive state control and the social contract between states and their citizens has been broken for decades, it is no surprise that corruption remains stubbornly high. Leaders need to strengthen checks and balances, support citizens’ rights and deliver on anti-corruption commitments.

78 99 105 105 138 138 168 170 176 178

COUNTRIES TO WATCH In Jordan, citizen protests helped unseat the prime minister, but the new government has yet to fulfil its anti-corruption commitments. Another challenge is the presence of influential actors blocking government attempts to advance anti-corruption. Looking ahead, the government should ensure financial and administrative independence of public institutions, and protect civil society and free speech. 10


REGIONAL ANALYSIS

SUB-SAHARAN AFRICA

Sub-Saharan Africa is the lowest scoring region on the index, and has failed to translate its anti-corruption commitments into any real progress. A region with stark political and socio-economic contrasts and longstanding challenges, many of its countries struggle with ineffective institutions and weak democratic values, which threaten anticorruption efforts.

32/100 AVERAGE SCORE SCORE COUNTRY/TERRITORY 66 61 57 56 53 51 46 45 43 41 41 41

Seychelles Botswana Cabo Verde Rwanda Namibia Mauritius Sao Tome and Principe Senegal South Africa Burkina Faso Ghana Lesotho

RANK 28 34 45 48 52 56 64 67 73 78 78 78

40 38 37 36 35 35 34 34 32 32 32 31 31 30

Benin Swaziland Gambia Tanzania Côte d’Ivoire Zambia Ethiopia Niger Liberia Malawi Mali Djibouti Gabon Sierra Leone

85 89 93 99 105 105 114 114 120 120 120 124 124 129

30 28 27 27 27 27 26 26 25 25 24 23 22

COUNTRIES TO WATCH Despite stagnation across the region, there are some promising political developments, particularly in Angola, Kenya, Nigeria and South Africa. In South Africa, citizen engagement and various official inquiries into corruption abuses are positive steps, while new leadership in Angola provides hope for anti-corruption reforms. 11

Togo Guinea Comoros Kenya Mauritania Nigeria Central African Republic Uganda Cameroon Madagascar Eritrea Mozambique Zimbabwe

129 138 144 144 144 144 149 149 152 152 157 158 160

20 19 19 19 17 16 16 16 13 10

Democratic Republic of the Congo Angola Chad Congo Burundi Equatorial Guinea Guinea Bissau Sudan South Sudan Somalia

161 165 165 165 170 172 172 172 178 180


CORRUPTION PERCEPTIONS INDEX 2018

WESTERN EUROPE & EU

66/100 AVERAGE SCORE

SCORE COUNTRY/TERRITORY 88 85 85 85 84 82 81 80 80 76 76 75 73 73 72

Denmark Finland Sweden Switzerland Norway Netherlands Luxembourg Germany United Kingdom Austria Iceland Belgium Estonia Ireland France

RANK 1 3 3 3 7 8 9 11 11 14 14 17 18 18 21

64 60 60 59 59 59 58 58 54 52 50 48 47 46 45 42

Portugal Poland Slovenia Cyprus Czech Republic Lithuania Latvia Spain Malta Italy Slovakia Croatia Romania Hungary Greece Bulgaria

30 36 36 38 38 38 41 41 51 53 57 60 61 64 67 77

COUNTRIES TO WATCH The Czech Republic has been steadily improving its CPI score since 2014, but events in the past year suggest gains may be fragile. The prime minister has been found guilty of conflict of interest in relation to his media holdings. He has also been accused of conflict of interest over connections to a company which has received millions of euros in EU subsidies. 12

While Western Europe and the European Union are doing better than other parts of the globe, they still have a long way to go to tackle corruption effectively. A lack of prioritising anti-corruption reforms alongside rising populist rhetoric combine with weakening democratic institutions in many countries to make a strong case for renewed efforts.


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