World Bank Corruption Index 2022: Global Trends

The World Bank Corruption Index 2022 paints a concerning picture of corruption globally.

According to the index, the average score of the 180 countries surveyed is a mere 32 out of 100, indicating widespread corruption.

The index highlights that the most corrupt countries are concentrated in sub-Saharan Africa and Eastern Europe.

In these regions, corruption is often deeply ingrained in the culture and institutions, making it a significant challenge to address.

In fact, the index shows that in some of these countries, corruption is so rampant that it's become a way of life.

However, the index also reveals that some countries are making significant progress in reducing corruption, such as the Philippines and Indonesia.

Corruption is a major issue that affects the world in many ways. Countries that fail to address their corruption problems worsen the effects of the climate crisis, the COVID-19 pandemic, and growing security threats.

The COVID-19 pandemic and climate crisis have already had a significant impact on the world, but corruption makes things even worse. Transparency and anti-corruption efforts are urgently needed to create a safer world.

Advanced economies are still struggling to make progress in the fight against cross-border corruption. This is despite some progress being made in 2022.

Corruption and conflict fuel each other, creating a vicious cycle that's hard to break. This highlights the need for transparency and anti-corruption efforts to create a safer world.

The world needs to come together to address corruption and its effects. This requires a collective effort from governments, organizations, and individuals to create a more transparent and accountable world.

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The Corruption Perceptions Index (CPI) is a powerful tool that helps us understand the level of corruption in countries around the world. The CPI is published annually by Transparency International, an organization dedicated to stopping bribery, fraud, and other forms of public sector corruption.

The CPI scores countries on a scale of zero to 100, with zero indicating high levels of corruption and 100 indicating low levels. This means that a country with a score of 100 is considered to have very little corruption, while a country with a score of zero is considered to have high corruption.

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The CPI was launched in 1995 and now ranks 180 countries and territories. The average score is 42 out of 100, indicating that most countries have a significant corruption problem.

The CPI is a valuable resource for anyone interested in understanding corruption around the world. By using the CPI, we can compare the levels of corruption in different countries and see which ones are doing better or worse.

Here are the top 5 countries with the lowest corruption scores in 2020:

And here are the bottom 5 countries with the highest corruption scores in 2020:

These scores give us a clear picture of which countries are doing better or worse in terms of corruption.

The World Bank Corruption Index reveals some disturbing trends.

The index shows that 34 out of 190 countries surveyed have a score of 0, indicating that they have not reported any incidents of corruption.

In countries with low scores, such as Afghanistan, the government has little to no control over corruption.

Afghanistan has a score of 12 out of 100, indicating a high level of corruption.

The index also highlights that the most corrupt countries are often those with weak institutions and poor governance.

In countries like Somalia, the lack of effective institutions and poor governance have contributed to high levels of corruption.

Somalia has a score of 10 out of 100, indicating a severe level of corruption.

The data suggests that corruption is a major obstacle to economic development and poverty reduction.

In countries with high levels of corruption, foreign investment and economic growth are often hindered.

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Corruption has a significant impact on a nation's economy, affecting those who are economically challenged the most. They often rely on public services and can't afford to pay bribes.

The cost of business increases due to corruption, making it harder for companies to operate. The International Finance Corporation notes this effect.

Countries with low CPI rankings have an overabundance of regulation and a thriving black market. This is a result of high corruption levels.

High CPI rankings, on the other hand, are associated with higher real gross domestic product per capita. This means countries with low corruption levels tend to have a stronger economy.

A 1.7% increase in GDP is experienced by countries with higher CPI rankings. This is a significant boost to their economy.

Foreign investment rates are also higher in countries with higher CPI rankings. Corruption has a negative impact on a nation's economy, making it harder to attract investors.

The United States scored its lowest in 2020, with a CPI score of 67/100. This is a concerning trend, especially since it's the lowest score achieved since 2012.

Corruption and transparency are closely linked, with corruption fueling conflict and undermining trust in institutions. Transparency International's Corruption Perceptions Index (CPI) highlights the urgent need for transparency and anti-corruption efforts to create a safer world.

The CPI rankings for 2020 showed that two-thirds of the countries on the list scored below 50/100, with an average score of 43/100. Western Europe and the European Union ranked the highest with a score of 66/100, while Sub-Saharan Africa was the lowest region with a score of 32/100.

Countries with strong institutions and governance are better able to prevent money laundering and corruption. The World Justice Project's Rule of Law Index reflects the rule of law in each country, with scores and rankings organised around nine themes, including an absence of corruption.

Here are the top 5 and bottom 5 countries in the CPI rankings for 2020:

Global peace has been deteriorating for 15 years, and corruption has been both a key cause and result of this. Corruption undermines governments' ability to protect people and erodes public trust.

Corruption creates opportunities for kleptocrats to increase their wealth, power, and destructive geopolitical ambitions. This is a major concern, as even countries with high CPI scores are not immune to these threats.

For decades, advanced economies have welcomed dirty money from abroad, allowing kleptocrats to further their interests. This has serious implications for global security.

Corruption and conflict fuel each other, creating a vicious cycle that's hard to break. This underlines the urgent need for transparency and anti-corruption efforts to create a safer world.

Corruption undermines governments' efforts to stop it, making it a fundamental threat to peace and security.

The quality of a country's AML/CFT framework is a crucial aspect of preventing money laundering and corruption. The INCSR report assesses the money laundering situation in 200 jurisdictions, considering factors like government action, laws and policies, and international standards.

It's surprising how many countries struggle with implementing effective AML/CFT frameworks. The INCSR report provides a snapshot of each country's AML legal infrastructure and its capacity to share information and cooperate in international investigations.

A country's vulnerability to money laundering is often linked to its institutional quality. The WEF Global Competitiveness Report's institutional pillar measures the quality of a country's institutions, including survey questions on corruption and auditing standards.

Countries with weak institutions and governance are more susceptible to money laundering and corruption. A strong institutional framework, on the other hand, is essential for deterring, detecting, and prosecuting money laundering offences.

The World Justice Project's Rule of Law Index provides a comprehensive assessment of a country's rule of law, including scores and rankings across nine themes. These themes include constraints on government powers, absence of corruption, and open government.

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Here's a breakdown of the nine themes assessed by the World Justice Project's Rule of Law Index:

A functioning and independent judicial system is critical for deterring crime, including financial crimes and money laundering. The INCSR report's assessment of a country's AML/CFT framework quality is a valuable tool for understanding its capacity to prevent money laundering.

The TRACE Bribery Risk Matrix provides a country score for business bribery risk, using two domains: Opportunity and Deterrence. The Opportunity domain includes interaction, expectation, and leverage, while the Deterrence domain includes data on anti-bribery enforcement and societal disapproval of bribery.

The Bribery Risk Matrix was originally developed in 2014 and has been released annually since 2017, covering 200 countries. Bribery is a significant form of corruption that generates substantial proceeds of crime that need to be laundered.

The Bribery Risk Matrix assesses the risk of bribery in a country, which is an important aspect of corruption. Countries with weak institutions and governance are more susceptible to bribery and corruption.

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The Matrix uses a combination of expert and public survey data to assess the bribery risk in each country. The data covers various factors, including the quality of governance, auditing standards, and regulatory enforcement.

A high bribery risk score indicates that a country has a high level of corruption and a higher risk of money laundering. Conversely, a low bribery risk score suggests that a country has a low level of corruption and a lower risk of money laundering.

Here is a breakdown of the Bribery Risk Matrix's two domains:

This breakdown highlights the importance of both opportunity and deterrence in assessing the bribery risk in a country. By considering these two domains, the Bribery Risk Matrix provides a comprehensive assessment of a country's bribery risk.

International reports are a crucial tool in assessing the level of corruption in a country. Transparency International's Corruption Perceptions Index (CPI) is one such report that provides a composite score based on perception-based data.

The CPI score ranges from 0 to 100, with 0 indicating low levels of perceived corruption and 100 indicating high levels of perceived corruption. This score is a key criterion for country risk assessment by international organisations and regulatory bodies.

Corruption is a common predicate offence to money laundering, making countries with high exposure to corruption more vulnerable to money laundering. Countries with high CPI scores are considered to have a higher risk of money laundering.

Perception-based surveys on corruption are the best approximation to understanding corruption levels, as measuring actual levels of corruption is not possible due to its secretive nature. This is why the CPI is the most widely used and recognised source for assessing corruption levels.

The TRACE Bribery Risk Matrix provides country scores for business bribery risk, covering 200 countries and released annually since 2017.

The Bribery Risk Matrix includes two domains: Opportunity and Deterrence. Opportunity includes interaction, expectation, and leverage, while Deterrence includes societal disapproval of bribery and governmental anti-bribery enforcement.

Advanced economies are still struggling to pull their weight in the fight against cross-border corruption, despite some progress in 2022.

The Bribery Risk Matrix was originally developed in 2014, and it's a valuable tool for understanding the risk of business bribery in different countries.

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Countries with strong institutions are better able to deter, detect and prosecute money laundering offences. This is because a functioning and independent judicial system is a critical measure to deter crime, including financial crimes and money laundering.

The World Justice Project (WJP) Rule of Law Index is a valuable tool for assessing the rule of law in each country. It provides scores and rankings organised around nine themes, including an absence of corruption and open government.

More than 100,000 household and expert surveys in 102 countries and jurisdictions are used to determine these scores and rankings. These surveys help to identify countries with weak institutions and levels of governance that are more susceptible to crimes related to money laundering and corruption.

The WEF's Global Competitiveness Report also measures the quality of institutions in a country. It combines several questions from the Executive Opinion Survey, including survey questions on diversion of public funds, corruption and auditing standards.

Countries with strong institutions are better equipped to prevent money laundering. They have a higher capacity to enforce legislation and regulations, including those related to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT).