What is the Corruption Perceptions Index (cpi)?
The Corruption Perceptions Index (CPI) is an index that rates countries on how corrupt their governments are believed to be. The CPI is published by Transparency International, an organization that seeks to stop bribery and other forms of public corruption. A country’s score can range from zero to 100, where zero indicates high levels of corruption and 100 indicates low levels. Transparency International launched the index in 1995, and today it rates 176 countries and territories. It is published annually.
Key findings
- The Correction Perceptions Index rates countries on levels of corruption.
- The methodology to measure cpi is based on the selection of source data, rescaling of source data, aggregation of rescaled data, and a statistical measure that indicates the level of certainty.
- The low IPC ranking indicates a high level of corruption.
Understand the Corruption Perceptions Index (cpi)
The Corruption Perceptions Index (CPI) has been measured with different methodologies from year to year, which makes annual comparisons difficult. but in 2012, the methodology was modified again, this time to allow comparisons over time.
According to Transparency International, the new methodology involves four basic steps, which include the selection of source data, the rescaling of the source data, the aggregation of the scaled data, and a statistical measure that indicates the level of certainty. A quality control mechanism is also incorporated into the process. This consists of independent data collection and calculations by two internal researchers and two independent academy researchers.
Sources of corruption perception index
At the beginning of its history, public opinion polls were used to form the cpi. In 2017, Transparency International used 16 assessments and surveys from 12 institutions as the basis for their country scores. The institutions surveyed and / or evaluated included:
- African development bank
- World Bank
- World Economic Forum
- Economic Intelligence unit
- Global vision
- Bertelsmann Foundation
- International institute for managerial development
- The prs group, inc.
- World justice project
- Political and economic risk consulting
- Liberty house
To appear in the CPI, a country must be evaluated by no less than three sources. Sources must document their data collection methods and measurement approach, and Transparency International assesses the quality and adequacy of these methodologies. If the data is collected through a business survey, for example, Transparency International will assess whether the survey sample size is large enough to be representative.
Economic impact of corruption
According to a 2002 publication in the journal of business ethics, countries and territories that have low CPI (and therefore high corruption) rankings also have what the study authors called over-regulation and a thriving black market. . countries or territories with a high per capita real gross domestic product (rgdp / cap) also had a high cpi ranking (and therefore low levels of corruption).
Studies published in 2007 and 2008 in the European Physical Journal found that countries and territories with higher CPI rankings were more likely to experience higher long-term economic growth and experienced increases in GDP of 1.7% for each point added. to your cpi score. the higher the cpi classification of a country or territory, the higher the foreign investment rates of that state. therefore, corruption has been found to have a negative impact on the economy of a nation or territory.
