Corruption Perception Index

Definition

The Corruption Perception Index (CPI) is a composite index that ranks countries based on perceived levels of corruption in the public sector, as determined by expert assessments and opinion surveys. It highlights the relationship between corruption and development, as high levels of perceived corruption can hinder economic growth and exacerbate regional disparities in development indicators.

5 Must Know Facts For Your Next Test

1. The CPI is measured on a scale from 0 to 100, where 0 indicates high levels of perceived corruption and 100 indicates very low levels.
2. Countries with higher CPI scores generally have stronger institutions, rule of law, and more effective governance, which contribute to better development outcomes.
3. The CPI is calculated using data from various sources, including expert opinions from business leaders and surveys from citizens.
4. Corruption can negatively impact foreign investment, public services, and overall economic stability, making the CPI an important tool for assessing governance quality.
5. Over time, many developing countries tend to score lower on the CPI compared to developed nations, highlighting regional disparities in governance and development.

Review Questions

• How does the Corruption Perception Index serve as a tool for assessing the quality of governance in different countries?
  • The Corruption Perception Index serves as a valuable tool for assessing governance quality by providing a numerical score that reflects perceived levels of corruption in the public sector. Higher scores indicate better governance and lower corruption levels, while lower scores suggest issues with transparency and accountability. This information can help policymakers, investors, and researchers understand the political climate of a country and its potential impacts on economic development.
• In what ways do high levels of perceived corruption as indicated by the CPI contribute to regional disparities in development?
  • High levels of perceived corruption can exacerbate regional disparities in development by undermining trust in public institutions and leading to inefficient resource allocation. Regions with high corruption often struggle to attract foreign investment and see lower levels of public service delivery, which hinders economic growth. This creates a cycle where regions with high corruption continue to lag behind those with more transparent governance, widening the gap in development indicators such as income, education, and health.
• Evaluate the relationship between the Corruption Perception Index and sustainable development goals (SDGs), particularly in low-income countries.
  • The relationship between the Corruption Perception Index and sustainable development goals (SDGs) is significant, especially in low-income countries where corruption can severely hinder progress. Low CPI scores often correlate with challenges in achieving SDGs like poverty alleviation, education access, and health improvements due to misallocation of funds and resources. Addressing corruption through improved governance mechanisms is essential for these countries to meet their SDGs effectively, highlighting the need for international cooperation and capacity building to enhance transparency and accountability.

Related terms

Transparency International: A global non-governmental organization that publishes the Corruption Perception Index annually, aiming to combat global corruption and promote transparency.

Public Sector Corruption: Corruption that occurs in the public sector, involving government officials and institutions, which can lead to misallocation of resources and undermining of public trust.

Development Indicators: Statistical measures that reflect the social and economic development of a country, often including metrics such as GDP, literacy rates, and life expectancy.