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Corruption
Context: Corruption impedes development
"Corruption is the abuse of entrusted power for private gain."
According to Transparency International's Global Corruption Report 2009, in developing and transition countries alone, companies make payments of up to forty billion US dollars to politicians and government officials. In a survey by Control Risks and Simmons & Simmons carried out in 2007, half of the managers of multinational corporations interviewed stated that the payment of bribes added at least ten percent to their businesses' costs. The World Bank estimates that worldwide annual losses due to corruption amount to between one and four thousand billion US dollars or twelve percent of the world's gross economic output.
Corruption has devastating consequences for society, both economically and on political and social levels. Through corruption public resources are wasted instead of being used to promote sustainable development in the interest of all sections of the population. Its impacts are felt most keenly by the poor and by women and children, whose already restricted access to public services, educational facilities and health care is further impeded by corruption.
Corruption is found all over the world – in both rich and poor countries. But it particularly thrives where monitoring mechanisms are inadequate and government action lacks transparency and accountability. In addition, country-specific factors play a part. Areas such as infrastructure, public and private procurement, construction and health care are often affected by corruption. Corruption may take a number of different forms, including bribery, embezzlement, misappropriation, patronage systems or nepotism.
Since 1995 the non-governmental organisation Transparency International has published the Corruption Perceptions Index (CPI). On the basis of experts' estimates and opinion surveys the annual list rates around 180 countries according to the degree of corruption perceived to exist among politicians and holders of public office. The rating is made on a scale from 0 (very corrupt) to 10 (very clean). Countries are not included unless at least three separate sources are available.
The countries at the top of the scale are Denmark, New Zealand and Sweden with 9.3 points. Germany scores 7.9 points, placing it in joint 14th position alongside Norway. Listed last on the Index are Somalia with a score of 1.0, Iraq and Myanmar with 1.3 points each and Haiti with 1.4 points.
More than two thirds of all 180 countries listed in the CPI 2008 are awarded fewer than five points; almost half achieve fewer than three points.
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