The phenomenon of corruption seems to have pervaded countries and societies. Generally, poorer (less prosperous) nations have been found to be among the most corrupt nations in corruption rankings conducted by organizations of international repute. nations with higher proportion of economic activity in services are also seen to follow the same trend. These hypotheses have been tested empirically, using the corruption score data from the website of Transparency International; and per capita GDP (measure of prosperity) and service sector size data from the World Bank website. This paper finds that higher per capita GDP and the service sector size of a nation are associated with lower level of corruption in a nation. However, the levels of corruption in a developing nation can be better explained by the variables of per capita GDP and service sector size as compared to levels of corruption in developed nations. This can lead to policy implications for corruption eradication from the developed world as well as the developing world by the use of different methods. The paper also surveys the methods of corruption measurement with special emphasis on the methodology of Transparency International.
The very word ‘Corruption’conjures fear in some, hatred in others and indifference in
many. The fear bogey had been cheerfully shifting to indifference as the impunity assumed
blatant proportions so much so that corruption was accepted as a necessary vehicle for
the success of a business. The inability to measure it objectively further added to its proliferation. Amidst this environment, a few organizations took the initiative of measuring
this phenomenon to distinguish the honest nations from the corrupt.
The Transparency International, an independent international organization, was
established with the mission, as it states, “to curb corruption by mobilizing a global
coalition to promote and strengthen international and national Integrity Systems.” Amongst
its other activities, the organization comes out with a Corruption Perception Index (CPI)
for those countries for which it is able to collect reliable data. The data here is based on
perception of businesses and organizations engaged in businesses in many countries. It is
this measurement of corruption that would be used in this study. |
