Bribes and Corruption

Transparency International releases a new Bribe Payers Index (BPI) for 30 leading exporting countries,

Cluster analysis on the BPI 2006
Cluster analysis of the BPI results groups countries that exhibit similar behaviour in terms of their companies’ propensity to bribe abroad. As the differences in scores between adjacent countries on the ranking are small, this analysis provides further material with which to interpret and understand the results. This analysis produces four clusters (or groups) of countries.

Cluster 1 comprises the countries from which companies are least likely to bribe when doing business abroad, and cluster 4 comprises those that are most likely to bribe, according to the BPI 2006.

Cluster 1: Switzerland, Sweden, Australia, Austria, Canada, UK, Germany, Netherlands, Belgium, US, Japan

Cluster 2: Singapore, Spain, United Arab Emirates, France, Portugal, Mexico

Cluster 3: Hong Kong, Israel, Italy, South Korea, Saudi Arabia, Brazil, South Africa, Malaysia

Cluster 4: Taiwan, Turkey, Russia, China, India.

It is important to note that although cluster 1 represents the best performers of the 30 countries, the results of the BPI highlight that companies from all countries in the survey show a considerable propensity to pay bribes. Countries in the top clusters should therefore not view this as an endorsement of their companies’ behaviour.

Transparency International also publishes the Corruption Perception Index. In 2005 the most corrupt country in the world was Chad. The second most corrupt country was Bangladesh.

Bangladesh was going to be last, but then they bribed Chad to take the last place ;)

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