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What Transparency International’s corruption index doesn’t see

Dan Steinbock says Transparency International’s annual measure of corruption is flawed because it only measures public sector graft and takes a biased view of advanced economies’ interests

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Jose Carlos Ugaz, global chairman of Transparency International, speaks at the headquarters of the Independent Commission Against Corruption in North Point, Hong Kong, in October 2016. Photo: Xiaomei Chen
Tiny Nordic countries, western Europe, the US and Asian economies including Singapore, Hong Kong and Japan frequently top Corruption Perceptions Index rankings. Yet, anomalies abound.
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South Korea’s performance improved as the country suffered from scandals associated with the now-impeached president Park Geun-hye. And, despite more than 100,000 anti-corruption indictments, China’s ranking has improved slowly.
The Philippines was seen as least corrupt when the drug trade thrived. When the government of Rodrigo Duterte began its fight against corruption, the ranking fell. Myanmar has steadily improved, while more than half a million Rohingya Muslims have fled persecution into Bangladesh. These anomalies are systemic.
The index does not measure actual corruption, but perceived corruption, which adds to bias. In theory, the index tries to bypass the bias problem by including “different” perceptions. In practice, most come from the US and a few European countries, including the World Bank, The Economist Intelligence Unit, Freedom House, Global Insights and the Political and Economic Risk Consultancy. In the emerging world, these sources are often criticised for a pro-US and pro-Western bias.
South Korean protesters hold cut-outs of impeached president Park Geun-hye in January 2017 in Seoul. South Korea’s Corruption Perceptions Index rating improved for last year despite her impeachment and the conviction of the Samsung Electronics’ vice-chairman for charges that included bribing Park. Photo: AP
South Korean protesters hold cut-outs of impeached president Park Geun-hye in January 2017 in Seoul. South Korea’s Corruption Perceptions Index rating improved for last year despite her impeachment and the conviction of the Samsung Electronics’ vice-chairman for charges that included bribing Park. Photo: AP

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Most problematically, the surveys focus largely on emerging countries, yet the latter are systematically excluded as sources.

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