THE corruption perception index (CPI) was first launched in 1995 by Transparency International (TI), a German-based non-governmental corruption monitor. It is widely credited with putting the issue of corruption on the international agenda in a metric form.
The worldwide launch of the 2019 CPI will be done simultaneously in January in over 120 countries. A country’s score indicates the perceived level of public sector corruption on a scale of 0 (highly corrupt) to 100 (very clean).
Malaysia has gone up one place to 61st out of 180 countries in Transparency International’s (TI) Corruption Perception Index 2018 but maintained a score of 47 points just like in 2017. In 2017, Malaysia ranked 62nd out of 180 countries, scoring 47 points out of 100. In 2016, Malaysia was ranked 55th among 176 countries, scoring 49 points. In fact, Malaysia did very well in 2014 with a ranking of 50th and a score of 52 out of 100. This index of measurement, in essence, calculates the level of perception of corruption in the public sector.
The goal of the surveys is to raise awareness at the global level and create a benchmark for governments to improve their position. The CPI is a composite index calculated using 13 different surveys produced by 13 organisations but this may change from year to year. TI requires a minimum of three surveys for a country to be included in the index.
The following eight sources were used to calculate the 2018 CPI for Malaysia:
BERTELSMANN Foundation, (2017-2018) (North American arm of the Germany-based Bertelsmann Stiftung). The Bertelsmann Foundation’s Transformation Index is based on expert assessments of the state of transformation management performance and economic system in the surveyed countries.
ECONOMIST Intelligence Unit Country Risk Ratings, 2018 (London, the United Kingdom). This is a global research and advisory firm that produces business intelligence and financial exposure for policymakers worldwide. On assessing corruption, it asks:
Are there any clear procedure and accountability governing the allocation and use of public funds?
Are public funds misappropriated by ministers/public officials for private or political party uses?
Are there special funds for which there is no accountability?
Are there general abuses of public resources?
Is there a professional civil service or are large numbers of officials directly appointed by the government?
Is there an independent body auditing the management of public finances?
Is there an independent judiciary with the power to try ministers and public officials for abuses?
Is there a tradition of paying bribes to secure contracts and gain favours?
IMD World Competitiveness Yearbook (WCYB), 2018 (Geneva, Switzerland). The WCYB survey measures the competitiveness of nations, ranks and examines how a nation’s socio-political and economic climate affects corporate competitiveness. For corruption, survey respondents are asked: “Bribing and corruption: Exist or do not exist?”
POLITICAL and Economic Risk Consultancy Asian Intelligence (PERC), 2018, (Hong Kong, China). PERC, a consulting firm, is involved in strategic business information and analysis for companies doing business in East and Southeast Asia. Respondents were asked whether they perceive corruption as being a problem in certain positions or institutions.
POLITICAL Risk Services International Country Risk Guide, 2018 (New York, the United States). A political risk analysis group that provides political, economic and financial risk ratings for countries with significant international business, concerned about potential corruption from excessive patronage, nepotism, job reservations, exchange of favours, secret party funding and suspicious ties between business and politics.
WORLD Justice Project Rule of Law Index (2017-2018) (Washington, the United States). The World Justice Project is committed to promoting the rule of law, opportunity and equity around the world.
WORLD Economic Forum Executive Opinion Survey (EOS), 2018 (Geneva, Switzerland). The World Economic Forum engages businesses, leaders and academics to shape global agendas. On corruption, respondents are asked to rate how common are the diversion of public funds to companies, individuals, or groups due imports and exports, public utilities, annual tax payments, awarding of public contracts and licensing and obtaining favourable judicial decisions.
GLOBAL Insight Country Risk Ratings, 2018 (Massachusetts, the United States). This is company providing services covering macroeconomics, country risk and individual sector analysis in 30 countries.
As for corruption questions, experts are asked to assess whether corruption exists and how it affects operational activities for businesses, such as obtaining business permits and favourable policy and planning decisions. Studies have shown that CPI has increasingly become a highly regarded influential survey of good governance. Indeed, CPI is a helpful tool to measure corruption and tell us whether it continues to plague the country.
How we respond to a poor CPI rating indicates whether a government is serious about dealing with this social and political disease. Consequences of corrupt practice can include child exploitation and high mortality rates, poor education standards, environmental destruction and increased arms smuggling, human trafficking and terrorist activities.
Sometimes, reality can be worse than perception. However, CPI’s criteria are the best in the absence of a better system. Let us now wait for a few weeks and see if the 2019 CPI has improved!
The views expressed in this article are the author’s own and do not necessarily reflect those of the New Straits Times