Corruption index

What is the Corruption Perceptions Index (CPI)?

The Transparency International Corruption Perceptions Index ranks countries in terms of the degree to which corruption is perceived to exist among public officials and politicians. It is a composite index, a poll of polls, drawing on corruption-related data from expert and business surveys carried out by a variety of independent and reputable institutions. The CPI reflects views from around the world, including those of experts who are living in the countries evaluated. Transparency International commissions the CPI from Johann Graf Lambsdorff, a university professor based in Passau, Germany.

For the purpose of the CPI, how is corruption defined?

The TI CPI focuses on corruption in the public sector and defines corruption as the abuse of public office for private gain. The surveys used in compiling the CPI ask questions that relate to the misuse of public power for private benefit, for example bribery of public officials, kickbacks in public procurement, embezzlement of public funds or questions that probe the strength of anti-corruption policies, thereby encompassing both administrative and political corruption.

Why is the CPI based only on perceptions?

It is difficult to assess the overall levels of corruption in different countries based on hard empirical data, e.g. by comparing the amount of bribes or the number of prosecutions or court cases. In the latter case, for example, such comparative data does not reflect actual levels of corruption; rather it highlights the quality of prosecutors, courts and/or the media in exposing corruption across countries. One strong method of compiling cross-country data is therefore to draw on the experience and perceptions of those who are most directly confronted with the realities of corruption in a country.

How does TI ensure quality control of the CPI?

The CPI methodology is reviewed by an Index Advisory Committee consisting of leading international experts in the fields of corruption, econometrics and statistics. Members of the committee make suggestions for improving the CPI, but the management of TI takes the final decisions on the methodology used. The latest list of members of the Index Advisory Committee and their organisational affiliation can be found at www.transparency.org/policy_research/surveys_indices/about.

Interpreting the CPI

How should the CPI scores be interpreted?

The CPI should be interpreted as a ranking of countries with scores ranging from 0 (highly corrupt) to 10 (highly clean).

Which matters more, a country’s rank or its score?

While ranking countries enables TI to build an index, a country’s score is a much more important indication of the perceived level of corruption in a country. A country's rank can change simply because new countries enter the index or others drop out.

Using the CPI

Is the CPI a reliable measure of a country's perceived level of corruption?

The CPI is a solid measurement tool of perception of corruption. As such, the CPI has been tested and used widely by both scholars and analysts. The reliability of the CPI differs, however, across countries. Countries with a high number of sources and small differences in the evaluations provided by the sources (indicated by a narrow confidence range) convey greater reliability in terms of their score and ranking; the converse is also the case.

Is the CPI a reliable measure for decisions on aid allocation?

Some governments have sought to use corruption scores to determine which countries receive aid, and which do not. TI does not encourage the CPI to be used in this way. Countries that are perceived as very corrupt cannot be written off – it is particularly they who need help to emerge from the corruption-poverty spiral. If a country is believed to be corrupt, this should serve as a signal to donors that investment is needed in systemic approaches to fight corruption. And if donors intend to support major development projects in countries perceived to be corrupt, they should pay particular attention to ‘red flags’ and make sure appropriate control processes are set up.

Transparency International’s CPI and the fight against corruption

How is the CPI funded?

Transparency International is funded by various governmental agencies, international foundations and corporations, whose financial support makes the CPI possible. Additional support for TI’s measurement tools comes from Ernst & Young. TI does not endorse a company’s policies by accepting its financial support, and does not involve any of its supporters in the management of its projects. For more on Transparency International’s sources of funding, please see

www.transparency.org/support_us.

What is the difference between the CPI and TI's Global Corruption Barometer?

The CPI assesses expert perceptions of levels of public sector corruption across countries, while the Global Corruption Barometer (see www.transparency.org/gcb) is concerned with attitudes toward and experiences of corruption among the general public.

What is the difference between the CPI and TI’s Bribe Payers Index (BPI)?

While the CPI indicates perceived levels of corruption in countries, the BPI focuses on the propensity of firms from leading export countries to bribe abroad – providing an indication of the ‘supply side’ of corruption. The most recent Bribe Payers Index was published in October 2006 and can be found under: www.transparency.org/bpi.

What is the difference between the CPI and TI’s Global Corruption Report (GCR)?

The Transparency International Corruption Perceptions Index is a ranking of countries in terms of the degree to which corruption is perceived to exist among public officials and politicians. The Global Corruption Report (GCR) presents an in-depth assessment of the state of corruption around the world. It brings together contributions from experts and activists to explore corruption issues in a specific sector, to present a review of corruption trends and issues in a series of country reviews and to showcase the latest research findings with regard to corruption and anti-corruption reform.  The most recent Global Corruption Report was published in May 2007 and focuses on corruption in judicial systems (it can be downloaded from: www.transparency.org/publications/gcr/download_gcr)