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Thursday, December 04, 2014 at 2pm

Corruption Perceptions Index Aided by IMD Research: MBA News

IMD research used in new public sector corruption index

An annual research publication from IMD was one of the 12 data sources used in constructing Transparency International’s Corruption Perceptions Index, released yesterday, December 3.

The annual index, which draws on the opinions of experts and businesspeople, aims to give a measure of a country’s perceived level of public sector corruption.

This year, Transparency International analyzed 175 countries/territories. Denmark placed first for the least perceived corruption in 2014; meanwhile last place was shared by North Korea and Somalia.  

Of the top five MBA study destinations, as chosen by MBA applicants this year, only Canada features in the top 10 for the lowest levels of perceived corruption. However, other popular business education destinations all ranked within the top 30; Australia (11th), the UK (14th), the US (17=), and France (26th).  Switzerland, home to IMD, shares fifth place with Norway.

The countries with the 10 ‘cleanest’ scores in perceived public sector corruption are shown below:

Transparency International’s top 10 for least perceived corruption

Public sector corruption index produced by Transparency International

source: Transparency International

The IMD publication used towards forming the Corruption Perceptions Index is the Swiss school’s World Competitiveness Yearbook (WCY), published earlier this year.

IMD’s WCY assesses the competitiveness of a nation in terms of its ability to create and maintain an environment conducive to value creation in its enterprises and prosperity among its people.

Its part in 2014’s Corruption Perceptions Index comes from one of the criteria -  concerning corruption and/or bribery – used by IMD in a survey of over 4,000 senior business leaders (both national and expatriate) across 60 countries/territories.

It sits alongside surveys from international organizations such as the World Bank and the World Economic Forum in contributing to Transparency International’s ranking. The civil society organization says that a poor showing in the Corruption Perceptions Index signifies that a country has problems to address in areas such as bribery and a lack of accountability for corrupt practices.

Corruption Perceptions Index draws attention to “fast-growing economies”

China was marked out by the organization as a country that has seen perceived levels of corruption rise, despite the launch of a government-led anti-corruption campaign. The remaining BRIC countries were also perceived to have corruption and/or money laundering problems pertaining to bribery (Brazil) and the use of overseas bank accounts (India and Russia).

“Fast-growing economies whose governments refuse to be transparent and tolerate corruption, create a culture of impunity in which corruption thrives,” said José Ugaz, the chair of Transparency International in a press release.

At the other end of the spectrum, Denmark was praised for last month’s launch of an initiative to create a public register that details ownership information for all companies incorporated in Denmark – a measure the organization says is similar to those announced by Ukraine and the UK.

“Public registers that show who really owns a company would make it harder for the corrupt to take off with the spoils of their abuse of power,” said Transparency International’s MD Cobus de Swardt.

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Tim is a writer with a background in consumer journalism and charity communications. He trained as a journalist in the UK and holds degrees in history (BA) and Latin American studies (MA).

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