The Corruption Perception Index

Corruption Perception Index (CPI)

Corruption Perception Index (CPI) is a scale that evaluates nations on their apparent corruption level. According to Letki (2018), CPI is a comprehensive measure that depends on studies of global and national business executives, risk experts and fiscal journalists. The research work is a presentation of global conditions giving rise to such an index, high and low countries with their respective political, economic and social development, characteristics of their government structures and, correlation with liberal and critical perspectives.

Global conditions giving rise to the index

Global conditions giving rise to such an index includes economic, institutional and cultural factors (Howell & PRS Group, 2001). For instance, in economic factors, the type of an investment project indicates the nature and intensity of perception of a foreign venture in relevant sectors and, in evaluating the capability of anti-foreign sets to affect the government policy (Howell & PRS Group, 2001). Institutional factors comprise of the competitive advantage of a nation's company in providing expertise or technology unavailable locally. The balance of power diminishes if a company offers sought-after goods, and government can interfere for fear of losing other investors (Howell & PRS Group, 2001). Cultural factors pertain to the nationalist attitudes and sentiments to foreign involvement in the economy.

Lowest CPI countries

According to Transparency International (2017), five countries with the lowest CPI include Iraq, Yemen, Libya, Syria, and Sudan. The five states have a similar trend on decimated economic and economic development, political instability reigns in the countries and has deteriorating social development. However, five states with high CPI include Denmark, New Zealand, Finland, Sweden and Switzerland (Transparency International, 2017). The high CPI relates to an advanced economic environment, stable political structure and, improved social development.

Characteristics of government structures

Characteristics of government structure common amid nations listed at the top include a commitment to advance on transparency, there are accountable and functioning public institutions and, the authorities ramp their determinations to halt company leaders and public administrators from engaging into actions of ostentatious corruption with immunity (Transparency International, 2017). Besides, the countries feature stronger values of integrity for public executives and, independent judicial systems. Characteristics of governmental structure common amid nations listed at the bottom include deteriorating public institutions such as the judiciary and the police (Transparency International, 2017). There are also frequent cases of extortion and bribery, embezzlement of funds which undermine the relied essential amenities and, antagonize official triviality when seeking amends from the relevant authorities (Transparency International, 2017). Besides, the nations listed below features war, terrorism and internal conflicts.

Liberal and Critical Perspectives

The facts fit with liberal and critical perspectives. For instance, according to Dimant & Schulte (2016), Liberalists perceive corruption as an imbalance. The rich use sets of de-regulation and are not keen on their responsibilities to civilization that gave them their position. Fundamentally, the liberals view corruption as a vice that rewrites the rules to profit the privileged at the expense of the poor (Dimant & Schulte, 2016). For instance, the countries with high CPI are among the most advanced while those nations with low CPI are poor and developing countries. Besides, according to Sandu (2016), critical perspective asserts that eruption and advancement of corruption correlate with anomia, despite being a dysfunction of the social order.

Conclusion

All in all, corruption is a vice that limits the political, economic and social development of a country. CPI is a measure that rates nations and helps in determining the countries with high risks of corruption. Countries with high rates of CPI commit to maintaining integrity, are politically stable and, have a functioning and accountable public institutions unlike those nations which are low rated.

References

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Dimant, E., & Schulte, T. (2016). The nature of corruption: An interdisciplinary perspective. German LJ, 17, 53.

Howell, L. D., & PRS Group. (2001). Political risk assessment: Concept, method, and management. East Syracuse, NY: PRS Group.

Sandu, A. (2016). Critical Perspectives on Evaluating the Corruption in the Republic of Moldova. Retrieved from https://www.ceeol.com/search/article-detail?id=427781

Transparency International e.V. (2017, January 25). Corruption Perceptions Index 2016. Retrieved from https://www.transparency.org/news/feature/corruption_perceptions_index_2016

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