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Corruption rankings show need to hold elected officials accountable

Commentary:

Transparency International is a global coalition united against government corruption. Every year it publishes a Corruptions Perception Index. According to this group’s website, “The CPI ranks 180 countries and territories around the world by their perceived levels of public sector corruption, scoring on a scale of 0 (highly corrupt) to 100 (very clean).” Corruption is a negative element that exists in every country, but at different levels. Widespread corruption can affect a country’s economic performance and cause poverty. Economists estimate that many countries across the world would see their GDP rise by several percentage points if corruption was effectively addressed as an issue.

The 2022 CPI presents an interesting view of the level of corruption in the world. Denmark had a score of 90, ranking it as the least corrupt country on the list. This country consistently generates a score close to 100. Denmark was followed by Finland (87), New Zealand (87), Norway (84), Singapore (83), Sweden (83), Switzerland (82), Netherlands (80), Germany (79), Ireland (77), and Luxembourg (77). Nine out of the least corrupt countries on the top-ten list (there are three ties) are in western Europe. The most corrupt countries on the list include Somalia (12), Syria (13), South Sudan (13), Venezuela (14), Yemen (16), Libya (17), North Korea (17), Haiti (17), Equatorial Guinea (17), and Burundi (17). Five of these countries are located in Africa.

In North America, Canada (74) is ranked 14 on this list, the U.S. (69) is 24, and Mexico (31) is 126. Many people would be surprised to learn that the U.S. doesn’t even crack the top 20 in least corrupt countries, this being the case even though we have moved up on the list two spots since 2021. Attacks against government institutions, widespread conspiracy theories regarding voting fraud, and political lies have undoubtedly played a role in the U.S. receiving a such a middling score.

Canada is generally perceived as a stable country in which institutions are solid. However, it still has a little work to do before it can enter the top ten. In Mexico, corruption generally has been acknowledged as a major factor prohibiting it from becoming a richer and more efficient country. As with his predecessors, Mexican President Andres Manuel Lopez Obrador has made eradicating corruption in the country’s institutions part of his political platform. This does not seem to be working, as Mexico’s ranking has not changed in the past two years.

Transparency International makes the point that corruption does not only result in poverty and inefficiencies. Russia (28) with a score that indicates widespread corruption, ranks 137 on the list. Transparency International points out that Russia is a threat to global stability because of corruption. Vladimir Putin has undermined institutions in his country in order to solidify his dictatorial powers and to get rid of opposition. Friends of Putin tend to thrive in Russia, while opponents tend to disappear. In China (38), which ranks 65 on the list, Xi Jinping has pursued similar policies making him a stronger despot.

And what factors are present in countries where corruption is low and in those where it is widespread? The countries at the top of the list consistently are all wealthy countries that are stable democracies. It all starts with the citizens of the country who have to actively seek out corruption in their ranks and eliminate it. While each of these countries certainly has some level of corruption, they are known for being transparent and adherent to laws.

While reviewing the countries at the bottom of the list, two common factors seem to be present – poverty and instability. This begs the question whether corruption is causing these two factors, or is it the other way around? The answer is probably both. Poverty begets corruption and corruption helps to create poverty. Unfortunately, many of the countries at the bottom of the list have been there a long time and can’t seem to bring about reform.

As for the U.S., a ranking of 24 leaves a lot to be desired. This is an indication that we need to hold policymakers and public sector employees accountable for conducting their business in a transparent and ethical manner. We need to demand truth from these people. It also means that we, as citizens of this country, are on the lookout for corruption and report it when we see or suspect it. Corruption is a threat to our very freedom and democracy.

Jerry Pacheco is President of the Border Industrial Association and Executive Director of the International Business Accelerator.