Transparency International Releases New Corruption Index

by Ulrika Lomas, Tax-News.com, Brussels

16 May 2002

There were cheers and jeers on Tuesday when the international anti-corruption organisation, Transparency International, released its Bribe Payers Index (BPI) 2002.

The BPI is the result of an extensive annual survey in which finance experts, managers and business officials from 15 developing countries and emerging markets are asked which business sectors, hailing from which nations are most likely to offer a bribe in order to secure business.

The Index, which ranks 21 exporting countries on their companies' willingness to offer bribes, revealed that the practice is rife among businesses from Russia, China, Taiwan and South Korea. However, several nations, most notably Australia, Sweden, Switzerland and Austria, are seen to have very little propensity to offer bribes, ranking first, joint second, and fourth respectively.

Switzerland in particular was pleased to be sharing joint second place with Sweden, having moved up three places since the 1999 survey. Responding to the BPI release, Swissinfo News expressed pleasure that the country has 'pulled its socks up' with regard to ethical business practices over the past three years.

However, speaking in Paris on Tuesday, Transparency International's Chairman, Peter Eigen observed that the findings still demonstrate an unacceptable degree of corruption, particularly from industrialised countries which now have laws making corrupt payments to foreign officials a crime. He accused politicians from lower-raking nations of 'ignoring the rot in their own backyards', arguing that:

'The laws are not being properly enforced. Our new survey leaves no doubt that large numbers of multinational corporations from the richest nations are pursuing a criminal course to win contracts in the leading emerging market economies of the world.'

He suggested that the forthcoming OECD and G8 meetings might provide ministers with an opportuinty to discuss and act upon Transparency International's findings.

According to the survey, certain industry sectors are also more likely to offer bribes than others. The anti-corruption group revealed that companies working in construction, armaments and oil sectors are among the worst offenders, with energy and telecommunications organisations less likey to resort to corrupt measures in order to secure contracts.

Recommended