Tuesday, March 1, 2016

Corruption Has Consequences

Countries with a reputation for being free of corruption from abuse of power, bribes and kickbacks, and secret deals are attractive tourist destinations and prospects for business investment. Unfortunately, based on a study of 168 countries by the OECD (Organization for Economic Co-operation and Development), no country is totally free of corruption.

     In 2015, using a scale of 0-100, the OECD's corruption index showed 68% of the ranked countries scored below 50, indicating a serious corruption problem that took protesters to the streets in some countries. Even Denmark, which scored 91, has room for a bit of improvement. The United States and Austria, with scores of 76, did not make the top ten list of least corrupt countries, which included: Finland, Sweden, New Zealand, the Netherlands, Norway, Switzerland, Singapore, Canada, and Germany. Corruption caused Kim Jong-un's North Korea and Somalia to tie for last place in both 2014 and 2015.

     Brazil, now embroiled in a corruption scandal (See the earlier post, "Warning to Students: Don't Cheat."), dropped 5 points since 2014, and was in 76th place in 2015. Not a good prospect for countries sending teams to this summer's Olympics in Rio.

     The OEDC cautions that its corruption index is based on surveys of conditions institutions make within a country's borders. Countries might have a higher or lower score, if their corruption activities in foreign countries were measured. Indeed, half of OECD countries have been found to violate agreements to stop companies from paying bribes when they do business in countries outside their borders.

     The earlier post, "Cheating is Easy, but...," provides some anti-corruption strategies for doing business around the world.

   

   

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