Corruption Perceptions Index Explained | Transparency International - YouTube

Channel: Transparency International

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The Corruption Perceptions Index (also known  as the CPI) scores and ranks countries around  
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the world based on how corrupt their  public sector is perceived to be.
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The scores reflect the views of experts or surveys  of business people – not the general public.
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We calculate the CPI using data  from 13 different external sources.
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Transparency International is not involved in  the production of any of these 13 datasets.
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The CPI includes data produced by the  World Bank and the World Economic Forum,  
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as well as by private risk and  consulting companies and think tanks.
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Each of the 13 sources rates countries using its  own scale. One source rates countries on a scale  
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of 1 to 7, for instance, while another  uses a scale of 1 to 100.
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As a result,  direct comparison of country scores  between different sources is not possible.
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Therefore, we transform each score from  the original scale into standardised  
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values that show the position of  each country relative to others.
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By doing this, we are able to compare country  scores across the 13 different data sources.
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After standardising all scores,  
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we then convert them into a scale from  0 to 100, which we use for the CPI.
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Next, we simply calculate the average  of the transformed scores for each  
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country. The average score is  the CPI value for each country.
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In order to ensure reliability of the  results, only countries with data from  
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at least three sources are included in the CPI.
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The CPI results are comparable across time back to 2012.
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This is because when we convert the original  data to the CPI scale we take into
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account the 2012 parameters, which turns 2012 into the baseline year.
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Annual CPI results from before 2012  cannot be compared to other years.
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The 13 different data sources used to  calculate the CPI all measure various  
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aspects of corruption in the public sector.  This ranges from bribery, the diversion of  
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public funds and the effective prosecution of  corruption cases to adequate legal frameworks,
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access to information, and legal protections for  whistleblowers, journalists and investigators.
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The CPI does not measure activities  such as tax fraud, money laundering,  
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financial secrecy or illicit flows of money.
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Corruption generally involves illegal  activities, which are deliberately  
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hidden and only come to light through  scandals, investigations or prosecutions.
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Researchers, civil society and  governments have made advances  
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in measuring corruption in specific  sectors. However, to date there is no  
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index which directly measures “real” levels  of corruption in all its manifestations.
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The data sources that make up the CPI ask  business executives and country experts  
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questions which are based on carefully designed  questionnaires. The CPI scores generally correlate  
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with certain objective measures, including  citizen’s reported experience with bribery.
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To ensure that the CPI methodology  and results are reliable,  
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the index is regularly reviewed by  independent evaluators. Such reviews  
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have consistenly shown that the CPI is  statistically and conceptually coherent.
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Ultimately, the CPI is the most widely used corruption measurement indicator due to the wide global coverage,
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the increased reliability which comes with combining different sources
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and the fact that it reconciles different points of view
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on what constitutes public sector corruption.
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For more information please  visit www.transparency.org/cpi