Corruption Perception Index [CPI]

By : Neha Dhyani

Updated : Jun 3, 2022, 4:51

The index used to rank countries based on their perceived level of public sector corruption is Corruption Perception Index [CPI]. The corruption Perception Index is developed by expert assessment and opinion survey. CPI describes corruption as the abuse of entrusted power for private gain.

Transparency International is a non-governmental organisation that has published the index annually since 1995. The index results are given on a scale of 0 to 100, where 0 denotes the highest corruption level while 100 is extremely clean. CPI measures the perceived level of corruption as measuring the absolute level of corruption is difficult.

Corruption Perception Index [CPI] Methods

Transparency International, a non-profit organisation committed to stopping corruption in countries by promoting transparency, publishes its reports based on research, advocacy work, and projects.

The databases from which Transparency International derives its data are -

  1. African Development Bank
  2. Asian Development Bank
  3. World Bank
  4. World Economic Forum
  5. Economist Intelligence Unit
  6. Global Insight
  7. Bertelsmann Foundation
  8. International Institute for Management Development
  9. The PRS Group, Inc
  10. World Justice Project
  11. Political and Economic Risk Consultancy
  12. Freedom House

Countries must be evaluated by a minimum of three sources as listed above to find a position in the CPI. The sources have to document their methods of data collection and also measurement approach.

Transparency International then assesses the quality and adequacy of the source's methods and approaches. Different sources use varying scales to rank their findings, so Transparency International transforms its data into traditional values.

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Finding of Corruption Perception Index 2021

As per the Corruption Perception Index 2021 published in January 2022, India ranked 85 with a score of 40 among 180 countries in the Corruption Perception Index as per the new report by Transparency International. The index was concluded based on the situation between the period May 2020 to May 2021. Among the countries that have scored weak in the index in terms of their higher level of perceived corruption in their public section organisations in China, ranked 45th.

Denmark, Finland, and New Zealand have jointly topped the ranking with 88. And the countries with a high level of perceived corruption are Syria, Somalia, and South Sudan. One thing that is evident from the Corruption Perception Index of 2021 is that corruption levels have become a standstill worldwide, with the global average remaining unchanged at 43 out of 100 points.

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Corruption Perception Index [CPI] Challenges Faced

The level of corruption differs in scale and scope from region to region. But in 2020, the COVID-19 challenges have evolved as a global obstacle leading to widespread corruption across the international economies. Corruption and emergencies go hand in hand and further deepen the vicious cycle of mismanagement and financial crisis.

This has got reflected in the Corruption Perception Index 2021. During the COVID-19 caused emergencies, countries in Western Europe and European Union continued their effort to establish transparency and accountability in their response to deal with the COVID-19 caused emergencies that are threatening the region's clean image.

On the other hand, corruption has remained unchecked in parts of Asia Pacific, America, Central Asia, and Eastern Europe. And coming to North Africa and the Middle East, the interest of the powerful dominates the public and private sphere, while in Sub-Saharan Africa, basic rights and services of citizens remain far from realisation.

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FAQs on Corruption Perception Index [CPI]

Q.1 When was the first Corruption Perception Index [CPI] published?

Ans. The very first Corruption Perception Index was published in 1995 by Transparency International.

Q.2 When was Transparency International established, and by whom?

Ans. Transparency International was established in the year 1993 by Peter Eigen.

Q.3 Which are the most transparent nations according to Corruption Perception Index 2021?

Ans. The Northern European countries are best in transparency and sound governance, with Denmark, Finland, New Zealand, and Norway topping the Corruption Perception Index 2021.

Q.4 What is India's rank in Corruption Perception Index 2021?

According to Corruption Perception Index 2021, India has ranked 85, with the average score of the Asia Pacific region standing at 45 for the third year in a row.