Transparency in the Americas: A Mixed Bag
- Catalina Osorio
- Dec 15, 2013
- 3 min read
The annual worldwide survey of public sector corruption – the Corruption Perceptions Index (CPI) published by Transparency International -- is out and the results are mixed for countries around the world as well as in the Americas. See here for full report.
In 2013, the CPI ranked 177 countries worldwide on a scale of 0 to 100 (0 being the most corrupt score and 100 being perfect transaparency). Unfortunately, on a worldwide basis, the results caused Transparency International to warn that corruption remains a major problem:
"Corruption continues to have a devastating impact on societies and individuals around the world, with more than two-thirds of countries surveyed scoring less than 50 out of 100 in the latest Corruption Perceptions Index (CPI). The index, the leading global indicator of public sector corruption, scores countries on a scale from 0 (perceived to be highly corrupt) to 100 (perceived to be very clean). The results of the 2013 index serve as a warning that more must be done to enable people to live their lives free from the damaging effects of corruption. Despite 2013 being a year in which governments around the world passed new laws and forged fresh commitments to end corruption, people are not seeing the results of these promises.
See more on Transapareny International's commentary here.
Our take on CPI for Investors:
While these reports cannot predict business risk for particular investments and much less on specific deals – only careful diligence and sound advice can mitigate business risks in any transaction – we have found that the CPI is a helpful tool to assist our clients assess overall business climates in a particular environment. These tools are of course of particular interest for firms looking to do business in the public sector, but are also relevant to purely private businesses that may often require interacting with local or national governments for licenses and other regulatory approvals.
Some highlights:
The top five most transparent countries in the world are dominated by Northern European countries:
The CPI results are mixed for countries in the Americas. The best performing country by far in the Western Hemisphere is Canada which is also the only country in the top ten worldwide. Below Canada is Bermuda, followed by a virtual tie between the US, Uruguay, and Chile.
According to the CPI, the most corrupt countries in the Americas are Haiti and Venezuela, followed by Paraguay, Honduras and Nicaragua.
From a trend perspective, the Latin American country that showed the most year over year improvement in terms of battling corruption was Ecuador which moved up 16 places in the rankings to now be ranked 102nd, leapfrogging countries such as Argentina and Mexico in the rankings. On the downward trend, Panama dropped 19 spots in the rankings and is now also tied with Ecuador at 102nd.
Interested in a particular country? See this interactive world map!
For a printable PDF version, click here
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Andres Snaider is a founding partner of Nextant, a consulting firm specializing in assisting companies expand their businesses in international markets, with a strong focus on Latin America. With a degree in law and experience working as an international attorney and businessman, Mr. Snaider has advised clients on a range of commercial matters and investments across the Americas. He is a graduate of the Harvard Law School and currently lives and works in Boulder, Colorado.
Email Andres at : asnaider@nextant.com
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Nextant has extensive experience in assisting leading clients through its Market Expansion and Business Optimization services. For more information on how Nextant can assist your company in socializing a market entry and initiating sales, please visit our website at http://www.nextant.com
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