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Corruption correlated to Doing Business

The 2006 Corruption Perceptions Index, out today, "reinforces [the] link between poverty and corruption [and] shows the machinery of corruption remainswell-oiled, despite improved legislation." Transparency International finds that corruption is "rampant" in almost half the countries on the list. Brazil and the US are among those with an increase inperceived corruption, while India and Turkey are perceived as less corrupt this year. Press release, data, and map.

Corruption is also strongly correlated with a country's position on our DoingBusiness rankings. Each procedure a business must follow represents an opportunity for a bribe. Fewer interactions with government bureaucrats, less opportunity for corruption. I took a quick look andplotted all countries that are ranked in both indices - my graph is after the jump.

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Posted by Christine Bowers on November 6, 2006in Business environment, Corruption

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Corruption is very difficult to measure, if we want that measure to mean anything. Let me explain.

In Maine, we already have "clean election funding". It's beena great success, and, political candidates have been eagerly lining up to get their sacks of money from the State.

The idea behind "clean election funding", is to reduce the sacks of moneylobbyists ply their trade with.

Of course, human nature being what it is, just because politicians in Maine get a sack of money from the State, that doesn't necessarily preclude them from accepting asack of money from some lobbyist to pass some urgently needed legislation.

The only problem I have with the scheme as a taxpayer is, when the State hands over the sack of money into which I have...