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Bribe Payers Index (BPI) is a measure of how willing a nation appears to comply with demands for corrupt business practices. The first BPI was published by Transparency International on October 26, 1999.

Contents

The BPI 2006

Methodology

The BPI is a ranking of 22 of the leading exporting countries according to the propensity of firms with headquarters within their borders to bribe when operating abroad. It is based on the responses of 11,232 business executives from companies in 125 countries to two questions about the business practices of foreign firms operating in their country, as part of the World Economic Forum’s Executive Opinion Survey 2006.[1] To assess the international supply-side of bribery, executives are asked about the propensity of foreign firms that do the most business in their country to pay bribes or to make undocumented extra payments. The survey is anonymous.

The questions on which the BPI is based first ask respondents to identify the country of origin of foreign-owned companies doing the most business in their country. Respondents are then asked:

In your experience, to what extent do firms from the countries you have selected make undocumented extra payments or bribes?

Respondents are asked to answer on a scale of 1 (bribes are common or even mandatory) to 10 (bribes are unknown).

In calculating the BPI, the answers are converted to a score between 0 and 10, and the ranking reflects the average score. Higher scores reveal a lower propensity of companies from a country to offer bribes or undocumented extra payments when doing business abroad.

The 30 economies ranked in the BPI are: Australia, Austria, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, India, Israel, Italy, Japan, Malaysia, Mexico, the Netherlands, Portugal, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Taiwan, Turkey, the United Arab Emirates, the United Kingdom and the United States.

These countries are among the leading international or regional exporting countries, whose combined global exports represented 82 percent of the world total in 2005.[2] While most of the countries in the survey are OECD members, membership was not a selection criterion. Thus, OECD countries such as Denmark, Finland and Norway are not part of the list, while non-OECD countries like India, Israel, Singapore, South Africa, Malaysia and Taiwan, for instance, are included.

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The Ranking

Rank Country/Territory Average score (0-10) Percentage of global exports (2005) Ratification of the OECD Anti-Bribery Convention Ratification of UNCAC
1  Switzerland 7.81 1.2 Yes No
2  Sweden 7.81 1.2 Yes Yes
3  Australia 7.59 1.0 Yes Yes
4  Austria 7.50 0.5 Yes Yes
5  Canada 7.46 3.5 Yes Yes
6  United Kingdom 7.39 3.6 Yes Yes
7  Germany 7.34 9.5 Yes No
8  Netherlands 7.28 3.4 Yes Yes[3]
9-10  Belgium 7.22 3.3 Yes No
9-10  United States 7.22 8.9 Yes Yes[4]
11  Japan 7.10 5.8 Yes No
12  Singapore 6.78 2.2 No No
13  Spain 6.63 1.9 Yes Yes
14  United Arab Emirates 6.62 1.1 No Yes[5]
15  France 6.50 4.3 Yes Yes
16  Portugal 6.47 0.3 Yes No
17  Mexico 6.45 2.1 Yes Yes
18-19  Hong Kong 6.01 2.8 No Yes[6]
18-19  Israel 6.01 0.4 Yes No[7]
20  Italy 5.94 3.6 Yes No
21  South Korea 5.83 2.8 Yes No
22  Saudi Arabia 5.75 1.8 No No
23  Brazil 5.65 1.2 Yes Yes
24  South Africa 5.61 0.5 No Yes
25  Malaysia 5.59 1.4 No No
26  Republic of China (Taiwan) 5.41 1.9 No No[8]
27  Turkey 5.23 0.7 Yes Yes
28  Russia 5.16 2.4 No Yes
29  China 4.94 5.5 No Yes
30  India 4.62 0.9 No No

See also

Footnotes

  1. ^ The WEF is responsible for the overall coordination of the survey and the data quality control process, but relies on a network of partner institutes to carry out the survey locally. WEF’s local partners include economics departments of national universities, independent research institutes, and / or business organisations.
  2. ^ Source: IMF, international finance statistics, 2005 figures. Available at: http://ifs.apdi.net/imf/output/93B496BD-DCF8-41F8-B0F5-31C7A0A0793C/IFS_Table_36789.701535.xls
  3. ^ For the Kingdom in Europe, since 31 October 2006
  4. ^ Since 30 October 2006
  5. ^ Since 22 February 2006
  6. ^ Hong Kong is a territory of China and covered under UNCAC
  7. ^ Signed on 29 November 2005, but not ratified yet
  8. ^ Taiwan is not a UN member

Sources


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