Wednesday, October 30, 2013

Is Transparency International's Corruption Perception Index (TI-CPI) flawed?

by Eze Eluchie

One form of art which has successfully, over the years, masqueraded itself as a science, is the analysis of societal and economic data.  Without doubt, the collection and collation of such data, when done in a methodological manner, tritely qualifies to be titled as science. The magic and artistry however comes into play in the interpretation and use to which scientifically sourced data is put.

In the hands of the masters of the art, social and economic data can virtually be transformed into whatsoever the entity paying the bill wants the data transformed into. Crafty Statisticians will usually ask their bosses: 'what do you want us to make of this data'? Developments in the areas of presentation skills, audio-visual equipments and technologies and information dissemination protocols have conveniently placed entire humanity at the behest of this art form. Listening to smart statisticians describe dire social and economic situations in superlative lexicon, one may feel an urge to throw caution to the winds in wild ecstasy, only to be brought back to reality when you depart the venues of such presentations and are faced with palpable lack and rot in the surrounding society and population.

States routinely rely on analysis of data on social and economic issues to formulate national policies on such diverse matters as international investments, bilateral trade and even military strategies; at the individual level, our everyday decisions and actions have been, consciously or otherwise, infiltrated and teleguided by 'expert' opinions preferred by these analysts.

One group of internationally renowned socio-economic data analysts who have for long excited my intellect is the group which has a quite grandiose name: Transparency International (TI). TI has for over a decade established itself as an international authority on corruption and transparency in governance issues and with its immense outreach across the globe, facilitated by the presence of diverse affiliate organizations in several countries, amassed access to empirical social and economic data on different climes.

As stated earlier, the data collection is, in most cases, scientific. It will take some discernment to appreciate the inherent artistry:

TI's flagship contribution to international discourse is its annual Corruption Perception Index (CPI). Often times, the ‘P’ ('perception') is conveniently omitted in the mindset of users of the index, thus creating the impression that the said CPI is ordinarily viewed as the worlds Corruption Index (CI) - revealing the standing of countries in a global corruption hierarchy. TI's CPI has attained the level of a global reference point and is often cited by the United Nations and its agencies, regional multinational institutions (AU, ASEAN, EU, OAS and so on), domestic State authorities, opposition elements and civil society organizations variously to buttress the level of corruption in the States which fare poorly in the index.

Are the countries which rank poorly in TI's CPI really the most corrupt in the world? Or could the reverse the case?

Corruption is always a two-way traffic. There is usually the giver and taker (in the case of bribes); the deprived and the depository/recipient (in the case of expropriated loot); the victim and the thief and several other permutations which captures the harm posed by corrupt practices.

The armada of data collected by TI towards arriving at its CPI is simply overwhelming. The countries which rank poorly in the CPI are usually the victim-States of corrupt practices, the territories whose rulers loot with unrivaled frenzy, the States where bribery and corruption seem to be woven into the societal fabric and where the citizenry live, breath and die under the pangs of corrupt practices. But are these countries really the most corrupt or do they simply suffer most from corruption and corrupt practices? Are the States which fare well in TI's CPI merely insulated from the pangs of corruption by virtue of the fact that they only serve as beneficiaries of the corruption and corrupt practices of other countries?

Are there other facts which could be inferred from the data available to TI? A closer look at TI's social and economic data base will divulge interesting revelations usually not announced by the CPI annual reports. Where do proceeds of corruptly sourced funds disappear into? Which States or territories benefit most from global corrupt practices? Does benefitting from corruption/corrupt practices not make a State corrupt? Would the ranking of countries in TI's CPI be reversed or revolutionized if the quantum of loot each State receives is factored into the compilation and evaluation process? Would States/territories like Switzerland, Luxemburg, Cayman Islands, The Isles of Man and other havens for global loot suddenly have a reversal of positions with States/territories like Afghanistan, Haiti, Nigeria and several others, mostly belonging to the Low and Middle Income Country category, whose rulers endlessly cart out entire budgets to foreign bank vaults?

TI's CPI, it must be emphatically stated, has done quite a lot to bring awareness of corruption to the global arena. Global abhorrence for and efforts at tackling corruption will no doubt be enhanced if a real corruption index was extrapolated from the mountain of data available to TI and the several other entities interested in tackling corruption and not merely the 'perception' being disseminated. Tackling the corruption cancer requires efforts of both the victims and the beneficiaries; both the givers and takers; both the deprived and depositories of loot.

When the receiver-State declines to receive, declines to allow their banking facilities to serve as depositories for loot, large-scale corruption will become near extinct.


It can be done.



Picture: © Transparency International's Corruption Perception Index 2012




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