The International on an annual basis. CPI ranks countries

The measurement
or the quantification of corruption is not an easy procedure. However, it is
absolutely necessary for all the institutions and organizations mentioned above
to have a reliable tool to compare countries. In other words, it is essential
to measure whether a country is more corrupted than others or whether a country
performed better or worst in terms of corruption through time.

Over recent
years, efforts have been made to quantify corruption at a global level through the
creation of specific indicators. These indicators are also very important when
designing and analysing econometric models in order to get concrete and
reliable results regarding the connection of corruption with other variables
such as economic growth, institutional quality, foreign aid levels and
political regimes.

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The Corruption
Perceptions Index (CPI) is the most extensively used corruption index globally.
It is published by the international non-governmental organization Transparency
International on an annual basis. CPI ranks countries according to how corrupt their
public sectors are.1 This
composite index is the result of surveys and evaluations (a combination of
polls) based on bribery data collected by various reputable institutions.
According to the 2016 CPI results2
, 69% of countries worldwide have a significant corruption problem. In fact,
not one single country is corruption-free. What is also very important is that
according to these results, more countries declined rather than improved,
highlighting the urgent need for immediate action to tackle corruption. What we
can observe from the results is that the higher-ranked countries are countries
such as Denmark, New Zealand, Finland Sweden and Switzerland whereas among the lower-ranked countries, countries such as Yemen,
Syria, North Korea, South Sudan and Somalia are included. As a matter of
fact, six of the ten most corrupt countries rank among the ten least peaceful
places. They are developing or transition economies with untrustworthy and
badly functioning public institutions, high inequality levels and poverty