Why is it in the News?

India ranked 93 out of 180 countries on the corruption perceptions index for 2023 as its overall score remained largely unchanged, according to a Transparency International report.

Key Facts About Corruption Perceptions Index 2023:

• India ranked 93 out of 180 countries on the corruption perceptions index for 2023 tied with Maldives, Kazakhstan, and Lesotho also ranking at 93 out of 180 countries.
• In 2023, India's overall score was 39 while in 2022, it was 40.
  • India's rank in 2022 was 85.
• Denmark (90) tops the index for the sixth consecutive year, with Finland and New Zealand.
• In South Asia, both Pakistan (133) and Sri Lanka (115) grapple with their respective debt burdens and ensuing political instability.
• Bangladesh (149) emerges from the least developed country (LDC) status, with economic growth supporting a continued reduction in poverty and improving living conditions.
• China (76), with its aggressive anti-corruption crackdown, has punished more than 3.7 million public officials for corruption over the last decade.
• Somalia (11), Venezuela (13), Syria (13), South Sudan (13) and Yemen (16) take the bottom spots in the index.

What is the Corruption Perceptions Index (CPI)?

• The Corruption Perceptions Index (CPI) scores and ranks countries/territories based on how corrupt a country’s public sector is perceived to be by experts and business executives.
• It is a composite index, a combination of 13 surveys and assessments of corruption, collected by a variety of reputable institutions including the World Bank, World Economic Forum, private risk and consulting companies, think tanks and others.
• The CPI ranks 180 countries and the results are given on a scale of 0 (highly corrupt) to 100 (very clean).
• The CPI is released annually by Transparency International, an independent nonprofit organization that aims to fight corruption, especially in the public sector.

• Transparency International is a global independent, nongovernmental nonprofit organization (NPO) that aims to stop corruption by promoting transparency in various sectors of society.
• The organization's international secretariat is located in Berlin and it has national chapters in more than 100 countries.
• The agency is funded through donations from governments, individuals, private donors, and other organizations.
• The organisation conducts research, and advocacy work, and undergoes various projects in its fight against corruption.
• In 1995, the organization created the first Corruption Perceptions Index, ranking 45 countries based on how much corruption they were perceived to have in the public sector.

Economic Impact of Corruption:

• Corruption continues to be a big hurdle to political, economic, and social development.
• Those who are economically challenged are the most affected by the effects of corruption and related fraud.
  • That's because they often rely heavily on public services and can't afford to pay bribes.
• The International Finance Corporation also cites increases in the cost of business as a result of corruption.