does your country have a corruption
problem well yes probably most countries
in the world do at least according to
Transparency International its
corruptions perceptions index scored a
hundred and eighty countries on a scale
of 0 to 100 where zero means a country's
proceeds to be highly corrupt and 100
means it's seen as very clean more than
120 or two-thirds of those countries
scored less than 50 and the average
score was 43 definitely a failing grades
to most people but corruption isn't just
a moral issue it's an economic issue and
it's costing the global economy and you
a lot is difficult to place an exact
number on the global cost of corruption
but by most estimates it's in the
trillions that's a lot more than the
entire GDP of most countries countries
regarded as less corrupt like New
Zealand Denmark and Singapore tend to
have smaller populations most of the
countries on the list have less than 10
million people size doesn't guarantee a
lack of corruption some at the bottom of
the list are small as well but they tend
to be war-torn countries like Somalia
South Sudan and Syria but most of the
world's most populous countries are
pretty far down the list there's China
coming in at 77 India at 81 and it gets
worse for emerging but huge economies
like Indonesia Brazil and Russia do you
have a little money for tea that's local
slang for a bribe in countries like
China India and Thailand where tea money
is deeply entrenched in society
last year our survey estimated that one
in four people in asia-pacific paid
bribes to access public services like
getting help from the police or getting
an identity card police officers were
the most likely to demand a bribe and
poorer and younger people were more
likely to pay it it may seem trivial but
not when you think about it on a bigger
the IMF estimates that the annual cost
of viber is between 1.5 and 2 trillion
dollars about two percent of global GDP
and that's only one type of corruption
other types of corruption include money
laundering embezzlement and fraud
the Turkish have a theory a fish rots
from the head down
meaning that problems start from the top
and the Panama papers have given us a
glimpse into how much rot has gotten
into the system encompassing 11.5
million secret files the Panama papers
is one of the biggest document leaks in
history revealing just how much wealth
has been hidden in offshore accounts and
tax havens to be clearer offshore
accounts are illegal but the papers
brought up fundamental questions about
the ethics of tax havens the papers
revealed links to 140 politicians and
public officials of which 14 are current
and former heads of states as a result
of the revelations the Prime Minister's
of Pakistan and Iceland were forced to
resign the world's second highest paid
athlete Lionel Messi was named and
charged for tax evasion while a
suspected billion-dollar
money-laundering ring was linked to
close associates of Russian President
Vladimir Putin the Panama papers wiped
out 174 billion dollars of the market
capitalisation of nearly 400 companies
making it the largest financial loss
following a corporate scandal in history
and it's not just companies corruption
can cost countries their economies
Brazil was once a high-flying emerging
economy but since 2014 it has been
gripped by the car wash scandal
originally a money-laundering
investigation it became one of the
largest corruption cases in history at
the core of it was state-owned oil firm
Petrobras which accounts for 10 percent
of Brazil's economy its officials were
allegedly accepting huge bribes in
exchange for lucrative government
contracts the case led to prison
sentences for top executives billions of
dollars in fines and more than
thousand people being laid off Brazil
plunged into recession its GDP
contracted sharply while unemployment
rates hits record highs brazil's not the
only case economists have found that
corruption usually hurts a country's
economic growth
why corruption can result in fewer
investors wanting to put their money in
the country one study found that a one
unit increase in corruption levels can
reduce foreign direct investments per
capita by about 11 percent corruption
can also discourage people from paying
taxes when the perceived that taxes are
simply going into corrupt pockets that
means less money for the government
which in turn affects its ability to
build infrastructure and public services
crucial for economic growth even in
Europe corruption can inflate the cost
of a public project by 13% that means
lower quality projects despite higher
spending institutions like the IMF and
World Bank have faced tough questions
about their lending policies with
critics saying that money sometimes
finds itself in the hands of corrupt
officials the World Bank has stepped up
establishing offices to investigate and
sanction corruption this year it bents
78 firms and individuals from engaging
in any new World Bank projects bringing
that number to about 1,000 in total the
IMF and World Bank have made fighting
corruption a key priority for instance
the IMF unveiled a new policy this year
promising to hold member countries to
the same standards making it a condition
for IMF loans it made good on its
promise only giving Ukraine two billion
dollars in aid after it put tougher
reforms in place like setting up an
anti-corruption courts many governments
have also made strong anti-corruption
pledges
although the motives behind corruption
crackdowns in places like China and
Saudi Arabia have been questioned
polling shows trapped in public
institutions and governments is
historic clothes and a lot of that is
rooted in corruption but as citizens
protest multinational organizations
demand accountability and officials
investigate team money may soon be left
behind hello from Valley
I'm Sinan and if you want to check out
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