Corruption risk continues to blight key growth markets
While anti-corruption laws are in place in all the BRIC economies, implementation and enforcement remains consistently weak finds the latest annual Corruption Risk Index (CRI) from Maplecroft. Indeed the global risk analytics company maintains that the governments of Brazil, Russia, India and China have made no significant advancement in combatting the issue of corruption over the last four years.
The Corruption Risk Index (CRI) evaluates 197 countries on the reported prevalence and persistence of corruption in the public and private sectors, as well as the efficiency of governments in tackling the issue. It has been developed to enable companies to identify the countries where the risk of association with corruption is highest.
The World Economic Forum estimates that corruption adds up to 10% to the total cost of doing business globally and up to 25% to the cost of procurement contracts in developing countries. According to Maplecroft, these risks are highest in DR Congo, Somalia, Myanmar, Sudan, Zimbabwe, Equatorial Guinea, Guinea, North Korea, Cambodia and Venezuela, which feature as the 10 most corrupt countries in the CRI.
You can view the infographic here.