Transparency International’s 2021 Corruption Perceptions Index (CPI) was released last month. Drawing on 13 different data sources from 12 reputable institutions, the Index assesses perceived corruption in the public sector across 180 countries. This year’s report has put Australia in 18th place with a score of 73 points on a 100-point scale, signifying an alarming 12-point drop from Australia’s highest score of 85 in 2012.

In part two of our Corruption Perceptions Index 2021 blog series, we offer an overview of the CPI report’s assessment of Australia and the Asia Pacific region, with a focus on CPI rankings, and findings.

Asia Pacific region

Many countries in the Asia Pacific region have made some progress in controlling bribery for public services, but an average score of 45/100 on the 2021 CPI shows more needs to be done to address corruption issues. 

While New Zealand (88/100), Singapore (85) and Hong Kong (76) are the region’s top 3 performers, most countries scored below the global average of 43. This includes three countries with some of the lowest scores in the 2021 Index: Cambodia (23), Afghanistan (16) and North Korea (16). It’s important to also note that some of the lowest scores are from some of the world’s most populous countries including China (45) and India (40), and large economies such as Indonesia (38), Pakistan (28) and Bangladesh (26).

“A concerning trend across some of these nations is a weakening of anti-corruption institutions or, in some cases, absence of an agency to coordinate action against corruption.” – Transparency International

Findings

Key points

1. Erosion of rights in Asia
2. Disrespect for human rights, lack of whistleblower protection, and restricted media freedom continues in the Pacific, with Transparency International (TI) stating “in Australia, press freedom is also fragile, undermining public interest in journalism and transparency.”
3. Overall stagnation plagues the region: Vanuatu (45), Laos (30), Thailand (35), Cambodia (23), Vietnam (39) and the Solomon Islands, which still doesn’t have a fully functional anti-corruption commission despite passing its anti-corruption law in 2018. Additionally, the region’s lowest scorers, Afghanistan (16) and North Korea (16) have lost ground (from 19 and 18, respectively) since last year.
4. Australia (73) is the most significant decliner in the Asia Pacific region, dropping 12 points since 2012. Other significant decliners include the Philippines (33) dropping 5 points since 2014, and Mongolia (35) dropping 4 points since 2015.
5. Improvers offer sparks of hopeful change with Timor-Leste (41), up 11 points since 2013, Myanmar (28), up 13 points since 2012 and China (45), gaining 9 points since 2014. PNG has also shown an upward trend (from 25) since 2015. It is hoped an independent commission against corruption will be set up there in the near future.
6. Petty corruption is down in many Asian countries, but countries such as Malaysia (48), Indonesia (38) and the Maldives (40) face grand corruption, where, says TI, high levels of abuse of power benefits the few at the expense of many, and which can destroy whole sectors, create recessions and end democracies.”
7. COVID-19 opening a door to corruption and repression whereby large-scale, public health responses and economic recovery plans inevitably lead to corruption.

Country to watch: Australia (73)

“The dramatic fall in Australia’s standing underscores the urgent need for the establishment of a national integrity commission with the full powers of a royal commission,” said Serena Lillywhite, CEO of Transparency International Australia recently. 

Lillywhite went on to say that in poll after poll, Australians have voiced their concern about corruption and misconduct in Australian politics, and see the establishment of a national anti-corruption watchdog as essential. “Our record low score from TI’s global research proves that we cannot wait any longer,” Lillywhite added. “

For Tony Ward, Fellow in Historical Studies, The University of Melbourne, Australia’s decline in TI’s index does matter even though our score is comparatively high, and the CPI is only a “proxy measure of corruption”. As Ward wrote recently in a piece for The Conversation, “Dozens of studies have demonstrated the corrosive economic effect of corruption, and perceptions are almost as important as reality in guiding economic decisions.

“Based on studies correlating corruption indices with economic impacts, I estimate the difference between Australia’s 2012 and 2021 ratings equates to 0.6% lower economic growth.”

Ward praised the CPI’s strong methodology describing it as a “survey of expert surveys” which draws on 13 different data sources from 12 reputable institutions including the World Economic Forum’s Executive Opinion Survey, the World Justice Project’s Rule of Law Index, the Economic Intelligence Unit’s Country Risk Ratings and the World Bank’s Policy and Institutional Assessment.

As TI observe, Australia needs an integrity commission to help prevent and detect corruption. With lobbying regulations falling short of international standards and weak enforcement against companies paying bribes to secure contracts abroad, Australia’s corruption risks affect other Pacific countries too.

“Australia – together with Pacific Island governments – must address… corruption risks, and strengthen the weak anti-money laundering laws that are reportedly allowing corrupt proceeds to be laundered there and allowing perpetrators to avoid accountability.”

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Further reading: a selection of our blogs

Your role in preventing corruption

Managing bribery risks

Can anyone self-assess conflict of interest?

Comfortable disclosing conflicts of interest?

2021 Dialogue: implementing a holistic approach to risk, part one

2021 Dialogue: implementing a holistic approach to risk, part two

Preventing corruption in public administration

No country is immune to corruption, part one

No country is immune to corruption, part two

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Image: Heat map showing the perceived levels of public sector corruption in the Asia Pacific region (© Transparency International)

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A participant in the UN Global Compact, CourtHeath seeks to raise awareness about the Sustainable Development Goals and the principles of the Global Compact with business and government organisations in Victoria.

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