Corruption Perceptions Index
The Corruption Perceptions Index—besides the World Bank corruption index—is the most commonly used measure for corruption in countries worldwide. To form this index, Transparency International compiles surveys that ask businessmen and analysts, both in and outside the countries they are analyzing, their perceptions of how corrupt a country is. Relying on the number of actual corruption cases would not work since laws and enforcement of laws differ significantly from country to country.
The Corruption Perceptions Index has received criticisms over the years. The main one stems from the difficulty in measuring corruption, which by definition happens behind the scenes. The Corruption Perceptions Index therefore needs to rely on third-party survey which have been criticized as potentially unreliable. Data can vary widely depending on the public perception of a country, the completeness of the surveys and the methodology used. The second issue is that data cannot be compared from year to year because Transparency International uses different methodologies and samples every year. This makes it difficult to evaluate the result of new policies. The Corruption Perceptions Index authors replied to these criticisms by reminding that the Corruption Perceptions Index is meant to measure perception and not "reality". They argue that "perceptions matter in their own right, since... firms and individuals take actions based on perceptions".
Read more about this topic: Transparency International
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