Rezwan’s comment on my recent post on the FP/AT Kearney’s 2004 Globalisation Index triggered me to look at the correlation between corruption and globalisation. I took data from the 2004 Globalisation Index and Transparency International’s 2003 Global Corruption Perceptions Index and put them on the same chart. Here’s what it looks like (click on the picture to see it enlarged):
The chart shows a definite correlation between globalisation and lower perceptions of corruption, with the trend suggesting that lower corruption and open economies go together. Singapore, Ireland, Finland are highly globalised and least corrupt. Nigeria, Bangladesh and Indonesia are least globalised and most corrupt. India, China, Turkey and Sri Lanka are globalising but are plagued by perceptions of corruption.
Looking at the distribution, it appears that if per capita GDP is plotted onto the same graph it may turn out that the same trend points towards greater prosperity. Though the way both the underlying indices were determined is not without inadequacies, the general pattern does seem to fit. Globalisation and transparency travel together, and may even bring properity in their wake.
(I did not label all the countries on this chart – full spreadsheet available upon request)
What is equally dramatic is the correlation between economic freedom on one hand and poverty, corruption, human developmen index (from UN), income, growth, adult literacy, income inequality, etc. on the other. The more the economic freedom in a society the better the lives of its citizen.
The Fraser Institute brings out the Economic Freedom Network Index every year. Centre for Civil Society, New Delhi is part of that network.
Check out
1) http://www.freetheworld.com/index.html
2) http://www.ccsindia.org/ppts/Why_is_India_Poor.pps(from 13th slide onwards)
Raj – you are right. My previous post dicussing the Heritage Foundations’ Economic freedom index is here
http://www.acorn.nationalinterest.in/archives/2004_01.html#000238