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New Zealand perceived as least corrupt nation in which to do business

By | November 19, 2009, 1:33 PM PST

People perceive New Zealand to be the least corrupt nation in which to do business, and Somalia the most, according to a new report.

Denmark, Singapore, Sweden and Switzerland round out the top five.

The rankings reflect political stability, long-established conflict of interest regulations and solid, functioning public institutions, according to Transparency International’s 2009 Corruption Perceptions Index, which measures corruption perceived by the public sector.

The United States ranked 19th, below the United Kingdom (17th) and Canada (8th) but ahead of France (24th), Italy (63rd) and Mexico (89th), according to the report.

The vast majority of the 180 countries measured scored below five on a scale from 0 (perceived to be highly corrupt) to 10 (perceived to have low levels of corruption).

Unstable states scarred by war and ongoing conflict and without strong institutions were deemed to be more corrupt. Along with Somalia, the worst included Afghanistan, Myanmar, Sudan and Iraq.

“Political stability, long-established conflict of interest regulations and solid, functioning public institutions” were hallmarks of the highest scorers.

More from the report:

When essential institutions are weak or non-existent, corruption spirals out of control and the plundering of public resources feeds insecurity and impunity. Corruption also makes normal a seeping loss of trust in the very institutions and nascent governments charged with ensuring survival and stability.

Countries at the bottom of the index cannot be shut out from development efforts. Instead, what the index points to is the need to strengthen their institutions. Investors and donors should be equally vigilant of their operations and as accountable for their own actions as they are in demanding transparency and accountability from beneficiary countries.

According to the report, industrialized nations are also at risk of bribery and corruption, stoked by financial secrecy and the emergence of cartels.

Still, the list is useful for businesses looking to expand overseas and please shareholders at the same time. Operations in corrupt countries never look good on the balance sheet.

You can see the full list of countries here.

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Andrew Nusca

About Andrew Nusca

Andrew Nusca is editor of SmartPlanet.

Andrew Nusca

Andrew Nusca

Editor

Andrew Nusca is editor of SmartPlanet and an associate editor for ZDNet. Previously, he worked at Money, Men's Vogue and Popular Mechanics magazines. He holds degrees from the Columbia University Graduate School of Journalism and New York University. He based in New York but resides in Philadelphia.

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Andrew Nusca

Andrew Nusca
Andrew Nusca does not hold any investments in the companies he covers.
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RE: New Zealand perceived as least corrupt nation in which to do business
New Zealand obviously just hides it better. I live here and let me tell you, it's as corrupt as Ireland in the 90's or Italy just generally in the 20th century.

Check out mayor Gary Danniels history through the ages in Masterton, Wairarapa or any weekly paper for another story about a police officer or high ranking business man (or woman) refusing to give breath-tests when caught driving drunk as the proverbial smelly animal. Or try and find one person in NZ whom has lived in a Trust House owned property and had their full bond returned.

We may be perceived to be less corrupt, but the little people still get robbed daily by the people with a lack of integrity, the money and power to consistently get away with doing so. JUST LIKE EVERYWHERE ELSE!
Posted by wezhind@...
21st Nov 2009
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RE: New Zealand perceived as least corrupt nation in which to do business
Well no wonder. There's not much there.
Posted by Wintel BSOD
22nd Nov 2009
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Lower, perhaps...
Living in NZ myself, I'd largely agree with #1 - our corruption here is somewhat less visible. Being a business owner, I see the evidence of "corruption" on a regular basis: as much from "clients" as from "suppliers"! It's true that there are a number of business-type individuals in various industries who are ready to rip all and sundry off at the drop of a hat. That being said, plenty of "customers" I come across are just as willing: pirating software / music / video, using someone else's copy of Office, using free AVs on business computers, dragging out the paying of their accounts, trying to falsify warranty claims etc. What it really all means is that humanity is generally corrupt and devious these days - but where there is lawlessness (Somalia), corruption abounds even more and more obviously.
Posted by IslandBoy_77
26th Nov 2009
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