In this piece, we will take a look at the 30 most corrupt countries in the world heading into 2024. If you want to skip our analysis of corruption and its impact on economic output and societal well being, then take a look at 5 Most Corrupt Countries in the World Heading into 2024.
Corruption is perhaps one of the most widely despised practices in most countries, at least among people who are not corrupt. Traditionally, corruption is thought to cover illicit uses of a position for personal benefits, whether the position is in the corporate or the public sector. However, most of the debate around corruption is focused on the public sector, due to the fact that it is significantly larger than the private sector and because it uses taxpayers’ funds to function.
According to research, corruption revolves around a variety of practices such as embezzlement, bribery, fraud, extortion, and favoritism. Other kinds of corruption include influence peddling, parochialism, and graft. A list of corrupt practices as defined by Corruption Control Consultants shows that the four Ps of corruption revolve around Power, Preference, Payment, and Privilege. As you might have guessed, at the root of all these categories is money. While bribery typically involves paying government officials to solicit favors from them that would otherwise be unavailable, other kinds of corruption such as cronyism and influence peddling often involve control over resources or government functions with the end goal of resource extraction and monetary benefit.
One of the most controversial debates, particularly in corrupt countries, is whether corruption really does hamper economic growth. The side of the honest people points out that in a corrupt society, resources are not distributed effectively and the best ideas are not brought forward, which naturally makes economic output sub optimal. On the other side, folks point out that corruption is really sometimes necessary to get the wheels of action spinning, and without it, a lot of money making activities would simply come to a halt.
So, which one of these sides is right? Well, looking at the data, research published in the Cogent Economics & Finance journal shows that in a list of 83 developing countries, a single unit of increase in corruption can the gross domestic product (GDP) per capita from anywhere between 0.5% to 1.5%. The data covers 83 countries for a time period of six years between 2012 and 2018, and the research also shows that foreign direct investment (FDI) also flies away from countries that are more corrupt. FDI is one of the most important sources of foreign capital injection in developing countries since it focuses primarily on infrastructure and business projects which allow for capacity building through technology transfer as well as create new jobs.
But why does corruption affect the economy? According to the International Monetary Fund (IMF), a global lender that often deals with some of the most corrupt governments in the world, corruption hurts a country’s economy because of practices such as rent seeking, which sees business interest groups band together to influence public policy for legislation in their benefit, results in an inadequate allocation of talent to the right industries. It adds that large and important infrastructure projects, such as power plants, might be awarded at unfavorable terms to the public through nepotism which naturally affects economic growth. The IMF also provides its own data about the quantifiable impact of corruption on an economy, by showing that for a one standard deviation score improvement on the corruption index, a country’s economy per capita grows by more than half a percentage point (same as the data from the research in the previous paragraph). The impact on foreign investment is even greater, as a similar gain in the corruption index can see foreign investment in a country improve by 4%.
However, while developing countries often face the greatest amount of corruption, these days, corruption has surfaced a bit closer to home in America. U.S. Senator Bob Menendez (D-NJ) is currently facing charges for a rather spectacular case of bribery which alleges that he had received payments in gold bars, cash, and a car to help an Egyptian meat company. The plot thickened in October when a New York Times report revealed that the senator’s wife was involved in a fatal car crash related to the corruption case, and the New Jersey attorney general is investigating whether the case was closed improperly to provide favor to Ms. Menendez.
Gold bars are quite shiny, but in some of the countries that are the worst hit by corruption, the menace involves siphoning off billions of dollars in money earned from selling a nation’s resources on the global market. Our list of the most corrupt countries in the world looks at some such countries, so take a look below for more.
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Our Methodology
To compile our list of the most corrupt countries, we used data from Transparency International to find out the 30 countries with the highest perception of corruption.
30 Most Corrupt Countries in the World Heading into 2024
30. Kingdom of Cambodia
CPI Index Score: 24
Cambodia is an Asian country that has seen significant political turmoil over the past couple of decades which has weakened its social order and systems. Some of the worst effects of corruption in the country are human and sex trafficking.
29. Central African Republic
CPI Index Score: 24
The Central African Republic is a landlocked African nation. It is one of the poorest countries in the world with a GDP per capita of $496. Extrajudicial killings, arbitrary arrests, and other violations are common in the country.
28. Republic of Guatamela
CPI Index Score: 24
Guatemala is the largest country in Central America in terms of population. Several U.N. reports have provided blockbuster details about corruption in the country, and protests against the menace have also toppled a government.
27. Republic of Lebanon
CPI Index Score: 24
Lebanon is perhaps the biggest example of how unchecked corruption can destroy a country. It has been facing the worst financial crisis in its history after billions of dollars of depositors disappeared due to corruption in the banking system. Lebanon’s informal economy is run by Hezbollah, which benefits from corruption by maintaining control over the country’s resources.
26. Federal Republic of Nigeria
CPI Index Score: 24
Nigeria is the biggest economy in Africa due to its vast petroleum resources. These have also bred corruption, as the country’s elite is accused of siphoning away oil money to offshore personal accounts.
25. Republic of Tajikistan
CPI Index Score: 24
Tajikistan is a landlocked Central Asian country with a $12.8 billion economy. According to the U.N., corruption is present at all levels of society.
24. Republic of Azerbaijan
CPI Index Score: 23
Azerbaijan is an Asian and European country. Its Aliyev family, which has ruled the country for decades, is often accused of owning offshore financial assets and maintaining control over the state’s resources.
23. Republic of Honduras
CPI Index Score: 23
Honduras is a Central American country with a $30.5 billion economy. Studies estimate that the cost of corruption in Honduras runs into the billions of dollars for a double digit percentage share of the GDP.
22. Republic of Iraq
CPI Index Score: 23
Iraq is a Middle Eastern country with large oil reserves. However, political strife, first due to the dictator Saddam Hussein and then sectarian violence after the U.S. invasion has decimated its public and social systems leading to corruption.
21. Republic of the Union of Myanmar
CPI Index Score: 23
Myanmar is currently ruled by a military junta. The prevalence of corruption in the country has also led to a large informal and undocumented economy in the country.
20. Republic of Zimbabwe
CPI Index Score: 23
Zimbabwe is an African country that is believed to have suffered a lot from corruption, particularly in the form of controversial land confiscations.
19. State of Eritrea
CPI Index Score: 22
Eritrea is another poor country with a GDP per capita ranging in just a couple of hundred dollars. Its government is often accused of suppressing human rights and freedom of expression.
18. Republic of the Sudan
CPI Index Score: 22
Sudan is an African country that is famous for high levels of bribes in law enforcement and millions of dollars of misrepresentation in its budgets and financial documents.
17. Republic of the Congo
CPI Index Score: 21
The Republic of Congo is an African nation ruled by the same regime since 1997. Its leader has been accused of amassing overseas properties, although he denies the allegations.
16. Republic of Guinea-Bissau
CPI Index Score: 21
The Republic of Guinea-Bissau has a GDP per capita of $450. A weak judicial system, low public sector salaries, and other issues have made corruption prevalent and created problems such as drug trafficking.
15. Democratic Republic of Congo
CPI Index Score: 20
The Democratic Republic of Congo, or DRC, has vast amounts of natural resources of minerals such as copper and cobalt. Yet, as is the case with Nigeria, corruption has prevented it from reaching its full potential.
14. Republic of Chad
CPI Index Score: 19
Chad is a landlocked African country with a GDP per capita of $755. Multiple civil wars and rule by dictators has seen illegitimate rulers rely on a corrupt system to keep their power.
13. Union of the Comoros
CPI Index Score: 19
Comoros is an island African nation that is one of the smallest countries in the world. It has seen some rather interesting scandals over the years, including one in which the government started to sell passports.
12. Republic of Nicaragua
CPI Index Score: 19
Nicaragua is a Central American country with a GDP per capita of $2,126. Corruption is widespread in the country and has even seen a president being sent to jail.
11. Turkmenistan
CPI Index Score: 19
Turkmenistan is a landlocked Central Asian country with a $82 billion economy. Corruption allegations regularly see public officials step down from their roles and it also affects other walks of public life.
10. Republic of Burundi
CPI Index Score: 17
Burundi is another landlocked African country. It has a shockingly low GDP per capita of $292, corruption often hampers businesses from operating freely in the country.
9. Republic of Equatorial Guinea
CPI Index Score: 17
Equatorial Guinea is a Central African country with island and mainland regions. Corruption has hit the country’s economy hard, as it has faced back to back recessions for years.
8. Republic of Haiti
CPI Index Score: 17
Haiti is a Caribbean country whose leaders have been accused of stealing millions of dollars. Additionally, its police is also accused of amassing power through illicit means.
7. Democratic People’s Republic of Korea
CPI Index Score: 17
North Korea is one of the few pariah states in the global rules based order. Ruled by the Kim family for decades, the state is virtually controlled by the ruling family.
6. State of Libya
CPI Index Score: 17
Libya is another African country noted for its lack of political stability. It faced historic floods recently, and many believe that dams plagued by graft were responsible for the disaster.
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Disclosure: None. 30 Most Corrupt Countries in the World Heading into 2024 is originally published on Insider Monkey.