correlates of corruption - qog · correlates of corruption bo rothstein sÖren holmberg working...

CORRELATES OF CORRUPTION

BO ROTHSTEIN

SÖREN HOLMBERG

WORKING PAPER SERIES 2011:12 QOG THE QUALITY OF GOVERNMENT INSTITUTE Department of Political Science University of Gothenburg Box 711, SE 405 30 GÖTEBORG November 2011 ISSN 1653-8919 © 2011 by Bo Rothstein and Sören Holmberg. All rights reserved.

Content Economy GDP / Capita 4

Economic Equality (gini index) 5

Economic Freedom 6

GDP / Capita Growth 7

Population below $2 a Day (%) 8

Foreign Credit Rating 9

Welfare

Human Development Index 10

Government Revenue (% of GDP) 11

Tax Revenue (% of GDP) 12

Social Security Laws 13

Average Schooling Years 14

Health

Life Expectancy 15

Healthy Life Years 16

Infant Mortality Rate 17

Maternal Mortality Rate 18

Government Expenditure on Health (% of total health) 19

Private Expenditure on Health (% of total health) 20

Environment

CO2 Emissions / Capita 21

Access to Improved Drinking Water 22

Access to Adequate Sanitation 23

Gender

Gender Equality 24

Secondary Education Enrollment (female) 25

Crime

Homicide Rate 26

Number of Police Officers 27

Number of Prisoners 28

Trust

Interpersonal Trust 29

Confidence in Parliament (all countries) 30

Confidence in Parliament (democracies only) 31

Confidence in Government (all countries) 32

Confidence in Government (democracies only) 33

Happiness

Feeling of Happiness 34

Life Satisfaction 35

Democracy

Level of Democracy 36

Quality of Government

Government Effectiveness 37

Control of Corruption 2002 and 2009 38

Description of Variables 39

4

Afghanistan

Australia

Barbados

Belgium

Bhutan

Brunei

BulgariaBelarus

Cape Verde

Chad

Chile

Equatorial GuineaEstonia

Finland

Gabon

Germany

Ireland

IsraelItaly

Japan

South Korea

Luxembourg

Mauritania

New Zealand

Niger

NorwayQatar

Russia

Sao Tome

S. Arabia

Singapore

Suriname

Sweden

Trinidad

United Arab Emirates

Turkmenistan Ukraine

USA

Uruguay

025

000

5000

0

GD

P / C

apita

-2 -1 0 1 2 3

Control of Corruption

R²=0.71Sources: Gleditsch (2002), World Bank (2002-2008)

GDP / Capitavs. Control of Corruption

High Corruption Low Corruption

Data runs by: Richard Svensson

Low

High

5

Albania

Angola

AustriaBangladesh

Belgium

Bolivia

Bosnia

Belize

Bulgaria

Chile

Comoros

Costa Rica

Denmark

FinlandFrance

Djibouti

Greece

Haiti

Hungary

IsraelLatvia

Liberia

Maldives

Nepal

Netherlands

New Zealand

Nigeria

Norway

Panama

Russia

St Lucia

Sao Tome

Singapore

Slovakia

South Africa

ZimbabweSuriname

Sweden

TunisiaTurkmenistan

Uganda

Ukraine

Egypt

USA

Uruguay

3040

5060

7080

Econ

omic

Equ

ality

(Rev

erse

d G

ini-i

ndex

)

-2 -1 0 1 2 3


R²=0.13Sources: World Development Indicators (1995-2008), World Bank (2002-2008)

Economic Equalityvs. Control of Corruption



Low

High

6

Australia

Austria

Bahrain

BelgiumBolivia

BosniaMyanmar

Belarus

Cambodia

Cape Verde

Cuba

CyprusEl Salvador

Estonia

Fiji

Finland

France

Haiti

Ireland

IsraelJamaica Japan

North Korea

Libya

Lithuania

Luxembourg

Nepal

New Zealand

Norway

ParaguayRussia

Singapore

Slovenia

Zimbabwe

Suriname

SwedenTrinidad and Tobago

Tunisia

USA

YemenSerbia

020

4060

80

Econ

omic

Fre

edom

-2 -1 0 1 2 3


R²=0.56Sources: Heritage Foundation (2002), World Bank (2002-2008)

Economic Freedomvs. Control of Corruption



Low

High

7

Afghanistan

Argentina

Australia

Armenia

Barbados

Myanmar China

Dem. Rep. Congo

Dominica

Equatorial Guinea

Estonia

Finland

Georgia

Gambia

Greece

Haiti Iceland

Iran

Iraq

Ireland

IsraelJapan

Lithuania

Madagascar

Malawi

Mauritania

New Zealand

Nigeria

Russia

Sao Tome

Senegal

Sierra Leone

Slovenia

Zimbabwe

Sweden

Turkmenistan

USA

UruguayVenezuela

-20

-10

010

20

GD

P / C

apita

Gro

wth

-2 -1 0 1 2 3



GDP / Capita Growthvs. Control of Corruption



Low

High

(N.B. The data for GDP / Capita growth is for a single year only)

8

Argentina

Bangladesh

Bhutan

Bosnia

Brazil

Sri Lanka

Chile

China

Costa Rica

Djibouti

Haiti

Hungary

India

Iran

Kazakhstan

Kenya

Lesotho

MadagascarMali

Mozambique

Papua New Guinea

Paraguay

Russia

Sao Tome

Senegal

South Africa

Tunisia

Turkmenistan

050

100

Popu

latio

n B

elow

$2

a D

ay (%

)

-2 -1 0 1 2


R²=0.26Sources: World Bank (1995-2008)

Population Below $2 a Dayvs. Control of Corruption



Low

High

9

Albania

Angola

Austria

Chile

China Taiwan

Costa Rica

Cyprus

France

Ghana

Greece

Grenada

IcelandIreland

IsraelItaly

Japan

Kazakhstan

Jordan

Lithuania

Malaysia

New ZealandNorway

Papua New Guinea

Peru

Poland

Russia

Saudi Arabia

SwedenSwitzerland

Uganda

Macedonia

Egypt

USA

Uruguay

24

68

10

Fore

ign

Cre

dit R

atin

g

-2 -1 0 1 2


R²=0.62Sources: Standard & Poor's (2011), World Bank (2002-2008)

Foreign Credit Ratingvs. Control of Corruption



Low

High

10

Angola

Azerbaijan

ArgentinaBahamas

Belgium

BhutanBotswana

Solomon Islands

Myanmar Cambodia

Chile

Dem. Rep. Congo

Benin

Denmark

Eq. Guinea

Eritrea

FinlandFrance

Djibouti

Ghana

Greece

Grenada

Haiti

India

Israel

Italy JapanSouth Korea

Lesotho

Latvia

Mali

MexicoOman

Namibia

Niger

Nigeria

Norway

Russia

Sierra Leone

Singapore

South Africa

Sweden

Tajikistan Egypt

USA

Burkina Faso

Venezuela

.2.4

.6.8

1

Hum

an D

evel

opm

ent I

ndex

-2 -1 0 1 2 3


R²=0.47Sources: UNDP (2002), World Bank (2002-2008)

Human Development Indexvs. Control of Corruption



Low

High

11

Afghanistan

Algeria

Austria

BahamasArmenia

Barbados

Belgium

Bosnia

Botswana

Brazil

Belize

Myanmar

Burundi

Belarus

Chile

China

Czech Republic DenmarkEstonia

Finland

Germany

IndiaIndonesia

Israel

Jamaica

Kazakhstan

Lesotho

Madagascar

MalaysiaMauritius

Oman

Norway

Paraguay

Qatar

Russia

Senegal

SerbiaSeychelles

Singapore

SlovakiaSlovenia

ZimbabweSpain

Sudan

Swaziland

Sweden

Switzerland

Syria

Thailand


Ukraine

Macedonia

USA

010

2030

4050

Gov

ernm

ent R

even

ue(%

of G

DP)

-2 -1 0 1 2 3



Government Revenuevs. Control of Corruption



Low

High

12

Albania

Algeria

Bahrain

Barbados

Belgium

Botswana

BrazilMyanmar

Cambodia

Canada

Central African Republic

Chile

China

Denmark

Fiji FinlandFrance

Georgia

Iceland

Iran

Ireland

Israel

ItalyJamaica

Jordan

Kuwait

Lebanon

Lesotho

Madagascar

Morocco

Oman

NamibiaNorway

Papua New Guinea

Qatar

Russia

Serbia

Seychelles

Singapore

Zimbabwe

Spain

Swaziland

Sweden

Switzerland

Syria


Turkey

USABurkina Faso

Zambia

010

2030

40

Tax

Rev

enue

(% o

f GD

P)

-2 -1 0 1 2 3



Tax Revenuevs. Control of Corruption



Low

High

13

Argentina

Australia

Belgium

Bolivia

Brazil

Chile

ColombiaDenmark

Ecuador

Finland

Georgia

India

IsraelItaly

Jamaica

Japan

KazakhstanJordan

Latvia

Lithuania

Malawi

Malaysia

Morocco

Netherlands

New Zealand

Nigeria

Poland

Russia

Senegal

SingaporeVietnam South Africa

Zimbabwe

Spain

SwedenUkraine

Tanzania

USA

Burkina Faso

UruguayVenezuela

0.2

.4.6

.8

Soci

al S

ecur

ity L

aws

Inde

x

-2 -1 0 1 2 3


R²=0.27Sources: Botero et al (1997-2002), World Bank (2002-2008)

Social Security Laws Indexvs. Control of Corruption



Low

High

14

Afghanistan

Argentina

Australia

Austria

BoliviaBrazil

Cameroon

ChileTaiwan

Costa RicaEcuador

Finland

Ghana

Greece

Haiti

Iceland

Iraq

IsraelJapan

Jordan

Kenya

South Korea

Mali

MauritiusMexico

Mozambique

Nepal

Niger

Norway

Panama

ParaguayPortugal

Senegal

Singapore

SwedenSwitzerland

Tunisia

USA

05

1015

Aver

age

Scho

olin

g Ye

ars

-2 -1 0 1 2 3


R²=0.65Sources: Barro & Lee (2000), World Bank (2002-2008)

Average Schooling Yearsvs. Control of Corruption



Low

High

15

Afghanistan

Albania

Angola

Argentina

Australia

Bahamas

Bangladesh

Barbados

Bhutan

Botswana

Solomon Islands

Brunei

Cape Verde

China

Cuba

Benin

Denmark

Equatorial GuineaEthiopia

Eritrea

Estonia

Finland

Ghana

Greece

HaitiIndia

Iraq

Italy

Cote d'Ivoire

Japan

Liberia

Liechtenstein

Malawi

MongoliaRussia

Sierra Leone

Singapore

Slovakia

South Africa

Zimbabwe

Swaziland

Sweden

Syria

Togo

Ukraine

USA

Burkina Faso

Venezuela

Zambia

4050

6070

80

Life

Exp

ecta

ncy

at B

irth

(Yea

rs)

-2 -1 0 1 2 3


R²=0.41Source: World Bank (2000-2008)

Life Expectancy at Birthvs. Control of Corruption



Low

High

16

Myanmar

Syria

Guatemala

Ecuador

SwitzerlandBelgiumSlovenia DenmarkArgentina

Japan

Finland

SwedenItalyGreece

AustraliaSpain

Zimbabwe

SlovakiaPanama Chile

Swaziland

Mongolia

South Africa

USA

Russia

Nigeria

Bahamas

EthiopiaDjibouti

Afghanistan

LesothoMozambique Botswana

Iraq

Grenada

Angola

Antigua and BarbudaParaguay

YemenTuvalu

Sierra Leone

Kiribati

Mali

Ghana

Cuba

Haiti

BhutanSolomon Islands

3040

5060

7080

Hea

lthy

Life

Yea

rs

-2 -1 0 1 2 3


R²=0.44Sources: WHO (-), World Bank (2002-2008)

Healthy Life Yearsvs. Control of Corruption



Low

High

17

Afghanistan

Argentina AustraliaBahamas

Belgium

Bhutan

Cameroon

Cape VerdeChina

Dem. Rep. Congo

Cuba

Eritrea

Finland

Gambia

India

Iraq

S. Korea

Kyrgyzstan

LiberiaMali

Mauritania

Mozambique

Nigeria

Paraguay

Rwanda

Sao Tome

Sierra Leone

Slovenia

South Africa

Sweden

Tunisia

Turkmenistan

Uganda

USA

Burkina Faso

Uzbekistan

Venezuela050

100

150

200

Infa

nt M

orta

lity

(per

100

0 liv

e bi

rths)

-2 -1 0 1 2 3


R²=0.40Source: World Bank (2000-2008)

Infant Mortalityvs. Control of Corruption


High

Low


18

Afghanistan

Angola

Australia

Barbados

Bhutan

Botswana

Cameroon


Chad

China

ComorosEq. Guinea

Eritrea

Finland

Gambia

Haiti

IndiaIndonesia

Iran

Iraq

South Korea

Lesotho

Madagascar

Malawi

Mauritania

Mongolia

NamibiaNigeria

Paraguay

Rwanda

Sao Tome

Sierra Leone

SwedenTunisia

USA050

010

0015

0020

00

Mat

erna

l Mor

talit

y R

atio

(per

100

,000

live

birt

hs)

-2 -1 0 1 2 3


R²=0.22Sources: Institute for Health Metrics and Evaluation - University of Washington (2002),World Bank (2002-2008)

Maternal Mortality Ratiovs. Control of Corruption


High

Low


19

Afghanistan

Andorra

Angola

Azerbaijan

Australia

Solomon Islands

Brunei

Canada

Chile

China

Cuba

Cyprus

Czech Republic

Benin

Dominica

Eq. Guinea

Eritrea

FinlandFranceGermany

Kiribati

Grenada

Guinea

Haiti

IndiaIraq

Japan

North Korea

Kyrgyzstan

Luxembourg

MalawiMaldives

Morocco

Namibia

Nepal

Netherlands

Nigeria

Marshall Islands

PeruRussia

St Lucia

SingaporeVietnam

South AfricaZimbabwe

Sweden

SwitzerlandThailand

Tonga

Turkmenistan

USA

Uruguay

Zambia

020

4060

8010

0

Gov

ernm

ent E

xpen

ditu

re o

n H

ealth

(% o

f tot

al h

ealth

)

-2 -1 0 1 2 3


R²=0.20Sources: WHO (2001-2002), World Bank (2002-2008)

Government Expenditure on Healthvs. Control of Corruption



Low

High

20

Afghanistan

Angola

Australia

Bahamas

BahrainBolivia

Solomon Islands

Brunei

Bulgaria

Canada

Chile

China

Cuba

Cyprus

Czech Republic

Benin

Equatorial Guinea

Eritrea

FinlandFrance

Germany

Grenada

Haiti

IndiaIraq

Ireland

Jamaica

Japan

Jordan

North Korea Luxembourg

Madagascar

MaldivesOman

Namibia

Nepal

Netherlands

Nigeria

Marshall Islands

Panama

PeruRussia

SingaporeVietnam

Slovenia

South AfricaZimbabwe

Sweden

Switzerland

Tajikistan

Thailand

Togo

Tonga

Turkmenistan

USA

Uruguay

020

4060

8010

0

Priv

ate

Expe

nditu

re o

n H

ealth

(% o

f tot

al h

ealth

)

-2 -1 0 1 2 3


R²=0.20Sources: WHO (2001-2002), World Bank (2002-2008)

Private Expenditure on Healthvs. Control of Corruption



Low

High

21

Afghanistan

Angola

Australia

Austria

Bahrain

Bangladesh

Belgium

Bhutan

Bolivia

Belize

BulgariaMyanmar Chile

ComorosEquatorial Guinea

Finland

Djibouti

Gabon

Gambia

Haiti

HungaryIndonesia IsraelJapan

KazakhstanLuxembourg

Mauritania

Mauritius

Mongolia Netherlands

New Zealand

Qatar

RussiaSpain

Suriname

Swaziland

Sweden

Trinidad and Tobago


Tunisia

USA

Yemen020

4060

Car

bon

Dio

xide

Em

issi

ons

(tons

per

cap

ita)

-2 -1 0 1 2 3


R²=0.02Sources: Environmental Performance Index (2000-2005), World Bank (2002-2008)

Carbon Dioxide Emissionsvs. Control of Corruption



Low

High

22

Afghanistan

Angola

Antigua and Barbuda

Belgium

Bhutan

Brazil

Solomon Islands

BulgariaBelarus

Cameroon

Cape Verde

Chile

China

Ecuador

Ethiopia

Fiji

Finland

Kiribati

Haiti

Iran

Iraq

IsraelItalyJordanN. Korea

Laos

Liberia

Libya

Mozambique

Oman

Vanuatu

Nigeria

PakistanParaguay

Romania

Sao Tome

Somalia

Sweden

TongaUSA

2040

6080

100

120

Acce

ss to

Impr

oved

Drin

king

Wat

er (%

)

-2 -1 0 1 2 3


R²=0.34Sources: Esty et al / WHO (2004), World Bank (2002-2008)

Access to Improved Drinking Water (%)vs. Control of Corruption



Low

High

23

Bangladesh

Belgium

Bhutan

Bosnia

Botswana

Brazil

Belize

Cambodia

CameroonCape Verde

Sri Lanka

Chad

Chile

El SalvadorEquatorial Guinea

EthiopiaEritrea

FinlandGeorgia

Kiribati

Haiti India

IranIraq

IsraelItaly Japan

Kazakhstan

Mauritania

Oman

Namibia

Nigeria

Marshall Islands

Peru

Russia

Somalia

South Africa

SwedenThailandTrinidad/Tobago

Turkmenistan

Tuvalu

Ukraine

Egypt

USA

Venezuela

Yemen

050

100

Acce

ss to

Ade

quat

e S

anita

tion

(%)

-2 -1 0 1 2 3


R²=0.38Sources: Environmental Performance Index (2004-), World Bank (2002-2008)

Access to Adequate Sanitationvs. Control of Corruption



Low

High

24

Belgium

Cameroon

Sri Lanka

Chad

Chile

Colombia

Ethiopia

Estonia

Finland

France

Germany

Greece

Guatemala

IcelandIreland

Israel

Japan

Jordan

LatviaLithuania

Malaysia

Mauritania

Moldova

Oman

Namibia

Nepal

Netherlands

Nigeria

Norway

Pakistan

Philippines

Russia

Saudi Arabia

Singapore

Spain

Sweden

Switzerland

Syria United Arab Emirates

Turkey

USA

Burkina Faso

Venezuela

Yemen

.4.5

.6.7

.8

Gen

der E

qual

ity

-2 -1 0 1 2 3


R²=0.20Sources: World Economic Forum (2005), World Bank (2002-2008)

Gender Equalityvs. Control of Corruption



Low

High

25

AfghanistanAngola

Australia

Bangladesh

Belgium

Bhutan

BrazilBulgaria

ChinaCosta Rica

Denmark

Eritrea

Finland

France

Georgia

Gambia

Grenada

HungaryIceland

Iraq

Kazakhstan

Kenya

Libya

Malaysia

Mali

Morocco

Mozambique

VanuatuNigeria

Norway

Palau

Russia

Seychelles

Vietnam

Spain

Sweden

Switzerland

Tonga

United Arab EmiratesTunisiaTuvalu

USA

Burkina Faso050

100

150

200

Seco

ndar

y Ed

ucat

ion

Enro

llmen

t (Fe

mal

e)

-2 -1 0 1 2 3


R²=0.45Sources: UNESCO (1999-2009), World Bank (2002-2008)

Secondary Education Enrollment (Female)vs. Control of Corruption


High

Low


26

Afghanistan

Angola

Australia

BahamasBarbados

Botswana

Brazil

Belize

Brunei

Myanmar

Burundi


Chile

China

Colombia

Comoros

Democratic Republic of the Congo

Cuba

El Salvador

Eritrea

Estonia

Guatemala

Haiti

Indonesia

Iraq

Cote d'Ivoire

Jamaica

Liechtenstein

Mali

Malta

MauritiusNigeria

Russia

Rwanda

Singapore

South Africa

Sudan

SwedenTonga

Egypt

USA

Venezuela

Zambia

020

4060

Hom

icid

e ra

te(p

er 1

00,0

00 p

opul

atio

n)

-2 -1 0 1 2 3


R²=0.13Sources: UN Data (2010), World Bank (2002-2008)

Homicide ratevs. Control of Corruption



Low

High

27

MyanmarSyriaVenezuela

Belgium

Japan

Cyprus

Finland

Sweden

Italy

Bahrain

Canada

Austria

MacedoniaMexico

Zimbabwe

SlovakiaUruguay

Mauritius

Chile

Latvia

IsraelKyrgyzstan

Estonia

Singapore

South Africa

KazakhstanUSA

Kuwait

Morocco

Barbados

Jordan

Paraguay

India

Brunei

Lebanon

050

010

0015

0020

00

Num

ber o

f Pol

ice

Offi

cers

(per

100

,000

pop

ulat

ion)

-2 -1 0 1 2 3


R²=0.01Sources: UN Data (2010), World Bank (2002-2008)

Number of Police Officersvs. Control of Corruption



Low

High

28

Myanmar NepalBolivia IcelandVenezuela BelgiumSaudi Arabia QatarSwedenItaly

Egypt BahrainZambiaMacedonia AustraliaMexico

New ZealandRomania ChileUnited Arab EmiratesMalaysiaAzerbaijan

Turkmenistan PolandMoldovaLatvia IsraelGeorgia Kyrgyzstan Estonia SingaporeSouth AfricaKazakhstan Ukraine

Belarus

USA

Russia0

200

400

600

Num

ber o

f Pris

oner

s(p

er 1

00,0

00 p

opul

atio

n)

-2 -1 0 1 2 3


R²=0.02Sources: UNODC (2000-2006), World Bank (2002-2008)

Number of Prisonersvs. Control of Corruption



Low

High

29

Australia

BangladeshBelgium

Brazil

Belarus

Chile

China

Cyprus

Finland

Hungary

IcelandIndia

Indonesia

Iran

Iraq

Ireland

Israel

Italy

Japan

JordanLuxembourg

Netherlands

New Zealand

Norway

Pakistan

Portugal

Romania

Rwanda

Saudi Arabia

Singapore

Vietnam

SloveniaSouth Africa

Zimbabwe

Spain

Sweden

Trinidad and TobagoUganda

Ukraine

Egypt

United Kingdom

USA

Venezuela

Serbia

020

4060

80

Mos

t Peo

ple

Can

Be

Trus

ted

(%)

-2 -1 0 1 2 3


R²=0.20Sources: World Values Survey (1996-2008), World Bank (2002-2008)

Interpersonal Trustvs. Control of Corruption


High

Low


30

Albania

Azerbaijan

Argentina

Bangladesh

Bosnia Chile

China

Taiwan

CyprusFinland

Georgia Greece

Iceland

India

Iran

Japan

Jordan

South Korea

Latvia

Luxembourg

Morocco

New Zealand

Nigeria

NorwayPhilippines

Russia

Rwanda

Slovakia

Vietnam

South AfricaZimbabwe Spain SwedenThailand

Turkey

Uganda

Macedonia

USAUruguay

Serbia

.51

1.5

22.

53

Con

fiden

ce in

Par

liam

ent

-2 -1 0 1 2 3



Confidence in Parliamentvs. Control of Corruption



Low

High

31

Albania

Argentina

Austria

Brazil

Chile

Taiwan

Colombia

Cyprus

Czech RepublicDominican Republic

Finland

France

Georgia

Ghana

Greece

Guatemala

Iceland

India

Indonesia

Italy

Japan

South Korea

Latvia

LuxembourgMali

Malta

Mexico

Moldova

Netherlands

New Zealand

NorwayPhilippines

Poland

Slovakia

Slovenia

South AfricaSpain

Sweden

ThailandTurkey

Ukraine

Macedonia

United KingdomUSA

Uruguay

VenezuelaSerbia

Zambia

.51

1.5

2

Con

fiden

ce in

Par

liam

ent

-1 0 1 2 3



Confidence in Parliamentvs. Control of Corruption



Low

High

N.B. Only democracies (countries with a FreedomHouse/Polity rating above 6) are included. Bangladesh is also excluded.

32

Albania

Andorra

Argentina

Bangladesh

Bosnia

Chile

China

Dominican Republic

Finland

France Germany

Iraq Italy Japan

Jordan

Lithuania

MalaysiaMali

Netherlands

NigeriaNorway

PeruPoland

Russia

Vietnam

South AfricaSpain Sweden

Switzerland

Thailand

Uganda

Ukraine

Macedonia

Egypt

Tanzania

USABurkina Faso

UruguayVenezuela

Serbia

Zambia

.51

1.5

22.

53

Con

fiden

ce in

Gov

ernm

ent

-2 -1 0 1 2 3



Confidence in Governmentvs. Control of Corruption



Low

High

33

Albania

Andorra

Argentina

Brazil

Chile

Taiwan

Colombia Croatia

Czech Republic

Dominican Republic

Estonia

Finland

France Germany

Ghana

Guatemala

IndiaIndonesia

Italy JapanLatvia

Lithuania

Mali

MexicoMoldovaNetherlands

Norway

Peru

Philippines

PolandRomania Slovenia

South Africa

Spain Sweden

Switzerland

Thailand

Ukraine

Macedonia

United Kingdom

USA

UruguayVenezuela

Serbia

Zambia

.51

1.5

2

Con

fiden

ce in

Gov

ernm

ent

-1 0 1 2 3



Confidence in Governmentvs. Control of Corruption



Low

High

N.B. Only democracies (countries with a FreedomHouse/Polity rating above 6) are included. Bangladesh is also excluded.

34

Azerbaijan

Austria

Bangladesh

Armenia

Brazil

Bulgaria

Belarus

Chile

China

Colombia

Cyprus

El Salvador

Estonia

Finland

France

GermanyGreece

Guatemala

Hungary

Iceland

India

Indonesia

Iran

Iraq

Ireland

Italy

Jordan

Kyrgyzstan

Latvia

Lithuania

Mali

Mexico

Morocco

New Zealand

Nigeria

Poland

Portugal

Romania

Russia

Saudi Arabia

Slovakia

Vietnam

Slovenia

Zimbabwe

SwedenThailand

Uganda

Ukraine

Egypt

United KingdomTanzania

USA

Burkina Faso

Venezuela

SerbiaZambia

2.5

33.

5

Feel

ing

of H

appi

ness

-2 -1 0 1 2 3



Feeling of Happinessvs. Control of Corruption


High

Low


35

AlbaniaAzerbaijan

ArgentinaAustralia

Austria

Bangladesh

Armenia

Brazil

Chile

China

Colombia

Croatia

Denmark

Dominican Republic

El Salvador

Ethiopia

Estonia

Finland

Georgia

Greece

Guatemala Iceland

India

Indonesia

Iran

Iraq

Ireland

IsraelJapan

South KoreaKyrgyzstan

LatviaLithuania

MaltaMexico

Nigeria

Romania

Russia

Saudi ArabiaSingapore

Slovakia

Zimbabwe

Spain

Sweden

Turkey

Ukraine

Egypt

United Kingdom

Tanzania

USAUruguayVenezuela

Zambia

45

67

8

Life

Sat

isfa

ctio

n

-2 -1 0 1 2 3



Life Satisfactionvs. Control of Corruption


High

Low


36

Antigua and Barbuda

AzerbaijanBahrain

Armenia

Belgium

Bhutan

Bolivia

Solomon Islands

Brunei

Myanmar China

Colombia

Congo, Dem. Rep.

Croatia

Cuba

Cyprus

Ecuador

Ethiopia

Eritrea

Estonia

Fiji

FinlandFrance

Djibouti

Ghana

Kiribati

Haiti

Iran

Iraq

IsraelJapan

Jordan

North Korea

South Korea

Kuwait

Libya

Malaysia

Morocco

Namibia

Vanuatu

Nigeria

Marshall Islands

Pakistan

Paraguay

Qatar

Russia

Rwanda

Saudi Arabia

Seychelles

Singapore

Somalia

Sweden

Tajikistan

Turkey

Tuvalu USA

Burkina Faso

02

46

810

Leve

l of D

emoc

racy

-2 -1 0 1 2 3


R²=0.27Sources: Freedom House/Polity (2002-2006), World Bank (2002-2008)

Level of Democracyvs. Control of Corruption



Low

High

37

Afghanistan

Australia

Canada

Chile

Cuba

Cyprus

Czech Republic

Dominica

Eritrea

Finland

France

Haiti

Hungary

Indonesia

Iraq

Israel

North Korea

Kuwait

MaldivesMexico Oman

New Zealand

Nigeria

RussiaSaudi ArabiaSeychelles

Sierra Leone

Spain SwedenSwitzerland

Syria

Togo


Turkey

USA

-2-1

01

2

Gov

ernm

ent E

ffect

iven

ess

-2 -1 0 1 2 3


R²=0.88Sources: Freedom House/Polity (2002-2006), World Bank (2002-2008)

Government Effectivenessvs. Control of Corruption



Low

High

38

Afghanistan

Antigua and Barbuda

Australia

Bahrain

Belgium

Solomon Islands

Brunei

Myanmar

Cape Verde TaiwanCuba

Denmark

Estonia

Finland

France

Georgia

Haiti

Indonesia

Iraq

Ireland

Israel

Italy

Kuwait

Liechtenstein

Lithuania

MauritaniaMongolia

Vanuatu

New Zealand

Nigeria

Norway

Papua New Guinea

Qatar

St Lucia

Senegal

Slovakia

Somalia

Spain

SyriaTogo

TuvaluMacedonia

United Kingdom

USAUruguay

-2-1

01

2

Con

trol o

f Cor

rupt

ion

2009

-2 -1 0 1 2 3

Control of Corruption 2002

R²=0.88Sources: World Bank (2009), World Bank (2002)

Control of Corruption 2009vs. Control of Corruption 2002



High Corruption

Low Corruption

39

Correlates of Corruption Description of Variables1

Control of Corruption World Bank Governance Indicators

public power for private gain. The particular aspect of corruption measured by the various sources differs

ical arena or in the

GDP / Capita Gleditsch Trade and GDP Data

Aten), Gleditsch has imputed missing data by using an alternative source of data (the CIA World Fact Book), and through extrapolation beyond available time-series. This is his estimate of GDP per Capita in US dollars at current year international prices. Economic Equality (Gini index) World Development Indicators Gini measure of economic inequality, where greater values represent greater inequality. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are from the Luxembourg Income Study database. Economic Freedom Heritage Foundation The Economic Freedom index uses 10 specific freedoms, some as composites of even further detailed and quantifiable components:

Business freedom (hf_business) Trade freedom (hf_trade) Fiscal freedom (hf_fiscal) Freedom from government (hf_govt) Monetary freedom (hf_monetary) Investment freedom (hf_invest) Financial freedom (hf_financ) Property rights (hf_prights) Freedom from corruption (hf_corrupt) Labor freedom (hf_labor)

Each of these freedoms is weighted equally and turned into an index ranging from 0 to 100, where 100 represents the maximum economic freedom. Although changes in methodology have been undertaken throughout the measurement period, continuous backtracking has been used to maximize comparability over time. GDP / Capita growth World Development Indicators Annual percentage growth rate of GDP per capita based on constant local currency. Sources: World Bank and OECD. 1 Some of the variables have been reversed in the scatterplots in order to make the interpretation more intuitive

40

Population below $2 a Day (%) World Development Indicators Percentage of the population living on less than $2.00 a day at 2005 international prices. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are from the Luxembourg Income Study database. Foreign Credit Rating Credit ratings are forward- express the

government, to meet its financial obligations in full and on time. Credit ratings can also speak to the credit quality of an individual debt issue, such as a corporate note, a municipal bond or a mortgage-backed security, and the relative likelihood that the issue may default. agencies, which specialize in evaluating credit risk. Each agency applies its own methodology in measuring creditworthiness and uses a specific rating scale to publish its ratings opinions. Typically, ratings are expressed as letter grades that range, for example,

Human Development Index UNDP Human Development Report The Human Development Index (HDI) is a composite index that measures the average achievements in a country in three basic dimensions of human development: a long and healthy life, as measured by life expectancy at birth;; knowledge, as measured by the adult literacy rate and the combined gross enrolment ratio for primary, secondary and tertiary schools;; and a decent standard of living, as measured by GDP per capita in purchasing power parity (PPP) US dollars. Government Revenue (% of GDP) World Development Indicators Revenue is cash receipts from taxes, social contributions and other revenues. Grants are excluded here. Measured as a percentage of GDP. Source: International Monetary Fund. (World Bank and OECD for GDP estimates.) Tax Revenue (% of GDP) World Development Indicators Tax revenue refers to compulsory transfers to the central government for public purposes. Certain compulsory transfers such as fines, penalties, and most social security contributions are excluded. Measured as a percentage of GDP. Source: International Monetary Fund. (World Bank and OECD for GDP estimates.) Social Security Laws Botero, Djankov, La Porta, López-de-Silanes & Shleifer Regulation of Labor Measures social security benefits as the average of the three variables:

Old Age, Disability and Death Benefit Index Sickness and Health Benefits Index Unemployment Benefits Index

Average Schooling Years Barro & Lee Average schooling years in the total population aged 25 and over.

41

Life Expectancy World Development Indicators Life expectancy at birth indicates the number of years a newborn infant would live if prevailing patterns of mortality at the time of its birth were to stay the same throughout its life. Sources: United Nations Population Division, national statistical offices, Eurostat, Secretariat of the Pacific Community, and U.S. Census Bureau. Healthy Life Years WHO Statistical Information System Average number of years that a person can expect to live in "full health" by taking into account years lived in less than full health due to disease and/or injury. Infant Mortality Rate World Development Indicators Infant mortality rate is the number of infants dying before reaching one year of age, per 1,000 live births in a given year. Source: Inter-agency Group for Child Mortality Estimation (UNICEF, WHO, World Bank, UNPD, universities and research institutions). Maternal Mortality Rate Institute for Health Metrics and Evaluation University of Washington Number of maternal deaths per 100,000 live Births. Government Expenditure on Health (% of total health) WHO Statistical Information System Government expenditure on health care services and goods as a percentage of total expenditure on health. Expenditures on health include final consumption, subsidies to producers, and transfers to households (chiefly reimbursements for medical and pharmaceutical bills). Besides domestic funds it also includes external resources (mainly as grants passing through the government or loans channeled through the national budget). Private Expenditure on Health (% of total health) WHO Statistical Information System Private expenditure on health-care services and goods as a percentage of total expenditure on health. CO2 Emissions / Capita Environmental Performance Index Emissions of greenhouse gases per capita, measured in tons of carbon dioxide equivalents. Access to Improved Drinking Water Environmental Performance Index The percentage of population with an access to an improved water source. Original source is WHO. Access to Adequate Sanitation Environmental Performance Index The percentage of population with an access to an improved source of sanitation. Original source is WHO. Gender Equality World Economic Forum All scores are reported on a scale of 0 to 1, with 1 representing maximum gender equality. The study measures the extent to which women have achieved full equality with men in five critical areas: - Economic participation - Economic opportunity - Political empowerment - Educational Attainment - Health and well-being Secondary Education Enrollment (female) UNESCO Institute for Statistics All values given are gross enrollment rate (GER). GER is defined as the number of pupils enrolled at a given level of education, regardless of age, expressed as a percentage of the population in the theoretical age

42

group for the same level of education. Gross enrollment rate can be over 100% due to the inclusion of over-aged and under-aged pupils/students because of early or late entrants, and grade repetition. In this case, a rigorous interpretation of GER needs additional information to assess the extent of repetition, late entrants, etc. Homicide Rate UNODC Intentional homicide, rate per 100,000 population. Intentional homicide is defined as unlawful death purposefully inflicted on a person by another person. Number of Police Officers UNODC Police officers per 100,000 population. Number of Prisoners UNODC Sentenced incarcerated persons per 100,000 population Interpersonal Trust World Values Survey

very careful in dealing with people? (1) Most people can be trusted (2) Confidence in Parliament World Values Survey

have in them: is it a great deal of confidence, quite a lot of confidence, not very much confidence or none at all? (1) A great deal (2) Quite a lot (3) Not very much (4) Confidence in Government World Values Survey

organizations. For each one, could you tell me how much confidence you have in them: is it a great deal of confidence, quite a lot of confidence, not very much confidence or none at all? (1) A great deal (2) Quite a lot (3) Not very much (4) Feeling of Happiness World Values Survey

(1) Very happy (2) Quite happy (3) Not very happy (4) Life Satisfaction World Values Survey

are you with your life as a whole these days? (1) Dissatisfied (2)

43

(3) (4) (5) (6) (7) (8) (9) (10) Level of Democracy Freedom House / Polity Scale ranges from 0-10 where 0 is least democratic and 10 most democratic. Average of Freedom House (fh_pr and fh_cl) is transformed to a scale 0-10 and Polity (p_polity2) is transformed to a scale 0-10. These variables are averaged into fh_polity2. The imputed version has imputed values for countries where data on Polity is missing by regressing Polity on the average Freedom House measure. Hadenius & Teorell (2005) show that this average index performs better both in terms of validity and reliability than its constituent parts. Government Effectiveness World Bank Governance Indicators

provision, the quality of the bureaucracy, the competence of civil servants, the independence of the civil service from political pressures, and the credibility of th

policies and deliver public goods.

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