Government funded events such as these pushed the government to limit corrupt

Government funded events such as these pushed the

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in Shanghai. Government-funded events such as these pushed the government to limit corrupt practices through policies such as the Public Procurement Act. But such activ- ities are not confined to emerging and developing countries. Bid rigging is widespread in Japan, particularly in the construction industry. The 2003 Act Concerning Elimination and Prevention of Involvement in Bid Rigging was an attempt by the Japanese government to curb such practices, which involve collusion among powerful keiretsu , industry bodies, and government agencies. The amount lost due to bribery in government procurement globally is thought to be at least $400 billion. The Berlin-based organization Transparency International (TI) produces a number of reports each year, of which the best known is the Corruption Perceptions Index (CPI). The CPI has promoted research into, and more open discussion of, the causes and con- sequences of corruption. Corruption is defined by TI as “the misuse of public power for private benefit,” and each year TI has evolved the methodology to improve consensus and acceptance of the metrics that underlie the country rankings. The extent of corruption is a measure of the frequency and value of corrupt payments and the resulting obstacle imposed on businesses. A composite index from different polls and surveys from independent institutions, including the World Economic Forum, the World Business Environment Survey of the World Bank, the Institute of Management Development (in Lausanne), PricewaterhouseCoopers, the Economist Intelligence Unit, and Gallup International on behalf of Transparency International, are used in the CPI. The 2010 survey shows Denmark, New Zealand, and Singapore as the least corrupt economies, Corruption The misuse of public power for private benefit Find more at
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485 CHAPTER 15 POLITICAL RISK AND NEGOTIATION STRATEGY Germany 15th, Japan 17th, the UK 20th, United States 22nd, France 25th, Spain 30th, Italy 67th, Brazil 69th, China 78th, India 87th, Russia 154th, and the most corrupt countries as Iraq 175th, Myanmar 176th, and Somalia 178th. Another report is the Bribe Payers Index (BPI), which measures the “propensity of com- panies from 30 leading exporting countries to bribe abroad.” It is based on the responses of more than 11,000 business people across 125 countries, polled in the World Economic Forum’s Executive Survey. Although multinational firms from advanced countries usually rank high in the index, they still regularly pay bribes. Companies from emerging econ- omies, including the BRIC countries, tend to rank amongst the worst. Despite high-profile campaigns to reduce the amount of local corruption in these countries, their firms actively bribe when abroad. Other reports by TI examine other elements of corruption, including the most promi- nent offenders in specific countries, usefully comparing, for example, the judiciary, cus- toms, police, local administrators, registry and permit officials, tax officials, and traffic police in various countries. Case studies and intra- or inter-regional comparisons also
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