The biggest corruption problems in the world – and where they happen most
Corruption is a major hurdle for businesses across the world, and data from the World Bank’s Enterprise Surveys show which forms of corruption are the worst – and where corruption is most prominent.
According to the survey findings, the most prominent form of corruption around the world involves giving gifts to governments to secure contracts. 27.1% of enterprises, globally, have indicated having been expected to do this.
The data shows that the Sub-Saharan Africa region is far above the global average when it comes to incidences of corruption experienced by global enterprises.
However, the most corrupt region in the world is South Asia, which includes countries such as India, Pakistan, Afghanistan, Bangladesh and Sri Lanka.
The region comes out as most corrupt in eight of the thirteen categories in the survey, with East Asia and Pacific taking top dishonour in two categories, and one each for Sub-Saharan Africa, the Middle East and North Africa and Latin America and the Caribbean.
The worst type of corruption in Sub-Saharan Africa relates to public (government) officials, where 27.3% of businesses said they had to “give gifts” to “get things done”.
The table below shows the survey data: what percentage of businesses in the SSA region experienced corruption, the global average, and the most corrupt region in each category.
| Category | Sub-Saharan Africa | Global Average | Worst region | Percentage |
|---|---|---|---|---|
| Firms identifying corruption as a major constraint | 43.4% | 35.2% | Middle East & North Africa | 53.2% |
| Firms expected to give gifts to secure government contract | 31.9% | 27.1% | South Asia | 45.5% |
| Firms expected to give gifts to get a construction permit | 27.1% | 22.9% | East Asia and Pacific | 33.4% |
| Firms expected to give gifts to public officials “to get things done” | 27.2% | 19.6% | Sub-Saharan Africa | 27.2% |
| Firms experiencing at least one bribe payment request | 23.5% | 18.1% | East Asia and Pacific | 27.4% |
| Firms expected to give gifts to get an electrical connection | 24.1% | 17.5% | South Asia | 37.3% |
| Firms expected to give gifts to get a water connection | 23.9% | 17.1% | South Asia | 36.7% |
| Firms identifying the courts system as a major constraint | 18.8% | 15.5% | Latin America & Caribbean | 29.1% |
| Firms expected to give gifts to get an operating license | 19.4% | 15.3% | South Asia | 25.3% |
| Firms expected to give gifts to get an import license | 17.0% | 13.9% | South Asia | 27.4% |
| Public transactions where a gift or informal payment was requested | 18.1% | 13.9% | South Asia | 21.0% |
| Firms expected to give gifts in meetings with tax officials | 17.4% | 13.0% | South Asia | 19.6% |
| Value of gift expected to secure a government contract (% of contract value) | 2.2% | 1.7% | South Asia | 2.9% |
South Africa has increasingly become known as one of the most corrupt countries on the continent, thanks in large part to questionable tender processes and cadre deployment in government.
A survey by global risk consultancy firm ControlRisk showed that more than half of global businesses surveyed would avoid South Africa due to perceived levels of corruption.
Corruption has become so prominent in South Africa that even the ANC has admitted that it has a problem with the matter, making it one of the key points discussed at its recent National Conference.
According to a 2015 anti-bribery and corruption survey conducted by law firm ENSafrica, South Africa is one of the biggest bribery hot spots in Africa.
ENSafrica’s survey found that a quarter (24%) of organisations have experienced an incident of bribery and/or corruption in the past 24 months – an increase of 4% since 2013 – with 5% experiencing five or more incidents within the last 24 months.
In January 2015, the Institute of Internal Auditors reported that South Africa has lost R700 billion to corruption over the last 20 years.
The Enterprise Survey Data used for South Africa is from 2007, however, and is thus largely out of date and contrary to the more recent research.
More on corruption
Corruption has no place in government: Zuma
SA fails to honour undertaking to fight corruption – report
Corruption in South Africa is scaring global businesses away
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