The Corruption Perception Index

Trinidad and Tobago was included in the CPI for the first time in 2001 when we scored 5.3 out of 10 and was ranked 31 of 91 countries surveyed. By way of explanation, a country perceived as free of corruption would score 100. This year, out of the 176 countries surveyed, Trinidad and Tobago ranked 101, scoring 35 out of 100, and moving downward four points from our 2015 scoring of 39.

While it is a perceptions index, it is well known that perceptions play a role in shaping and representing what might be occurring in reality. However, Transparency International notes that “Over two-thirds of the 176 countries and territories in the 2016 index fall below the midpoint of our scale... The global average score is a paltry 43, indicating endemic corruption in a country’s public sector.”

While some have questioned the methodology used for the survey, the danger of low rankings in these and other international indices is their potential to affect our investment reputation.

In international commerce, ratings and indices are used to assess the risk of doing business in countries. Assessments made are used to guide decisions relating to the terms on which business is transacted or conducted. A perception of corruption can result in additional costs that could lead to higher product prices, lower competitiveness and an increased cost of living.

Corruption harms the business sector by facilitating decision-making for reasons other than the best value for money. This results in the destruction of capital, as honest firms lose out to the dishonest. It results, too, in the loss of trust and integrity in the marketplace, which can add both visible and invisible costs to doing business.

The TT Chamber also recognises that there is both a supply and demand element to the corruption equation, and we believe that we can adopt a systematic approach to addressing this problem.

While some legislation has been introduced, there is still much work to be done to eliminate avenues for corruption which have become entrenched over the years. Several reforms - for one reason or another – have not been advanced. The Public Procurement and Disposal of Public Property Act, 2014 has been only partially proclaimed, while the Revenue Authority and the Licensing Authority, remain in abeyance, despite commitments to expedite them.

Legislation such as the Whistleblower Protection and FATCA seem to be moving ever so slowly, while enactment of legislation to regulate political party financing and election campaign financing remains but a pipe dream. Today, the Integrity Commission is akin to a near non-functional agency with very little power to compel the necessary adherence.

Despite very vocal objections to corrupt practices in several quarters, TT appears to have become steeped in an accepted “status quo” which is proving difficult to break free of. Sadly, the future of our nation depends heavily upon a re-thinking of our position on acts of corruption – real or perceived - in all spheres of life in our country. It matters little if the focus is business, labour, government or otherwise – more must be done to quell the perception and reality of corruption.