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Bribery Risk Matrix 2021

  • 18 Nov 2021
  • 4 min read

Why in News

Recently, Bribery Risk Matrix 2021 was released by TRACE, an anti-bribery standard setting organisation.

Key Points

  • About the Matrix:
    • It measures business bribery risk in 194 countries, territories, and autonomous and semi-autonomous regions.
    • It was originally published in 2014 to meet a need in the business community for more reliable and nuanced information about the risks of commercial bribery worldwide.
    • It aggregates relevant data obtained from leading public interest and international organisations, including the United Nations, World Bank, V-Dem Institute at the University of Gothenburg and World Economic Forum.
  • Calculation Methods: Score is calculated on the basis of four factors:
    • Enforcement and anti-bribery deterrence.
    • Business interactions with the government.
    • Government and civil service transparency.
    • Capacity for civil society oversight which includes the media's role.
  • Performance of the Countries:
    • India:
      • India has slipped to 82nd position in 2021, five places down from 77th rank last year.
        • In 2020, India ranked 77 with a score of 45 while this year, the country stood at 82nd position with a score of 44.
      • India fared better than its neighbours – Pakistan, China, Nepal and Bangladesh. Bhutan, meanwhile, secured 62nd rank.
    • World:
      • North Korea, Turkmenistan, Venezuela and Eritrea pose the highest commercial bribery risk, while Denmark, Norway, Finland, Sweden and New Zealand present the lowest.
      • Over the past five years, the business bribery risk environment in the United States worsened significantly when compared with global trends.
      • From 2020 to 2021, all of the Gulf Cooperation Council (GCC) countries saw an increase in commercial bribery risk.
  • Related Steps Taken by India: India, in pursuance of its commitment to “Zero Tolerance Against Corruption” has taken several measures to combat corruption which, inter alia, include:
    • Systemic improvements and reforms to provide transparent citizen-friendly services and reduce corruption. These, inter alia, include:
      • Disbursement of welfare benefits directly to the citizens under various schemes of the Government in a transparent manner through the Direct Benefit Transfer initiative.
      • Implementation of E-tendering in public procurements.
      • Introduction of e-Governance and simplification of procedure and systems.
      • Introduction of Government procurement through the Government e- Marketplace (GeM).
    • The Prevention of Corruption Act, 1988:
      • It clearly criminalizes the act of giving bribes and will help check big ticket corruption by creating a vicarious liability in respect of senior management of commercial organizations.
    • Central Vigilance Commission (CVC), through various orders and circulars recommended adoption of Integrity Pact to all the organizations in major procurement activities and to ensure effective and expeditious investigation wherever any irregularity / misconduct is noticed.
    • The institution of Lokpal has been operationalised by appointment of Chairperson and Members.
      • Lokpal is statutorily mandated to directly receive and process complaints as regards alleged offences against public servants under the Prevention of Corruption Act,1988.

Source: IE

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