UAE firms rank 5th in global bribe-paying survey
The UAE and Argentina rank 5th out of 28 in a poll that measures which countries are most likely to pay bribes when doing business abroad. Russia tops the list.
November 2, 2011 3:34 by Precious de Leon
Companies in Russia are the most likely to pay bribes when doing business abroad, according to a list released by anti-corruption group Transparency International (TI).
China, Mexico and Indonesia follow closely behind, with UAE and Argentina tied next and then Saudi Arabia just right after.
Firms from Russia and China have collectively invested $120 billion overseas in 2010.
The survey interviewed 3,000 business executives and looked at 28 leading export countries and territories, which account for 78 percent of the total outflow of goods, services and investment worldwide.
The Index, last published in 2008, is based on interviews with more than 3000 senior business executives from emerging and developed economies.
Netherlands and Switzerland tied at the top as the least likely to bribe, followed by Belgium and then a tie between Germany and Japan.
Bribery was reportedly most common to win public sector works and construction contracts.
TI’s Russian director Elena Panfilova was quoted in a BBC article as saying, “Unfortunately… there are no islands of integrity in Russian public and business life.” Burn! So much burn that even Kipp had to whince at this one.
In a 2010 Corruption Perception survey, TI has suggested that bribe-paying is much more common from businessmen whose country’s governments were also considered to have the least integrity. Just saying…
Here’s the list of the 28 countries in focus. Note that the worst bribe payers are at the bottom of the list.
Scores range from 0 to 10, indicating the likelihood of firms headquartered in these countries to bribe when operating abroad. The higher the score for the country, the lower the likelihood of companies from this country to engage in bribery when doing business abroad.
The index also looked at which sectors companies are most likely to pay bribes. It found thatm aside from widespread practice of bribing public officials to win tenders, avoid regulation, speed up government processes or influence policy, companies are almost as likely to pay bribes to other businesses.
It looks like the oil and gas industry is a sector seen as especially prone to bribery, along with public works and construction.Companies operating in oil-rich Nigeria, for example, have already been fined upwards of $3.2 billion in 2010-2011 for bribery of public officials.
Agriculture is said to be the least bribe-prone.
(TI’s 2011 Corruption Perceptions Index, ranking countries by perceived levels of public sector corruption, will be published on 1 December 2011.)
The previous Bribery Pay Index was published in 2008. Belgium and Canada were tied at the top of the list. Russia was at the bottom out of the 22 countries surveyed, followed by China, Mexico and then India. Here’s the rest of the list:
1 – Belgium, Canada
3 – Netherlands, Switzerland
5 – Germany, Japan, UK
8 – Australia
9 – France, Singapore, United States
12 – Spain
13 – Hong Kong
14 – South Africa, South Korea, Taiwan
17 – Brazil, Italy
19 – India
20 – Mexico
21 – China
22 – Russia