So, and for example, tax abuse by multinational companies is estimated to cost developing nations more than 10 times the sum that they receive in aid each year whilst exposure after exposure of high-level corruption within states by organisations such as Global Witness highlights the use of tax havens, offshore secrecy service providers, the use of front organisations and shell companies, and the capture of the legislature of some small states to provide apparently legal veils of secrecy that facilitate such crimes as the key components in the corruption that threatens to undermine the viability and durability of states, corporations, international trade, and the well-being of a great many within the world’s population.
The CPI goes nowhere near these issues. Indeed, it is perverse that the governments of Denmark, New Zealand, Singapore, Switzerland and the Netherlands, all of whom appear in the top 10 cleanest countries in the CPI, are widely considered to be purveyors of various forms of tax abuse mechanism used to facilitate illicit financial flows.
The inevitable conclusion is that the CPI is outdated, its methodology is no longer valid, its message is incomplete and confusing, and what it seeks to measure is no longer relevant. It is time to move on.
The Corruption Perceptions Index does what it says on the tin. Measures the perception of corruption in those countries where people are asked about it.
Because this doesn’t measure what Ritchie thinks is important therefore no one should measure this at all.