Enhancing Global Transparency Index for Accurate Calculation of Poverty Rate

In this research, the aim is to increase the accuracy of the Global Transparency index and to use it to calculate the poverty rate.

The Benefits of Global Transparency List: Reducing Corruption, Fighting Money Laundering and Terrorism Financing, Promoting Fair Competition, and Strengthening Corporate Governance. The Global Transparency List is an effective tool that can bring numerous benefits. It can reduce corruption by mandating intermediaries to disclose their ultimate beneficial ownership information. This transparency measure makes it difficult for individuals to conceal their ownership or control of companies for illegitimate purposes. The Global Transparency List can also aid in preventing money laundering and terrorism financing by allowing authorities to track the flow of money and identify the entities or individuals behind suspicious transactions. Furthermore, the list promotes fair competition by prohibiting companies from using anonymous ownership to gain an unfair advantage over competitors. The transparency and accountability requirements of the Global Transparency List also encourage companies to adopt better corporate governance practices. Ultimately, this list can help create a more transparent and fair business environment while being a vital tool in the fight against corruption, money laundering, terrorism financing, and other financial crimes.

"Importance of Considering Multiple Corruption Indices: Observations from Global Transparency List Our observations on the Global Transparency List highlight the significance of considering multiple corruption indices, such as the Corruption Perceptions Index (CPI) and the Global Corruption Barometer (GCB), when assessing a country's level of corruption. For instance, although Lithuania has a higher CPI score of 62 compared to Spain's score of60, Spain performs better on the GCB, with only 2% of public service users reporting paying a bribe, while Lithuania's score is 17%. Similarly, while Romania has a higher CPI score of 46 compared to Maldives' score of 40, Maldives performs better on the GCB, with only 2% of public service users reporting paying a bribe, while Romania's score is 20%, according to 2022 statistics. These examples illustrate that relying solely on one index may not provide a comprehensive understanding of a country's corruption levels, and it is important to consider multiple indices to gain a more accurate assessment. To create an accurate corruption ranking, it is essential to consider both CPI and GCB scores, and this can be done by using the following equation: new index = GCB/CPI

Example: Lithuamia = 17/62 = 0.274 comparison Spain = 2/60 = 0.033 the smallest is better. 

Another example: Romania = 20/46 = 0.435 comparison Maldives = 2/40 = 0.05 the smallest is better. See the table below for other country.

The Negative Impact of Bribery on Economic Growth and Development. Bribery has far-reaching negative consequences that can hinder economic growth and development. It can lead to the misallocation of resources and inefficient use of capital, which can in turn have a negative impact on economic growth. Bribery can create a culture of corruption, where individuals and organizations come to expect and rely on bribes  as a way  of doing business, further perpetuating corrupt practices. This culture can erode the legitimacy of the legal system, as well as public trust in government and institutions. To accurately assess the prevalence of bribery and its impact, it is crucial to establish a relationship between transparency and the incidence of bribery. By promoting transparency and accountability, it becomes more difficult for individuals and organizations to engage in corrupt practices, and it also becomes easier to detect and punish such behavior. In this way, transparency measures can help combat bribery and foster a more fair and equitable business environment, ultimately promoting economic growth and development. Estimating the Prevalence of Bribery in Countries with No Data Available. In cases where data on the prevalence of bribery is not available for a country, we can estimate the potential range of the percentage of bribery based on the country's rank in the Transparency International list. This estimation can help to provide some insight into the potential extent of bribery in a particular country, despite the lack of available data. The table below shows the estimated range of bribery percentages based on the country's rank in the Transparency International list: According to the statistics for the year 2022.

It is important to note that these estimations are based on available data and may not accurately reflect the true extent of bribery in a particular country. However, they can provide some guidance for understanding the potential level of bribery in countries where data is not readily available.

Using the Transparency Index (CPI) to Estimate Poverty Rates. It is possible to use the Corruption Perceptions Index  (CPI), which is a component  of the Transparency International Index, as an indicator of poverty rates. However, it is important to note that the CPI only measures corruption  perceptions and not actual corruption or poverty rates. To estimate poverty rates using the CPI, we can use the following equation: Non CPI = 100.

The transparency rate is the percentage score given to a country by the CPI, indicating the perception of corruption in that country. By subtracting the transparency rate from 100, we can estimate the non-transparency rate, which can then be used as an indicator of poverty rates in that country. It is important to note that this is only an estimation and may not accurately reflect the true poverty rates in a particular country. Other factors, such as income inequality, access to education and healthcare, and political stability, can also impact poverty rates. Nonetheless, using the CPI to estimate poverty rates can provide some insight into the potential relationship between corruption and poverty.

Then, to calculate the poverty rate, we can use the following equation to take the average of the non-transparency rate (Non CPI) and the bribery rate (GCB): Poverty = Non CPI + GCB /2

Example Spain poverty rate is according to our calculations is 21%, see the table compared to the poverty rate from the World Bank for the year 2020 Spain poverty is 21.7%. Example Italy the poverty is 23.5

To improve the accuracy of ranking countries on transparency, we can calculate the adjusted bribery rate taking into account the country's level of transparency. This can be achieved by dividing the bribery rate by the transparency rate. Similarly,  to estimate the poverty rate,  we can calculate  the  average adjusted  bribery rate for the population in a given country.  This can be achieved by multiplying the bribery rate  with the rate of lack of  transparency, and taking the average for the population.

However, it is important to note that these are only estimations and may not accurately reflect the true bribery or poverty rates in a particular country. Other factors, such as cultural norms, socioeconomic factors, and political stability, can also impact bribery and poverty rates. Nonetheless, adjusting the bribery rate for transparency and using it to estimate poverty rates can provide some insight into the potential relationship between  corruption,  transparency, and poverty.

It's important to note that this method may not provide an accurate or comprehensive measure of the Global Transparency or poverty rates,  as them are a complex issue with many contributing factors beyond corruption and transparency also the World Bank, Poverty and Inequality Platform data are compiled from official government sources or are computed by World Bank staff using national (i.e., country–specific) poverty lines.