The country placed 85th out of 175 countries and territories covered by the Corruption Perceptions Index 2014, titled: "Clean growth at risk" -- the report’s 20th edition -- up from 94th out of 177 last year and 105th out of 176 in 2012.

On a scale of zero (highly corrupt) to 100 (very clean), the Philippines scored 38 -- reflecting steady improvement from last year’s 36 and 2012’s 34 -- though still below the 43% global and Asia Pacific average.

“Although the Philippines still belongs to two-thirds of the 175 countries ranked who scored below 50, this is a marked improvement from the 2012 CPI score,” Transparency International-Philippines, local affiliate of Transparency International, said in a separate statement.

Despite such improvement, Transparency International noted that the Philippines’ “poor” score -- together with those of India (38), China (36) and other emerging markets in Asia and the Pacific -- Malaysia (52), Thailand (38) and Indonesia (34) -- “indicate a general weak or ineffective leadership to counter corruption, posing threats for both sustainability of their economies and somewhat fragile democracies.” The Philippines had the same score and place as Burkina Faso, India, Jamaica, Peru, Sri Lanka, Thailand, Trinidad and Tobago and Zambia.

Still, both government and business leaders welcomed the country’s continued improvement in the annual index.

The CPI ranks countries and territories according to how corrupt their governments are perceived to be. It is a composite index that uses corruption-related data from surveys carried out by institutions like the World Bank and the World Economic Forum.

“Focusing on the score rather than the rank, the Philippines showed a significant improvement in the CPI if we compare our score in 2012 and 2014,” Transparency International-Philippines said in its statement.

It quoted Cleo Anne A. Calimbahin, executive director of Transparency International-Philippines, as saying that the civil society group considers “a score of + 4 to represent change in the perceived level of corruption”, adding that the “CPI captures the perception of corruption in the public sector by business people and country experts outside of the Philippines.”

“The international community is looking favorably at the reform initiatives of the country and the Philippine score,” Ms. Calimbahin said.

“While it remains below 50/100, this should encourage our public and private sector leaders to continue to push for good governance and inclusive growth, prosecution and sanctions against the corrupt, and effective delivery of public services.”

In a television interview, she said approving the Freedom of Information bill -- championed by both chambers of Congress and which Malacañang said should be enacted before President Benigno S. C. Aquino III steps down in mid-2016 -- and prosecuting those involved in corruption would help the country further improve its score and ranking.

Denmark topped this year’s roster with a score of 92, followed by New Zealand (91), Finland (89), Sweden (87), Norway and Switzerland both with a score of 86, Singapore (84), the Netherlands (83), Luxembourg (82) and Canada (81) to constitute the top 10. Sharing 174th place at the bottom of this year’s list with a score of 8 each were North Korea and Somalia.

Singapore topped its Southeast Asian peers, followed by Malaysia which ranked 50th, while the Philippines and Thailand outperformed Indonesia (107th), Vietnam (119th), Laos (145th), as well as Cambodia and Myanmar (tied at 156th place).

Transparency International said “poor score is a sign of prevalent bribery, lack of punishment for corruption and public institutions that don’t respond to citizens’ needs”.

Out of the 28 Asia-Pacific economies on the index which account for nearly 61% of the world’s population, “the majority lag behind in their efforts in fighting corruption in the public sector, with 18 scoring less than 40 out of 100.”

The country’s latest showing in the index was welcomed both by government and businessmen.

Communications Secretary Herminio B. Coloma Jr., in a text message said: “We are gratified that through the government’s determined efforts, the country’s transparency profile has improved significantly. Despite this improvement, we will continue and persevere such that our public institutions become exemplars of transparency and public servants.”

The government’s Investor Relations Office (IRO) said in a statement that “this development recognizes the achievements of the Philippines in the area of governance,” adding that the improvement in the country’s ranking “came with the Aquino administration’s sustained reform agenda, which includes transparency in the budget process and efforts to cleanse government agencies perceived to suffer from corruption.”

“The BSP is one with the government in promoting transparency and accountability, taking these guiding principles strictly in the conduct of its regulatory role over the financial sector,” the IRO statement quoted Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. as saying.

While also welcoming the country’s continued improvement, business groups said more needs to be done to eradicate corruption.

Makati Business Club Executive Director Peter Angelo V. Perfecto noted that “the combined efforts of government, private sector and civil society organizations to stop corruption and promote good governance and integrity are being given due recognition by the independent and credible Transparency International.”

“This is testament to the gains and momentum achieved on the ground and this must push us to strive harder and aim higher as indeed, much more needs to be done. Key to our continuing success is an effective justice system that will finally punish those that steal from public coffers,” Mr. Perfecto said via text.

John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines in a text message said: “We hope this ranking continues to go up each year.”

“Even more actions to reduce any resurgence of corruption are needed. Enacting proposed amendments to strengthen Ombudsman Act, Sandiganbayan and other judicial reforms are important to this goal,” he added.

Sought for comment, European Chamber of Commerce of the Philippines Vice-President Henry J. Schumacher, said via text: “We are glad that all our efforts in addressing corruption (national government, business, civil society, including the church, and local governments) are recognized.”

“We still have lots of work to do, but moving to 85 is a good step forward.”

Overall, Transparency International Chairman José Ugaz said in a statement that the 2014 CPI shows that “economic growth is undermined and efforts to stop corruption fade when leaders and high-level officials abuse power to appropriate public funds for personal gain.”

“Countries at the bottom need to adopt radical anti-corruption measures in favor of their people. Countries at the top... should make sure they don’t export corrupt practices to underdeveloped countries.” 

Source: Business World