Denmark, Finland and Singapore: How life is in countries with least corruption
With Bangladesh slipping on the corruption index, placing itself with Congo and Iran at 151 out of 180, the state of the economy begins to make much more sense.
Corruption negatively impacts the economy in a number of ways.
Foreign investment is reduced, resources are inefficiently allocated, the cost of doing business rises, government revenue falls, inflation spikes, income inequality worsens, public services become poorer, and there is political instability.
Keep updated, follow The Business Standard's Google news channel
Taking a look at the countries at the top of the Corruption Perception Index (CPI) 2024 by Transparency International, these impacts become clearer.
Denmark
Topping the list, Denmark embodies the highest standards of governance and the pinnacle of transparency in the public sector.
And this shows.
Take the Legatum Prosperity Index (LPI).
The LPI is a comprehensive ranking of countries based on their prosperity, beyond just economic measures like GDP.
It evaluates prosperity as a combination of economic success and social well-being, using multiple factors that contribute to a nation's long-term development and quality of life.
In the 2023 index – the last one released, Denmark, as expected, topped the list.
This means the country has high levels of personal freedom, safety and security, education, and health. These countries also have healthy natural environments and conditions that promote economic prosperity through such features as protection of investments, favourable business regulations, and a healthy market infrastructure.
Denmark's economic indicators reflect its stable and prosperous economy.
As of December 2024, Denmark's annual inflation rate rose to 1.9%, up from 1.6% in the previous two months, spurred by higher prices for food and non-alcoholic beverages.
In 2023, Denmark's per adult national income was €57,478.
Additionally, Denmark is recognised for having one of the world's lowest levels of income inequality.
Denmark's Gini Index stands at 28.3, according to the World Bank as of 2021.
It is important to note that Denmark's population is 5.9 million as of 2023.
Finland
Second on the CPI is Finland, yet another Nordic country.
The Legatum Prosperity Index 2023 places Finland at 4.
As of December 2024, Finland's annual inflation rate decreased to 0.7%, down from 1% in November 2024.
Historically, the country has maintained moderate inflation rates, with a notable peak of 9.1% in November 2022.
Finland is recognised for its relatively low income inequality. The Gini coefficient, a measure of income distribution where 0 represents perfect equality and 100 indicates perfect inequality, was approximately 26.6% in December 2023.
In 2023, Finland's Gross Domestic Product (GDP) per capita was recorded at €44,574.77.
Finland's population stands at 5.6 million as of 2023.
Singapore
Far away from the Nordic nations, stands the beacon of Asia: Singapore.
On the prosperity index, Singapore comes at 17th, just below its Asian neighbour Japan.
But Singapore's success story does not stop there.
The island country boasts an impressive 1.6% inflation rate, reflecting the country's effective monetary policies and economic management.
Its Gini coefficient currently hovers around 0.37, highlighting the redistributive impact of government policies.
Singapore's GDP per capita was €82,256.88 in 2023, while its population stood at 5.9 million.
The other countries in the top five of the CPI are New Zealand and Luxembourg, with each showing similar boast-worthy metrics.
The metrics of the bottom five – Yemen, Syria, Venezuela, Somalia and South Sudan – are the opposite.
However, it is to be noted that most of these countries are facing some sort of conflict.
