Corruption Perceptions Index 2024: Part Two

Corruption Perceptions Index 2024: Part Two

By Wendy Cavenett

Asia-Pacific Trends and Australia's Progress

The Corruption Perceptions Index (CPI) examines public sector corruption across 180 countries, with rankings based on expert assessments and business surveys. Part One of this blog series offered an overview of the global trends, and key findings from the 2024 Index, and outlined the five essential measures Transparency International identifies for addressing corruption. It also provided a summary of regional results, showing that corruption remains a major obstacle to democratic stability, economic equity, and climate action across the globe.

In Part Two, we focus on the Asia-Pacific region, where corruption continues to hinder economic development and environmental governance. We also examine Australia’s performance, as it has re-entered the top 10 globally for the first time since 2016, ranking 10th with a score of 77.

- Corruption in the Asia-Pacific Region -

The 2024 Corruption Perceptions Index (CPI) by Transparency International indicates that many governments in the region have yet to fulfil their commitments to addressing corruption. Following years of stagnation, the region’s average CPI score has dropped by one point to 44, just above the global average of 43.

This decline is particularly concerning given corruption’s role in worsening climate change—the most pressing global challenge. Corruption weakens environmental governance by obstructing policy implementation, diverting climate funds, and undermining regulatory enforcement. As a result, those most at risk are left with few protections. The Asia-Pacific region, home to a third of the global population and the world’s second-largest youth demographic, is also highly susceptible to natural disasters. Without decisive action against corruption, the current generation experiencing the intensifying effects of climate change will face severe and lasting consequences.

Regional Rankings

Top scorers:

  • Singapore (84, up 1 point from 2023)
  • New Zealand (83, down 2 points from 2023, down 7 points since 2012)
  • Australia (77, up 2 points from 2023 and 2022)

Bottom scorers:

  • Afghanistan (17, down 3 points since 2023)
  • North Korea (17, 0 since 2022)
  • Myanmar (16, down 4 points since 2023)

Significant improvers include:

  • Timor Leste (44, up 16 points since 2015)
  • South Korea (64, up 11 points since 2016)
  • Maldives (38, up 9 points since 2019)

Climate Finance and Corruption in the Region

Corruption directly affects climate governance in many countries across the region. Transparency International highlights that corruption in climate finance undermines environmental policies, diverts critical funding, and weakens regulatory enforcement.

  • Bangladesh (23): Despite being a major recipient of climate finance, Bangladesh faces significant risks of embezzlement and financial irregularities, threatening essential funds meant to support millions. Greater transparency and accountability are needed to safeguard these resources.
  • Pakistan (27): Despite experiencing severe climate vulnerabilities in recent years, Pakistan's climate finance remains well below the US$348 billion required by 2030, due to governance failures and delays in implementing key regulations under the Climate Change Act of 2017.
  • India (38): In 2024, a US indictment revealed that more than US$250 million in bribes were paid to Indian officials to secure solar energy contracts, raising concerns about corruption in the country that receives the most climate finance globally. Stronger safeguards are needed to protect clean energy initiatives.

Governance and Transparency Challenges

Several Pacific island nations face heightened corruption risks due to weak governance and integrity systems. In Papua New Guinea (31), a corruption case exposed the misappropriation of US$1.3 million from the national Climate Change and Development Authority. Vanuatu (50) continues to grapple with institutional integrity challenges following political instability and a 2024 constitutional referendum. Meanwhile, Indonesia (37) and Vietnam (40) face corruption risks in energy transition projects, with Vietnam investigating 32 wind and solar projects in 2024 for abuse of power.

- Australia: Progress and Ongoing Challenges -

Australia’s 2024 CPI score increased from 75 (2023) to 77, placing it 10th globally for the first time since 2016. At the official Australian launch of the 2024 CPI last month in Canberra, Attorney-General Mark Dreyfus emphasised the very real consequences of corruption:

“Corruption is not abstract. It is not harmless."

"It is a shadow economy that erodes democracy, weakens institutions, and steals from the most vulnerable in our society."

"It diverts public money into the hands of the few at the expense of the many … it allows criminals to exploit government systems, enables fraud and money laundering, and threatens national security by giving illicit actors a foothold in the economy.”

Dreyfus’s statements underscore the importance of continued vigilance, even as Australia strengthens its anti-corruption framework.

Recent Developments in Australia’s Integrity Framework

The 2024 Transparency International report highlights key anti-corruption initiatives introduced in recent years:

  • The National Anti-Corruption Commission (NACC) (2023), established to investigate corruption across the federal public sector.
  • The Fraud and Corruption Control Framework (July 2024), which imposes stronger anti-corruption obligations on all Commonwealth agencies.
  • Tighter anti-money laundering regulations, expanding oversight to real estate, legal services, and financial professionals.
  • New foreign bribery laws, making companies liable for bribery conducted by employees, contractors, or subsidiaries unless adequate prevention measures are in place.
  • The Administrative Review Tribunal (ART), replacing the Administrative Appeals Tribunal (AAT), with a focus on merit-based appointments.

Ongoing Challenges for Australia

Despite these improvements, Transparency International and anti-corruption experts have identified key areas requiring further attention.

1. Political Donations and Lobbying Transparency

- Transparency International raised concerns over $70 million in undisclosed political donations in 2024.

- Greater transparency in lobbying regulations is needed to prevent corporate influence in policymaking.

2. Whistleblower Protections

- Protections for whistleblowers have been strengthened, but advocates argue that further safeguards are needed.

- A proposed independent whistleblower protection agency has yet to pass into law.

3. Corporate Transparency and Beneficial Ownership

- Australia has announced a national register of beneficial ownership to enhance corporate transparency and reduce financial misconduct.

- The effectiveness of this initiative will depend on its implementation and enforcement.

4. Climate and Environmental Governance

- Transparency advocates warn that carbon offset schemes and emissions reduction policies require stronger disclosure mechanisms to prevent misuse.

Australia has made significant progress in strengthening its integrity framework, with recent reforms reinforcing transparency and accountability. Building on this progress will be key to ensuring lasting change and addressing ongoing challenges.

Conclusion

The 2024 Corruption Perceptions Index underscores the urgent need for stronger anti-corruption measures across the Asia-Pacific region. Corruption continues to undermine economic stability, environmental governance, and public trust, while in Australia, recent reforms have led to significant progress, but ongoing challenges remain. Strengthening transparency, accountability, and enforcement is essential to prevent further setbacks and ensure lasting improvements. Governments, businesses, and civil society need to act now to address corruption and safeguard the region’s future.

References

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CourtHeath acknowledges the Traditional Aboriginal Owners of Country throughout Victoria and pays respect to Elders past and?present, and to the ongoing living culture of Aboriginal people.

A participant in the UN Global Compact, CourtHeath seeks to raise awareness about the sustainable development goals and the principles of the Global Compact with business and government organisations in Victoria.

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Image: Transparency International

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