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Visualizing Corruption Around the World

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Visualizing Corruption Around the World

Visualizing Corruption Around the World

Growing levels of public sector corruption can stifle a country’s economic growth while also chipping away at political freedom.

Which parts of the world are perceived to be most corrupt – and further, how does this data differ between regions, and how has it trended over time?

The Corruption Perception Index (CPI)

Today’s chart pulls its numbers from the recent 2018 Corruption Perceptions Index report, which has been published by Transparency International annually since 1995. The report scores 180 countries, and is considered the world’s most widely-used barometer for corruption.

However, before we dive in to the data, it’s worth taking a quick look at the methodology behind the report:

Methodology:

  • The CPI attempts to measure perceptions about corruption in a country, rather than corruption itself
  • Specifically, it is focused on the public sector of countries, which includes governments and government-run institutions
  • The CPI is a composite index, using the results from 13 separate reports and surveys to calculate an overall score
  • Scores range from 0 (most corrupt) to 100 (most clean)

Finally, it’s also worth noting that in the chart, we’ve added in government types as rated by the Economist Intelligence Unit – they range from “Full Democracy” to “Autocratic Regime”.

The Most and Least Corrupt Places

What do experts and businesspeople see as the most and least corrupt global regions?

RegionAverage Score (CPI)
Western Europe & EU66
Americas44
Asia Pacific44
Middle East & North Africa39
Eastern Europe & Central Asia35
Sub-Saharan Africa32
Global43

Western Europe has the highest score on average, while Sub-Saharan Africa has the lowest (most corrupt) average score. The Americas ranks just above the global average score of 43, mainly because the average is skewed by the lower scores of many countries in Latin America (such as Venezuela) and the Caribbean (such as Haiti).

Now, let’s look at the top 10 countries overall:

RankCountryScore (CPI)Government typeRegion
#1Denmark88Full democracyWestern Europe & EU
#2New Zealand87Full democracyAsia Pacific
#3Finland85Full democracyWestern Europe & EU
#3Singapore85Flawed democracyAsia Pacific
#3Sweden85Full democracyWestern Europe & EU
#3Switzerland85Full democracyWestern Europe & EU
#7Norway84Full democracyWestern Europe & EU
#8Netherlands82Full democracyWestern Europe & EU
#9Canada81Full democracyAmericas
#9Luxembourg81Full democracyWestern Europe & EU

Here’s also a look at the world’s 20 most populous countries:

Most Populous Countries

As the report notes, the relation between democracy and corruption appears to be quite clear: the more democratic a regime is, the less corrupt it is perceived to be. Using the Economist Intelligence Unit rankings, there are no “Hybrid” or “Autocratic” regimes that come anywhere near the top 10.

The closest may be the U.A.E. – which is classified as an Autocratic Regime – which has a CPI score of 70, good for 23rd place globally.

Trends Over Time

Over the last seven years, the report notes that there were a few specific countries that have consistently trended in one direction or another.

Hungary: The country has seen a -9 point change to its CPI score since 2012, dropping to 46 points in total. That’s just a notch above the global average.

Turkey: Turkey’s rating has deteriorated from 49 to 41 over the 2012-2018 time period.

Argentina: The South American nation has seen its score rise by eight points over the 2012-2018 time period.

Guyana: Guyana has gained nine points – a significant improvement over its original score of 28 at the start of that time period.

What will be the next country to jump up (or down) the list – and what factors will lead to this change in perception?

Note: The color-coding on the map has been updated to better reflect CPI scores. Ukraine was incorrectly classified as an Autocratic Regime.

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Technology

Which Companies Make Up the “Magnificent Seven” Stocks?

FAANG is dead… meet the ‘Magnificent Seven’ stocks that now make up over 25% of the S&P 500.

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This cropped chart highlights the Magnificent Seven stocks, a group of seven megacap stocks that replace the previous FAANG.

Which Companies Make Up the “Magnificent Seven” Stocks?

In 2013 CNBC analyst Jim Cramer popularized “FANG,” comprised of Facebook (now Meta), Amazon, Netflix, and Google (now Alphabet), as a shorthand for the best performing technology stocks on the market. Apple, added in 2017, made it FAANG.

However, over the last year a new moniker given by Bank of America analyst Michael Hartnett highlights the most valuable and popularly-owned companies on the American stock market: the “Magnificent Seven” stocks.

We visualize the Magnificent Seven’s market capitalization and 5-year stock performance as of November 2023 using data from Google Finance and CompaniesMarketCap.

The Magnificent Seven Stocks by Market Cap and 5-Year Return

The Magnificent Seven stocks are megacap companies focused and capitalizing on tech growth trends including AI, cloud computing, and cutting-edge hardware and software.

Four of the five FAANG stocks retain their place amongst the Magnificent Seven, with newcomers Nvidia, Tesla, and Microsoft joining the group. Following a poor 2022 performance and having more difficulty capitalizing on tech trends, Netflix is the sole FAANG company not included.

Here’s a look at the companies ranked by their market capitalization on November 6, 2023, alongside their 5-year stock performance:

RankCompanyMarket Cap5 Year Performance
1Apple$2.8 trillion+250%
2Microsoft$2.6 trillion+224%
3Alphabet$1.6 trillion+141%
4Amazon$1.4 trillion+63%
5Nvidia$1.1 trillion+783%
6Meta$811 billion+118%
7Tesla$690 billion+829%

The Magnificent Seven make up more than one-quarter of the S&P 500 and more than half of the Nasdaq 100.

Meanwhile, five of the seven are part of the rare trillion dollar club, with Nvidia being the most recent entry.

A common theme among the Magnificent Seven is their ability to collect vast amounts of customer data, create cutting-edge hardware and software, as well as harness the power of AI.

However, if Netflix gets back on track—recently announcing its new ad-supported membership tier has 15 million subscribers—we could soon see a “Magnificent Eight.”

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