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:
- 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?
|Region||Average Score (CPI)|
|Western Europe & EU||66|
|Middle East & North Africa||39|
|Eastern Europe & Central Asia||35|
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:
|Rank||Country||Score (CPI)||Government type||Region|
|#1||Denmark||88||Full democracy||Western Europe & EU|
|#2||New Zealand||87||Full democracy||Asia Pacific|
|#3||Finland||85||Full democracy||Western Europe & EU|
|#3||Singapore||85||Flawed democracy||Asia Pacific|
|#3||Sweden||85||Full democracy||Western Europe & EU|
|#3||Switzerland||85||Full democracy||Western Europe & EU|
|#7||Norway||84||Full democracy||Western Europe & EU|
|#8||Netherlands||82||Full democracy||Western Europe & EU|
|#9||Luxembourg||81||Full democracy||Western Europe & EU|
Here’s also a look at the world’s 20 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.
Thematic Investing: 3 Key Trends in Cybersecurity
Cyberattacks are becoming more frequent and sophisticated. Here’s what investors need to know about the future of cybersecurity.
Thematic Investing: 3 Key Trends in Cybersecurity
In 2020, the global cost of cybercrime was estimated to be around $945 billion, according to McAfee.
It’s likely even higher today, as multiple sources have recorded an increase in the frequency and sophistication of cyberattacks during the pandemic.
In this infographic from Global X ETFs, we highlight three major trends that are shaping the future of the cybersecurity industry that investors need to know.
Trend 1: Increasing Costs
Research from IBM determined that the average data breach cost businesses $4.2 million in 2021, up from $3.6 million in 2017. The following table breaks this figure into four components:
|Cost Component||Value ($)|
|Cost of lost business||$1.6M|
|Detection and escalation||$1.2M|
|Post breach response||$1.1M|
The greatest cost of a data breach is lost business, which results from system downtimes, reputational losses, and lost customers. Second is detection and escalation, including investigative activities, audit services, and communications to stakeholders.
Post breach response includes costs such as legal expenditures, issuing new accounts or credit cards (in the case of financial institutions), and other monitoring services. Lastly, notification refers to the cost of notifying regulators, stakeholders, and other third parties.
To stay ahead of these rising costs, businesses are placing more emphasis on cybersecurity. For example, Microsoft announced in September 2021 that it would quadruple its cybersecurity investments to $20 billion over the next five years.
Trend 2: Remote Work Opens New Vulnerabilities
According to IBM, companies that rely more on remote work experience greater losses from data breaches. For companies where 81 to 100% of employees were remote, the average cost of a data breach was $5.5 million (2021). This dropped to $3.7 million for companies that had under 10% of employees working from home.
A major reason for this gap is that work-from-home setups are typically less secure. Phishing attacks surged in 2021, taking advantage of the fact that many employees access corporate systems through their personal devices.
|Type of Attack||Number of attacks in 2020||Number of attacks in 2021||Growth (%)|
As detected by Trend Micro’s Cloud App Security.
Spam phishing refers to “fake” emails that trick users by impersonating company management. They can include malicious links that download ransomware onto the users device. Credential phishing is similar in concept, though the goal is to steal a person’s account credentials.
A tactic you may have seen before is the Amazon scam, where senders impersonate Amazon and convince users to update their payment methods. This strategy could also be used to gain access to a company’s internal systems.
Trend 3: AI Can Reduce the Cost of a Data Breach
AI-based cybersecurity can detect and respond to cyberattacks without any human intervention. When fully deployed, IBM measured a 20% reduction in the time it takes to identify and contain a breach. It also resulted in cost savings upwards of 60%.
A prominent user of AI-based cybersecurity is Google, which uses machine learning to detect phishing attacks within Gmail.
Machine learning helps Gmail block spam and phishing messages from showing up in your inbox with over 99.9% accuracy. This is huge, given that 50-70% of messages that Gmail receives are spam.
– Andy Wen, Google
As cybercrime escalates, Acumen Research and Consulting believes the market for AI-based security solutions will reach $134 billion by 2030, up from $15 billion in 2021.
Introducing the Global X Cybersecurity ETF
The Global X Cybersecurity ETF (Ticker: BUG) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Indxx Cybersecurity Index. See below for industry and country-level breakdowns, as of June 2022.
|Sector (By security type)||Weight|
|🇰🇷 South Korea||0.9%|
Totals may not equal 100% due to rounding.
Investors can use this passively managed solution to gain exposure to the rising adoption of cybersecurity technologies.
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Visualizing Major Layoffs At U.S. Corporations
This infographic highlights the accelerating pace of layoffs so far in 2022, as businesses cut costs ahead of a potential recession.
Visualizing Major Layoffs at U.S. Corporations
Hiring freezes and layoffs are becoming more common in 2022, as U.S. businesses look to slash costs ahead of a possible recession.
Understandably, this has a lot of people worried. In June 2022, Insight Global found that 78% of American workers fear they will lose their job in the next recession. Additionally, 56% said they aren’t financially prepared, and 54% said they would take a pay cut to avoid being laid off.
In this infographic, we’ve visualized major layoffs announced in 2022 by publicly-traded U.S. corporations.
Note: Due to gaps in reporting, as well as the very large number of U.S. corporations, this list may not be comprehensive.
An Emerging Trend
Layoffs have surged considerably since April of this year. See the table below for high-profile instances of mass layoffs.
|JP Morgan Chase & Co.||Financial Services||~500||June|
Here’s a brief rundown of these layoffs, sorted by industry.
Ford has announced the biggest round of layoffs this year, totalling roughly 8,000 salaried employees. Many of these jobs are in Ford’s legacy combustion engine business. According to CEO Jim Farley, these cuts are necessary to fund the company’s transition to EVs.
We absolutely have too many people in some places, no doubt about it.
– Jim Farley, CEO, Ford
Speaking of EVs, Rivian laid off 840 employees in July, amounting to 6% of its total workforce. The EV startup pointed to inflation, rising interest rates, and increasing commodity prices as factors. The firm’s more established competitor, Tesla, cut 200 jobs from its autopilot division in the month prior.
Last but not least is online used car retailer, Carvana, which cut 2,500 jobs in May. The company experienced rapid growth during the pandemic, but has since fallen out of grace. Year-to-date, the company’s shares are down more than 80%.
Fearing an impending recession, Coinbase has shed 1,100 employees, or 18% of its total workforce. Interestingly, Coinbase does not have a physical headquarters, meaning the entire company operates remotely.
A recession could lead to another crypto winter, and could last for an extended period. In past crypto winters, trading revenue declined significantly.
Brian Armstrong, CEO, Coinbase
Around the same time, JPMorgan Chase & Co. announced it would fire hundreds of home-lending employees. While an exact number isn’t available, we’ve estimated this to be around 500 jobs, based on the original Bloomberg article. Wells Fargo, another major U.S. bank, has also cut 197 jobs from its home mortgage division.
The primary reason for these cuts is rising mortgage rates, which are negatively impacting the demand for homes.
Within tech, Meta and Twitter are two of the most high profile companies to begin making layoffs. In Meta’s case, 350 custodial staff have been let go due to reduced usage of the company’s offices.
Many more cuts are expected, however, as Facebook recently reported its first revenue decline in 10 years. CEO Mark Zuckerberg has made it clear he expects the company to do more with fewer resources, and managers have been encouraged to report “low performers” for “failing the company”.
Realistically, there are probably a bunch of people at the company who shouldn’t be here.
– Mark Zuckerberg, CEO, Meta
Also in July, Twitter laid off 30% of its talent acquisition team. An exact number was not available, but the team was estimated to have less than 100 employees. The company has also enacted a hiring freeze as it stumbles through a botched acquisition by Elon Musk.
More Layoffs to Come…
Layoffs are expected to continue throughout the rest of this year, as metrics like consumer sentiment enter a decline. Rising interest rates, which make it more expensive for businesses to borrow money, are also having a negative impact on growth.
In fact just a few days ago, trading platform Robinhood announced it was letting go 23% of its staff. After accounting for its previous layoffs in April (9% of the workforce), it’s fair to estimate that this latest round will impact nearly 800 people.
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