Comparing Guatemala And Sweden 's Income And Income Equality Essay

765 Words May 27th, 2016 4 Pages
Q1. Corruption Index: Conditions, Reasons and possible issues
Corruption could be defined as the dishonest and unethical behavior in order to access personal profit or exclusive power from political authorities instead of conducting corresponding laws, which could be an important indicator of political risk. In this case, corruption perception index will be used to estimate the scale of corruption. According to the Transparency International (2016), Sweden scores 89 in corruption perception index, which is the third highest within the 168 countries surveyed while Guatemala only scores 28, ranking 123 in 168 countries. These statistics indicate that Guatemala have a much larger scale of corruption, comparing to Sweden.
The reasons for the huge difference in corruption performance might be varied. From economic perspective, it could be argued that the differences between Guatemala and Sweden’s income and income equality might be one of the reasons since the higher level of productivity and fairer resource distribution might lower the motivate for corruption. For instance, Sweden has a higher productivity with less economic inequality since its GDP per capita is around 11.5 times bigger than Guatemala (International Monetary Funds, 2016) while GINI coefficient is just around 100% smaller than that of Guatemala (United Nations Human Programme,2013). Due to this difference, Swedish might have less corruptions behaviors since they generally might need less extra utilities to…

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