Column: BHP joins the lengthening list of nickel price casualties
Indonesia's nickel production surge is challenging the West's ambitions of diversifying its critical metals supply chains.
While resource nationalism is still a major risk for miners, corrupted governments can be equally or more detrimental to the industry, leaving companies and investors to the mercy of bribe-takers and influence peddlers, Transparency International hinted Tuesday in its annual corruption survey.
The Berlin-based watchdog index, which ranks states based on how corrupt their public sectors are perceived to be, shows than more than two-thirds of the 177 countries surveyed scored below 50 on a scale where zero is seen as highly corrupt and 100 considered as very clean.
Somalia, Afghanistan and North Korea each scored only 8 points, making them the three most corrupted countries in the world.
Previously well-respected Spain and Slovenia, where the turmoil has mostly been financial, saw their good governance rankings slide this year. However the epicentre of Europe’s sovereign debt crisis which erupted in 2009, was among the biggest improvers, while Australia was one of those to witness the largest declines.
Unlike previous years, there was very little improvement recorded this year in even the most open and law-abiding countries. Only two states — Denmark and New Zealand — scored in the top 10 percentiles on the 100-point index. The two countries at opposite ends of the world tied for first place with scores of 91, each up 1 point from 2012.
The other “clean” countries according to the index are Finland, Sweden, Norway, Singapore, Switzerland, the Netherlands, Australia, Canada, Luxembourg and Germany in that order.
Corruption within the public sector, said the watchdog, remains one of the world’s biggest challenges, particularly in areas such as political parties, police, and justice systems.
According to Huguette Labelle, chair of Transparency International, public institutions need to be more open about their work and officials must be more transparent in their decision-making.
Future efforts to respond to climate change, economic crisis and extreme poverty will face a massive roadblock in the shape of corruption, the report warned.
“It is time to stop those who get away with acts of corruption. The legal loopholes and lack of political will in government facilitate both domestic and cross-border corruption, and call for our intensified efforts to combat the impunity of the corrupt,” said Labelle in a statement.
The study concludes that international bodies, such as the G20, must crack down on money laundering, make corporations more transparent and pursue the return of stolen assets.
Click on the infographic below for a detailed evaluation of the different countries analyzed by Transparency International.
11 Comments
john S. metzger
this story riles me ..the whole perception is simplistic and based on a locally unrealistic idea of business and development. Large resource projects are clearly opportunities for all types of social and “business” interactions. How can local business strata respond, grow, and mature in a few years with often massive infusions of cash and support needs from “outside” companies racing to install operationality and support for extractive industries? The lines get blurred in the race to perform and adapt…costs and payments made to facilitate development should be seen in a larger context — open reporting of such is one opportunity to make a difference and there are no reasons to inhibit if not demand such in local media and across the international sector press…
The posturing, resource focusing and lobbying arbitrage that occurs across the West in mid- and major business circles is really no different …it goes down easier?
Support and development of national press, media, and business chambers — with active participation from resource companies…can be a powerful tool in normalizing the process. Bring local personalities, politicians and officials into the light of participation and interaction…WARNING MINING companies to stay away… is just foolish rhetoric … in many countries where great development and social challenges exist — is where the resources “battles” are on the forefront of national, regional, and continental development.
GO THERE, make your business, and insist on working in an open environment..
William Finseth
Sorry to point this out but using your numbering system Somalia, Afghanistan and North Korea would be among the least corrupt with scores near 100. The third paragraph in the article is wrong and you might want to correct it. It reads:
“Somalia, Afghanistan and North Korea each scored 92, making them the three most corrupted countries in the world.” In fact, each received a score in the range from 0 to 9.
MINING.com Editors
Thanks William,
I meant to say the were 92 points far from the top. I’ve changed it to “Somalia, Afghanistan and North Korea each scored only 8 points, making them…” It’s clearer.
Cecilia
Potevan
Author, you obviously live in the land of Oz..(where Alice comes from). Mining is everywhere, and in some countries it is more risky than others to do business. And business in developing countries are lucrative, as well as helping further development in these countries.
You should get out more…read less unsubstantiated reports in the media. Get a tan while you’re at it.
BUYA
Are you aware the “author” of this report is Transparency International. Does their international, multidisciplinary team need to get out more?
frankinca
Going to countries with questionable leaders is foolish. Helping the country economically is good, but giving the leaders a voice that they are the ones who caused this, is not an intended consequence. Use economic power to dislodge leaders who lead from their personal importance and not of those being led.
Ronaldo Marcio
I have worked in most of the countries in Latin America the map seems close the realite I saw. Only one main change. I would place Bolivia at the same level as Venezuela
Backsafe Australia
Its not the country that is corrupt, basically the leadership that includes the ones having authority, sitting in the senate, or higher politicians, who are responsible for framing the overall policies of the country.
Political leaders in all of these countries are making the things favorable for their own self interests rather than contributing to the economy of the country.
Noe
consider the banking institution (bankgsters) and the above map, will become inverted, because the bankgsters operates just in such named clean countries !, and considering that they manage the 99% of the fiat money, near to fall and be replaced by bitcoins, yuan, etc
Farai
It takes two to tango. The clean guys and the dirty guys and the clean guys normally instigate the transaction. Clean my foot! What about the scandals that have rocked the current financial system? The definition of corruption is misleading.
cadillac
I’ve been on the ground for 38 years on exploration projects around the world from grassroots to large conglomerates. If anything, your report is being to nice. They are all corrupt from top to bottom, start to finish. Whether it is the farmer in the cornfield or the local police chief on up the food chain, everyone has their hand out. I am proud of the fact I never put a dime into anybody’s hand which unfortunately has caused many, many tense moments in most countries.
It is unfortunate that the miners don’t walk away, but in this day and age, money talks and BS walks. Been there, done that.