Corruption Perception Index - CPI

DEFINITION of 'Corruption Perception Index - CPI'

A ranking of countries according to the extent to which corruption is believed to exist. The corruption perception index was created in 1995 by Transparency International. It ranks almost 200 countries on a scale of zero to 10, with zero indicating high levels of corruption and 10 indicating low levels. Developed countries typically rank higher than developing nations due to stronger regulations.

BREAKING DOWN 'Corruption Perception Index - CPI'

The corruption perception index is measured with a different methodology year to year, making yearly comparisons difficult. Because of this, it cannot be used as a tool for measuring the implications of new policies. This subjectivity has led to a lot of controversy over the rankings produced by the corruption perception index.