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FILSAFAT KORUPSI - Direktori File UPI

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The debate about the composition of the council is crucial. For now I will only mention that the council<br />

should have representatives from labor and corporate unions. As a consultative body, its main objective is<br />

to create an opportunity for public debate.<br />

Page 32<br />

Appendix I. Scatter Diagram of Corruption Perception Index (CPI) and Gini Index of<br />

Income Inequality (GINI) for 84 countries weighted by their GDP per capita<br />

(averages from 1997-2003) The graphic comparison between the Corruption Perception Index (CPI) for 84<br />

countries, averaged from 1997-2003, as measured by the Transparency International, and the GINI Index<br />

for the same 84 countries, also averaged from 1997-2003, illustrates the argument of the vicious<br />

circle between corruption and economic inequality. The downsloped regression line<br />

demonstrates the negative correlation between both indexes. Considering that the CPI is higher<br />

for countries with low levels of corruption, it is possible to argue that corruption and economic<br />

inequality are positively correlated. Each country point is weighted by its GDP (Gross Domestic<br />

Product) per capita (in constant 2000 US$) averaged from 1997-2003 from the 2005 World<br />

Development Indicators database. It is interesting to notice that all countries below the average<br />

CPI for the sample (4.7) are also low income countries (GDP per capita below US$ 6,000). It<br />

might also be argued that the vicious circle between corruption and inequality is important factor<br />

in maintaining developing countries in a low level equilibrium that prevents long term<br />

sustainable economic development.<br />

Appendix II. Regression – Corruption Perception Index (CPI) and Gini Index of Income<br />

Inequality for 84 Countries (averages from 1997-2003)<br />

VII<br />

205

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