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Global Corruption Perception Index (CPI) Transparency International 2012 www. transparentnost. org. rs http: //www. Global Corruption Perception Index (CPI) Transparency International 2012 www. transparentnost. org. rs http: //www. transparency. org/research/cpi/overview

Corruption Perception Index for 2012 • Measures the level of how corrupt public sector Corruption Perception Index for 2012 • Measures the level of how corrupt public sector is perceived to be • Index is created on the basis of 13 different researches and studies, conducted by independent institutions, questioning entrepreneurs, analysts and local experts • In 2012 total of 176 states/territories are ranked, seven less compared to 2011

CPI 2011 – The best and the worst Countries perceived as the least corrupted CPI 2011 – The best and the worst Countries perceived as the least corrupted Rank Score (0 -100) No. of polls Denmark 1 Country 90 7 Finland 90 7 88 7 New Zealand 2 Sweden Countries perceived as the most corrupted Rank 174 Score (0 -100) No. of polls Sudan 13 6 Afghanistan 173 Country 8 3 North Korea 8 3 Somalia 8 4

Goals of CPI • To measure the perception of corruption presence in public sector Goals of CPI • To measure the perception of corruption presence in public sector by businessmen, experts and risk analysts • To promote comparative understanding of corruption level • To offer overview on perception of decisions makers who influence trade and investments • CPI is “cumulative research” (research of group of researches), designed to overcome deficiencies of each individual research on corruption • To stimulate scientific researches, analysis of cause and consequences of corruption both in international and domestic level • To contribute to raising public awareness on corruption – to create positive climate for changes

Improvement of CPI methodology with the beginning of 2012 • CPI is “research of Improvement of CPI methodology with the beginning of 2012 • CPI is “research of group of researches” conducted annually that provides data that could be monitored continuously. • Minimum 3 researches per country • Research covers the period of previous year • Countries are ranked on a scale from 100 (very ‘clean’) to 0 (very corrupted), which allows detailed classification (smaller number of countries that share the same score • Perception and not the facts are being researched (e. g. number of convictions, number of media releases) • Corruption is determined as “abuse of entrusted power for private gain”

Possibility of comparison • Index represents overview of businessmen and analysts' perceptions on situations Possibility of comparison • Index represents overview of businessmen and analysts' perceptions on situations in certain countries and doesn’t necessarily reflect certain annual trends • Score is more relevant than the place on the list (because sometimes number of states/tterritories involved, changes) • Smaller changes in score are not necessarily consequence of significant change in corruption perception, but of the researches comprehended with sample • Due to methodology changes, possibility of comparison of CPI 2012 with previous years is limited: ranking in the list can be compared (taking into consideration changes of number of countries in the sample), comparing with development of other countries or comparing of the results by individual researches; it is not methodologically right to multiply score from previous years with 10 or to share current one with 10!

Deficiencies and advantages of CPI Deficiencies: • Index does not reflect level of efforts Deficiencies and advantages of CPI Deficiencies: • Index does not reflect level of efforts invested into fight against corruption • Developing countries can be shown in worst light due to impartiality and prejudices of foreign investors (that’s why there are other means for measuring corruption) Advantages: • And other assets for estimation of corruption lead to similar results as CPI • CPI is a good chance to promote public debate on corruption • CPI is good incentive for conducting further analysis • CPI includes almost all the countries of the world

Methodolgy remarks for Serbia CPI 2012 • Serbia is included in 7 polls that Methodolgy remarks for Serbia CPI 2012 • Serbia is included in 7 polls that are taken into consideration when creating an index, whereas 6 sources are the same as in 2011 • Observed territory of Serbia without Kosovo and Metochy (researches on the basis of which CPI is created are especially made for this territory and reflect perception on corruption of their public services, so that Kosovo is specially ranked on this list) • Researches were conducted during 2011 and fist half of 2012, and published in the period October 2011 - November 2012. Ranking by individual researches is from 31 to 49. Standard deviation is in acceptable limits (2. 6) and allows high level of reliability

Source of data in initial researches relevant to Serbia Source 1 FH (Freedom House, Source of data in initial researches relevant to Serbia Source 1 FH (Freedom House, Nations in Transit) Sample Perception of nonresidents; examinees come mainly from developed countries. 2 BF (Bertelsmann Foundation) 3 EIU (Economist Intelligence Unit) 4 Experts hired by the bank/ institution GI (Global Insight Country Risk Ratings) PRS ICRG (Political Risk Services International Country 5 6 Risk Guide) WEF (Report of the World Economic Forum, Executive Perception of residents; examinees are mostly local Opinion Survey) experts, local businessmen and multinational companies 7 WJP (World Justice Project Rule of Law Index) Local experts and general population

Former socialist countries of Europe by index • • • Estonia Slovenia Poland Hungary Former socialist countries of Europe by index • • • Estonia Slovenia Poland Hungary Lithuania Georgia Czech Letonia Slovakia Croatia Romania 64 61 58 55 54 52 49 49 46 46 44 • • • Macedonia 43 B and H 42 Montenegro 41 Bulgaria 41 Serbia 39 Moldavia 36 Armenia 34 Albania 33 Belarus 31 Russia 28 Ukraine 26

CPI 2011 – former SFRJ Rank Country Score 2012 Number of researches – CPI CPI 2011 – former SFRJ Rank Country Score 2012 Number of researches – CPI 2012 37 Slovenia 61 8 62 Croatia 46 8 69 Macedonia 43 6 72 B&H 42 7 75 Montenegro 41 4 80 Serbia 39 7

Evaluation of Serbia by sources for 2011 and 2012 CPI 2011 • BF 49 Evaluation of Serbia by sources for 2011 and 2012 CPI 2011 • BF 49 49 • EIU 38 38 • FH 47 47 • GI 42 42 • PRS ICRG 31 31 • WEF 35 35 • WJP 35 / 7 6 39 40 • Number of researches • Index

Comparison Countries that were behind us, and are now ahead: Countries that were ranked Comparison Countries that were behind us, and are now ahead: Countries that were ranked the same, and are now ahead of us: Country CPI 2011 CPI 2012 Serbia 3. 3 39 B&H 3. 2 42 Sri Lanka 3. 3 40 Liberia 3. 2 41 Bulgaria 3. 3 41

Comparison Countries that were ranked the same, and are now behind us: Countries that Comparison Countries that were ranked the same, and are now behind us: Countries that were ahead of us and are now behind us: Country CPI 2011 CPI 2012 Serbia 3. 3 39 Panama 3. 3 38 El Salvador Peru 3. 4 38 Jamaica 3. 3 38 Morocco Thailand 3. 4 37

Reactions to recent rankings • Data from 2000: facing the disastrous picture of Serbia Reactions to recent rankings • Data from 2000: facing the disastrous picture of Serbia • 2003: Larger progress on a scale was expected, but perception slowly changes • 2004: New breakthrough – approaching to realistic view of the situation • 2005, 2006 and 2007: Minimum progress trend maintained – no radical changes that would lead to fast change in corruption perception • 2008: Stagnation – fist time not even minimal progress, other countries catching up or even outpacing • 2009: Simbolical progress • 2010: Stagnation and expectation that improving of legal framework will bring future progress • 2011: decline of score and regressing on the list • 2012: same reactions as in previous year

Results CPI and Serbia for 2012 • Countries can ignore results of CPI only Results CPI and Serbia for 2012 • Countries can ignore results of CPI only at their own damage – even if it doesn’t reflect completely real state, CPI is a good indicator of what other people think of us – no room for satisfaction! • Citizens of Serbia have also impression on highly corrupted public area, which derives from result of research made on a national sample (e. g. Global Corruption Barometer) • Findings of public opinion poll do not show significant changes – corruption perception is similar for years; data on corruption experience in long-term show slight decline of „petty corruption“ level in the past six years

Themes for contemplation • Necessary question: Whether maintaining of high corruption perception is consequence Themes for contemplation • Necessary question: Whether maintaining of high corruption perception is consequence of greater public attention and more sincere considering of problems or the level of corruption genuinely increased? More open considering of problem, even when it doesn’t lead to increase of corruption perception, is useful long-term, because it is a precondition to make fight against corruption more successful. • Is it possible to influence decreasing of corruption perception with isolated anticorruption measures or campaigns? In most of the cases not, because of the nature of research. Besides that, priority should be preventing, discovering and punishing of current corruption cases and not changing of perception.

Main problems of Serbia • Violation of adopted anticorruption laws and violation of legal Main problems of Serbia • Violation of adopted anticorruption laws and violation of legal safety by adopting contradictory or undetermined provisions • Without drawing of lesson on the basis of discovered corruption cases and revealed forms of corruptive behavior • Non institutional power of political parties which reflects the work of complete public sector • Insufficiently transparent process of decision making, impossibility of citizens to influence it and unorganized lobbing • Unnecessary procedures and state interventions that increase number of situations for corruption to occur • Insufficient capacities of supervising organs who perform control over implementation of the law; discretion authorities in determining subject of verification

Priorities of Serbia in fight against corruption • Fight against corruption can be successful Priorities of Serbia in fight against corruption • Fight against corruption can be successful only if its organized systemically, provisions of rule of law, coordination of certain institutions’ work with strict respect of their constitutional and legal jurisdictions. • Greater transparency of state organs’ work, decreasing of regulatory and financial interventions of the state, public procurements, strengthening of the role of independent state organs, transparency of media ownership, independent, efficient and responsible judiciary, protection of whistleblowers and witnesses of corruption, proactive approach in corruption investigation, measures for control of public officials’ and servants’ property, strict control of accuracy and completeness of the reports on campaign and political party financing, resolving of all cases where suspected of corruption from previous years.

CPI 2012 Map CPI 2012 Map