Bhutan Ranks 26th in Global Corruption Perception Index

Transparency International Releases 2023 Corruption Perceptions Index

Thimphu, Bhutan - Transparency International (TI) has released the 2023 Corruption Perceptions Index (CPI), ranking 180 countries and territories based on their perceived public sector corruption levels. The index measures corruption on a scale from 0 (highly corrupt) to 100 (very clean).

Bhutan’s Consistent Performance

Bhutan has maintained its score of 68, securing the 26th position as one of the least corrupt countries globally. This consistency in ranking has been consistent over the past six years.

Key Highlights:

• Strong Commitment to Development: Bhutan’s focus on human resource development, equitable public resource allocation, and prudent macroeconomic policies aimed at sustainable growth.
• Areas for Improvement:
  • Better social protection policies to address labor market and poverty concerns
  • Significant reforms in the financial sector to tackle vulnerabilities and corruption
  • Enhancements in the business regulatory environment

Peaceful Environment Conducive to Investment

Bhutan’s scores for ‘Political Stability and Absence of Violence,’ ‘Rule of Law,’ and ‘Control of Corruption’ indicate a peaceful environment conducive to investment. However, the stable scores highlight the need for ongoing efforts to maintain and improve these standards.

Urgent Need for Reforms in Business Regulatory Environment

Conversely, Bhutan’s score in ‘Regulatory Quality’ has consistently been lower than other categories, underscoring persistent weaknesses in the business regulatory environment and revenue mobilization efficiency. This highlights the urgent need for significant reforms to support private sector development and enhance regulatory frameworks.

Progress in Democracy

The BTI shows Bhutan’s progress with a steadily improving democracy, highlighted by strong democratic institutions and governance stability. However, concerns linger in ‘Political & Social Integration,’ ‘Socio-Economic Development,’ ‘Welfare Regime,’ and ‘Market Organization,’ all showing persistent low performance.

Commitment to Integrity and Transparency

Bhutan’s commitment to integrity and transparency in governance is evident in its stable scores for ‘Clean Elections,’ ‘Rule of Law,’ ‘Vertical Accountability,’ and ‘Public Sector Corruption.’ However, a slight dip in ‘Access to Justice’ hints at a weakening legal framework and barriers to equitable and prompt judicial proceedings.