Financial Crime World

Corruption Plagues Peru’s Financial Sector, Survey Finds

A recent survey conducted by Proetica, Transparency International’s Peru chapter, has revealed that corruption is a significant obstacle to development in Peru. The study highlights the widespread perception that corruption is a major issue facing the state and hindering its growth.

Perceptions of Corruption

  • Over 50% of respondents believe that corruption will worsen in the next five years.
  • Peruvians perceive corruption as the country’s second most serious problem after crime (82% of respondents).
  • The government’s leadership in fighting corruption is perceived as limited or non-existent by 82% of respondents.

Consequences of Corruption

Corruption has far-reaching consequences, including:

  • Discouraging private initiative
  • Reducing available public resources
  • Undermining public confidence in institutions

In Peru, corruption manifests itself through various forms, such as:

  • Bribery
  • Embezzlement
  • Nepotism
  • Influence trafficking in decision-making processes

Impact on the Poor and Private Sector

The survey reveals that corruption disproportionately affects the poor, with 14% of poorer Peruvians dedicating a higher percentage of their income to paying bribes for accessing basic services compared to richer citizens. The private sector is also affected, with large companies dedicating up to 5% of their turnover to paying bribes to facilitate procedures and secure contracts.

Government Initiatives

The Peruvian government has taken steps to address corruption through initiatives such as:

  • National Plan for Fighting Corruption (2012-2016)
  • High-Level Anti-Corruption Commission (CAN)

International Support

The World Bank is providing support to the Peruvian government in its efforts to prevent corruption, including the development of a future Observatory of Corruption Risks. This observatory will provide quarterly measures of public institutions’ vulnerability to corruption.

Challenges Ahead

While these initiatives are welcome, many experts question whether they are enough to effectively combat corruption. “There is still much work to be done,” said one expert. “Peru needs to strengthen its institutions and ensure that transparency and accountability are enforced.”