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International Careers Program Topic: “Sudan, CPI VS GCI Correlation between the years 2003, 2005, 2010 & 2011”

Mariuxi Castro Sanchez

Cultural Factors in International Business

Samborondón, 3rd, June, 2013

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this analysis will be determined within Timeline 2000. 2010 & 2011. making it possible to conclude that Sudan has presenting a negative trend in terms of competitiveness growth and fighting corruption because of factors like civil wars and division of the country. There are no more boundaries to communicate with the societies in other continents. it was previously selected four countries from different continents such as African. Global Competitive Index. Spot. As we briefly mentioned before. it is clear the tendency of the human being in knowing everything that surround it. Sudan. 2005. 2010 and 2011 in order to assess the variations that have existed during these periods. In addition. CPI VS GCI Correlation between the years 2003. Tendency. but without neglecting Sudan as principal axis. this essay was based in two main axes. Score. Third World Countries. Key words: Corruption perception index. Similarly. One of those analyses has to be with the poverty or wealthy within 2 . Introduction: As everybody knows.Sudan. in order to perform this analysis. today we lived in a globalized world. Mariuxi Castro Sanchez Abstract In order to perform a comparative analysis. Middle East & North Africa. it has appeared the need to measure every aspect of the countries around the world in order to analyze their economic and social situations and development along the years. American and European one. which could open the possibility to determine the status of correlation of various countries. These are CPI (Corruption Perception Index) of each of the countries and their GPI (Global Competitiveness Index). 2005. The objective of the implementation of dispersion diagrams was to determine the regressions in the differentiation of correlations. Thus. Correlation.

it was created the called CPI or Corruption perception Index. social stratification and degree of economic development. the corruption could be divided in different classes which could be defined like:”Extortion. The CPI is an aggregate indicator that combines different sources of information about corruption. Thus.a country based on its political system. These aspects among others are relevant factors in order to divide the countries in developed or developing countries based on their competitiveness level. making it possible to compare countries” 3 . this essay will analyze the reports and statistics of those institutions in order to cover its principal topics which are the CPI (Corruption Perception Index) and the GCI (Global Competitiveness Index). In addition. started to measure the level of corruption and competitiveness within the society of a country in order to determine which is the poorest or the richest one. In addition. But what is the Corruption Perception Index or how it is calculated? Well the Corruption Perception Index “ranks countries according to perception of corruption in the public sector. Therefore. However. These negatives are for example. before going deeply in the analysis of the indexes mentioned before.de). Influence Trading and even Lack of ethics” (Correa). Embezzlement. this concept could be defined as: “the practice of making abuse of power. we have to direct our attention to comprehend what is the corruption itself. Therefore in order to understand the behavior of the countries based on those factors non. Bribery.governmental organizations through institutions created by them. we have to understand the basis of those terms. there are negative factors that influence the analysis of a country and frame it within a developing or third world country. Fraud. function or media to obtain an economic or other kind of advantage” (definicion. Thus. a high level of corruption. its economic growth and the division of classes within its society. Collusion. social discrimination or low measured level of competitiveness. So.

The CPI is therefore one of many TI measurement tools that serve the fight against corruption. This index actually looks to reflect the points of view of observers around the world who could expertise the analyzed factors. in order to totally comprehend this topic we have to understand where its data and sources come from and how it is calculated. 2010) Finally. while offering „non-perception‟ data. The sources of information used for the CPI are based on data gathered in the past 24 months. such as freedom of the press or the efficiency of the judicial system. 4 . The organization says: “The CPI draws on data sources from independent institutions specializing in governance and business climate analysis. 2010). this institution mentions that this Index is only based in perceptions because the corruption is almost always related with illegal and hidden actions. Measuring scandals. the Transparency International Organization explains this situation as follows: “Perceptions are used because corruption – whether frequency or amount – is to a great extent a hidden activity that is difficult to measure. The second step is based on increasing the standard deviation of the analyzed countries in order to differentiate those ones that could have similar scores. So. 2010). using matching percentiles technique that takes the ranks of countries reported by each individual source” (TRANSPARENCY INTERNATIONAL. Over time. The first one is “standardize the data provided by the individual sources (that is.” (Transparency International. However.(Transparency International. The CPI includes only sources that provide a score for a set of countries/territories and that measure perceptions of corruption in the public sector. perceptions have proved to be a reliable estimate of corruption.” (Transparency International. reflect less on the prevalence of corruption in a country and more on other factors. 2012) Thus. translate them into a common scale). investigations or prosecutions. the calculation method used to obtain this index is divided into three steps.

But. efficiency enhancers and innovation and sophistication ” (The Reut Institute. important factor to obtain its competitiveness depends on values of the units of goods and services plus the prices that they could offer in any market. because it is consist in a obtaining a simple average of all the “standardized values” (TRANSPARENCY INTERNATIONAL. The index examines the efficiency of different sectors of the national economies and their contributions to the country's productivity. 2006). in order to measure all those factors The World Economic Forum created the index called the Global Competitiveness Index published in yearly Global Competitiveness reports. Those sources are obtained from the International Monetary Fund and managerial surveys and measured in order to obtain the ciphers that will allow 5 . As the second item within the theoretical framework of the essay and having been analyzed the CPI’s Concept. without putting aside the ability and quality provided by a society in terms of production which is reflected within the products it offers. The calculation of the GCI is based on three pillars which are “basic requirements. the third step in the most simple of all. in order to answer this query it was decided to define it as: “ The productivity with which a nation utilizes its human. it is necessary to analyze the other side of the coin to support the proposed analysis. But what is the GCI? Well. capital and natural resources. It means the Global Competitiveness Index (GCI). we can’t analyze this index without knowing what competitiveness is. It is useful because it identifies the strengths and weaknesses of national economies” (The Reut Institute. 2010) that has been got as results of the calculations. Therefore. according to the World Economic forum it is defined as the index that “compares countries' productivity and efficiency and highlights their comparative advantages and the advisability of investing in them. 2005). the productivity of a country. 2006). Therefore. the starting point must be a nation‟s underlying sources of prosperity” (Rubiralta. To understand competitiveness. In addition.Finally.

But. more competitive the country is. Finally. Methodology: In order it has been determined that taking the sample and the results. Then. The main objective of correlation analysis is to determine how intense the relationship between two variables. it was selected to countries of the European continent with the higher scores in this zone. They has provided us with the necessary to perform the correlation analysis mentioned before. It means the CPI and GCI Indexes. in the case of the analysis proposed we will use as variables the index mentioned before. 2005. it was selected a specific time line in order to determine the evolution of these factors in the last decade. In addition. 2005).ranking the countries according to them. 2010 and 6 . Thus. So. Usually the first step is to display the data in a scatter plot ” (García. calculated from 0 to 10. All these statistical indicators are used to obtain another data called the correlation analysis which is: “The set of statistical techniques used to measure the strength of association between two variables. 2013) where was determined the problems of this country according to the civil wars and lack of education in its suffering currently. While more higher the cipher. it has been selected four more countries within the African continent to make a comparison not only of the growth of the competitiveness and corruption along the years but to determine which country presents the higher scores within the mentioned indexes. the years 2000. it could be implemented a quantitative and qualitative analysis because of the amount of information obtained from non-governmental organizations. two more countries from America were selected in order to compare the difference between three countries in terms of competitiveness and corruption and have the possibility to analyze if the location of the hemisphere and the difference of companies have any influence on the figures showing these indices. Therefore in order to continue the same trend. in order to perform it we will take as a basis the analysis done to Sudan in the “Sudan: Economic and population analysis from 1998 to 2011” (Castro Sanchez.

it means while higher the score. the y axis collects the data obtained from the GCI in a 0-10 scale and similarly to the CPI while higher the rank.2011 were selected to evaluate the variances of the indicators produced by every country in each one of the years. This axis goes since 0 to 10. In this specific case. more competitive the country is.Global Competitiveness Report 2005 This table collects the data of the countries mentioned before within the years 2003 and 2005. cleaner the country is. Besides the growth of the analyzed factors can be interpreted too. it was selected the year 2003 because the years before to it the African countries were not considered to calculate the 7 . in order to propose an efficient idea that could works as a useful solution idea. Results: The data is presented in dispersion and regression table. which allow us to interpret not only qualitative but quantitatively the data in order observe the measured variations along the years presented by the countries. 1. In the other hand. All these data will be organized in the following form: In the x axis will be located the ciphers that describe the CPI of the ten analyzed countries. CPI VS GCI Correlation Analysis 2003 – 2005 Source: Global Competitiveness Report 2003 .

Denmark. According to the table. In the case of the African countries they have maintained very low scores within those years and reveal a similar situation in terms of competitiveness. Ethiopia.mentioned indexes. having lowers scores than Egypt.Global Competitiveness Report 2011 As we can observe in the table and similar to the previous table. As we can see. The surprise came from the Central-American countries which in the case of the Salvador presents a really acceptable score compared to Guatemala and the African countries. it was selected the report of the year 2003 which was the year where most of the African countries were included in the analysis. CPI VS GCI Correlation Analysis 2010 – 2011 Source: Global Competitiveness Report 2010 . the African countries has improved their situations in a small proportion. Sudan is the most corrupt African country. Therefore. Norway and Sweden could be easily located in the highest ranks in terms of competitiveness and corruption. It means that its score has totally decreased in comparison to the results 8 . Kenya and Libya. most of the analyzed countries has maintained a similar trend. 2. In terms of corruption. The European countries show a totally different situation. These countries have similar economic growth but it is clear that the country of El Salvador has actually done a better effort in terms of development. Sudan has become one of the “ten more corrupt countries in the world” (Nikolaev. 2010).

In contrast. In terms of competitiveness the situation has not changed a lot. Guatemala presents a considerable growth within the analyzed indexes. In the case of the Central-American Countries. 2010 & 2011 Source: Global Competitiveness Report 2003-2011 – Corruption Perception Index 2003-2011 In this scatter graph are organized the data presented in the previously analyzed tables. 2005. 3. but El Salvador has revealed a decreasing trend compared to the scores analyzed before. the European countries have maintained the same trend.presented in the previous table. it is like the situation has been inverted. Now. maintaining a similar tendency of growth. It means that most of the analyzed countries 9 . As we can observe there are countries that are located at the very beginning of the trends in every line. It means that their governmental systems have fulfilled the needs of their societies in terms of anti-corruption and competitiveness. Correlation Graph CPI VS GCI Between the Years 2003.

The situation is clear. the African countries have lived a similar situation for many decades.have a high corruption score but a low competitiveness rank. we observe the European countries which are located at the ending of the lines. In addition. AIDS and other issues has been the relevant factors submerged in these societies. Although the early years of the millennium were years of changes in the world. it is necessary to interpret their results in order summarize them and issue a scientific conclusion based on the lines of corruption and competitiveness. 10 . which has actually fed one of the problems that makes impossible the development of the country. it has to be mentioned the corruption factor in Sudan. we can say that countries like Egypt and El Salvador that are presented nearly half of the lines are developing countries which has reduced their corruption scores and improved it competitiveness along the years. Discussion and Conclusion: Once it has been made the statistical analysis corresponding to the data within the showed tables. Finally. Much of this economic and political stagnation has to be with factors like a constant civil war which has punished the Sudanese society for decades. corruption. in terms of competitiveness it shows a very slow growth in comparison to countries like Egypt located in the same region. So. the African countries are still suffering of severe economic and social problems which make them impossible an acceptable growth. social discrimination. It means that they have maintained high competitiveness and anticorruption scores. Extremely poverty. the division of the country in two different parts has represented a totally division of its economy and obviously a decreasing in terms of economic growth. In contrast to this situation. We can see this situation reflected in the scores presented by Sudan which despites having oil production.

it didn’t last long because of the division of the country. however. It is true that the country lived a little prosperity time because of the petroleum revenues. Being clearly that the reason of the separation of the South Sudan. In the case of Sudan. it is necessary to highlight situations like presented by Egypt which s revealing a considerable growth which will locate the country within the developing countries in a near future. its economy will be serially impaired and sadly. However. the country will have to live in the circle of the Third World country. It means that the solutions could be applied but sometimes it is necessary a radical change within the mind and will of the societies. Therefore. the social differences and problems that were mentioned above. Nowadays. 11 . if the continues that decreasing trend without taking any action. 2013). there is a long path to walk. Therefore. we can see that a developing range could be applied in these countries.The high corruption has promoted the civil wars within the Sudanese society with situations like weapons and money traffic as we analyzed in “ Sudan: Economic and population analysis from 1998 to 2011” (Castro Sanchez. radical changes need to be applied in order to start to walk. For almost two decades the African countries have been considered as Third World Countries.

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