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On 13 January 2015, during a meeting with the Estonian delegation, Prime Minister Irakli Gharibashvili spoke about the steps made in the direction of creating a free business environment. He also noted that Georgia was promoted in international rankings. Mr Gharibashvili stated: “Georgia ranks 11th

in the Business Bribery Risk Index, surpassing many developed countries.”

FactCheck

took interest in the accuracy of the Prime Minister’s statement and verified it.

As the survey showed, Georgia indeed ranks 11th among 198 countries in the Business Bribery Risk Index published by Trace International and the RAND Corporation.

Rank Country Risk Score Interactions with Government Anti-Bribery Laws and Enforcement Governmental and Civil Service Transparency Capacity for Civil Society Oversight
1 Ireland 20 15 24 30 4
2 Canada 22 25 22 20 9
3 New Zealand 23 13 48 23 18
4 Hong Kong 23 4 51 27 30
5 Sweden 23 9 53 25 20
6 Finland 24 11 52 26 23
7 Singapore 26 1 54 37 35
8 Japan 26 33 17 6 10
9 Germany 27 28 31 33 1
10 USA 27 35 23 1 7
11 Georgia 27 17 24 19 39
12 Norway 28 21 52 32 16
13 Netherlands 29 20 55 29 21
14 France 29 32 38 27 14
15 Chile 30 33 30 20 25
16 Switzerland 31 22 52 37 19
17 South Korea 31 38 1 7 15

This Index is oriented on the business sector and provides trustworthy information concerning bribery risks associated with the business environment. Each country is assigned a score from 0 to 100. A high score corresponds with a high risk of bribery.

The survey has been carried out in four main directions: interactions with government, anti-bribery laws and enforcement, governmental and civil service transparency and capacity for civil society oversight. In the last of the four main directions, Georgia did worse as compared to the other directions and lagged behind many countries that ended up in lower positions in the overall ranking.

Georgia is ahead of many developed European countries including Norway, Switzerland, France and the United Kingdom. Georgia has a significantly better position as compared to these countries, especially in the second direction that concerns anti-bribery laws and enforcement. On the other hand, Georgia notably lags behind in terms of capacity for civil society oversight.

Considering the fact that the Index has been presented for the first time, it is impossible to monitor changes in the countries’ positions and define whether or not a position has improved as compared to previous years. However, the Business Bribery Risk Index is planned for an update in two years thereby rendering the comparison possible.

It is noteworthy that the image and country positions presented in this ranking slightly differ from other popular indices such as the Corruption Perception Index by Transparency International (TI). Georgia ended up in the 52nd

position among 175 countries in the TI ranking. As Trace International explains, the reason for this is that it uses a different matrix than the others which significantly altered the overall score if any of the directions exceeded or lagged behind the others.

Conclusion As FactCheck determined, Georgia ranks 11th

in the Business Bribery Risk Index by Trace International and the RAND Corporation. Despite other indices showing different results, Georgia surpasses many developed countries according to this survey.

Therefore, FactCheck concludes that Mr Gharibashvili’s statement: “Georgia ranks 11th in the Business Bribery Risk Index, surpassing many developed countries,” is TRUE.

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