The fact that more than two-thirds of countries are corrupt will hinder economic recovery, as well as the fight against poverty and climate change, corruption watchdog Transparency International warned Tuesday in its annual report.

Of the 177 countries included in the survey, 69 per cent scored below 50 points on the watchdog’s corruption perceptions index, where a low score indicates high levels of corruption.

“The (index) demonstrates that all countries still face the threat of corruption at all levels of government, from the issuing of local permits to the enforcement of laws and regulations,” said watchdog chief Huguette Labelle.

Afghanistan, North Korea and Somalia were once again at the bottom of the index, scoring 8 out of a possible 100 points respectively.

Syria, which has been suffering a civil war for three years, recorded a sharp fall in this year’s ranking along with several other nations including Gambia, Guinea-Bissau, Libya, Mali, Iceland and Guatemala.

Denmark and New Zealand, meanwhile, took the title of the least corrupt countries in the world, scoring 91 points respectively.

Finland and Sweden tied for second place at 89 points each.

Labelle warned that even nations with good corruption records face problems when it comes to the abuse of power in the public sector.

“The better performers face issues like state capture, campaign finance and the oversight of big public contracts which remain major corruption risks,” Labelle said.

“Future efforts to respond to climate change, economic crisis and extreme poverty will face a massive roadblock in the shape of corruption,” the watchdog added in its 19th annual report.

It was a mixed picture for nations at the centre of the Euro Zone debt crisis. Spain and Slovenia, which have been grappling with problems in their respective banking sectors, were among this year’s worst performers.

Greece, however, emerged as one of the countries to have significantly reduced levels of corruption, moving up 14 places to rank 80th in this year’s report. The improvement comes amid hopes the Greek economy might soon turn the corner after a protracted period of austerity aimed at overcoming its financial troubles.

Italy also edged up from a ranking last year of 72nd to 69th this year, placing the Euro Zone’s third biggest economy in between Montenegro and Kuwait.

The watchdog called on international organisations such as the G20 economies to crack down on money laundering, to increase corporation transparency and to pursue the return of stolen assets.

“It is time to stop those who get away with acts of corruption. The legal loopholes and lack of political will in government facilitate both domestic and cross-border corruption,” said Labelle.

(This article was published on December 3, 2013)