This is how we evaluate the Globalance Footprint with regard to markets and infrastructure:
A negative Footprint causes
- A high degree of legal uncertainty
- Unstable and closed markets
- A lack of transparency in terms of political influence (lobbying)
- Economic costs due to unethical business practices (corruption)
- Price-fixing (cartels)
- Untimely or poorly conducted infrastructure projects
A positive Footprint fosters
- The integrity and transparency of companies and transactions
- High standards of corporate governance
- The opening and strengthening of goods and services markets, also for
previously disadvantaged market segments
- Financial market development
- Sustainable Infrastructure for transport, communication and energy.
Your Footprint Map for the topic
|4Q Smart Power||0.13||75|
|CAF Corp Andina Fomento||0.08||72|
|First State Infrastructure||0.15||47|
|ZKB Gold ETF||0.07||50|
- Colours indicate the Footprint-Scores
- Field sizes indicate proportion of invested capital
The three best investments
The three investments with the best Footprint for this theme are:
Global Context: Corruption also affects G20 nations
Corruption within the public sector leads to stagnating education and slower progress. This is as relevant to G20 countries as it is to the developing world.
What this chart tells us: Corruption is a global phenomenon with local consequences
The graph shows the
values of the 2014 Corruption Perceptions Index (CPI) for individual countries. Dark red shading of a region indicates a
bad corruption score, while lighter colours indicate better results in the
study conducted by Transparency International in 2014. Switzerland shares its
fifth place with Norway, while Denmark came out on top in the country ranking.
North Korea and Somalia are found at the end of the list at position 174.
Countries at the bottom need to adopt radical anti-corruption measures in favour of their people. Countries at the top of the index should make sure they don’t export corrupt practices to underdeveloped countries.
José Ugaz, Chair, Transparency International
Challenge: Corruption leads to stagnating education and slow progress
Corruption puts money in an individual‘s pocket at the expense of the general public. One example of a consequence is the loss of the right to valuable natural resources by the latter. The problem is not restricted to the developing world: G20 states face corruption issues as well.
Corruption undermines the basic functionality of sovereign states and leads to a lack of resources for public investment in education and infrastructure. This in turn inhibits progress. Insufficient access to education can be both cause and result of corruption. A catch 22.
Investment-Relevance: Controlling corruption pays dividends
According to former World Bank director Daniel Kaufmann, a 300% development dividend can be generated with good governance and corruption control. Countries that fight corruption and improve legal frameworks will profit from a threefold increase in Gross Domestic Product (GDP) in the long run, says Kaufmann.
Investing in companies that are active in countries facing corruption problems creates a moral obligation to take responsibility. But investors also profit from a strong future economic development of such markets in the long run.
58% of G20 states scored less than 50 out of 100 points in the Corruption Perceptions Index (CPI).
The average score of the countries investigated by the CPI is 43 on a scale from 0 to 100.
175 countries where investigated by Transparency International in the CPI.
Relevant sources of guidance for the Globalance Footprint
considers various publications by Transparency International when investigating
Footprints in Market and Infrastructure. In addition to the CPI, Transparency
International also publishes the so called „ Bribe Payers Index (BPI)“, which
investigates corporate behaviour of different companies when competing for
contracts in various countries. Publications from the World Bank‘s „World Wide
Governance Indicators Project“ are an additional source of valuable