Corruption risks can plausibly cause both direct and indirect damage to Lithuania. According, to the results of the Corruption Perception Index (CPI) conducted by the independent research centre “RAND Europe” based on the newest data, the damages could reach up to 11.4 pct. of GDP or 4.44 billion euros. Meanwhile, the damages sustained due to corruption for the entire region of the European Union, in regards to economic, political and social issues annually can reach up to 990 billion euros. The topic of the damages brought on by corruption to the economy and the business sector was discussed during the Ministry of Foreign Affairs public discussion “Why is it beneficial to create a corruption resistant environment in business?”
During the event Lithuania’s business, government and non-governmental organization representatives perhaps for the first time, precisely identified the losses incurred due to corruption, regarding individual businesses and their reputation, as well as for the national economy of the state as a whole. Since corruption undermines the taxes collected, hinders both the development of the public sector, and the quality of public services provided to citizens, as well as reduces competition during public procurements, increases the damages incurred by the state and etc.
According, to the surveyed data in the “Lithuanian Map of Corruption 2016“, business representatives among the most corrupt institutions at the time listed health care institutions (by 27 pct. of the respondents), the Parliament (23 pct.), municipalities (20 pct.) and the courts (by 18 pct. of respondents), read the STT public statement.
In regards, to the private sector business representatives listed pharmaceutical companies (49 pct. believe that the company is either highly corrupted, or only in part), construction companies (45 pct.), mandatory technical inspection companies (41 pct.) and bankruptcy administration companies (36 pct.), as the most corrupt.
Among, the most corrupt ministries business representatives identified the ministries of Health, National Defence and Agriculture. Higher and/or lower manifestations of corruption regarding these ministries is noted by 60 pct., 53 pct. and 44 pct. of respondents. It is also noted that television (38 pct.) and the internet (23 pct.) where listed, as the main sources allowing to establish the most reliable opinion regarding the extent of corruption and its scale in the country, by business representatives in Lithuania.
According, to the data in Transparency’s International annual Corruption Perceptions Index (CPI) survey for 2016. Lithuania with 56 points in total, takes the 38th place out of a 176 countries in the world, as well as the 16th out of 28th European Union’s members states in accordance to the state’s level of corruption.
“Based on the international economic competitiveness report carried out by the World Economic Forum in 2016, Lithuania ranks 35th among 138 countries in the world. Switzerland, Singapore and the United States of America remain the global leaders. The neighbouring state, of Estonia’s economic competitiveness ranks the state as 30. While, Latvia remained ranked 49th in the world ranking of countries.” – stated Margarita Dobrynina, the Third Board Chief specialist for the Special Investigation Service (STT) of the Republic of Lithuania.
According to the specialist, the credibility of both the private and public sectors, including the need to maintain a good reputation are become increasingly important today, in regards to achieving the country’s strategic goals – the full-fledged membership in the Organization for Economic Co-operation and Development (OECD). Practice shows that the entrepreneurs of our country still have a lot to do, in order to achieve more advanced transparency standards regarding business.
The business sectors tolerance regarding corruption is decreasing
According to, the latest prevalence of corruption risk study conducted by professional service company EY, since 2013 business attitudes in Lithuania have changed only slightly and almost half (47 pct.) of business respondents acknowledged that bribery and corruption in Lithuania’s business relations are still prevalent.
However, the tolerance in Lithuania regarding direct forms of bribery is decreasing, as only about 13 pct. of respondents stated that they would offer money in order to win highly valued orders and/or to otherwise maintain their business, today. Compared, to the surveyed world average of 17 pct., Lithuania’s rate has been steadily declining since 2013 when the bribery amounted to 19 pct. of all business respondents in Lithuania.
Furthermore, 59 pct. of business respondents in Lithuania stated that preconditions regarding acts of corruption in the state are the poor economic growth prospects. While, about 80 pct. of business representative believe that more severe criminal punishments are the best way to curb corruption. Only 20 pct. of Lithuania’s business representatives believe that the current regulatory environment effectively contributes to decreasing corruption.
The Anticorruption guide will help the accession to the OECD
During the discussion “Why is it beneficial to create a corruption resistant environment in business?” an Anticorruption guide for business, prepared both by the representatives from private and public sectors, as well as the STT was presented whose main task – was to clearly and systematically define the key measures and best practical examples regarding the effective application of anti-corruption measures in business.
According to, Leah Ambler an analysist for OECD’s Directorate for Financial and Enterprise Affairs, the guide and its presentation, as well as its inclusion into the discussion cycle with the business community is very important for Lithuania’s smooth accession to the OECD.
The specialist also draws attention to the large differences in the perception of corruption in neighbouring states, poses a serious risk in regards to lowering of the level of corruption in neighbouring countries. Lithuania, Latvia, Estonia, Russia, Belarus – are depicted as neighbouring countries with enormous differences regarding different perceptions of corruption, which is why the emerging international bribery problem and its control is becoming increasingly more important.
The Corruption Perception Index is one of the most widely utilized corruption perception surveys in the world which depicts the states level of corruption and/or transparency. The perception of corruption in states is assessed by the specific number ranked in a hundred-point scale from a 0 to 100, where 0 means that as country is highly corrupt, and a 100 – that it’s very clean.