Corruption index shows business is difficult to do

The corruption index for 2013 does not tell a very pretty picture especially when you look at emerging market countries. This has important implications for international finance and the movement of money. There is an ongoing issue of why there are capital flows moving from South to North. Capital should be flowing from developed countries; however, if there is ongoing corruption such that many view that funds are not safe, there will still be movement to developed markets even if returns are lower.

If corruption is lowered around the world, capital will flow more freely to countries that actually need it.