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Global corruption: How does Latin America stack up?

An uptick in organized crime may be fueling corruption in Latin America, observers say.

Businessman Dale Smith hails from New Zealand, which is tied with Denmark as the world鈥檚 least corrupt nation, according to watchdog group Transparency International.听But Mr. Smith is working in Brazil, which is ranked 72nd worldwide and is located in a region notorious for corruption.听

The result, he says, is compromise.听

鈥淚f you came here and did everything correctly, you鈥檇 fail,鈥� says Smith, who has several businesses in Brazil. 鈥淵ou鈥檝e got to flow with the river a little bit.鈥�

That reality is underscored by Transparency International鈥檚听annual Corruption Perceptions Index, released today. The report听found that corruption worsened in Latin America over the past year as economic heavyweights Brazil and Mexico didn鈥檛 improve and gang-plagued Central America worsened. The index reveals that all of the Americas 鈥� spanning from Alaska to Argentina 鈥� are now perceived as more corrupt than all of Asia-Pacific 鈥� a region that Transparency International classifies from secretive North Korea to war-torn Afghanistan.听

That should be a 鈥渨ake up call鈥� to Latin America in particular, says Alejandro Salas, Americas director for Transparency International. The region often proclaims loudly that it鈥檚 against corruption, with 31 countries now signatories to the Organization of American States' Convention Against Corruption. Meanwhile, 17 countries participate in anti-corruption initiative Open Government Partnership, which requires participants to deliver an action plan and commit to independent progress reporting. Now the region needs to embrace those laws more fully.听

鈥淟atin America has a lot of anti-corruption infrastructure in place,鈥� Mr. Salas says. 鈥淭he difference is when you take it into practice and actually enforce the laws that you are signing.鈥�

According to Berlin-based organization, the Americas' most transparent nation is Canada (9th worldwide) while the least is Haiti (163rd worldwide). The US ties with Uruguay for 19th place, while Brazil and Mexico rank 72 and 106, respectively. The 177-nation ranking is based on , from the World Bank to the Economist Intelligence Unit.

In Latin America, Guatemala showed the greatest increase in corruption over the past year, falling 10 places in the index to 123rd as gang violence and drug trafficking continues to spill over from Mexico. Regional neighbors such as Costa Rica, which has also seen an uptick in violence, also fell one spot to 49th.听

鈥淥rganized crime and violence are undermining the strength of institutions,鈥� Salas told the Monitor by telephone. "[W]hen we look at a country like Costa Rica, which has always been a good example for the region, lately it鈥檚 more common to read about it being part of drug trade route where we are discovering corruption schemes.鈥�

Brazil and Mexico are also criticized for failing to improve in the rankings, he adds.

鈥淐ountries like Brazil should be an example for how to improve governance and corruption,鈥� he says, suggesting that Latin American nations are more interested in justifying corruption than in tackling the problem. 鈥淭here is no excuse for countries like Brazil to not improve.鈥� 听

Salas points to examples of corruption across Latin America: rampant police-bribing in Bolivia, vote-buying in Venezuela, and political nepotism in Paraguay. All are part of a culture of corruption that has failed to disappear despite the region鈥檚 economic growth and democratic reforms.听

There are signs of improvement. In Brazil, the judiciary has taken on a major corruption case against dozens of high-profile politicians and bankers connected to former President Luiz In谩cio Lula da Silva. The case, known as the Mensal茫o, or "the big monthly payoff," resulted in its first prison sentences this month.听

The trial is important because it shows that 鈥渋t doesn鈥檛 matter if you鈥檙e a close ally to the president, you will still pay if you engage in corruption,鈥� Salas says. 鈥淭hey (Brazil) have to do more, but this is a start.鈥澨�