This metric reflects the proportion of businesses anticipating the necessity of unofficial payments to government officials in order to expedite processes related to customs, taxation, permits, and regulatory compliance. High percentages may signal systemic corruption and indicate a challenging business environment where firms might resort to bribery as a means to navigate bureaucratic hurdles. Such practices can distort competition, create inefficiencies, and ultimately deter foreign investment. Furthermore, this indicator sheds light on the broader implications for governance, as it suggests a potential erosion of trust between the private sector and public institutions. Addressing these informal payment practices is crucial for promoting transparency, fostering fair competition, and enhancing overall economic development.
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