This Index measures what 129 defence companies from 31 countries do - and fail to do - to prevent corruption.

The study grades companies depending on the level of public evidence of their anti-corruption systems and processes, and includes companies from the largest arms exporting nations like USA, Russia, Germany, France, the UK and China - who between them are responsible for over 90 per cent of the arms sales around the world.

Two-thirds of the world's biggest defence companies do not provide adequate public evidence about how they fight corruption.

There is definite improvement going on among defence companies. Two groups of companies are much more open than the others - 10 companies that had good public disclosure of anti-corruption systems, and 34 companies that disclosed company internal information.

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This Index measures the risk of corruption in 82 national defence establishments around the world.

The study scores countries from A to F based on the measures they have in place to prevent corruption in the defence sector. Governments are assessed in five key areas of risk in the defence and security sector: political risk, financial risk, personnel risk, operations risk, and procurement risk.

70 per cent of countries placed in the lower end, Bands D, E, and F. With limited legislative and public scrutiny, and a lack of effective regulations addressing corruption in this high risk sector, they leave the door open to waste and security threats.

Only 15 per cent of governments assessed were found to have political oversight of defence policy that is comprehensive, accountable, and effective. Just two countries—Australia and Germany—scored in the top Band A.

Together, the countries in this index spent USD 1.6 trillion on their military sector, equivalent to 94% of global military expenditure in 2011. This Index sheds light on a huge and secretive sector often tarnished by corruption scandals, and provides Ministries of Defence, Armed Forces, legislators, and civil society with a tool to guide reform and change.

On 6 February we launched a report focusing on the 19 Middle East and North African countries assessed in this Index, all of which have been found to be at high or critical risk of corruption in defence.

On 14 February we held a press conference in Kabul about Afghanistan's performance in the Index. Although the country is at very high risk of corruption in defence, it performed better than expected.

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