Afghanistan has been listed third after Somalia and North Korea in the Corruption Perceptions Index 2015 of Transparency International.
In Afghanistan, millions of dollars that should have gone on reconstruction have been reportedly wasted or stolen, seriously undermining efforts to sustain peace, the report states.
It adds that child labour remains a sad reality in environment where citizens are trapped in poverty and corrupt officials can be paid off.
Other causes of the devastation fuelled by corruption include human trafficking, child mortality, poor education standards, environmental destruction and terrorism.
Transparency International says problem of corruption is global and can be beaten with joint efforts.
“The 2015 Corruption Perceptions Index clearly shows that corruption remains a blight around the world. But 2015 was also a year when people again took to the streets to protest corruption. People across the globe sent a strong signal to those in power: it is time to tackle grand corruption,” Jose Ugaz, Chair of Transparency International said. “Corruption can be beaten if we work together. To stamp out the abuse of power, bribery and shed light on secret deals, citizens must together tell their governments they have had enough.”