Although corruption in former Soviet bloc nations has dropped significantly, businesses must beware that bribery remains at higher levels than in most Western countries, according to a survey released today by the World Bank.

Large and foreign-owned companies reported a greater drop in demands for payoffs than the local smaller businesses that often spur growth and create jobs, said the study. Anticorruption efforts were most successful when regulations were simplified, according to the survey, which also found that many of the countries still lag in judicial reform.

The Business Environment and Enterprise Performance Survey is conducted every three years and is a joint initiative of the World Bank and the European Bank for Reconstruction and Development. Information in the current report was gathered in 2005 and covered 26 former socialist countries and Turkey.

“Strong leadership is a key weapon in the fight against corruption,” said Cheryl Gray, co-author of the study and sector director in World Bank’s Europe and Central Asia region. “Every country that has made measurable progress in reducing corruption has had a strong champion who made transparency and accountability top priorities.”