Israel is apparently less corrupt than Japan, France and Italy and most other countries, for that matter. So there.
According to Miami's Jewish Star Times, Transparency International ranked Israel as the 18th least corrupt country out of 102 countries.

“Israel scored 7.3 out of a highest score of 10 for the least corrupt country. Israel was ranked at 16 in 2001. Finland led with a score of 9.8. The US ranked 16th with a score of 7.7. Israel lead Japan (20), France (25) and Italy (31)”.

Not bad, huh? I’d have expected corruption to jump, considering the recession here, but it hasn’t. Israel's score for 2001 was 7.6, so it's down just 0.3.

This is the report for 2001 (in PDF). Couldn’t find 2002.

Update: Harvey Fish has found the 2002 report for me.