Corruption and New Insights in Lebanon

Abstract

This research study aims to provide new insights into the issue of corruption in Lebanon by examining its impact on various sectors of the country, the role of the government in tackling corruption, and the effectiveness of current anti-corruption measures. Lebanon is ranked 149th out of 180 countries in Transparency International’s 2020 Corruption Perceptions Index, highlighting the widespread nature of the issue. To achieve the research objectives, we adopted a mixed-methods approach that involved both quantitative and qualitative data collection methods. Specifically, we conducted an online questionnaire that received responses from a diverse sample of Lebanese citizens, including government officials, business leaders, and the general public. We also conducted interviews with key stakeholders, including representatives from civil society organizations and government agencies. The study’s findings reveal that corruption has a significant impact on the country’s economy, businesses, electricity, and pollution levels. The study also highlights the challenges faced by the government in effectively addressing corruption and the limitations of current anti-corruption measures. Based on our analysis, we provide policy recommendations that can help improve the effectiveness of anti-corruption efforts in Lebanon.

1. Introduction

Located on the eastern shore of the Mediterranean Sea, covering 10,452 km² of the globe, Lebanon is an Arabic country, well known for its temperate temperature, huge diversity, natural wonders, and historical monuments.

But, unfortunately, nowadays Lebanon is among the most corrupted countries in the world, ranking (149) in 2022. To better understand what led Lebanon to this enormous crisis, we should first look at the country’s recent history and political situation.

At the end of the First World War, Lebanon who was occupied by the Ottoman Empire, became mandated by France. The mandate ended in 1943, at the end of the Second World War as the independence of Lebanon was decelerated.

Following that, in 1975, a massive full-scale civil war broke out in Lebanon. This conflict that was mainly caused by the huge religious diversity in Lebanon destroyed Lebanon over fifteen years causing a heavy loss of human life and devastated the country’s economy. It ended in 1990 with what was called the Taif Agreement, officially known as the National Reconciliation Accord, which constitutes the constitution of Lebanon from 1990 until now. One of the items of this agreement was a time frame for withdrawal of Syrian military forces from Lebanon, which was 2 years, but Syria did not remove their forces until 2005.

The main aim of the Taif Agreement was to formulate the “mutual existence” between Lebanon’s different religion and parties, and their political representation. However, this agreement was too fragile to constitute the basis of peace in the country, leading to several conflicts, as Lebanon became a vehicle for self-enrichment by the political class, which made the country nowadays one the most corrupted countries worldwide.

To maintain peace among the eighteen various religious communities, especially after a 15-year civil war, political power was split proportionally among these sects, resulting in a sectarian system.

As a result of this separation, several groups have made room for more political power, resulting in significant levels of corruption and a clientelist system. As a result of this separation, several groups have seized the opportunity to gain more political power, resulting in significant levels of corruption and a clientelist system.

In Lebanon, corruption is considered a pervasive problem. According to Transparency International [1], Lebanon is now rated 149th out of 180 nations in the 2020 Corruption Perceptions Index, with a score of 25 out of a possible one hundred. Indeed, according to the same organizations study [1], “Lebanon notably dropped on the CPI, dropping five points since 2012, with a score of 25.” Despite popular demonstrations, no substantial investigations or prosecutions of public officials have taken place.”

This chapter will have several sections namely an extensive literature review, research design and methodology, results, discussion, conclusion, and future research.

A research study was conducted for this literature. The methodology involved administering a questionnaire to study the history and effects of corruption in Lebanon, with a total of 60 collected responses, of which 58 are considered reliable and valid. The questionnaire had 22 questions in total, including demographic, polar, multiple-choice, and open-ended questions. The questions analyzed the perspective of Lebanese people on corruption based on facts and historical dates. The questionnaire was administered online to Lebanese residing in Lebanon, specifically university students. The data was collected and analyzed online. The study used quantitative and qualitative analysis to analyze the characteristics of corruption in Lebanon.

The main results of the study focus on corruption in Lebanon and categorize questions into four groups: government, economy and business, electricity, and pollution. The results show that corruption has a significant impact on the economy and business sector in Lebanon, with political instability and corruption being the main reasons for businesses refraining from investing. Corruption is also prevalent in the government, with respondents believing that all three branches are to be held responsible. Electricity and pollution are also major issues, with corruption being a significant factor in both. The study reveals that there is a high level of skepticism and distrust in political parties and government institutions in Lebanon.

2. Literature review

2.1 The Lebanese government

Because Lebanon was under French Mandate from 1920 to 1943, its legal system is influenced by French civil law [2, 3]. Due to religious and socio-historical influences, however, Canon law, Islamic law, and Ottoman law remain fundamental parts of the legal system (Mattar Law Firm nd; [4]). According to Salloukh [5], more than 30 years ago, the Taef agreement (the basis for the end of the civil war and the return to political normalcy in Lebanon) “established a more balanced consociational power-sharing system. However, Salloukh argues that this also led to the creation of a” larger, more clientelist, more corrupt public sector. “Therefore, Salloukh contends that the Taef accord (which laid the groundwork for the conclusion of the civil war and the restoration to normalcy) was flawed in its outcome. More than 30 years ago, political normalcy in Lebanon” established a more balanced consociational power-sharing. However, this resulted in a “bigger, more clientelist, more corrupt public sector.” One of the most important things to have a healthy democratic government is the complete separation of the three powers (Legislature, Executive, and Judiciary). According to (ibid), in Lebanon, the Supreme Judicial Council is a ten-member council in charge of appointing and managing judges. However, it is significantly influenced by the Ministry of Justice (part of the Council of Ministers), which appoints eight of the ten members, together with the president and the rest of the cabinet. The Ministry of Justice is responsible for approving and transferring judges selected by the Supreme Judicial Council, as well as their budget. Judicial independence is threatened as a result of the executive branch’s influence over the judiciary [4]. As a result of the “Taif’s” division, several groups have clamored for more political power, leading to elevated levels of corruption and a very clientelist system [6, 7].

While it is difficult to give a complete review of corruption in Lebanon due to a combination of government obscurity and a scarcity of scholarly study, the available evidence indicates that corruption is deeply embedded in Lebanese society [8, 9]. In Lebanon, corruption is strongly tied to political elite. The government of Lebanon is very centralized [10]. While some localities have some decision-making authority, most policies are set by the federal government (ibid). Due to this centralization, power is concentrated in the hands of a select few individuals in parliament. According to Boege, Brown, & Clements ([11], 17), the Lebanese political order can be characterized as a hybrid, where power is distributed through a combination of “authority structures, sets of rules, logics of order, and claims to power” that blend both Western and local institutions. According to the authors, this leads to instability and informality. The sectarian system in Lebanon exacerbates the power imbalance in the hybrid system.

Political elites frequently differ on policies because they want to profit from a particular circumstance and get advantages for their faction [12]. Political elites would throw out employment to their own followers to earn votes and stay in power [12, 13]. Diwan and Haidar describe the political system as a “coalition of sectarian oligarchs” (p.2) who preserve their power by participating in mutually beneficial behind-the-scenes arrangements with individuals or groups (e.g., political subsidies in exchange for political backing by enterprises). As a result, citizens are barred from participating in democracy, and societal necessities are pushed aside in favor of the interests of their political party and affiliated sects [8]. Political parties in Lebanon have little to do with genuine politics and are merely a tool for sectarian elites to manipulate the system by controlling resources to benefit their own in-group [8, 9].

2.2 Economy and business in Lebanon

Politics and commerce are heavily intertwined in Lebanon, with far-reaching implications for the country’s economy [14]. Since October 17, 2019, thousands of Lebanese have taken to the streets across Lebanon, expressing their anger over the economy’s collapse and demanding “all government parties out” [15]. The October 17 Revolution did not occur out of nowhere; Lebanon has been experiencing severe economic difficulties since 2009, when GDP growth peaked at 10.1 percent in that year and has since fallen to 0.2 percent in 2019 [16]. According to the Central Intelligence Agency, Lebanon had the third highest Debt to GDP ratio in 2017, with 152.8 percent. The Debt to GDP ratio compares a country’s public debt to its Gross Domestic Product (GDP). Other social and economic issues confronted Lebanon, including the Israeli-Palestinian conflict and regional crises. Despite the fact that Lebanon’s government revenue was just $19 billion in 2019, the gross public debt was $86.2 billion in 2019. Taxes account for 58 percent of these earnings, while debt interest payments account for 32 percent [17]. The majority of Lebanese debt is held domestically, with 60.6 percent held in local currency by commercial banks and the Banque Du Liban (BDL) and the rest in foreign currency [18]. Aside from unemployment, corruption, and debt, Lebanon is now facing a dollar liquidity constraint. Although no official capital controls have been enforced, banks have imposed restrictions on dollar withdrawals. As a result of the crisis, 34 percent of enterprises have reduced employee salaries since October 17, and 49 percent of employers have had to slash staff salaries by roughly 39.7%.

Furthermore, it experienced a 10% increase in inflation in January 2020 compared to the same month the previous year. The Lebanese have lost faith in their government, leaders, and banks, and it is estimated that $4 billion has been taken out of the bank and saved at home [15]. According to Stel & Naudé ([12], 264), “the political class is 38 heavily embedded in the private sector” with the majority of businesspeople being former politicians or present politicians who are also businessmen. Chaaban [19] investigated Lebanon’s banking industry and its relationship to politics. He found that out of 20 banks studied, 15 had a board chair tied to a politician, and six board members held public office. This, however, was proven to be detrimental to banks because businesses with stronger political ties had higher loan default rates. Banks were giving out loans in exchange for political favors without following proper procedures or ensuring that everything was financially sound before granting the loan. Corruption in the public sector has an impact on the private sector, since most businesses in Lebanon indicate that they have been asked to pay a bribe by a public official at least once, and that failing to comply with these demands has hampered their growth [20]. In fact, about 43% of foreign corporations in Lebanon often or very frequently pay bribes, while another 40% sometimes do.

Furthermore, business corruption is most visible during times of crisis, such as in the case of Beirut Port construction following the devastating explosion, where construction companies are accepting short-term concessions to avoid long-term reform, in the hopes of reactivating stagnant patronage networks in the future ([21], para 4). A study by Diwan and Haidar, examines Politically Connected Firms (PCFs) to highlight the effects of combining politics and business. PCFs have a wide impact on the industries in which they operate. PCF’s overall market share can range from 50 to 75 percent, with an average of 70 percent across all sectors, implying that they have a monopoly in the industries in which they operate. The same study shows that non-PCFs see an 11.3 percent drop in hiring. These enterprises are able to hire more people as a result of the benefits of having a link to a politician/political party, notably as a type of clientelism to repay the politician. More broadly, for every added political connection, 7.2% less jobs are created. While having a political link benefits business, the processes through which PCFs must repay these politicians decrease their overall output. Remarkably, the political environment can have a negative impact on the business sector even if no politician is directly involved [14]. Stel and Naudé [12] showed, according to their survey of Lebanese businesses, political instability and corruption are two of the main hurdles to conducting business in Lebanon.

In 2009, 97% of businesses said they would have to pay a bribe to get a government contract, with the bribe amounting to around 8% of the deal’s worth (double than the rest of the Middle Eastern countries) (ibid). Corruption at the political level, as well as their considerable influence in the commercial sector, produces several economic problems [8]. The economy of Lebanon is described as “free-market service-oriented with limited natural resources.” ([10], p. 507). According to a study by the Lebanese Center for Policy Study in 2011, a small number of corporations controlled at least 50% of 300 separate marketplaces. As a result, there is a significant economic divide across the country [10]. The government’s enormous public debt further exacerbates the economic gap, so that while the economy has the capacity to expand (Lebanon’s GDP was $US 47.5 billion in 2016, up from $US 45.7 billion in 2004), finance remains scarce. Particularly since only 2% of businesses account for 50% of all loans [8, 13]. The economy remains stagnant because these enterprises are not allowed to expand or must maintain the appearance of being unprofitable in order to avoid being targeted by corrupt persons [22].

2.3 Electricity

Lebanese citizens distrust the government’s ability to provide fundamental services [8]. The clientelist nature of Lebanese politics, in which public officials provide unequal access to resources in exchange for political favors, accentuates this (ibid). Stel and Naudé [12] and Stel [13] demonstrated this through studies on electricity delivery in Lebanon. Electricité du Liban (EDL) is a state-owned company charged with providing electricity to the country. In 2018, Lebanon was ranked fourth worst in the world for power quality (World Economic Forum Report, 2017–2018) and 126th out of 141 nations for road quality (World Economic Forum Report, 2017–2018). EDL (Electricité du Liban) is a state-owned organization tasked with supplying power to Lebanon. However, electricity in Lebanon is not delivered equitably or efficiently, resulting in citizens having to pay twice: once for government service and again for generators from a private company due to frequent power outages (ibid). Corruption, dysfunction, and inefficiency have been particularly prevalent in Lebanon’s electricity sector. EDL owns and operates eight HFO/DO production units and five small hydro power plants with a total installed capacity of 3000 megawatts (MW), including 2764 MW of thermal power plants that mostly use imported fuel oil. Corruption and inefficiency in the power sector have been a major source of popular outrage, culminating in the protests. Uprising in October 2019. The sector’s shortcomings, which are frequently blamed on the government. EDL, an electricity provider in Lebanon, has had tremendous impact on the lives of Lebanese inhabitants through three distinct methods. First, frequent power outages deprive the majority of the Lebanese population of reliable energy, forcing many of them to rely on costly and polluting local diesel generator networks.

The unequal distribution of power outages, coupled with the inability of certain groups to afford a link to a generator network, as well as the emergence of powerful neighborhood-level structures, all have major consequences for energy access and justice. Secondly, the financial strain on the electricity sector, which has consistently accounted for 3.8 percent of Lebanon’s GDP each year in the last decade, has significantly contributed to the country’s rising public debt. Consequently, this has played a crucial role in country’s current economic collapse and devaluation of the Lebanese Pound (LBP), resulting in high inflation, a large increase in unemployment rates, and poverty level. Third, data suggests that the proliferation of diesel generators in densely populated residential areas has had a significant negative impact on the environment and public health. The operation of diesel generator for only three hours per day in Beirut neighborhoods has been found to contribute to 38% of daily carcinogen exposure. This indicates a significant increase of 60% above background values without generators. In Lebanon, the EDL has been utilized to pay kickbacks to politicians as well as a means for political elites to deliver free electricity to their supporters [13]. According to Abdelnour [23], 55 percent of EDL bills are not paid, while 45 percent of electricity generated is not billed. The cost is then distributed to citizens and private firms who must pay large fees to the EDL owing to inflation. Furthermore, it has been reported that the Speaker of Parliament hires people of his own sect for EDL jobs [13]. As a result, services become “a political favor, not a public right,” reinforcing citizens’ negative emotions and furthering corruption ([12], p. 256).

2.4 Pollution

The 2015 garbage problem in Lebanon is a good example of corruption’s pervasiveness (though it is still on-going). The main landfill reached capacity in 2015, and the government’s rubbish collection contract expired. However, there was a political impasse because any proposal for the government contract took on a sectarian tone, with politicians discussing hidden plans to benefit from the deal. Citizens and the environment come second to politicians’ ambition to benefit from this circumstance. Because of a shortsighted government that failed to plan or manage the expanding waste of a consumer society that imports far more products than it exports, the problem arose when stinking rubbish bags covered riverbanks and overflowed over roads. Beirut is one of the Middle East’s most polluted cities. Lebanon was placed sixth on the Pollution Index for Country this year (up from twelfth in 2018). It is far ahead of China, which has a population of 1.4 billion people. In Lebanon, the cancer burden is significant. Lebanon holds the unfortunate distinction of having the highest cancer rate in the Arab world and one of the worst rates in the eastern Mediterranean region, according to the World Health Organization and the Global Cancer Observatory. There are 242.8 cancer sufferers for every 100,000 people in Lebanon. (By way of comparison, neighboring Israel, which possesses nuclear power and thus nuclear waste, has an estimated 233.6 cancer sufferers per 100,000 inhabitants.) The figures in Lebanon may also be an underestimation because they are based on an incomplete national registry that does not meticulously account for private hospital records [24].

The link between pollution of the air and water and cancer is now widely known. Lung cancer is caused by outdoor air pollution, according to the International Agency for Research on Cancer, which confirmed this in 2013. Since the 1990s, while Lebanon was in the midst of reconstruction following the civil war, there has been a significant increase in cancer cases reported (1975–1990). From June 1st to August 31st, 2018, Jounieh, a coastal city located a few kilometers south of Beirut, was included among the global hotspots for nitrogen dioxide (a gaseous air pollutant created by the burning of fossil fuels) [24]. The main source of this pollutant in Jounieh was attributed to the transportation and electricity production plants of the rusted Zouk power factories, as well as the numerous diesel generators scattered across the country (which have replaced the Electricité du Liban’s (main electricity producer) non-existent and failing power plants). It is crucial for people not to overlook the toxic legacy left behind by the civil war, even as the 17 October revolution is recognized as the beginning of the end of a sectarian regime that was consolidated by the so-called national pact of 1943 and crystallized with the 1989 Taef agreement, which officially ended the civil war [24]. During the violent and chaotic civil war in Lebanon, these toxic—and some believe nuclear—wastes were dumped in numerous regions, allowing various groups to profit from trafficking such waste [24].

2.5 Culture and corruption

A very important determinant of corruption is culture. The article “Culture and Corruption: An Experimental Comparison of Cultural Patterns on the Corruption Propensity in Poland and Russia” compares the effects of cultural patterns on the propensity for corruption in Poland and Russia. The study conducted experiments on university students from both countries to determine the relationship between cultural values, trust, and corrupt behavior. The results suggest that cultural differences, such as individualism vs. collectivism, power distance, and uncertainty avoidance, play a significant role in shaping attitudes toward corruption. The study also found that trust in others is negatively correlated with corrupt behavior, and that trust levels are higher in Poland than in Russia. The authors conclude that cultural factors should be taken into consideration when designing anti-corruption policies and programs [25].

The article “Wealth, Culture, and Corruption” by Bryan W. Husted explores the relationship between wealth, culture, and corruption in various countries. The study analyzes data from 63 countries and finds that wealth is negatively correlated with corruption. Cultural factors such as individualism, power distance, and uncertainty avoidance also play a significant role in shaping attitudes toward corruption. Specifically, the study finds that countries with higher levels of individualism and lower levels of power distance and uncertainty avoidance have lower levels of corruption. Additionally, the study suggests that certain cultural factors, such as the importance of family and social connections, may mitigate the negative impact of corruption on economic growth. The author concludes that understanding the complex relationship between wealth, culture, and corruption is essential for policymakers seeking to combat corruption and promote economic development [26].

The article “Cultural Dimension of Corruption: A Cross-Country Survey” by Monica Violeta Achim examines the cultural dimensions of corruption in various countries. The study surveyed participants from Romania, Italy, Spain, and Hungary to determine the relationship between cultural values, social norms, and corrupt behavior. The results show that cultural values, such as individualism, power distance, and uncertainty avoidance, are significantly correlated with corrupt behavior. The study found that people from countries with high levels of individualism are more likely to engage in corrupt behavior, while those from countries with low power distance are less likely to engage in corrupt behavior. The study also found that social norms play a significant role in shaping attitudes toward corruption, with participants reporting higher levels of corruption in countries with weaker social norms. The authors suggest that cultural factors should be considered when designing anti-corruption policies and programs [27].

2.6 Other determinants

The article “Behavioral Determinants of Corruption: A Cross-Country Survey” examines the behavioral factors that contribute to corruption in various countries. The study surveyed participants from Romania, Italy, Spain, and Hungary to determine the relationship between demographic characteristics, social norms, trust, and corrupt behavior. The results show that people who are older, more educated, and have a higher income are less likely to engage in corrupt behavior. The study also found that social norms play a significant role in shaping attitudes toward corruption, with participants reporting higher levels of corruption in countries with weaker social norms. Additionally, the study found that trust in institutions and the government is negatively correlated with corrupt behavior. The authors suggest that addressing the behavioral factors that contribute to corruption can be an effective approach to reducing corruption in society [28].

2.7 Gap in literature

The literature on corruption in Lebanon is extensive, but some potential gaps in the literature could include:

Comparative analysis: While there are several studies that have examined corruption in Lebanon, very few have compared the country’s corruption levels with other countries in the region or around the world. Such comparative analysis would provide useful insights into the unique drivers and factors that contribute to corruption in Lebanon and how it compares to other countries.

Qualitative research: Most of the studies on corruption in Lebanon rely on quantitative data and analysis. Qualitative research that examines the social, cultural, and political dimensions of corruption in Lebanon would provide a more nuanced understanding of the issue and its underlying causes.

Globally, while there have been extensive studies and research on corruption in various fields such as economics, political science, law, and sociology, there are still some gaps in academic research about corruption. Here are some potential areas where further research is needed:

• The role of technology in corruption: As technology continues to advance, there is a need to explore how it affects the nature and extent of corruption.

• The impact of corruption on different stakeholders: While most research on corruption has focused on its economic and political impact, there is a need to explore its effects on other stakeholders such as society, the environment, and human rights.

• The intersection of culture and corruption: While there has been research on the cultural dimensions of corruption, there is a need for more comprehensive and comparative studies that explore how different cultural factors interact with corruption.

• The effectiveness of anti-corruption measures: While many countries have implemented various measures to curb corruption, there is a need for more research on the effectiveness of these measures and their impact on reducing corruption.

• The relationship between corruption and inequality: While corruption is known to exacerbate inequality, there is a need to explore the ways in which inequality itself can contribute to corruption.

These are just some examples of the potential gaps in academic research on corruption. However, researchers are continually making progress in expanding our understanding of this complex issue.

3. Research Design and Methodology

Proposed hypotheses:

H1: There is a relation between “Taif agreement” and corruption in Lebanon.

H2: Politicians in Lebanon are the main reasons behind corruption.

H3: Corruption is affecting the economic situation of Lebanon.

H4: Corruption is affecting businesses in Lebanon.

H5: There is a relation between the economic situation and the businesses in Lebanon.

H6: There is a relation between corruption and pollution in Lebanon.

H7: Corruption is affecting the number of cancer cases in Lebanon.

Throughout the questionnaire, we managed to tackle corruption in Lebanon in three main fields: business and economics, environment and public health, and electricity.

In order to study the history of corruption in Lebanon along with its current effects and long-term implications, a questionnaire was conducted with a total of 60 responses out of which 58 of those were considered to be reliable and valid. Out of the respondents, 53.8% were females (35) and the remaining respondents were males which accumulate to 41.7% (25) (Table 1).

Gender	Percentage	Number
Male	41.7%	25
Female	58.3%	35

Table 1.

Male and female percentages.

Source: Questionnaire.

The age in years ranged between 18 and 64 whereby more than half (53.8% of which accumulates to 35) had an age ranging between 18 and 24, 14 respondents between 25 and 34, 5 respondents between 35 and 44, 3 respondents between 45 and 54, 2 respondents below 18, and 1 respondent between 55 and 64 (Table 2).

Age	Percentage	Numbers
18 and below	3.3%	2
18–25	58.3%	35
25–34	23.3%	14
35–44	8.3%	5
45–54	5%	3
55–64	1.7%	1
64 and over	0	0

Table 2.

Age percentages.

Source: Questionnaire.

Also, the respondents were asked for their educational level; 32 respondents have a bachelor’s degree, 15 respondents have a master’s degree, 8 were high-school graduates, 3 were high-school students, and 2 respondents have a doctorate degree (Table 3).

Education	Percentage	Number
High School Student	13.3%	8
High School Graduate - College Credit	5%	3
Bachelor’s degree	53.3%	32
Master’s Degree	25%	15
Doctorate Degree	3.3%	2

Table 3.

Education percentages.

Source: Questionnaire.

The questionnaire consisted of 22 questions in total: 3 demographic questions (age, gender, and educational level), 4 polar questions (yes/no), 6 multiple-choice questions (with more than one answer to be selected), and 8 open-ended questions. In addition, the questions were regarded as qualitative as they analyze the characteristics as it focuses on historical incidents and future insights.

The questions that were administered through the questionnaire did not have right or wrong answers but rather studied the Lebanese people’s perspectives on corruption based on factual information and historical dates.

The questionnaire was administered to Lebanese people in May 2022 living in Lebanon exclusively and more specifically university students as they are the most familiar with the core of the politics in Lebanon recently. The data was collected and analyzed online, by sending the link over the internet and automatically submitting the response and calculating percentages or saving answers through online databases.

4. Results

In order to enhance the precision and reliability of our research, we categorized the survey questions into four domains, namely government, economy and business, electricity, and pollution, and examined them in the context of corruption. The domain of economy and business in Lebanon is significantly impacted by corrupt practices. According to the research findings, political instability and corruption are the primary reasons why businesses avoid investing in Lebanon, as reported by 83.9% of the respondents for political instability, 80.6% for corruption, and 22.6% for environmental factors (Figure 1) [29].

Figure 1.

Reasons for investment refrainment. Source: [29].

Furthermore, the study included questions related to the political affiliations of businessmen and the influence of politicians on business operations. Respondents provided various answers, including political power, financial gains, control over the economic sector, privilege over other businessmen, and the belief that the involvement of politicians is necessary for business success. Regarding the payment of bribes by foreign corporations in Lebanon, responses were divided between those who believed it to be true and those who did not. Those who agreed with the statement cited the facilitation of work, business success, and the systemization of corruption as reasons, while those who disagreed argued that foreign corporations are governed by external laws and regulations. The study also investigated the reasons behind political firms claiming a monopoly in the market, with responses including violation of laws, political rewards and compensations, cover-ups for actual business deals, and the avoidance of competition [30]. This supports the hypothesis H2 that politicians in Lebanon are the main reason behind corruption.

The study also included an examination of corruption in the banking sector, which revealed that the Banque Du Liban was involved in corrupt practices. Consequently, participants were asked for their views on private sector banks. The respondents expressed their belief that these banks prioritize profit, maintain political connections, and are closely linked to the Banque Du Liban (BDL) [31].

In addition to corruption in the banking sector, the study also explored corruption within the government. The study found that corruption in various situations can be traced back to the government. Specifically, respondents were asked about the responsibility of Taef’s accord in the current situation in Lebanon, and the majority of the respondents (54.8%) attributed responsibility to the accord, while 32.3% were skeptical and 12.9% did not believe that the accord was responsible [31]. This validates the hypothesis H1 that there is a relation between Taif agreement and corruption (Figure 2).

Figure 2.

TAEF’s accord. Source: [31].

The research findings revealed that 83.9% of the respondents answered affirmatively when asked if opposing political parties in Lebanon have an under-the-table agreement with each other, with only 9.7% expressing uncertainty and 6.5% denying the possibility. In addition, when asked about the branch of government held responsible for Lebanon’s current situation, a majority of 87.1% believed that all three branches should be held accountable, with 8.1% blaming the executive branch, 11.3% blaming the legislative branch, and 9.7% blaming the judiciary branch.

Regarding Lebanon’s instability and informality, a significant percentage of respondents identified authority structures (80.6%), claims to power (61.3%), sets of rules (58.1%), and logic of orders (56.5%) as the main contributing factors. Moreover, when asked whether they still follow any political party, more than 75% of respondents answered negatively, indicating a positive trend toward political neutrality among the Lebanese population.

Concerning the electricity sector in Lebanon, the study found that it is plagued by various issues such as corruption, mismanagement, and lack of investment.

In the study, respondents were asked two questions regarding the electric sector in Lebanon. The first question aimed to explore the potential correlation between the financial drain on the electric sector and its impact on the country’s public debt, consequently leading to inflation of the local currency. A majority of respondents (64.5%) answered yes, indicating a perceived relationship between the financial resources drain in the electric sector and the country’s public debt. Meanwhile, 14.5% reported no, and 21% answered maybe, suggesting a level of uncertainty on the matter. The second question focused on how the government impacts the country negatively in the electric sector. The respondents were asked to choose from three options, including pollution (environment and public health), distribution of power range, and electric power to the rich. The results indicated that the majority of the respondents thought that the government was impacting the country negatively through pollution (environment and public health) with 62.9% of the responses. Additionally, 66.1% of respondents believed that the government was impacting the country negatively through the distribution of power range, while 51.6% answered through electric power to the rich. This supports the hypothesis H3 that states that corruption is affecting the economic situation in Lebanon (Figure 3).

Figure 3.

How would the government also impact the country negatively? Source: Questionnaire.

In the administered questionnaire, an open-ended inquiry was included to explore the approach by which Electricité du Liban (EDL) provides electricity to political elites without receiving any financial benefits. Respondents reported that citizens are overcharged, and the expenses of the political elites are borne by the taxpayers [32]. Additionally, the questionnaire investigated the distribution of jobs at EDL, and respondents perceived it as corrupt, unfair, sectarian, and nepotistic [32].

Environmental pollution was another theme in the questionnaire, and the participants were asked two questions. The first question aimed to assess if the pollution in Lebanon, which is linked to the civil war (1975–1990), is attributed to the dumping of nuclear waste in populated areas. The findings revealed that 46.8% of the respondents answered “yes,” 12.9% replied “no,” and 40.3% chose “maybe” [32]. The second question aimed to explore how politicians could fill up garbage landfills within a short period of 25 years. Three options were provided, and the results indicated that 80.6% of the respondents believed that it was through under-the-table contacts, 40.3% reported public contracts, and 33.9% suggested that garbage was being sold [32]. This proves the hypothesis H6 that there is a relation between corruption and pollution in Lebanon (Figure 4).

Figure 4.

How do politicians manage to reach the capacity of garbage landfills within a range of 25 years? Source: [32].

Another question of the questionnaire addressed the issue of the validity of cancer statistics in Lebanon. A significant proportion of respondents believed that cancer figures are unreliable due to manipulation of data (56.5%), political cover-ups in public and private hospitals (62.9%), and incomplete registry (38.7%). Furthermore, garbage landfills were identified by respondents as a source of environmental pollution and public health impacts. In addition to these effects, respondents also reported that garbage landfills contribute to increased cancer rates, contamination of food, and deterioration of tourism. This supports the hypothesis H7 that states that corruption is affecting the number of cancer cases in Lebanon.

5. Discussion

5.1 Business and economics

The extent of corruption in the business field has been a matter of concern for policymakers and the general public alike. To explore this issue, a survey was conducted, which revealed that Taef’s agreement has been the main catalyst for Lebanon’s downfall. Taef’s accord, which dates back to over 30 years ago, established a consociational power-sharing system that laid the foundation of sectarianism in Lebanon [5]. This has resulted in political instability and corruption being identified as the main obstacles to businesses operating in Lebanon.

According to the Lebanese Opportunity, in addition to unemployment, corruption, and debt, Lebanon is currently facing a dollar liquidity crunch. Banks have imposed restrictions on dollar withdrawals, despite the absence of official capital controls. Since October 17, 34 percent of businesses have cut employee compensation, and 49 percent of employers have had to cut staff salaries by approximately 39.7% due to the crisis. This clearly indicates the instability in the Lebanese market.

Furthermore, Stel and Naudé ([12], 264) contend that the political class in Lebanon is deeply integrated into the corporate sector. They note that the majority of businesspeople are former or current politicians who are also businesspeople. This observation highlights the fact that politicians are the main source of corruption in Lebanon. It also provides an explanation for why corruption is a significant obstacle to businesses operating in Lebanon, given that the majority of businesspeople are former or current politicians.

Furthermore, respondents were asked to give their insights on why political enterprises claim a monopoly in the market. Results showed that reasons behind such monopolies include violations of laws, political rewards and compensations, cover-up for true commercial dealings, and avoidance of competition. These findings illustrate the negative impact of political influence on the business environment in Lebanon.

In this study, participants were inquired about their views regarding the link between politics and business in Lebanon. Results revealed that political power, financial gain, economic sector domination, privilege over other businesspeople, and the necessity of political involvement for business success were among the reasons why politicians have a significant impact on business operations. Moreover, Chaaban’s [19] study on Lebanon’s banking industry indicated that political ties between politicians and businesses are prevalent. In fact, 15 out of the 20 banks examined had a politician on their board of directors, and six of the board members held public office. However, such practices have led to negative consequences for banks as they have higher loan default rates for businesses with stronger political linkages. This is due to banks providing loans to businesses in exchange for political favors without proper procedures or financial assessment.

Additionally, participants were questioned about bribery in Lebanon by international firms. According to the United Nations, approximately 43% of foreign firms frequently or very frequently pay bribes, while 40% pay bribes occasionally. These results indicate that bribes are commonly being paid by foreign firms in Lebanon.

The present study aimed to explore the impact of political connections on job production and the economic sector in Lebanon. According to Helou [15], an additional political connection results in a 7.2 percent decrease in job production. Although having political connections is advantageous to business, the process of repaying politicians ultimately reduces their overall production. Moreover, the political atmosphere can also have a negative impact on the economic sector, even when no politician is directly involved. When investigating the banking sector, Chaaban [19] discovered that 15 of the 20 banks he examined had a politician on the board of directors, and six of the board members held public office. However, these political linkages have been shown to be harmful to banks, as businesses with stronger political ties have higher loan default rates, indicating that banks provide loans in exchange for political favors without proper procedures.

The research findings indicate that under-the-table arrangements exist between rival political parties. Moreover, 87.1 percent of respondents believed that all three branches of government should be held responsible for Lebanon’s current state, whereas 8.1 percent blamed the executive branch, 11.3 percent blamed the legislative branch, and 9.7 percent blamed the judiciary branch. According to the research, the judiciary branch was the focus of the investigation, with the Supreme Judicial Council, a ten-member council responsible for appointing and overseeing judges, being heavily influenced by the executive branch, particularly the Ministry of Justice, which appoints eight of the ten members and has a significant influence over the judiciary’s budget and judge appointments. This goes to support hypothesis H5 which states that there is a relation between the economic situation in Lebanon and the businesses in Lebanon.

Regarding electricity in Lebanon, 64.5 percent of respondents believed that the depletion of financial resources in the electricity sector was linked to the country’s public debt, resulting in local currency inflation. The depletion of financial resources in the electricity sector has been a major contributor to Lebanon’s rising public debt, averaging 3.8 percent of GDP annually over the last decade [15]. The present study highlights that the financial resource drain from the electricity sector has contributed to Lebanon’s current economic collapse, leading to the devaluation of the Lebanese pound, high inflation, and increased unemployment and poverty.

A question in the survey focused on the negative impact of the government on the country, specifically in relation to pollution, power distribution, and electric power to the wealthy. According to research conducted, the expansion of diesel generators in densely populated residential areas has had a significant negative impact on the environment and public health. The presence of diesel generators for only three hours a day has led to an increase in carcinogen exposure in Beirut areas, resulting in a 60% increase above background levels without generators. The uneven distribution of power outages, difficulty for certain groups to finance a connection to a generator network, and the growth of powerful neighborhood-level structures all have substantial implications for energy access and justice. In the survey, respondents also raised concerns about the way by which EDL supplies electricity to political leaders without receiving any monetary compensation, resulting in overpricing citizens who bear the costs of other citizens through taxes. According to Abdelnour [23], 55% of EDL bills are unpaid, while 45% of electricity generated is not billed, resulting in a burden on citizens and private businesses who must pay huge fees to the EDL due to inflation. Additionally, respondents were asked about the possible link between pollution in Lebanon, dating back to the civil war, and the dumping of nuclear waste in civilized areas. The research shows a significant increase in reported cancer cases in Lebanon since the 1990s, indicating that the dumping of nuclear waste is likely a contributing factor to pollution in the country.

Another question inquired about the ways in which politicians could fill waste landfills within a 25-year period. Among the three options provided, 80.6% of respondents chose under-the-table contracts, 40.3% chose public contracts, and 33.9% believed politicians were selling junk. According to Yahya, when the main landfill in Lebanon reached full capacity and the government’s garbage collection contract expired, there was a political stalemate as proposals for a new contract became heavily sectarian and geared toward personal gain. Therefore, the preferred response was under-the-table contracts.

Another question pertained to cancer statistics in Lebanon, which many respondents felt were inaccurate due to data tampering (56.5%), political cover-ups in public and private hospitals (62.9%), and an incomplete registry (38.7%). Research has revealed that Lebanon has the highest cancer rate in the Arab world and one of the worst in the eastern Mediterranean, with 242.8 cancer patients per 100,000 persons (WHO & GCO). This number may actually be an underestimation due to an imperfect national registry that fails to include private hospital records (WHO & GCO). In comparison, Israel, a country with nuclear power and resulting nuclear waste, has an estimated 233.6 cancer patients per 100,000 individuals (WHO & GCO). This goes to support hypothesis H7.

6. Conclusion

The survey conducted on the Lebanese population sheds light on various issues plaguing the country. It is clear from the responses that corruption and nepotism are rampant in the government and its associated institutions, leading to mismanagement of resources and deterioration of public services. The public has lost faith in the government and political parties, with the majority of respondents reporting that they do not follow any political party. The electricity sector was a significant concern for the respondents, with many believing that the government is responsible for the sector’s problems, including pollution and distribution issues. Pollution was a prevalent issue, with the respondents reporting various problems, including contamination of food and increased cancer rates. It is clear that the government needs to address these issues to improve the country’s situation and regain the public’s trust.

The current study, like any other, has some limitations. To begin with, the study’s sample and data processing were flawed. This study’s survey was lengthy, with 20 questions, and some respondents were unable to complete the entire questionnaire as some stated that they do not know what is Taif agreement while others they do not have time to complete the open-ended question. It would be worthwhile to replicate this experiment with a larger sample size in order to get a clearer picture of what is going on in Lebanon. Second, due to the brief time frame for data collection, the sample size is restricted to only 60 respondents. Third, because the questionnaire is self-reported, replies may be given at random. Forth, my study focused on pollution, business and economy, and Electricity. Including greater variety in the sample in the future might help us better grasp what’s going on in Lebanon. Fifth, Citizens should be interviewed to gain a better understanding of how corruption impacts them and how they see the rule of law and the judicial system. Sixth, there is a geographic limitation where the study was only conducted in Lebanon instead of reaching a wider audience. Furthermore, this research was limited to understanding corruption in Lebanon only and while it does contribute to the larger literature on corruption, it would be worthwhile to perform cross-national comparisons with other Middle Eastern, non-Western, and Western nations to gain a better understanding of how corruption changes in different contexts. It would also help to better understand the impact of corruption on various cultures and legal systems, as well as the type of corruption in these settings.

Based on the results discussed above, recommendations would be given to decrease the effects of corruption in Lebanon:

• Show your support for the National Anti-Corruption Strategy.

• Make the National Anti-Corruption Commission a top priority.

• Support for monitoring and oversight agencies.

• Transparent funding mechanisms.

• Support for independent media and watchdog organizations.

• A civil society-led anti-corruption front.

• Promotion of the Right to Access Information Law.

• The Lebanese Association of Certified Public Accountants (LACPA) should make necessary agreements with the Lawyers Community in Lebanon to train accountants on legal methods.

7. Future research

The globalization of corruption and its influence on non-Western nations should be the subject of future research. Because international anti-corruption groups are founded on Western rhetoric, it is crucial to keep track of how regulations are implemented in non-Western nations. By doing this research you can differentiate yourself from other countries and work on the weak points that you find in your country. Wider research on corruption in the different fields should be included in the future. Corruption is a ridiculously huge title that holds a lot of complications and meaning which have a profound impact on people’s life. Regarding the limitation of interviewing citizens, a real interview should be conducted to have an accurate and direct response to support the transparency of the research.