**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:


*Corruption and New Insights in Lebanon DOI: http://dx.doi.org/10.5772/intechopen.111903*

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**).

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**).


#### **Table 1.**

*Male and female percentages.*


#### **Table 2.**

*Age percentages.*


#### **Table 3.**

*Education percentages.*

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**).

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].

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

#### **Figure 1.**

*Reasons for investment refrainment. Source: [29].*

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**).

The research findings revealed that 83.9% of the respondents answered affirmatively when asked if opposing political parties in Lebanon have an under-thetable 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**).

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

#### **Figure 3.**

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

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**).

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.

#### **Figure 4.**

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

#### **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.

#### *Corruption and New Insights in Lebanon DOI: http://dx.doi.org/10.5772/intechopen.111903*

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

#### *Corruption and New Insights in Lebanon DOI: http://dx.doi.org/10.5772/intechopen.111903*

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:

