The MENA countries where socio-political monopolization is fundamentally due to low levels of democracy and obscure political transparency have generated over the years Corruption. All attempts to strengthen business integrity and fight corruption were in vain. Chatham House‘s post on the subject of Tackling corruption is the focus for MENA in 2022 is worth going through. Here it is.
Integrity is central to the development of competitive and open economies in which growth and opportunities are sustainably and equitably distributed.
To tackle corruption in the MENA region, the international community must prioritize accountability over stability.
Tackling entrenched corruption will be a key focus of the political discourse in the Middle East and North Africa in 2022. International policymakers will look to anti-corruption as a framework that can be used to help stabilize conflict countries, support economic reform, or to pressure adversarial regimes. Pressure to deal with corruption also stems from popular anger in countries that suffer from poor governance as corruption can have very serious – even fatal – consequences, as the deadly hospital fires Iraq suffered last year illustrate.
Corruption can have very serious – even fatal – consequences, as the deadly hospital fires Iraq suffered last year illustrate
Across the region, anti-corruption processes are meant to signal accountability. However, they can also be weaponized by elites to consolidate power and target opponents, particularly in countries where the political system itself is built on politically sanctioned corruption. This makes anti-corruption efforts unlikely to succeed. These dynamics highlight the need for international policymakers to develop strategies that promote accountability and transparency over the long term instead of prioritizing political expediency.
Anti-corruption efforts not what they appear
At first glance, anti-corruption processes underway across the Middle East and North Africa appear to suggest that states in the region are serious about combatting graft. In Libya, a recent wave of arrests by the attorney general has seen two sitting ministers, a former deputy prime minister and a former head of a state-owned investment vehicle detained on charges of corruption. In Iraq, the commission of integrity and the prime minister’s special committee have arrested dozens of former and current officials on charges of corruption.
Across the GCC, governments are seeking to double down on their economic diversification plans. Against the rising tide of nationalism and populism, anti-corruption efforts will feature as part of a good governance agenda that serves a domestic audience by targeting elites and patronage networks. The UAE is the GCC’s most nimble economic player and leads the pack in efforts to stamp out corruption. In Lebanon, political competition and initiatives by members of the judiciary have resulted in investigations of alleged corrupt practices by the heads of major state institutions such as the central bank.
The case of Lebanon has clearly illustrated that appeasing elites does not deliver stability, and countries such as Iraq and Libya could potentially face a similar fate.
But appearances can be deceiving. In none of these countries have anti-corruption efforts led to meaningful change. In Libya, past efforts have petered out and officials have all too rarely faced trial, let alone been convicted. There is little to suggest this round will be any different as the government is unlikely to support the attorney general’s cause. In Iraq, this year’s top story will be the protracted government formation process following last year’s elections – a process rife with politically sanctioned corruption as the usual cast of characters come together to negotiate their share of power and money. Despite the 2019 October revolution that called for reform of Iraq’s ethno-sectarian political system (muhassasa), not much has changed.
Saudi Arabia, which is pushing ahead with its Vision 2030 targets, has an anti-corruption agenda but will face challenges in connecting its legal framework and process, led by the Oversight and Anti-Corruption Authority (Nazaha), with realities on the ground. Many sectors suffer from a lack of transparency when it comes to decision-making, yet the importance of personal and social connections (wasta) remains high in Saudi society.
Weaponizing anti-corruption processes
The darker side of the anti-corruption drive is the weaponization of such processes, whereby corruption allegations can be used to settle political scores, especially by those who are politically dominant. In Lebanon, this can be seen in the growing standoff between the governor of the central bank and Hezbollah and its allies, who see him as a political opponent.
The darker side of the anti-corruption drive is the weaponization of such processes, whereby corruption allegations can be used to settle political scores.
In Iran, under pressure from US-imposed sanctions, President Ebrahim Raisi will continue to promote anti-corruption measures to demonstrate good governance and accountability to help distract from the economic pain of sanctions. However, these efforts will by no means root out entrenched corruption. The Islamic Revolutionary Guard Corps (IRGC) and various parastatal entities have used predatory sanctions-busting strategies to ensure their economic survival, while crowding out the private sector. Without meaningful reform of the economic system, the government will likely see more protests and unrest.
The scale of the challenge facing the international community
There is no doubt that these problems will be difficult to tackle. Corruption stretches far beyond the upper levels of government. Where corruption has become politically sanctioned, such as in Iraq, the elite has shifted its focus away from formal government roles, such as cabinet ministers, who are now by design independent and technocratic, but weak. Instead, the key to state power has become the almost 1,000 senior civil servants under the special grades scheme, who do the elite’s bidding in government ministries and agencies without any transparency or accountability. They may not be the minister in charge, but these director generals and deputies make the decisions when it comes to government contracts and procurement, helping to generate huge sums of money for those whose interests they serve.
Any successful anti-corruption strategy must go beyond sanctions on individuals to address the core of the problem – the economic system of governance.
The international community have opportunities to address some of these entrenched problems this year. But its record to date is mixed. In Libya, the international community’s credibility on corruption has been greatly damaged by it prioritizing stability over accountability. A long-awaited audit of the Central Bank of Libya drew ‘no conclusion or determination’ over ‘any fraud or misappropriation’, while a UN report into allegations of vote-buying at the UN-created Libyan Political Dialogue Forum that selected the current government has not been made public. These developments have only strengthened the impression that Libyan officials enjoy impunity. As the Libyan political process is reshaped in 2022, measures to ensure accountability and transparency must take a much more prominent place in the architecture of international efforts.
Lebanon is perhaps the greatest test of the international community’s commitment to tackling widespread graft. In need of an economic rescue plan to reverse the severe depreciation of its currency and decline in GDP and foreign reserves, there is hope that a deal with the IMF and international assistance could materialize this year. The IMF and international bodies like the EU insist that any aid will come with conditionality regarding reforms, but there are fears they may soften their stance. They must hold firm. If their current position softens, this will damage both Lebanon and the credibility of the international community.
The international community must prioritize the legitimate grievances of MENA citizens, rather than pleas by entrenched elites to help maintain ‘stability’. The case of Lebanon has clearly illustrated that appeasing elites does not deliver stability, and countries such as Iraq and Libya could potentially face a similar fate.
Any successful anti-corruption strategy must go beyond sanctions on individuals to address the core of the problem – the economic system of governance.
The image above is of Image — A man checks electrical wires in Baghdad, 13 September 2017. For years Iraqis have denounced the bad management and financial negligence that have stifled the country and let its infrastructure fall apart. Photo: AHMAD AL-RUBAYE/AFP via Getty Images.
Hadi Khatib on AMEInfo of 18 September 2021 came up with this deep statement on the anxiety list for MENA entrepreneurs that is long, as is the one curing it
The anxiety list for MENA entrepreneurs is long, as is the one curing it
A research report on the mental health challenges and wellbeing of entrepreneurs due to COVID-19 in the MENA region revealed anxiety has several facets in the minds of these leaders. But all of these insecurities have cures.
55% of startup founders said that raising investment has caused the most stress.
More than 95% of entrepreneurs view co-founders as family members and/or friends.
Research finds that entrepreneurs are happier than people in jobs.
EMPWR, a UAE-based digital media agency dedicated to mental health and an exclusive mental health partner for WAMDA and Microsoft for startups, published a research report on the mental health challenges and wellbeing of entrepreneurs due to COVID-19 in the MENA region.
The research indicated that startup founders undergo higher levels of stress than the rest of the region, with twice the likelihood of developing depression issues.
55% of startup founders said that raising investment has caused the most stress; the pandemic was the second most-cited reason cited by 33.7% of respondents. 44.2% spend at least 2 hours a week trying to de-stress.
Other insights, uncovered by the report, include:
A good relationship between co-founders can help startups navigate the pandemic-hit market. More than 95% of entrepreneurs view co-founders as family members and/or friends
Many entrepreneurs live well below their means to fund their ventures, leading to stress that is detrimental to their health
With only 2% of healthcare budgets in the MENA region currently spent on addressing mental health, the impact of the COVID-19 pandemic on young entrepreneurs and achievers could lead to an economic burden of $1 trillion, by 2030, according to the report.
EMPWR’s MENA partners shared special offers on their mental health services for the region’s entrepreneur community.
From Saudi Arabia:
Labayh is offering the technology ecosystem a 20% discount on their online mental health services for 2 months. Promo code: empwr, with the offer valid until October 29.
O7 Therapy are offering 50% off their online mental health services, for 50 Entrepreneurs in the MENA region. Promo code: Entrepreneur50, valid until December 1, 2021.
From the UAE:
My Wellbeing Lab is offering 20 one-on-one coaching sessions to entrepreneurs that wish to be coached and helped; alongside unlimited access for any entrepreneur to their “Discovery Lab”, a platform that gives entrepreneurs and leaders insights into their mental wellbeing as well as their teams. Promo code: MWL21.
Takalam is offering 10% off for 3 months. Promo code: Impact.
Mindtales is offering the MENA ecosystem 50% off their services for one month. Their App can be downloaded here.
H.A.D Consultants is offering 20 one on one coaching sessions to entrepreneurs. Promo code: HAD_SME01.
Nafas, a meditation app focused on reducing stress, anxiety, and help with insomnia, is offering access to its platform. Register as a user via this link to redeem benefits.
Entrepreneurs’ mixed emotions
Entrepreneurs must grapple with uncertainty and being personally responsible for any decision they make. They likely have the longest working hours of any occupational group and need to rapidly develop expertise across all areas of management while managing day-to-day business.
Work on the economics of entrepreneurship traditionally assumed that entrepreneurs bear all the stresses and uncertainties in the hope that over the long term they can expect high financial rewards for their effort. It’s false.
2. Highly stressful, but…
High workload and work intensity, as well as financial problems facing their business, are at the top of the entrepreneurs’ stress list.
But some stressors have an upside. While they require more effort in the here and now, they may lead to positive consequences such as business growth in the long term. Some entrepreneurs appear to interpret their long working hours as a challenge and therefore turn them into a positive signal.
3. Autonomy is both good and bad
The autonomy that comes with being an entrepreneur can be a double-edged sword. Entrepreneurs can make decisions about when and what they work on – and with whom they work. But recent research into how entrepreneurs experience their autonomy suggests that, at times, they struggle profoundly with it. The sheer number of decisions to make and the uncertainty about what is the best way forward can be overwhelming.
4. An addictive mix
The evidence review confirms that, by any stretch of imagination, entrepreneurs’ work is highly demanding and challenging. This, along with the positive aspects of being their own boss coupled with an often competitive personality, can lead entrepreneurs to be so engaged with their work that it can become obsessive.
So the most critical skill of entrepreneurs is perhaps how they are able to manage themselves and allow time for recovery.
Stress management tips for entrepreneurs
Identify what the actual source of your stress is. Is it tight deadlines, procurement issues, raising capital, managing investors’ expectations, building a talented team, or delay in landing the first sale for your new startup business?
Even if numbering more than a few, break them down because unmanageable tasks look simpler when broken down into smaller segments. Then, list down how you plan to successfully tackle each issue. Meanwhile, exercising multiple times a week has been rated as one of the best tactics for managing stress.
Another technique for handling stress is to take a break. Rest as much as you can before going back to continue with the tasks. It’s also a good idea to reach out to friends, family, and social networks because they are likely to understand what you’re going through and offer words of wisdom and courage.
Stay away from energy-sapping junk food. Eating healthy keeps you fueled for the next challenge. Finally, get enough sleep, and power naps. Sleep helps your body and mind recover.
Hadi Khatib is a business editor with more than 15 years of experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about them. He can be reached at: firstname.lastname@example.org
To give architecture political clout we must engage with ordinary people
The architecture and built environment sector has a poor track record in communicating with the general public, something those in power are all too aware of, writes new chair of The London Society Leanne Tritton
My business is communication. I love working alongside built environment professionals, and in my day job I am fortunate to see at first hand how architects and developers are working hard to positively design and build better places.
But, sadly, few members of the general public see our sector in the same light. It is not surprising, given that the media generally focuses on the negative and the sensational. That’s just a fact of life. But we haven’t gone out of our way to help ourselves and present the other side of the story or co-ordinate campaigns that inform opinion.
For obvious reasons, central and local government is preoccupied by the feelings of the nation. It seems the built environment’s only meaningful connection with the population of this country is via a series of consultations that accompany proposed development. As these make their way through the planning process, such efforts often descend into almost hand-to-hand combat.
Put simply, we’ve not had strong enough links with either the general public or government to promote effectively what we do.
It also does our industry no credit that we have such a poor track record when it comes to engaging with the country’s political leadership and working to influence policies that will not only benefit our sector, but the greater good.
Politicians know that we have limited ‘clout’ and so have been able to dictate the pace and degree of change that takes place, and do so on their terms.
This needs to be put right, although it’s not to say there aren’t those who seek to engage with ordinary people about the buildings all around them. I have long admired the work undertaken by Open City, which, as well as running a series of events highlighting the architectural wonders of the capital, also organises the annual Open House festival. This event, which lasts for just a few days every year, gives people unparalleled access to some of London’s finest buildings.
It is also hugely encouraging to see Simon Allford, co-founding partner of AHMM, elected as president of the RIBA. Allford will not only be able to offer the institute effective leadership, he is the type of person who can walk into a room full of government ministers and have an immediate and positive impact.
Then there is The London Society (TLS). Established in 1912 by a group of Londoners concerned about the lack of planning in the capital, its theme 110 years on will focus on the connections among communities and those organisations that sit beyond those of built environment professionals and which have the potential to make the city stronger.
Having recently joined TLS as chair, I believe the organisation has a unique opportunity to present the built environment’s case outside the industry bubble.
Members of TLS come from all walks of life, not just the professions. All share a passion for the city and want to engage with the debates about its future, while also recognising – and indeed cherishing – its past. It is an organisation for all those who love London, forging links with underrepresented communities across the capital and, usefully, having the ear of MPs, sponsoring as it does the All-Party Parliamentary Group on London Planning and Built Environment.
The time for engagement is upon us and we need to fund those organisations that give us critical mass and help the public understand that we are on their side.
In so far as the MENA region countries are concerned, Democracy being vital for prosperity and sustainable development or the lack of it, has been demonstrated over and over the millennia. Let us see what it means in today’s world for the rest of the world with Androulla Kaminara.
The above image is for illustration and is of the FDSD.
Democracy vital for prosperity and sustainable development
Transparency and reliability of how elections are carried out are key to ensuring that the winners enjoy legitimacy.
On 15 September, we are marking International Day of Democracy. Since the pillars of democracy around the world are threatened as new challenges emerge, this day is perhaps more pertinent than ever. Democracy is a dynamic concept that has evolved over time, as have the challenges facing it. To those challenges, new challenges have been added of late, including by the impact of the Covid-19 pandemic deepening existing inequalities, spreading disinformation and distrust, and undermining women’s rights. In addition, the fast evolution of new technologies and their impact on all walks of life has also had a profound impact on democratic processes around the world.
As the world took emergency measures to address the Covid-19 crisis, concerns began to emerge that these actions could infringe on civil and human rights of citizens. Covid-19 also highlighted and aggravated inequalities within societies, including in social protection, increased discrimination and violence against women as well as disinformation. The pandemic was accompanied by a global infodemic that poses a direct threat to one of the pillars of democracy: the right to access to information.
The answer is — ‘to build back better’ — to build a society that works for all and that represents the will of the people is the objective. Democracy is built on inclusion, equal treatment and participation — is a fundamental building block of a progressive, stable and peaceful society that enables sustainable development, human rights and economic justice for all.
Democracy is one of the core values of the European Union, together with human rights and the rule of law. The EU is taking steps to safeguard and strengthen democracy inside our Union since no democratic system is perfect and continuous efforts are need for improvement. In the EU, we practise our rights, also through regular elections both at individual Member State level — local, regional and national elections — as well as at the European Union level. The elections to the European Parliament are one of the largest democratic exercises in the world, with over 400 million citizens being represented.
The European Union also takes a leading role in promoting democracy around the world through the implementation of relevant projects and through Electoral Observation Missions (EOM).
In 2019, cooperation projects in support of democracy amounted to €147 million in 37 countries. Over the last 7 years, the EU has implemented projects of €618 million in Pakistan and currently, the EU supports the National Assembly, Senate and four provincial assemblies by strengthening their functioning in terms of capacity, transparency and accessibility as well as accountability towards Pakistani citizens with a project of €9 million.
Since 2019, the EU deployed over 20 observation missions globally as part of its commitment to democracy, human rights and the rule of law across the world and these offer a comprehensive and impartial assessment of electoral processes. In addition, EOMs publish recommendations aiming to improve future elections and strengthen democratic institutions.
In Pakistan, the EU so far has deployed four observation missions since 2002 upon the invitation of the respective governments. The EOM of 2018 put forward a set of thirty recommendations for electoral processes and framework reforms. It is encouraging to note that several of these recommendations are reflected in the 3rd Strategic Plan of the Election Commission of Pakistan.
However, other recommendations are still pending. Among those is the need to ensure a full level playing field for women: registration of women voters and women representatives in parliaments as well as in the media. In Pakistan, there are 63 million registered male voters and 50 million female voters, clearly indicating that about 13 million women voters are missing. The report argues that stronger involvement of women in political decision-making leads to more accountability, better use of public resources, as well as stability and peace. The fact that a large number of women are not eligible to vote leads to alienation of a significant part of the population. Ensuring their inclusion in the electoral process as well as adequate representation for marginalised groups is key to a more inclusive and fair democratic system.
We recognise the difficulties in implementation of some of the EOM’s 2018 recommendations which are public. Nonetheless, as Pakistan is approaching its next general elections, it is paramount to keep the reform momentum and maintain efforts to further strengthen the electoral system and practice. In this context, the role of a fully functioning Election Commission of Pakistan supported by all is crucial.
The experience within the European Union and elsewhere shows that for democracy to work, trust in the democratic process, including the electoral mechanism, is vital. Transparency and reliability of how elections are carried out are key to ensuring that the winners enjoy legitimacy and support from the electorate. Without democracy, peace and stability, sustainable development and prosperity cannot exist.
The EU continues to be committed to safeguarding and strengthening democracy within its borders and across the world, and we work with all our partner countries including Pakistan in this endeavour.
Robert P. Beschel Jr. and Tarik M. Yousef inform that In a region where the governance news is seldom good, on May 6, something very unusual happened in Qatar. Was it a quiet governance revolution in Qatar? wondered these authors in a Brookings article. We would agree that this is happening in the so-called autocratic monarchy of the Gulf and not the other republics of the MENA region. Here is the story.
A quiet governance revolution in Qatar?
17 June 2021
The Minister of Finance, Ali Sharif al-Emadi, was taken in for questioning over a variety of alleged crimes, including misuse of public funds and abuse of power. Al-Emadi had held his position since 2013 and was widely perceived to be one of the most effective finance ministers in the Gulf. Within a day, he was stripped of all governmental duties, as well as his roles in other publicly owned companies and financial institutions. Moreover, the anti-corruption probe is reportedly widening, with scores of businessmen and government officials being questioned by law enforcement authorities and financial regulators.
The publicity surrounding al-Emadi’s ouster is unusual. Throughout the Gulf Cooperation Council (GCC) countries, most high-level cases of corruption or official malfeasance are handled quietly and without ceremony. The officials involved typically resign or leave their posts suddenly, with limited media coverage. Rumors swirl but are rarely confirmed, and investigations almost never result in prosecution, fines, or imprisonment. Kuwait, for example, witnessed a number of high-profile corruption allegations that led the prime minister to leave office in 2011 and the cabinet to resign en masse in 2019, yet no prosecutions followed. In the United Arab Emirates, a corruption probe resulted in the late Mohammed Khalfan bin Kharbash, the Minister of State for Finance, being removed from office in 2008 and charged with embezzlement in 2009. However, he pleaded not guilty, and the case never went to trial.
There is one major, and controversial, exception to this rule: the November 2017 arrest and imprisonment of 400 prominent Saudis in the Ritz Carlton hotel in Riyadh. Supporters of this decision, including many Saudi citizens, maintain that the imprisonment of these individuals was well deserved and long overdue. Critics allege that it had more to do with the consolidation of power by Crown Prince Mohammed bin Salman than with the actual guilt or innocence of those charged; they also claim that the funds recouped came from an effort that resembled a “shakedown” more than a bona fide attempt to recover stolen assets or enforce the rule of law.
In the immediate aftermath of the Ritz Carlton arrests, some observers maintained that the move would be disruptive and create uncertainty, scaring investors away. Others argued that it would signal a seriousness of intent and purpose that would be beneficial to the country in the long-term. The short-term effects of the arrests were indeed disruptive: foreign direct investment in Saudi Arabia fell precipitously in 2017 before rebounding in 2018 and 2019, albeit to lower levels than before. The long-term effects of the decision remain to be seen, although there is a wealth of evidence that countries with lower levels of corruption are better at attracting investment and have higher levels of economic growth over time. It would not be surprising if other countries conducting public crackdowns on corruption followed a similar trajectory to that of Saudi Arabia—an initial drop in foreign investment due to added uncertainty, followed by increased investment downstream if the effort is viewed as serious and credible.
According to Transparency International’s 2020 Corruption Perceptions Index, the Middle East and North Africa (MENA) region “is still perceived as highly corrupt, with little progress made towards controlling corruption.” The reality is more nuanced, with wide variation in performance across the region. For instance, the U.A.E. and Qatar are ranked 21st and 30th, respectively, by the Corruption Perceptions Index—a position placing them ahead of countries including Spain, South Korea, and Portugal. The bulk of MENA countries fall in the mid-range. There is also a significant cluster of countries in the lowest ranks, including Iraq, Libya, Syria, and Yemen, which are perceived to be among the most corrupt countries in the world.
Two elements of the region’s anticorruption efforts are particularly worrying, even with regard to regional leaders such as the U.A.E. and Qatar. The first, as the International Monetary Fund and others have noted, is the delayed progress on “next generation” governance reforms, which stretch beyond eliminating petty corruption and improving the quality of service delivery. This agenda involves thinking more carefully about the boundary between the public and private sectors; improving transparency and public accountability; making regulatory processes more streamlined and predictable; and strengthening the independence of agencies charged with investigating and prosecuting corruption. It also involves moving forward legislation on income and asset disclosure, as well as cracking down on money laundering.
The second troubling feature of MENA anti-corruption efforts is the relatively static nature of the region’s performance over time. According to the World Bank’s Worldwide Governance Indicators, the region’s composite scores for controlling corruption have actually fallen consistently from their peak in 2002. The persistence of these chronic “governance deficits” has been viewed by many as the root cause for the region’s repeated political crises over the past decade, starting with the Arab Spring revolutions in 2011 and continuing through to the protest movements of 2018-19 in Algeria, Iraq, Lebanon, and Sudan. In all of these countries, concerns about corruption were among the most prominent public grievances.
Could it be that Qatar’s recent move heralds a transition toward new and more serious anti-corruption efforts in the Gulf and wider region? And could the country’s public efforts inspire other MENA governments to do better? In response to queries about the arrest warrant for al-Emadi, the Qatari Minister of Foreign Affairs underscored the importance of institutions and noted emphatically that “no one is above the law.” A day prior to the finance minister’s arrest, Qatar’s emir abolished immunity from prosecution for public officials, leveling the legal playing field for all. Such steps, if translated directly into a robust governance reform agenda and taken forward with skill and tenacity, could very well open a new chapter in strengthening the rule of law and building effective and equitable state institutions in both Qatar and the wider MENA region.
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