Tackling corruption is focus for MENA in 2022

Feb 8, 2022

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.

Authors:

Tim Eaton, Senior Research Fellow, Dr Lina Khatib, Director, Dr Renad Mansour, Senior Research Fellow, Project Director, Iraq Initiative and Dr Sanam Vakil, Deputy Director and Senior Research Fellow, all of Middle East and North Africa Programme.