Lebanon: Diagnostic of Governance and Corruption

This Diagnostic of Governance and Corruption (DGC) report for Lebanon, conducted by the International Monetary Fund (IMF) staff at the request of Lebanese authorities, assesses the nature and severity of corruption and governance weaknesses across key state functions of fiscal governance, financial sector oversight, central bank governance, rule of law and anti-money laundering. It also reviews the effectiveness of Lebanon’s anti-corruption laws and institutions in reducing corruption risks. The findings point to pervasive corruption vulnerabilities exacerbated by outdated legal frameworks, fragmented oversight, institutional weaknesses, and fragile rule of law. These deficiencies represent major impediments to Lebanon’s economic recovery and inclusive growth. The DGC report recommends a sequenced, country-tailored reform agenda aimed at strengthening the rule of law, enhancing central bank governance and financial sector oversight, and reforming public financial management to promote transparency, accountability, and macro-economic stability.