2016

Analysis report about Libya state’s

situation in corruption perception index
2015
Released by National Libyan Anticorruption Commission

LIBYA STATE 2016

PROTECTION ADMINSTRATION‫ا‬
February 4, 2016
‫إدارة الوقاية‬

Author.Mohamed Juma Abdo

PROTECTION ADMINSTRATION‫ا‬
2/4/2016 ‫تقرير‬
1/16
What is the CPI ?
Through the CPI determine grading and ranking for targeted countries / regions based on the
perceptions of the extent of corruption in the public sector of the country.
The CPI is a composite index, a combination of surveys and assessments dealing with
corruption, which is collected by a variety of reputable institutions. CPI is considered the most
commonly used indicators of corruption worldwide
Methodology:-
CPI combines data from multiple sources that offer Perceptions employed in business and
experts of corruption in the public sector.
Here are the steps to be followed to calculate the CPI: -
 Identify data sources.
 Unify data resources.
 Calculating the average.
Analysis report about Libya state’s situation in corruption perception index 2015 | 9/12/201

1. Identify data sources:

For each data source used in the calculations of the CPI should met the criteria listed below
to be eligible, considerable and acceptable:
 The source must measure the quantity perceptions of corruption in the public sector.
 It is based on reliable and correct methodology, which to determine the total Points and
ranks achieved by countries on the same scale.

 That it is performed by a credible institution and be expected to repeat this on a regular

basis.

 To allow the existence of sufficient disparity in the total number of points achieved,
which allow the process to distinguish between countries.


**The CPI was calculated for 2015 using 12 different data sources from 11 independent

organizations that work to register Corruption Perceptions during the past two years.
 2- Standardization of Data sources- :

On a scale of grades ranging from 0-100, where 0 is equivalent grade the highest level of

corruption, while the equivalent 100 lowest level of perceived corruption.

3- Rate calculation:

In order to be listed as a country or province on the Corruption Perceptions Index, it must be

a minimum of three sources to assess that country. Hence, it is calculated by the total points
being made by the country on the CPI being the average of all the points that have been
consolidated and that are available for that country. It is then rounded the total points to correct
and fractional numbers.

4- Report a degree of uncertainty:

CPI is accompanied by a standard error and the degree of uncertainty associated with the

Analysis report about Libya state’s situation in corruption perception index 2015 | 2/4/2016
total points that are achieved on the index, where they are through recording variation in total
points of data sources available to that country / province.

•Which countries / regions that are included in the Corruption Perception Index for 2015,
and why?
In order to insert country / region in the classification.
First, country must be listed on at least three sources of data sources CPI for that country. If the
country was not so apparent in the classification, this is due only to the insufficient of
information contained in the survey it is not considered an indication that corruption does not
exist in that country. This year 2015 the inclusion of 167 countries and regions in the CPI.

•What are the perceptions of corruption index data sources?

CPI for 2015 depends on the data sources that are obtained by specialized independent
institutions in the field of corporate governance and business climate analysis. The information
is based on sources that are being used for the CPI for 2015, the data collected during the past
24 months.

CPI includes only sources that provide a certain degree of a group of countries / regions
which measure perceptions which prevalence to corruption in the public sector.
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 2015 CPI of Libya based on the followed resources:-

 African Development Bank Governance Ratings 2015

 Bertelsmann Foundation Sustainable Governance Indicators 2015

 Bertelsmann Foundation Transformation Index 2015

 Economist Intelligence Unit Country Risk Ratings 2015

 Freedom House Nations in Transit 2015

 Global Insight Country Risk Ratings 2015

 IMD World Competitiveness Yearbook 2015

 Political and Economic Risk Consultancy Asian Intelligence 2015

Analysis report about Libya state’s situation in corruption perception index 2015 | 9/12/201

 Political Risk Services International Country Risk Guide 2015

 World Bank - Country Policy and Institutional Assessment 2015

 World Economic Forum Executive Opinion Survey (EOS) 2015

 World Justice Project Rule of Law Index 2015

 Description for data sources used in the assessment of Libya for the year (2015):-
1-Transformation Index issued by the Bertelsmann Foundation, symbol in the Corruption
Perceptions Index as (BF-TI)
Points awarded for the index and are reviewed in secret independently of the state and are
assessed to what extent are prosecuted or punished holders of public officials who abuse
their positions.
2- World Competitiveness Yearbook issued by the International Institute for Management
Development, symbolized in the Corruption Perception Index as (IMD).
It measures the competitiveness of states, and how the political, social and economic
climate, effect the impact on the competitiveness of companies.
The study uses the issue which the report dedicated upon the measurement of economic
performance standards, government, business efficiency and infrastructure, in order to get a

Analysis report about Libya state’s situation in corruption perception index 2015 | 2/4/2016
comprehensive picture of the competitiveness of nations, the study includes a survey of
business leaders, asking them to determine whether bribery and corruption exist or not.?
they are conducting these surveys in cooperation with the Institute of partners around the
world (54 persons).
3- Manual issued by the country risk and political risks Services Corporation.

Symbol in Corruption Perceptions is (ICRG).

Issued monthly from the Foundation Country Risk Guide (ICRG) and includes political,
economic and financial risks of the countries considered to be of importance in the international
business environment evaluation. It focuses Country Risk Guide in its assessment of rruption
more on actual or potential corruption and nepotism of overuse, and to maintain the position,
the exchange of interests , secret party financing, close relationship between politicians and
businessmen inform presence of suspiciously.
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 4-survey the opinions of executives of the World Economic Forum and symbolized by the
Corruption Perception Index symbol (WEF).
Forum works closely with a network of partner institutions runs surveys in their countries and
are selected because of their ability to access business, and understanding of the environment,
national business, and focus its research on competitiveness. The economics departments at
local universities as well as independent research institutes or business organizations the bulk of
partner institutions Economic Forum.
Regarding the questions of corruption contained in the survey, they include:
In your country, how is common for companies to pay additional funds are not
documented or bribe related to:
1. Imports and Exports
2. Public Utilities
3. Payment of annual taxes
Analysis report about Libya state’s situation in corruption perception index 2015 | 9/12/201

4. the award of public contracts and licenses

5. Get a biased judicial decisions.

In your country, how common is diversion of public funds to individuals, companies or

groups due to corruption?
5- The rule of law index issued by the World Justice Project Index and takes a code (WJP) on
Perceptions Index Corruption.
Global Justice Project is an independent non-profit organization working to strengthen the
rule of law for the development of communities through the realization of justice, equality
and equal opportunities considered.
the index provides, which was designed by the project detailed information relating to the
dimensions of the rule of law, which enables stakeholders to assess the States' adherence to
the rule of law in practice and to identify strengths and weaknesses compared with similar
countries, and track change over time.
Collecting data for the indicator through surveys and opinion polls for the general public and
detailed questionnaires to local experts.
 On the subject of corruption, the index includes individual questions fall under four sub-
indices, and AS FOLLOWS:

 Government officials in the executive branch do not use public officials for private
interests.
 Government officials in the judiciary do not use public officials for private interests.

 Government officials in the police and army do not use public officials for private
interests.

 Government officials in the legislative council do not use public officials for private
interests.

6- Country risk Unit assessment issued by the Economist Intelligence, symbol in Perceptions
Index Corruption as (EIU).

Analysis report about Libya state’s situation in corruption perception index 2015 | 2/4/2016
The Economist Intelligence Unit design risk assessments designed to provide in-depth
analysis and timely financial risks in more than 140 countries. The unit relies in its work on
a team of experts resides mostly in London, Shanghai, Beijing, New York and there
connect with specialists within states. Each analyst state covers a maximum of two to three
countries and the subject of reports provided by analysts to a thorough review before
publishing.
On the subject of corruption assessment includes directing specific questions as follows:

• Are there clear procedures, and accountability, controlling uses of public funds?

• Do misappropriate of public funds by the Minister / public officials used for private
purposes or political parties?

• Are there special or sovereign funds out of accountability and auditing?

• Is there a general missuses of public resources?

• Is there a civil service specialization, or that large numbers of employees are hired directly
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by the government?
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 • Are there independent bodies to audit the management of public funds?
•Is there an independent judiciary have the trial of ministers / public officials for irregularities
validity?
•Is there a tradition of paying bribes to secure contracts or private benefits?

7- Country risk rankings issued by the Global Insight Foundation and take the symbol on the
CPI as (GI).

The
use of state risk assessment system since the year (1999) presents an analysis of the
political risks, economic, operational and security to different countries.
The derivation of the risk of corruption within points in the CPI primarily from operational risks
in addition to the assessments of the experts in the other aspects of the corruption of the
analysis. On the subject of corruption is the demand of experts assessing the following- :
• whether the corruption, in particular, affects the operational activities of the companies,
Analysis report about Libya state’s situation in corruption perception index 2015 | 9/12/201

with an analytical focus on economic and political motives of the problem.

• whether the corruption from the business perspective is a source of concern, especially if
attached to the granting of work permissions and take biased policies.

What is the difference between the position occupied by the country / region and the degree of
which were taken on the index?
The degree to which were acquired country / region for the index to the perceived corruption in
the public sector level between grades listed by the scale between 0-100, where 0 means the
degree that it is looking at the country as a very corrupt country, while 100 means a class that
looks at the country indicate that it is very clean. The position occupied by the country on the
index refers to the site occupied by that country relative to other countries / regions listed on the
index, mattresses can be changed simply based on changes in the number of countries that are
included on the index
 Libyan’s situation
Libya came in the back seat in 2015, where it was ranked in the table as 161 out of 167
countries were covered in the index calculations, points 15/100 with a protracted three points
compared with year 2014 in the last ten rank, ranked as 17th at Arabic level out of 19 Arab
countries were covered in the index.
Here are some illustrative tables- :

A table shows the development of Libya's points in the last five years.

points
30

27
26
25 25 25
25

Analysis report about Libya state’s situation in corruption perception index 2015 | 2/4/2016
22
21
20
20
18

16
15
15

points
10

0
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
years
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 A table shows the world rankings of Libya state
In the Corruption Perception Index in the last five years

Rank of libya out of total countries

2015

2014

2013

2012
Analysis report about Libya state’s situation in corruption perception index 2015 | 9/12/201

2011

2010

161/167 166/174 172/175 160/174 168/182 146/178

 A figure Compares with neighboring countries Statistics: -

180

165
161
160
147

140

120

99
95 100
LIBYA 88 88

Analysis report about Libya state’s situation in corruption perception index 2015 | 2/4/2016
NEIGHBORS
76 80

60

40
35 34 36 36 40

22
18
20
12

0
SUDAN CHAD MALI NIGER ALGERIA TUNISIA EGYPT LIBYA
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Proposals to enhance the classification of Libya on the Corruption Perceptions Index
First: - Work to improve the degree of Libya in the fight against corruption index and
improve its image by Genuine Activation the United Nations Convention against
Corruption and the support the NLACC and overcome all obstacles they face in order to
carry out its mandated in the field of anti-corruption role.

Second:-
Work on enhancing the degree of Libya in the Transformation Index of the Bertelsmann
Foundation through openness to the media through prosecute or punish the holders of
public officials who abuse their office, so as to reflect the media for all spectrums of
society seriousness and rigor Punish corruption in accordance with the provisions of the
law.

Third: -
Work to improve the degree to Libya to assess the risk of the state issued by the
Economist Intelligence Unit, This indicator can be enhanced by focusing on- :
Analysis report about Libya state’s situation in corruption perception index 2015 | 9/12/201

•There are clear procedures and strict accountability, controlling uses of public funds,
and take necessary measures to prevent the ministers or public officials of
embezzlement of public funds, whether the purposes for a private or / political parties .

•To get rid as much as possible from special and sovereign funds that are not subject to
accountability, and to take the necessary measures to ensure that no misuse of public
resources, with activating the role of the independent judiciary in the prosecution of
ministers / public officials for offenses committed.

Fourth: -
Simplify the business environment to ensure the elimination and / or reduction of paying
bribes opportunities.

Fifth: -
Open communication channels between the NLACC and businessmen, especially
(Multinational companies) so that it includes seminars, workshops, awareness and
educational aims are in primarily to inform them of the achievements of Libya in the
fight against corruption and the actions taken regarding.

Sixth: -
Communication between the NLACC and the United Nations Mission and regional
support (UNDP), and discus with them about how to improve the assessment of Libya in
accordance with the programs designed surveys subjected to anticorruption.
 Seventh: -
Work on the project (self-assessment of the Libyan state), as stipulated in the United
Nations Convention against Corruption.

Eighth: -
To work on activating cooperation between the National Libyan Anti-Corruption
Commission and other regulatory bodies in the frame Formal mechanism combines the
efforts of all of these devices and powers in the fight against corruption.

Ninth: -
Support of NLACC with specialized capabilities in its field with qualified experts.

Tenth: -
Supporting the body with a budget for training in this field, whether internal / external
training and urgently to raise the capacities of the human resources and keeping up the

Analysis report about Libya state’s situation in corruption perception index 2015 | 2/4/2016
capabilities of the international institutions in anticorruption field.

Eleventh: -
Urging and guidance of all state institutions to cooperate positively with the
NLACC Programs Placed, a private Workshops, awareness and education programs
against corruption.

May Allah grants success.

Sources: -
• Transparency International (2015). Corruption Perceptions Index: A technical note on the methodology.
• Transparency International (2015). Corruption Perceptions issued by the Transparency International Index report.
• Transparency International (2015). FAQs.
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