Teh Struggles of Syria’s Economy: A Nation in Crisis
Table of Contents
- 1. Teh Struggles of Syria’s Economy: A Nation in Crisis
- 2. A Legacy of Economic Stagnation
- 3. Humanitarian and Economic Indicators
- 4. War and Natural Disasters: A Double Blow
- 5. The Impact of International Sanctions on Syria
- 6. The Struggle for Remittances
- 7. Syria’s Plea for Sanction Relief
- 8. Signs of moderation and Progress
- 9. The Path to Reconstruction
- 10. What are the primary obstacles hindering Syria’s economic recovery after 13 years of civil war and a devastating earthquake?
Syria’s economy stands as one of the most fragile and impoverished globally. Decades of authoritarian rule under the Assad family, coupled with years of international sanctions, have left the nation in a state of economic despair.Even after 13 years of civil war, large parts of the country remain in ruins, with reconstruction efforts barely underway.
The fall of Bashar al-Assad’s regime has ushered in a new government, but the road to economic recovery is fraught with challenges. Diplomatic isolation continues to hinder Syria’s ability to secure the international aid it desperately needs, making the task of rebuilding even more daunting.
A Legacy of Economic Stagnation
Syria’s economic woes are not new. Under Hafez al-Assad, who established the regime in 1970, the country adopted a Soviet-style planned economy with minimal private enterprise. When Bashar al-Assad took power in 2000, he introduced some economic reforms, but these failed to yield significant improvements. The real devastation came with the civil war that erupted in 2011,which only concluded in December 2023.The nation’s GDP, once $60 billion in 2010, has plummeted to less than $9 billion for a population of nearly 24 million peopel.
Humanitarian and Economic Indicators
According to the UN Human Advancement Index,syria ranks 157th out of 193 countries,reflecting its dire economic and social conditions. The World Bank estimates that 69% of Syrians survive on less than $3.65 per month. A recent report by El País highlighted the grim reality: a public employee earns around €20 monthly, a soldier less than €9, and even a bank manager takes home under €100. Basic necessities, though seemingly affordable, remain out of reach for many. For instance, a shawarma, a popular Middle Eastern dish, costs about €1—a significant expense for most Syrians.
The Syrian pound has also suffered immensely, losing 99% of its value as 2011. this currency collapse has further exacerbated the economic crisis, making everyday life a struggle for millions.
War and Natural Disasters: A Double Blow
The civil war not only devastated lives but also crippled Syria’s infrastructure and resources. Before 2010, oil exports were a primary revenue source, with the country producing around 400,000 barrels per day. Today,production has dwindled to approximately 90,000 barrels,forcing Syria to import crude oil.
Adding to the devastation,the 2022 earthquake that struck southern Turkey and northern Syria caused widespread destruction. A World Bank study revealed that 137,000 of Aleppo’s 660,000 homes were damaged,along with 35% of hospitals and 25% of bridges.The city’s power plant, Syria’s largest, remained non-operational until 2023, further hampering recovery efforts.
Amid the bustling streets of Damascus, a man lines up to purchase gas cylinders in December 2024, a stark reminder of the ongoing struggles in Syria’s economy. The nation, crippled by years of conflict and international sanctions, faces an uphill battle to rebuild its infrastructure and reconnect with the global financial system.
The Impact of International Sanctions on Syria
Western sanctions,imposed in response to the atrocities committed by the Assad regime during the civil war,have left Syria economically isolated. These restrictions have made it nearly impossible for western nations to invest in the country or purchase its oil. Even major international institutions like the World Bank and the International Monetary Fund are barred from offering aid due to the sanctions.
The Struggle for Remittances
Over the past decade, approximately a quarter of Syria’s population—7 million people—has fled the country. For those who remain, receiving financial support from relatives abroad is a significant challenge. Syria’s disconnection from the international financial system has made remittances nearly impossible, further exacerbating the economic crisis.
Syria’s Plea for Sanction Relief
Ahmed al Sharaa, Syria’s de facto leader, has repeatedly called for the removal of international sanctions in various public addresses. Al Sharaa, also known by his nom de guerre Mohammed al Jolani, leads Hayat Tahrir al Sham (HTS), the primary anti-Assad insurgent group. However, HTS remains classified as a terrorist organization by the United States and Europe, complicating efforts to lift sanctions.
Signs of moderation and Progress
In recent months, al Sharaa has demonstrated a more moderate and tolerant approach, signaling a shift in leadership style. A notable example of this change is the appointment of Maysaa Sabrine as head of the Syrian Central Bank. Sabrine, who previously served as vice president under the assad regime, is the first woman to hold this position. Her appointment is seen as a positive step, showcasing the new government’s willingness to collaborate with experienced professionals, even those who worked under the previous regime.
The Path to Reconstruction
Beyond sanctions,Syria’s immediate priority is launching a comprehensive reconstruction program to rebuild its infrastructure. Turkey, with its strong ties to HTS and a robust construction industry, appears well-positioned to play a significant role in this effort.Shares of major Turkish construction companies have surged in anticipation of potential investments in syria. However, the reconstruction process will be costly, with estimates ranging between $250 and $400 billion, according to The Economist.
What are the primary obstacles hindering Syria’s economic recovery after 13 years of civil war and a devastating earthquake?
Interview with Dr. Layla Al-Mansour, Syrian Economist and Reconstruction ExpertBy Archyde News
Archyde: Dr. Al-Mansour, thank you for joining us today. Syria’s economy has been described as one of the most fragile in the world. From your viewpoint, what are the most pressing challenges facing the country as it attempts to rebuild after 13 years of civil war?
Dr.al-Mansour: Thank you for having me.The challenges are immense and multifaceted. First and foremost, Syria’s infrastructure is in ruins. Roads, hospitals, schools, and power plants have been destroyed, and rebuilding them requires meaningful investment. However, the country’s GDP has plummeted from $60 billion in 2010 to less than $9 billion today. This means the government has very limited resources to allocate toward reconstruction.
Additionally, the humanitarian crisis is staggering. Nearly 70% of Syrians live on less than $3.65 a month, and unemployment is rampant. Even those with jobs, like public employees or soldiers, earn salaries that are barely enough to survive. This creates a vicious cycle where peopel cannot afford basic necessities, let alone contribute to the economy.
Archyde: You mentioned the need for investment. How do international sanctions impact Syria’s ability to attract foreign aid or investment?
Dr. Al-Mansour: The sanctions are a major obstacle. Western nations have imposed strict restrictions on trade and financial transactions with Syria, making it nearly impossible for the country to access international markets or secure loans from institutions like the world Bank or the IMF.even remittances from Syrians abroad, which used to be a lifeline for many families, are now tough to transfer due to banking restrictions.
These sanctions were imposed in response to the atrocities committed by the Assad regime, and while they were intended to pressure the government, they have also severely impacted ordinary Syrians.Without access to international aid or investment, the government is forced to rely on limited domestic resources, which are already stretched thin.
Archyde: The 2022 earthquake further compounded Syria’s challenges. Can you elaborate on how this natural disaster affected the country’s recovery efforts?
Dr. Al-mansour: The earthquake was a devastating blow, particularly in northern Syria. Cities like Aleppo, which were already struggling to recover from the war, saw widespread destruction. Over 137,000 homes were damaged, along with hospitals, bridges, and critical infrastructure.The power plant in Aleppo, which is Syria’s largest, was non-operational for over a year, severely hampering recovery efforts.
The earthquake also highlighted the limitations of Syria’s healthcare system. With 35% of hospitals damaged, many people were left without access to medical care. This has had long-term consequences, as injuries and illnesses that could have been treated have now become chronic issues for many families.
Archyde: Given these challenges, what steps can the new government take to begin rebuilding the economy?
Dr. Al-Mansour: The first step is to address the immediate humanitarian needs of the population. This includes providing food, clean water, and medical care to those in need. The government must also prioritize rebuilding critical infrastructure, such as power plants and hospitals, to create a foundation for economic recovery.
In the long term, Syria needs to diversify its economy. Before the war, the country relied heavily on oil exports, but production has dropped significantly. The government should focus on developing other sectors, such as agriculture, manufacturing, and tourism, which have the potential to create jobs and generate revenue.
Syria must work to rebuild its international relationships. While the sanctions are a significant barrier, the government can engage with regional partners and non-Western nations to secure investment and aid. Diplomatic efforts to ease sanctions or create exemptions for humanitarian aid could also make a significant difference.
Archyde: What role do you see for the international community in Syria’s recovery?
Dr. Al-mansour: The international community has a moral obligation to help syria rebuild. While sanctions were imposed for legitimate reasons, they have had a disproportionate impact on ordinary citizens.There needs to be a reevaluation of these policies to ensure that they do not hinder humanitarian efforts.
International organizations and NGOs can also play a crucial role by providing aid and technical expertise. For example, the World Bank and the IMF could offer assistance in rebuilding infrastructure and stabilizing the economy. Additionally, countries that have welcomed Syrian refugees should support efforts to create conditions that allow them to return safely and contribute to the country’s recovery.
Archyde: what gives you hope for Syria’s future?
dr. Al-Mansour: Despite the immense challenges, I am inspired by the resilience of the Syrian people. Even in the face of unimaginable hardship, they continue to find ways to survive and rebuild their lives. There is also a growing sense of unity and determination among Syrians to create a better future for their children.
If the international community can come together to support Syria’s recovery,and if the new government can implement effective policies,I believe there is hope for a brighter future. it will not be easy, and it will take time, but I am confident that syria can rise from the ashes of war and rebuild a stronger, more prosperous nation.
Archyde: Dr. Al-Mansour, thank you for your insights and for sharing your perspective on this critical issue.
Dr. Al-Mansour: Thank you for giving me the opportunity to speak about Syria’s challenges and potential for recovery.
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This interview was conducted by Archyde News as part of our ongoing coverage of global economic and humanitarian crises. For more stories like this, visit our website at www.archyde.com.
