Impossible task ahead to rebuild Syria in already devastated economy
Introduction
The task of rebuilding Syria’s economy in the wake of Assad’s ouster presents a daunting challenge, given the country’s already devastated economic landscape. After nearly 14 years of civil war, Syria’s economy has contracted by a staggering 85%, plummeting from $67.5 billion in 2011 to just $9 billion in 2023. This economic collapse has left Syria on par with some of the world’s poorest nations, a far cry from its pre-war status.
Economic Devastation
The Syrian economy has been ravaged on multiple fronts
Infrastructure Damage
The conflict has decimated critical infrastructure, including electricity, transportation, and health systems. Major cities like Aleppo, Raqqa, and Homs have suffered widespread destruction.
Currency Crisis
The Syrian pound has experienced severe devaluation, leading to a massive drop in purchasing power. In 2023, the country witnessed hyperinflation, with the consumer price index doubling compared to the previous year.
Key Sector Collapse
The two main pillars of Syria’s pre-war economy - oil and agriculture - have been decimated. Oil exports, which once accounted for about a quarter of government revenue, have been severely restricted due to loss of control over oil fields and international sanctions.
Humanitarian Crisis
As of 2024, 16.7 million people across Syria need humanitarian assistance, up from 15.3 million in 2023. Food insecurity affects at least 12.9 million people, with 3.1 million severely food insecure.
Challenges to Reconstruction
The path to rebuilding Syria’s economy faces several obstacles:
Financial Constraint
With a severely contracted economy and limited resources, funding for reconstruction will be a major challenge. International support will be crucial, but may be complicated by political considerations.
Sanctions Relief
The removal of international sanctions will be essential for economic recovery, as highlighted by UN envoy Geir Pedersen’s call for a quick end to Western sanctions.
Infrastructure Rebuilding
Extensive damage to cities and infrastructure will require massive investment and time to repair.
Political Stability
The success of reconstruction efforts will depend heavily on the establishment of a stable, inclusive government that can gain international recognition and support.
Potential for Recovery
Despite the challenges, there are some positive signs for Syria’s economic future:
International Support
The fall of the Assad regime may open doors for increased international aid and investment in Syria’s reconstruction.
Regional Involvement
Countries like Turkey may play a significant role in the rebuilding process, leveraging their economic, diplomatic, and military influence.
Construction Sector Opportunities
Turkish construction and cement companies have already seen a surge in stock prices, anticipating potential involvement in Syria’s rebuilding efforts.
Early Recovery Strategy
The United Nations has launched an Early Recovery Strategy (2024-2028) aimed at building long-term resilience and addressing the ongoing humanitarian crisis.
Conclusion
Rebuilding Syria’s economy will be a long and challenging process. Estimates suggest it could take nearly 10 years for the country to return to its 2011 GDP level and two decades to be fully rebuilt. Success will depend on political stability, international support, and the effective implementation of comprehensive economic and social reforms.
The road ahead is undoubtedly difficult, but with concerted efforts from both within Syria and the international community, there is hope for gradual economic recovery and improved living conditions for the Syrian people.
