In brief
The fall of President Assad has opened a crucial dialogue on how to revive Syria's economy from the ruins of civil war, but sanctions relief is a key factor in any recovery efforts.
By Patricia Cohen Reporting from London Dec. 21, 2024, 12:01 a.m. ET The swift fall of President Bashar al-Assad's government shocked many, but reviving Syria's shattered economy will prove to be a lengthy and challenging process. Nearly 14 years of violent civil strife have left the country's energy sector, agriculture, and infrastructure in tatters; an estimated ninety percent of Syrians now live in poverty. The Syrian pound continues to tumble, while the central bank's foreign currency reserves have dwindled dangerously low, hampering the country’s ability to purchase essential goods such as food and fuel. Before the civil war, oil production represented around two-thirds of Syria's exports, and agricultural endeavors contributed about a quarter to its economic landscape. Recently, however, the illicit trade of captagon, an addictive drug produced under the control of politically affiliated organizations, emerged as the nation’s primary source of income. “The entire economic framework of Syria is essentially non-functional,” stated Samir Aita, a prominent economist and authority on Arab economic issues. Ahmed al-Shara, the leader of the newly formed rebel coalition now governing Syria, faces monumental tasks ahead. Uniting various factions, reforming government structures, reinstating law and order, and managing vital services, including water distribution, are precarious challenges confronting the coalition. Experts unanimously agree on one pivotal step that could significantly influence the economic revival: the United States must alleviate stringent sanctions that have systematically isolated Syria from global markets and financial corridors.
