Syria’s civil war has been described as the worst humanitarian crises of the 21st century, as the on-going Syrian conflict has its negative effects on everything and the large-scale damage to both human capital and infrastructure.
The most critical economic problem facing Syria is the demographic catastrophe caused by the war, as the country’s power population was around 22 million, 4.8 million have fled to other countries as refugees and about 6.6 million are displaced within the country. Added to that, an estimated 4 million Syrian children are not attending school. Also, there are differences between various regions within the country, depending on whether they are controlled by the government, rebel groups or the so-called Islamic State .
The war in Syria has devastated its economy in all aspects:
- Syria’s mining and construction workers have been hit with exports dropping from $12 Billion to around $2 Billion.
- The Syrian pound has lost 80% of its value since the conflict started.
- There has been an estimated 23% decrease in the population.
- Economic output dropped to 65%.
- The average price of goods and services has increased by 51% Since 2012.
- A drop in the state’s oil output from around 387,000 barrels/day in 2011 to 10,000 barrels/day in 2014.
- 60% of bank loans end up as non-performing loans, and warlords have swapped positions with industrialists, traders and merchants as the highest-earning members of society.
- Unemployment in Syria has reached 90%.
Economy and peace are intimately linked, but the economy can also play an active role in conflicts and competition over resources can lead the conflicts through, promoting economic development in conflict affected places by the assistance of international organisations that must ensure their projects make a contribution both to livelihoods and peace.
Building a strong economy is an active step to serve the peace because:
1-Reducing the risk by providing alternative income sources and giving people a sense of purpose, dignity and hope.
2-Building bridges between divided communities by bringing people together around a common purpose and need, and gradually creating a web of connections through trade.
3- Put a basis of “peace supporting economy” through businesses & entrepreneurs who are conscious of how their actions can help to resolve tension and to promote peace.
4-Supporting the private sector leaders in shaping and setting a peace supporting economy now and in the long term, bringing all people in dialogue to build their country.
So, Syria’s only hope of avoiding long-term economic crises is to take positive steps of rebuilding the economic system now so that it is able to deal with all future changes and challenges that both war and conflict resolution offer.
