The Political Economy of Syria’s Physical Fragmentation and Dependence
20 August 2021
- Syria’s physical fragmentation and dependence on foreign powers and neighboring countries have created significant new dimensions of political economy in the country over the course of the conflict.
- Oligopolies controlling cross-border foreign trade and its financing in the fragmented areas of the country now play a major role, especially in the wake of the extensive disruption created by Lebanon’s economic and financial crisis. Such oligopolies are closely connected with the controlling powers in these areas and with the countries that back them.
- Local warlords, linked to local combatants, control the internal crossing points still necessary for trade, the provision of basic goods and services, and humanitarian aid distribution. Local governance is directly associated with these warlords.
- Smuggling is unavoidable across the country’s external borders and internal lines of separation, given the large differences in the prices of goods.
- In-kind humanitarian aid, a long-term undertaking, is distorting local markets where locally produced goods are sold. This discourages local production and undermines economic resilience, employment perspectives and the scope for recovery.
- The ongoing changes to the country’s political economy could lead to further physical fragmentation and impede the emergence of political solutions to the conflict.
Disclamer:
The ideas expressed are those of the author not the publisher or the author’s affiliation
Published in August 2021
All rights reserved to GCSP
Part of the Syria Transition Challenges Project