This research paper was developed by LUGARIT in collaboration with Omran Center for Strategic Studies. The study examines Syria’s fragmented economy, highlighting the urgent need for livelihood support, MSME expansion, and economic solutions beyond humanitarian aid.
This research paper investigates the economic conditions of Syrian communities in the lead-up to the collapse of the Assad regime in late 2024. By analyzing data from a multi-sectoral survey conducted in sub 253 inhabited districts and major urban neighborhoods, the study explores key factors affecting survival, including food security, employment, assets, and the fragmented political economy of survival that shaped post-conflict Syria.
Key Findings and Arguments
The Collapse of Syria’s Economic Model:
The paper argues that Syria’s economy, which was historically based on resource extraction rather than sustainable development, deteriorated due to mismanagement, corruption, and international sanctions. The combination of these factors resulted in a sharp decline in living standards, forcing communities into alternative survival mechanisms, such as substandard work in informal economies, remittances, and humanitarian aid.
Fragmentation of Economic Networks:
The research highlights the territorial and economic fragmentation caused by the conflict, which disrupted traditional value chains and created localized economies dependent on different sources of revenue and governance structures. This fragmentation led to stark economic inequalities between regions, exacerbating social instability.
Limitations of Humanitarian Aid:
Despite significant international assistance, humanitarian aid addressed only a fraction of survival needs. The study finds that remittances, employment (particularly in micro, small, and medium-sized enterprises—MSMEs), and social capital played a far greater role in sustaining communities.
Urgency of Immediate Livelihood Support:
The research warns that long-term structural reforms alone will not resolve Syria’s economic crisis. Instead, urgent interventions are needed to stabilize livelihoods, particularly by expanding labor absorption in MSMEs and prioritizing aid to the most vulnerable groups.
Housing, Land, and Property (HLP) Issues:
Property ownership remains a crucial factor for economic stability, yet the study argues that HLP challenges should not be addressed solely as legal issues. Economic solutions, such as mechanisms for financing reconstruction and preventing speculative real estate exploitation, are equally essential.
Integrating Ex-Combatants and Reducing War Economy Dependence:
Many communities remain dependent on war economies for survival. The research stresses the need for structured reintegration programs for ex-combatants, ensuring they transition into civilian employment and do not become further destabilizing forces.
Policy Implications
To move beyond survival economics and towards sustainable recovery, the study calls for:
Decentralized recovery financing that strengthens local economies.
Targeted support for MSMEs to provide immediate employment opportunities.
Legal and economic solutions to property disputes to prevent long-term displacement and instability.
A gradual transition away from humanitarian aid dependency, ensuring local governance structures facilitate sustainable economic activities.
Ultimately, the study underscores that Syria’s post-conflict reconstruction must be grounded in localized, bottom-up strategies that prioritize livelihoods and economic inclusion rather than top-down structural reforms alone.
12 February 2025
Header Photo
Resilience in hardship: A young girl carries her brother in front of their tent in a refugee camp in Idlib, Syria. 19 January 2023. Photo © Mohammad Bash - via ShutterStock. Link >