In a historic feat, Syrian rebel forces have seized the capital Damascus, and forced the Syrian President Bashar al-Assad to flee the country, reportedly to Russia, thus ending his 24-year-long regime. This also marked the end of the civil war that had plagued the country since 2011. Focusing on rebuilding, the Syrian interim government seeks a free-market economy, departing from the years-old state-planned and managed enterprise.
The civil war, which had already reached a stalemate back in 2020, concluded in the last 14 days. As a result of large-scale attacks on government installations, the rebels were finally triumphant in ending the 14-year-long strife. Led by Hayat Tahrir al-Sham (HTS), the rebel forces seized the capital earlier on December 7th and a day later, the head of the rebels’ so-called Salvation Government, Mohammed al-Bashir, was placed as the head of the transitional government that will be in effect till March 1st next year.
Due to their swift onslaught, which saw next to no resistance in Damascus, the rebels succeeded in taking control of the country, in what seems to be the most significant challenge faced by the Assad government to date. The Russian media has also confirmed that President Assad has been granted asylum on “humanitarian grounds.”
Regional Repercussions
The repercussions of the Syrian civil war are far-reaching. Due to the conflict, Lebanon has already closed all land borders with Syria except the one linking Beirut to Damascus. This was followed by Jordan. These moves show that there is concern in the region regarding stability and peace. On the global stage, eight nations have convened a meeting, alongside the UN Special Envoy for Syria, to discuss a seamless political transition. The UN Special Envoy highlighted the need for immediate negotiations in Geneva to facilitate such a transition.
Going Back To Free-Market Economy
Taking the helm, the interim government in Syria has already come up with an outline for the future of the nation, making a shift back to a free market economy. This is a significant change from the age-old state-controlled practices. These plans were revealed by the head of Damascus Chambers of Commerce, Bassel Hamwi.
The new economic model will be based on competition and openness – Bassel Hamwi
This policy shift has already sparked cautious optimism among Syrian business leaders. But, things remain uncertain as the rebel group, headed by Hayat Tahrir al-Sham (HTS) might not uphold these promises.
Post-War Challenges
Syrian interim government seeks a free-market economy due to the possibilities it has to offer. However, they have to deal with post-war challenges as well. The country is just emerging from a 14-year-old civil war and has no functional economy, so to speak. To rebuild and develop, first, it has to seek stability, which is a huge concern in itself.
Due to the collapse of major economic hubs like Aleppo and Homs, along with the sanctions by Western countries, the Syrian pound has depreciated to 15,000 to one U.S. dollar, driving inflation to unprecedented levels. Thus, the interim government has to first stabilize the internal markets, and work towards currency appreciation, which is a monumental task, given the regional instability.
A Call for Investment
Many Syrian business leaders, at home and abroad, are monitoring the situation and are somewhat optimistic about the proposed economic policies of the interim government. Some have even shown interest in returning to the country and participating in rebuilding it. This requires massive investments, and a free market economy will actually help with this.
The Syrian diaspora will be pivotal in driving the country’s development – Bassel Hamwi
What The Future Holds
Although the Syrian Interim Government wants a free market economy to help rebuild the country by opening its borders, the international community’s response will play a major role in shaping its path forward. Combined with regional instability, many have adopted a cautious approach to the transformations happening in the country. Furthermore, economists have already underscored the need for a coordinated global effort to support Syria’s transition to help it propel into a free market. Thus, transparency and adherence to democratic practices will be crucial for the interim government to gain trust, both domestically and internationally.
