Syria’s Economic Transition: From Kleptocracy to Islamic Neoliberalism in a War-Torn Economy

Authors: Joseph Daher and Zaki Mehchy

The fall of the Assad regime in late 2024 created a wave of hope for economic improvement in Syria. However, the transitional authority in Damascus, characterised by a profound lack of inclusivity, faces enormous challenges while adopting free-market economy principles and implementing austerity measures. These include market deregulation, a significant reduction in the role of the state, and privatisation of public entities and assets. In the current context of the Syrian economy, and in the absence of a gradual and genuine institutional reform process, the rapid implementation of such measures is strongly discouraged. The measures are expected to deepen the catastrophic economic consequences of the Assad era and pave the way for a distorted economic paradigm characterised by cronyism, dependency on external actors, poor productivity, and continuous socio-economic inequalities. This policy brief shares recommendations that would lay the groundwork for a future economic paradigm through inclusive dialogue until a democratic government and parliament can be elected.

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