Value Chain Development in Syria to Promote Economic Benefits and Social Cohesion

Authors: Reem Turkmani, Joseph Daher, Mazen Gharibah, Zaki Mehchy

The dire economic conditions after 14 years of conflict, together with the opportunities emerging in
the post-Assad context, highlight the urgency of value chain development as a pathway to revive local economies and building long-term resilience. This need is evident in the sharp decline of the private manufacturing and service sectors, with manufacturing output falling from 428.4 billion SYP in 2010 to 261 billion SYP in 20241 and the private service sector contracted to about one-third during the same period.

These trends reflect high production costs, shortages of essential commodities and energy, weak
purchasing power, disrupted value chains, underdeveloped private sector capacity, loss of skilled labour, an unstable economic environment, over-compliance, currency volatility, and competing currencies. Within these context, developing value chains is essential for enhancing productivity, competitiveness and resilience through re-establishing relationships and rebuilding trust among value chain actors, promoting economic complementarity, improving market efficiency, generating jobs, reconnecting productive networks, stimulating local investment, reducing dependence on imports and humanitarian aid, rebuilding social capital, reducing inequality, supporting peace building, and improving livelihoods.