The Syrian civil war, which started in 2011, destroyed the country’s economy and infrastructure as armed groups loyal to different sides fought for control over many local economic hubs. This led to the destruction of sprawling urban centers and infrastructure nationwide. However, in December 2024, Syrian opposition forces ousted the Assad regime, marking a turning point in the nation’s history. Now, a transitional government is leading efforts to rebuild Syria through diplomatic measures.

A Free Market Economy

According to Al Jazeera, under the opposition group Hayat Tahrir al-Sham (HTS), the transitional government wants to establish Syria as a free market economy. As a step towards this, the government reopened the Nasib border crossing with Jordan, one of Syria’s busiest trading routes.

The government will be trying to establish new economic protocols to stabilize the public sector. The focus right now is on necessities such as electricity. However, the country’s economy currently revolves around informal markets that don’t have official oversight, resulting in a hard-to-follow capital flow that will be a challenge to capitalize on.

Reforming Government Ministries

Mohammed Abazeed, finance minister, told Reuters that government ministries would be reformed to improve accountability and efficiency, leading to a 400% increase in public sector salaries by February. The government also plans to overhaul the tax system to benefit all taxpayers. These improvements in various sectors will help Syria. 

However, the country still suffers from sanctions other nations imposed on it during Assad’s regime. The Assad regime received sanctions from many countries in the West, such as the U.S. and the U.K. These sanctions forced the regime to look to Iran and Russia for funding, but now that the old regime has been ousted, the new transitional government inherited those sanctions without a direct source of outside financing to counter them.

Removing Economic Sanctions

The transitional government led by interim President Ahmed Al-Sharaa is in diplomatic talks with the U.S. and European Union (EU) countries to remove economic sanctions. The U.S. government did label HTS as a terrorist organization;

However, on December 20, 2024, the U.S. government removed a $10 million bounty for al-Sharaa. The U.S. is also leading talks with Gulf Arab states to remove sanctions so long as the new government cuts ties with Russia and Iran, according to Al Jazeera.

A Peaceful Resolution

Armed groups and militias still control much of Syria. Many of these groups fought the HTS or remained wary of their intentions. As a show of peace, the transitional government invited delegates from all over Syria to a national dialogue conference on February 25.

Al-Sharaa and his government are trying to reach a peaceful resolution with other armed groups by involving them in rebuilding and creating a unified army from these groups. However, the Syrian Democratic Forces have refused to disarm and give up their territory.

Conclusion

Many Syrians remain hopeful for the future. Diplomatic talks with nations such as Türkiye remain consistent for the transitional government, potentially allowing for foreign investment. Syria remains in a precarious position but is consolidating a plan to rebuild.

– Jonathan Joseph

Jonathan is based in Milwaukee, WI, USA and focuses on Good News and Politics for The Borgen Project.

Photo: Wikimedia Commons