{"id":18855,"date":"2025-09-12T18:52:23","date_gmt":"2025-09-12T15:52:23","guid":{"rendered":"https:\/\/sydialogue.org\/?p=18855"},"modified":"2025-09-12T18:52:23","modified_gmt":"2025-09-12T15:52:23","slug":"syria-and-combating-the-black-economy","status":"publish","type":"post","link":"https:\/\/sydialogue.org\/en\/syria-and-combating-the-black-economy\/","title":{"rendered":"Syria and Combating the Black Economy"},"content":{"rendered":"

Executive Summary<\/strong>:<\/span><\/h3>\n

This report examines the issue of the black economy in Syria as one of the most pressing challenges that deepened during the era of the former Assad regime. It highlights that the black economy encompasses activities that are illegal or unregistered within the formal framework, such as drug and arms trafficking, smuggling of goods and antiquities, the illicit extraction of oil and minerals, in addition to tax evasion, informal labor, and manipulation of exchange rates. The report argues that conflicts and wars create fertile ground for the proliferation of such practices, due to weakened state institutions, the decline of oversight mechanisms, and the spread of corruption.<\/p>\n

In the Syrian case, the partial collapse of state institutions and the security vacuum after 2011 led to a substantial expansion of the informal and illicit economy. Drug trafficking became a large-scale activity managed by various actors, many of them linked to the Assad regime or Iranian-backed militias. Arms smuggling proliferated across borders and areas outside state control. Natural resources such as oil and minerals were exploited by non-state actors, including ISIS and other de facto authorities. At the same time, antiquities were systematically looted and trafficked, while black-market currency trading provided vast opportunities for manipulation and profiteering. Collectively, these dynamics undermined state revenue collection, weakened the formal economy, and allowed armed groups to finance themselves at the expense of overall stability.<\/p>\n

The report reviews comparative experiences from other countries facing similar challenges. In Rwanda, tax reforms, digitalization, and anti-corruption measures narrowed the space of the informal economy. In Afghanistan, the Taliban government imposed strict measures against narcotics. El Salvador adopted a hardline security approach toward organized gangs, though criticized on human rights grounds. Other noteworthy experiences include Vietnam and Nigeria\u2019s efforts to combat currency counterfeiting through the introduction of polymer banknotes; Uruguay\u2019s policies facilitating the integration of informal workers into the formal economy; and Australia\u2019s strict legislation and nationwide campaigns to curb the spread of firearms.<\/p>\n

Drawing on these cases, the report proposes recommendations for Syria, divided into immediate, medium-term, and long-term measures. Among the key recommendations are: confronting drug trafficking through strengthened security efforts and providing economic alternatives for civilians involved in narcotics production; regaining control over natural resources such as oil and minerals; tightening penalties on those engaged in antiquities looting and smuggling; reinforcing border control using modern technologies; and addressing the living conditions in border areas that drive communities toward smuggling. The report also stresses the need for tax system reform through digitalization, simplification of procedures, and greater transparency in revenue allocation, alongside incentives for activities operating within the formal economy.<\/p>\n

The report concludes that the complete eradication of the black economy is unrealistic. However, it is essential to reduce it to levels that enable the state to restore its core functions and secure a degree of economic and political stability. Addressing this phenomenon requires a comprehensive approach that integrates security, legal, social, and economic dimensions, with cooperation between state institutions and civil society, and through leveraging international support and expertise. It also emphasizes that priorities must be defined according to the specific circumstances of each Syrian region, given the variation in economic and security challenges across the country.<\/p>\n

To read the full report click here (Arabic<\/a>)<\/p>\n","protected":false},"excerpt":{"rendered":"

Executive Summary: This report examines the issue of the black economy in Syria as one of the most pressing challenges that deepened during the era of the former Assad regime. 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