Economic Woes Could Trigger New Levant Conflict

When the militant extremists of ISIS started occupying territory in 2013, Iraq and Syria seemingly became the center of the world. Camera-crews from around the world reported breathlessly on each small town where black-clad men in pick-up trucks were advancing. Cities like Mosul, Raqqa and Palmyra became common features in news items as each small conquest was widely shared.

But in 2020, it seems very few still care about the region. Camera-crews have moved on and politicians have found new enemies to worry about. The reporting in the region does garnish is a stream of negative news. Financial crises, the impact of COVID-19, rising bread prices, it appears the region just cannot catch a break from misery.

Countries like Lebanon, Iraq, and Syria face multiple crises at once, with far-reaching consequences for neighboring countries and the region as a whole. What seems like an uncommonly troubled region where misery appears to simply compound and evolve, is largely a strategy of orchestrated and controlled chaos at the behest of foreign powers and institutions.

Hyperinflation

Comments on “hyperinflation” are becoming more common in reports on Syria and Lebanon, as extreme inflation causes prices for basic necessities to skyrocket amid stagnant or diminishing wages. Hyperinflation has sparked renewed protests in Syria, unseen since Bashar al-Assad and Russia reasserted control over the country through a brutal military campaign.

In Lebanon protests have again rocked the country, with much of the ire aimed at the country’s banking sector and the Lebanese central bank itself. A crisis of institutionalized corruption and sectarianism have intertwined with the country’s dwindling foreign currency reserves and the emergence of the COVID-19 pandemic to create a “perfect storm” of troubles for the Lebanese.

Austerity

In response to a historic drop in oil demand, oil prices have tumbled to levels that no expert could have predicted at the start of the year. For countries in the region, the drop in state revenue leaves large gaps in their national budget amid an increase of costs for the healthcare sector and much needed basic support for the poorest and most vulnerable.

In order to find funds abroad, countries like Lebanon and Iraq face increasing pressures from global institutions to reform their countries in order to cut public spending, boost the private sector and increase foreign direct investment. Receiving loans from institutions like the World Bank and the IMF means bending domestic policy to align with foreign visions and implementing unpopular reforms.

Sanctions

Then there are ever increasing sanctions that further weaken local economies. The US targets the leadership of Syria by halting most international trade, including from its destitute neighbor Lebanon. Washington similarly limits Iraq’s ability to buy much needed energy from its neighbor Iran, with the US issuing “waivers” that allow Iraq to import Iranian electricity.

Iran itself is facing crippling sanctions that have turned a health crisis into an unmitigated human tragedy, as the country continues to have the life squeezed out of its last remaining international trade. Iran has faced severe medical shortages and faced major barriers to importing much needed protective equipment and medicine, making the spread of COVID-19 in the entire region more likely.

Misery by Design

While hyperinflation, austerity, and sanctions continue to make an impact on citizens’ lives in the region, none of these are accidental byproducts, but instead are very much the intended goal. Financial support only comes when nations submit to the “Washington Consensus,” turning their countries into neoliberal countries rife for exploitation by foreign multinationals.

Sanctions and hyperinflation are similarly highly related to foreign influence. Sanctions on Syria intend not just to hurt its leadership but actively intend to starve the people of Syria and Lebanon into revolt against its leaders. US officials regularly regurgitate their belief that economic hardship for citizens will lead to a popular uprising that will replace elements of the government that the US does not like.

Sovereignty

While it appears that countries in the region roll from one crisis to the next, in truth these countries have never been “granted” the ability to stop these crises. Iraq cannot exercise any sense of a sovereign foreign policy because of its reliance on US support, Lebanon cannot reform its banking sector without demands from the IMF, and Syria is unlikely to have a “successful” new revolution after al-Assad’s inhumane crushing of dissent.

If foreign powers are genuine about creating stability in the region, they would be best served by leaving the region to determine its own future. The US alone could make a significant contribution to local stability by following the will of the Iraqi people by withdrawing its forces. The US could also lift sanctions on Syria and Iran and allow Iraq, Syria, and Lebanon to freely decide who it trades with.

Freedom to choose

Stability in the region will only materialize when local economies are allowed to grow, politicians are permitted to succeed, and nations can freely trade with one another. The only standard the West needs to follow, is the standard of national sovereignty that it sets for itself. Greater personal freedoms, religious tolerance, and gender equality all depend on rising living standards and the absence of fear and chaos.

By removing foreign influence from the region, the Levant and its neighbors could have a genuine shot at improving the lives of its citizens, unconstrained by the motivations and goals of nations thousands of miles away. As long as foreign powers freely meddle with the fate of millions of local people, the Levant and its neighbors will continue to spiral into further chaos, exactly as was intended.

Caesar Act Sanctions: Another Blow to Syria’s Collapsing Economy

The US and European Union’s latest round of sanctions, known as the “Caesar Act,” aims to cut Bashar Al Assad’s final foreign economic lifelines. 

Lawmakers passed the  legislation in December 2019 but it came into force today, June 17. They named the act in honor a military photographer codenamed “Caesar” who infiltrated Syrian jails where he took over 50,000 photos of torture and death.  

The sanctions are meant to “compel the government of Bashar al-Assad to halt its murderous attacks on the Syrian people and to support a transition to a government in Syria that respects the rule of law, human rights, and peaceful co-existence with its neighbours.” 

In reality, Syria’s economy is in dire straits. The currency has crashed in the wake of the impending sanctions, driving up the cost of living for ordinary citizens while the regime continues unphased. 

An estimated 80% of Syrians were already living below the poverty line prior to the recent economic decline, which has only intensified their struggle. Their situation is so distressing that thousands of Syrians took a huge risk, returning to the streets for the first time since 2011 to protest the worsening conditions in towns like Suweida, Daraa, and Idlib. 

UN envoy’s report

In his latest briefing to the UN Security Council, UN Special Envoy on Syria Geir Pederson reported that the Syrian pound has depreciated at lightning speed, driving up food and medicine prices and disrupting supply chains.  

“I heard a new level of alarm at the dramatic collapse in economic conditions throughout the country. It is easy to understand why,” Pederson told the Security Council. “During just one week during the reporting period, the Syrian lira’s market rate depreciated more than in the entire nine years prior.” 

“The economic crisis is hitting every part of Syria, regardless of territorial control: from Damascus and the southwest … to Aleppo and the northwest … and to the northeast,” the UN envoy explained.  

The devastating financial and political crisis in Lebanon is one factor that has driven its “twin” economy in neighboring Syria into a spiral of decline, Pederson said. The collapse is also gaining momentum from the fallout from the country’s civil war, long-running structural issues with the economy like poor governance and corruption, the COVID-19 pandemic, and now the Caesar Act. 

“In recent weeks, we have seen many Syrians begin to express new fears – even panic in some quarters. We have heard of shops and pharmacies forced to close, unable to cope with the recent volatility; of jobs being lost; of remittances drying up. In some areas of northwest Syria, reports have emerged of locals increasingly using foreign currencies,” Pederson said. 

The new sanctions effectively penalise any country that does business with any company in Syria. As a result, they cut off the few trade ties Syria has left with its primary trading partner Lebanon, for one – but also with European and Gulf States. 

UNSC response

Security Council permanent members Russian and China spoke out against the sanctions on June 16.  

China called the move to forge ahead with the Caesar Act in light of the COVID-19 pandemic and ensuing global and economic crisis, “simply inhumane.”

Meanwhile Russia, who supports the Assad regime, told the Security Council “that the purpose of these measures is to overthrow the legitimate authorities in Syria.”

The US has been imposing sanctions on Syria since 1979, and gradually ratcheted up the restrictions since civil war broke out in 2011. Nine years on, they have had minimal effect on Assad, and failed to trigger the downfall of his bloody dictatorship. 

Sanctions have proven ineffective time and time again and, often missing their target, devastate the lives of the everyday citizens they are supposed to be helping. 

It is unlikely the Caesar Act will be any different or achieve the regime change it so boldly hopes to bring about, and instead will be the catalyst for more pain and suffering for the Syrian people.

Read also: Syrians Brace for Looming Sanctions