Enab Baladi – Yamen Moghrabi
Last week marked the seventh anniversary of the Syrian Democratic Forces (SDF) control over the city of Raqqa, northern Syria, following battles against the Islamic State group, supported by the International Coalition Forces (ICF).
The battles resulted in destruction in the city located on the banks of the Euphrates River, which possesses natural wealth in the agricultural and oil sectors, in addition to the historical sites in the area, meaning it has an economic diversity that contributes to the gross domestic product of the Syrian economy, should security conditions stabilize.
After years of SDF control over the region, media outlets close to or affiliated with the Autonomous Administration of North and East Syria (AANES) promoted what they considered changes in the infrastructure and economic and commercial projects affiliated with AANES or private projects.
However, those efforts and announcements remain within the minimum limits of a solid economic structure and a sustainable system, despite the resources available in the province, as well as the Autonomous Administration itself, and do not necessarily carry sustainable economic implications.
Limited reconstruction
The SDF announced, in June, the rehabilitation of the Rashid Bridge or “New Raqqa Bridge,” nearly two years after its restoration. The Hawar News Agency, close to the Autonomous Administration, stated at that time that the project came to ease pressure on the bridges used on the Euphrates River and to facilitate land and agricultural trade and transport.
Alongside the bridge, media outlets close to AANES periodically announce service and economic projects related to paving roads, rehabilitating sewage networks, and improving parks, with images on social media showing beautiful snapshots of the city, resembling small reconstruction operations in the city, in addition to launching nearly 3,722 building licenses, according to what Hawar reported from the technical department of the People’s Municipality, since the SDF took control of the city.
There are industrial factories in the region, some operating in the food sector and others in canning or iron extraction, paints, and animal feed.
However, all of this does not have a positive impact on the economy of the region completely controlled by the Autonomous Administration, which announced on October 7 that it had established the Economy Council in the Autonomous Administration of North and East Syria to “support the local economy,” under the Economy Authority.
The region has previously witnessed several protests where demonstrators demanded improvements in service, economic, and health conditions, accompanied by strikes at commercial shops.
The region suffers from malfunctions in irrigation channels that directly affect agriculture, despite repeated announcements about economic achievements in Raqqa.
The economic researcher at the Omran Center for Strategic Studies, Manaf Quman, stated in an interview with Enab Baladi that despite the multiplicity of economic resources and the existence of wealth in areas controlled by AANES, including Raqqa, there are many shortcomings and problems with those managing those resources, being dependent on external parties, which reduces the efficiency of economic decisions and interventions.
He added that AANES, through its repeated announcements of its economic activities, aims to convey an image to the outside about the economic situations in the region.
For his part, Dr. Firas Shaabo, a financial sciences expert, told Enab Baladi that the Raqqa governorate has features, wealth, and essential components for advancement, but the problem lies in those managing these funds, and AANES like other de facto authorities across the Syrian geography does not possess an investment and development vision to improve its regions, seeking to obtain individual privileges at the expense of society and services, in his opinion.
Small projects, SDF benefits
In addition to the announcements of the SDF and media outlets close to it, advertisements for modern buildings and new houses for sale, as well as various small projects, are spread on social media, indicating economic activity, albeit limited, either individually or by relief organizations.
This commercial activity usually contributes to building an economic circle that enhances the local gross domestic product of the region, provided there is political, security, and economic stability in the region.
Raqqa possesses, in addition to its natural resources, a working human force, and the Labor Market Information platform, affiliated with the Ministry of Social Affairs and Labor of the Syrian regime government, indicated in a survey published in 2021, that the gross economic participation rate between 2010 and 2021 in Raqqa was 19.3%.
The rate of gross economic participation in the workforce indicates the percentage of those economically active in a given year out of the total population for that year.
According to Quman, the economy is an integrated system of managing available resources, striving to achieve a degree of sufficiency for individuals at all levels, and small or individual companies constitute a small part of this economy, and their importance arises from their ability to create job opportunities and stimulate economic activities.
He added in his conversation with Enab Baladi that the size of small companies’ participation in the region’s economy remains limited, thus the benefit and effectiveness are restricted to individuals, who bear high financial and economic risks from engaging in these activities.
On the other hand, the spread of small and micro companies may reflect the ineffectiveness of official bodies that are supposed to work on providing an attractive economic environment that creates job opportunities, seeks to attract large and medium-sized companies, and encourages efficient resource management of the region according to developmental economic programs, according to the researcher.
In practice, the benefits of small projects may not be confined to individuals alone by creating only small economic circles, as their effects may extend to the ruling authorities themselves, thus benefiting the Autonomous Administration.
According to Dr. Firas Shaabo, the poor conditions and limited income of individuals drive them towards small projects that lead to economic movements to improve living and service and economic conditions, the aim of which is to enhance the situation, and they may indeed contribute to that at a partial level, benefitting the region, its residents, and those managing it as well.
However, this improvement is linked, according to Shaabo, to the way in which those governing the area utilize the revenues they obtain to develop the situation.
Meanwhile, the economic researcher at the Omran Center for Strategic Studies, Manaf Quman, believes that the SDF and the Autonomous Administration benefit from any economic activities established in the region since they carry part of the burdens off their shoulders and collect financial taxes from them, but at the same time, the benefit may be minimal considering the limitations of these companies in a specific area and certain types of work.
The Autonomous Administration estimated the total revenue for the current year at 670 million US dollars, while it estimated the total expenditures at 1 billion and 59 million US dollars, resulting in an expected deficit of 389 million US dollars.
The Finance Committee of the Autonomous Administration previously imposed annual taxes on traders, pharmacies, and medicine warehouses, some reaching 400 US dollars.
Residents of the region live in deteriorating living conditions similar to those in various spheres of influence across Syrian geography, while the areas controlled by the SDF are considered the richest in Syria, housing most of the oil wells, and are referred to as “Syria’s grain reservoir” due to the agricultural activity in them.
People in the region continue to protest, demanding improvements to their living conditions and securing fuel, with previous demonstrations calling for securing bread and sugar in the region’s markets.