Rebuilding Syria

As the Syrian conflict continues both international institutions and Syrian civil society are building a vision for the future reconstruction of the country. At MEI’s 70^th Anniversary Conference Wednesday a panel was convened to discuss these issues and highlight the economic and governance challenges facing reconstruction efforts.

As Deputy Executive Secretary of UNESCWA and former Syrian Deputy Prime Minister for Economic Affairs, Abdullah al Dardari has been tasked with developing a reconstruction plan for Syria. He first set out the daunting scale of reconstruction efforts required through the example of housing infrastructure. In order to meet Syria’s housing needs the country will need to build 300,000 new homes per year for ten years. Given that prior to 2011 they only managed 90,000 per year this will clearly stretch on resources. Housing reconstruction would also require 30 million tons of cement per year, but domestic production only reaches 5 million tons. Importing 25 million tons of cement is not possible given the current state of infrastructure and the current account. Mixing such a large amount of cement also requires huge volumes of water, which will be a challenge given Syria’s water crisis.

Dardari assured the audience that while the engineering and financing problems of reconstruction are troubling, of most concern are the governance challenges that must be addressed first. An inclusive, representative, accountable, and capable governance structure must be developed that enables the Syrian people to negotiate freely the difficult choices to be made early in the development process, such as to which regions limited resources are to be directed first.

Also of vital importance will be balance between decentralization and a unified Syria. Dardari emphatically rejected any proposals for the division of Syria as this would only lead to further fragmentation and dysfunction. Division proposals denythe complexity of Syria’s ethnic and sectarian makeup, as no area is dominated by a single group. Even the Alawite ‘heartlands’ of Lattakia and Tartous are 50 per cent Sunni. Furthermore, the Syrian model post-Ottoman is a centralized national project, which should not be reversed. Practically speaking, reconstruction requires a centralized process as networked systems such as electricity and transport must come from a single authority.

The other Syrian on the panel, Karam Foundation founder Lina Sergie Attar, firmly agreed that Syria must remain unified. However the conflict has led to a degree of decentralization that will be irreversible. Convincing places such as Raqqa and Idlib, which are currently far removed from the central government’s authority to return to the fold, will require representative and inclusive institutions able to rebuild trust. 

Shanta Devarajan, Chief Economist of the World Bank for the Middle East and North Africa region, gave insight into its preparations for rebuilding post-conflict Syria. The World Bank is laying the foundation of a private sector to be transplanted to Syria through the establishment of Special Enterprise Zones (SEZs) in Jordan. In these zones both Jordanians and Syrians are permitted to work, with Jordan agreeing to grant 300,000 work permits to Syrians. The goods produced will enter the EU at reduced concessionary rates. Many of the investors in the SEZs have been Syrians who would have otherwise directed their capital towards the Gulf. This suggests that capital mobilization from the Syrian community will be possible, and must be a central component of the estimated US$200 billion required to return Syrian GDP to 2010 levels.

The World Bank is also prioritizing education and health care in their redevelopment plans as these sectors have been disproportionately targeted in the conflict with troubling consequences for Syria’s human development indicators. Attar confirmed that education projects are also a focus for the Karam Foundation, which is calling for flexible and innovative solutions for a generation of children that has missed up to five years of essential schooling.

Attar was granted the last word on the rebuilding of Syria and argued that reconstruction without justice will never be lead to an enduring peace. In her view, many Syrians would not have rejected Assad and his regime remaining if it meant the violence would stop, however this is no longer possible as all trust has been eroded. While Dardari argued that economic reconstruction is part of the reconciliation process itself, including developing industries and sectors that cross lines to addressing the exploitative war economy, Attar believes the removal of Assad and his regime must be the first step to reconciliation and a priority in the peace process.