Syria: Economic Challenges Hinder Recovery Amid Diminished Aid

The NRC’s market assessment highlights the inadequacy of Syrian markets to support returning displaced persons, citing declines in production and trade. The report stresses the urgent need for investments to help small businesses thrive, as families face a severe liquidity crisis and rising costs, particularly for basic necessities. Ahead of an important donor meeting, the NRC calls for increased international support to facilitate recovery and self-reliance.

The Norwegian Refugee Council (NRC) has released a market assessment indicating that certain local markets in Syria are ill-equipped to accommodate potential new workers amid mass returns of displaced individuals. This assessment surveyed large and medium-sized enterprises within Rural Damascus, Daraa, Aleppo, Homs, and Hama regions, revealing declines in production and trade since the prior government fell, despite improved trade policies.

Federico Jachetti, NRC’s Syria Country Office Director, stated that “despite the relative improvement in prices over recent months, Syrian markets are suffering from a liquidity crisis and purchasing power that has reached rock-bottom levels.” He noted the dire situation for Syrian families, which struggle to afford basic necessities, emphasizing the urgent need for investments to bolster small businesses and create job opportunities.

As Ramadan approaches, NRC conducted interviews with families who reported that the average monthly expenses for food, rent, and utilities amount to approximately 3 million Syrian pounds (300 US dollars), largely impacted by the unstable exchange rate and market fluctuations. Electing to highlight the hardships, Mohammed, an electrician, expressed that consumers are significantly burdened, specifically when trying to restock basic supplies.

Furthermore, those who have returned from displacement or remain in camps have noted the adverse effects of aid cuts on their households. Although some food prices have decreased, the cost of bread has surged eightfold compared to last year due to the reduction of subsidies. Families like Mona’s, who live in an Idlib camp, rely heavily on external aid for survival.

Ahead of the upcoming Brussels Conference on 17 March, NRC is urging increased international funding for displaced Syrians and those returning to their homes. Jachetti stated, “there is a need for both urgent relief and support, to ensure the long-term self-reliance of Syrians who are keen to reclaim their futures.” NRC contributes through various forms of assistance, including rehabilitation efforts and business grants.

In conclusion, the Norwegian Refugee Council’s market assessment underscores the alarming state of Syrian markets, which struggle to meet the needs of returning individuals. Significant economic challenges persist, emphasizing the necessity of international aid and investment to facilitate recovery and sustainability. The NRC’s calls for support reflect a pressing need to create job opportunities and ensure essential services for displaced Syrians.

Original Source: www.nrc.no