During 2020 ... Successive crises, Damascus's measures double suffering

Earlier, the government talked about huge investments and measures to improve the living and economic reality in the war-torn country. Former PM, Hussein Arnous's statement focused fully on these two matters, subsidizing the basic materials, and working to increase salaries.

 The opposite happened, as various economic sectors witnessed unprecedented deterioration and the Syrian pound collapsed against foreign currencies, leading to high food prices.

Successive crises

2020 was full of crises in the government-controlled areas, starting with the gasoline crisis that the government had decided to reduce its subsidies, following months of heavy traffic in the streets of most of the Syrian cities for this substance.

The Ministry of Internal Trade issued a decision to raise gasoline (95 octane) from 575 Syrian pounds to 850 Syrian pounds per liter.

The government's measures did not succeed in alleviating the gasoline crisis, doubling the prices of vegetables and fruits.

This was followed by the bread crisis, which added to the suffering of the citizens, and as a result, the Damascus government raised the price of the material as well.

The Syrian government raised the price of flour.

Getting rid of red lines

It is noteworthy that the crises' scenarios were largely similar, as the material decreased, to be cut off later and be provided by the government at high price, in this way, it abolished the subsidy policy and what was called the red line concerning the materials prices.

Governmental measures were limited to increasing salaries, the last of which was what it called a one-time grant of 50,000 Syrian pounds, equivalent to approximately $ 25, and this increase was met with a popular mocking campaign on social media.

Citizen (P. L) said to ANHA agency: "If this grant had not been given, the situation would have been better. Even the raw materials, such as rice and sugar, have come to be considered wishful thinking, such as rice and sugar ... which has increased the suffering of people, most of whom now live below the poverty line."

According to him, this increase has a negative role, as the markets subsequently witness high prices in the absence of government intervention.

Rich class and mirage investments

But the poor class got poorer in this country. The wealthy got richer after the war, as new businessmen appeared in the forefront promoted by the state media as supportive of the national economy.

These businessmen have benefited from the investments that the government talked about earlier, as the political and media advisor to the Syrian President, Buthaina Shaaban, said: "Only the supporting countries for Syria during its crisis, will be allowed to participate in the reconstruction of the country, such as Russia, China and Iran.

But these investments were pure propaganda and controlled by these businessmen. According to an economic study, most of the economic investments are useless; of 118 projects approved by the Syrian Investment Authority in 2018, only 46% of them have taken serious steps towards implementation from early 2020, as these projects were red herring.

These investments are announced on the basis that they are real intent, but according to reports, the two parties are fully aware that there are no plans to actually implement them.

The government and money-mad war profiters partnership

According to an economic analyst, who refused to be named, " A class of post 2011 wealthy businessmen such as the Al-Qaterji family, Samer Fawz and others emerged. The Syrian businessman, Rami Makhlouf showed his upset about its rise at his expense, as a representative of the post-2000 business class, he himself had previously replaced a business class that preceded it.

The economic analyst went further, saying: "After 2020 and the passage of the Caesar Act, the network of old businessmen will be replaced and new investments and groups will be replaced by the parasites of power."

He explained, "The government is trying to establish an economic structure through which it will be able to face the economic sanctions. Accordingly, it seeks to seize Makhlouf's assets as the largest owner and investor in the Syrian economy. He rejects the new deal in favor of a new class of war profiters affiliated with the Syrian government. "

For example, the government approved “Rusafa Refinery,” construction in the south of the Al-Raqqa governorate for refining the Damascus countryside oil despite the closeness of the Homs refinery to the area.

It will be partially operated by "Arfada Petroleum", a subsidiary of the "Katerji International" group, which is owned by Hossam Katerji by 34%, and by his brother Muhammad Baraa Katerji by 33%, and Ahmed Bashir bin Muhammad Baraa Katerji by 33%, knowing that it is subject to US and European Union sanctions.

According to the announcement, the refinery will be established with a capital of ten billion Syrian pounds (equivalent to 4.7 million US dollars), but, according to local studies, this amount is barely enough to purify water and not to refine 60,000 barrels of heavy crude oil.

(A)

ANHA