The Norwegian Refugee Council’s assessment reveals that local markets in Syria are unprepared for a potential influx of returnees. Despite policy changes, economic conditions are grave, with families struggling to meet basic needs due to high prices and low purchasing power. The NRC emphasizes the urgent need for investments to support small businesses. Ahead of the Brussels Conference, calls for international aid to assist displaced Syrians are crucial to their recovery efforts.
A recent market assessment by the Norwegian Refugee Council (NRC) indicates that local markets in Syria are unprepared to accommodate potential increases in the workforce, particularly if large numbers of displaced individuals return. This evaluation encompassed large and medium-sized enterprises across Rural Damascus, Daraa, Aleppo, Homs, and Hama, revealing a decline in trade and production since the previous government’s ousting. Despite recent policy changes aimed at improving trade, market conditions remain bleak.
Federico Jachetti, NRC’s Syria Country Office Director, highlighted the ongoing liquidity crisis, stating, “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 emphasized the urgent need for investments in small businesses to create jobs and enhance essential services, particularly infrastructure repair.
As Ramadan approaches, NRC gathered insights indicating that families require approximately 3 million Syrian pounds (approximately $300) monthly for basic needs, primarily due to fluctuating exchange rates and market instability. Mohammed, a trained electrician supported by NRC, indicated that both consumers and businesses are facing significant challenges: “If you sold 10 light bulbs and went back to the market to replenish, you would only get three or four pieces for the same price.”
Those who have returned home from displacement, as well as those still residing in camps, expressed that recent cuts in aid have severely impacted their livelihoods. While some food prices have declined, bread prices have surged by eightfold in the past year following subsidy reductions, according to UN reports. Mona, a camp resident in Idlib, noted, “The only way for us to survive is to rely on aid from people.”
Ahead of the upcoming donors’ meeting at the ninth Brussels Conference on March 17th, the NRC urges increased international support for displaced Syrians and returnees. Jachetti asserted, “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.”
The NRC is actively supporting displaced individuals with vital services, including water, shelter, education, and legal assistance. Furthermore, their efforts extend to rehabilitating critical civilian infrastructure and offering business grants and training programs for entrepreneurs in the region.
The NRC’s assessment underscores the dire economic situation in Syria, characterized by prevailing market challenges and a severe liquidity crisis affecting the purchasing power of families. With urgent calls for international assistance, it is imperative to focus on both immediate relief and long-term strategies to foster self-sufficiency among the Syrian population. Without substantial investments and support, the recovery of Syria remains uncertain.
Original Source: www.nrc.no
