In the wake of Bashar al-Assad's ousting on December 8, 2024, Syria's newly formed caretaker government is embarking on a significant economic overhaul, which includes plans to fire a third of public sector workers and privatize state-run companies. This initiative has sparked protests across the country, particularly in Deraa and Latakia, where citizens fear sectarian job purges [fc755e7f].
The caretaker government, led by transitional president Ahmed al-Sharaa, aims to transition Syria from a revolutionary mindset to a structured state approach. Al-Sharaa has promised elections within four years as part of a broader strategy to establish a stable interim government [4ccea72f]. Meanwhile, the economy minister, Basil Abdel Hanan, is advocating for a competitive free-market economy, which he believes is essential for revitalizing Syria's devastated economy [fc755e7f].
Currently, Syria's economic situation is dire, with the GDP having fallen from $62 billion in 2010 to just $8 billion in 2023. Over 90% of the population lives in poverty, and the World Food Programme reports that 12.9 million people are facing food insecurity [4ccea72f]. The government has identified monumental corruption within state firms, prompting Finance Minister Mohammad Abazeed to emphasize the need for reforms [fc755e7f].
To address inefficiencies, the caretaker government is digitizing employee records, which is expected to help eliminate the estimated 400,000 'ghost employees' among the 1.3 million government workers [fc755e7f]. Additionally, a 400% increase in state salaries is set for February, which may help alleviate some immediate economic pressures on public sector workers [fc755e7f].
As the caretaker government navigates these turbulent waters, it is also engaging in political dialogue with the Autonomous Administration of North and East Syria (AANES) to address urgent issues such as accountability for war crimes and the management of mass graves [4ccea72f]. The international community is closely monitoring these developments, as they hold significant implications for Syria's future stability and governance [187bedbe][4a0c7745].