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Economic Situation in NES (Consequences of Corona Pandemic and Caesar Act)

Author: Jumaa Khazim

The Self-Administration areas in NES are an integral part of Syrian territories. They share with all Syrian regions despite controlling bodies differences, whether they were the Syrian government or opposing parties. As well as, being affected by conflicts, disputes and the raging war since 2011.

The economic reality of NES cannot be discussed apart from the general economic situation in Syria, given the strategic significance of northern and eastern areas, their richness in underground and agricultural resources and the ongoing trade relations nature between the regime’s areas and the Self-Administration areas, despite their tension and interruption in different periods. Many Syrian government institutions are still operating in the Self-Administration areas and their employees still receive their salaries from the Syrian government.

However, one feature of the Self-Administration areas, which are predominantly Kurdish, was they lack all infrastructure and service facilities, namely; industrial, trade, health, and educational ones, until before 2011. The subsequent military conflicts contributed to the further deterioration of these structures and facilities, which were also targeted by the armed and Turkish-backed Syrian opposition groups, through repeated attacks on Kurdish border cities and towns.

The historical context, in which the Self-Administration's areas are currently going through, constituted a cumulative and miserable economic situation. It did not allow them to establish and rise in light of the tension and absence of security and stability. This situation has become even worse in light of the Corona pandemic outbreak that disrupted the wheel of economic life. Also, the living crisis has exacerbated, due to the curfew and closure of crossings and markets. What made matters worse was the recent US sanctions represented by the Caesar Act, which had negative consequences on NES areas after the Syrian currency value witnessed a great decline compared to foreign currencies, the high and scarcity of prices and an unprecedented increase in unemployment and poverty rates.

Table of Contents:
-The Economic Situation in Syria Before and After 2011:
-The Economic Situation in NES Before and After 2011:
-Corona Pandemic Consequences on the NES Economy:
First: Border Crossings Closure:
Second: Market Closure:
Third: High Prices:
Fourth: Increasing Unemployment and Poverty Rates:
Fifth: International Organizations Projects Disruption:
-Caesar Act Consequences on the Economic Situation in NES:
First: Syrian Pound Collapse:
Second: Materials Scarcity and High Prices:
Third: Increasing Unemployment and Poverty Rates:
Fourth: Migration of Workforce and Holders of Capitals
Fifth: Child Labor Increase:
-Recommendations and Conclusions:

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