The marginal effect of the trade shock on GDP reached –3.1% points in Jordan and –2.9% points in Lebanon. In comparison, the demographic shock (refugee arrivals) boosted GDP by 0.9% points in both countries by increasing aggregate demand and labor supply.
Poverty rates increased by 4% in Jordan, 7.1% in Lebanon &, with internal displacement, 6.0% points in Iraq.
A strong economic recovery in Syria and an associated positive fallout for neighboring states are unlikely.
"A regional approach can help better internalize these spillovers to minimize public bads and maximize public goods. Adopting a regional focus for stability and prosperity necessitates a concerted international effort. Relaxing economic exclusion. Can a consensus be mustered? "
This World Bank Report advocates a policy that runs counter to US policy, which is to strangle the Syrian economy, stop international or regional efforts to facilitate Syrian trade or reconstruction. US sanctions specifically target energy/electric, etc. worldbank.org/en/region/mena…
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1. This is a turning point for the region and the axis of resistance. Israel has made a stunning show of its power, intelligence capabilities, and of Western technological and military superiority. If anyone had any doubts about Israeli power after Oct 7, those doubts have been dispelled. Iran turns out to be the paper tiger that many said it was.
2. The root problem of Israel’s conflict with the Palestinians has not been solved, indeed, it will only get worse. There are 7 million Palestinians living in historic Palestine. The 5.5 million living in the occupied territories have no rights, no sovereignty, no hope of self-determination. Netanyahu will come out of his Lebanon gambit a towering hero, who has secured his legacy and life’s work, which is to frustrate the two-state solution, ensure that no Palestinian state emerges in any part of historic Palestine, and that the occupied territories become Israeli territory. It is a great day for the messianic wing of Israel. Israel is likely to lurch to the right, disregard Palestinian hopes, and exacerbate its infractions of international law and norms.
3. The Arab World and Middle Eastern states must engage in self-criticism after the defeat, as Sadiq al-‘Azm so eloquently wrote following the 1967 debacle. The root cause of the weakness of Middle Eastern states is that they are not nation states. By this, I mean that their peoples share little common identity. They are not united around common goals and do not accept shared rules of citizenship, which prevents the rule of law from becoming internalized as it prevents the emergence of viable democracies in the region. Middle Eastern countries will fail to modernize or know stability so long as the victor of the moment is unable to accommodate the aspirations of the vanquished. This is true of Bashar al-Assad and the Alawi community that supports him in Syria, as it is of the rulers of Lebanon, Iraq, etc.
As Joel Rayburn explained: US sanctions immiserate average Syrians because the Caesar Act "lowered the bar" for imposing them.
"With sanctions, oftentimes there can be a very high hurdle for the evidence that you have to gather in order to prove legal sufficiency under certain… twitter.com/i/web/status/1…
US policy makers had decided by 2013 that they did not want to see the Syrian military destroyed b/c they feared that the opposition was dominated by radical Islamists & the country might fall apart.
The US chose Assad over the alternatives.
Blaming Russia is disingenuous
Read the Deputy Director of the CIA in 2013
"it's going to take the institution of the Syrian military and the institutions of the Syrian security services to defeat al Qaeda when this is done."
“The international sanctions on #Syria must be lifted, and Jordanian-Syrian economic relations must return to the status quo ante,” wrote Musa Al Saket, a member of the Amman Chamber of Commerce.
“The sanctions are unfair to our economy & the Syrian people,” he wrote. “Twelve years since the war broke out, more than 90% of the #Syria population lives below the poverty line, with limited access to food and medicine. This is a major catastrophe,” Saket added:
Russia wants us to seek an agreement #Syria, Kobani told Zaman
“As for the U.S., they need to articulate a policy on Syria. They have no strategy beyond fighting [ISIS] and have failed to formulate a clear policy with regard to the future of the areas under our control.
"The absence of this policy makes it harder for us to negotiate successfully with Damascus,” adding that the US does not oppose talks with Assad’s government.
But Syria’s not ready, “and Russia is not applying enough pressure on them,” adds Kobane.
Shifting energy import patterns enhance China’s clout in the Middle East
China became in 2016 the largest investor in the Arab world with investments worth $29.5 billion, targeted at infrastructure, industrial parks, pipelines, ports, and roads.
Total bilateral trade b/n Saudi Arabia & China grew from $42.4 billion in 2010 to $76 billion in 2019, quickly making China the top trading partner for Saudi Arabia.
In 2020, China replaced the European Union as the GCC’s largest trading partner.