Global Economic Impact of the Syrian Conflict Essay

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1.0 Introduction In recent times, one of the most widely discussed topics in the global political scene has been the revolutionary uprising in the Middle East, better known as the “Arab Spring”. The uprising first began in the North African country of Tunisia and then spread to several countries. The most recent country to have been affected by this ongoing conflict is “Syria”. An article published by China’s state press agency “Xinhua agency”, dated January 25 2014 highlights how the ongoing civil war in Syria has resulted in several economic losses. The conflict has led to the displacement and impoverishment of millions of Syrians. Syria’s economic development has fallen to the last position among the other Arab states, with its oil and industrial sectors suffering damages worth billions of pounds. A report by the United Nations Development Program places Syria’s overall economic losses at a rate of about 200 million dollars per day (Yan, 2014). 2.0 Discussion 3.1 Civil war impact on Syrian economy (see appendix for diagram) Barro (1991) in his research finds the existence of a negative correlation between political instability and the economic performance of a country. From an economic perspective, Syria’s economy has been tarnished due to the civil war with its oil, mining and textile industry all being brought to its knees. A statement made by a minister indicates that Syria’s GDP has fallen significantly by almost 40% with other estimates placing the fall between 60-65% (Map Action, 2013). A report by Galina Kolev, an expert of the Cologne Institute of Economic Research, describes how Syria’s infrastructure has been severely damaged with the production sites of many companies being shifted to Turkey or Egypt. Syrian exports which amounted to over 2 billion euros ($2.73 billion) in the past few years fell to a quarter of that in 2013. Syria’s

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