Financial Crime World

Syrian Tycoons Thrive in Chaos: Corruption Flourishes in War-Torn Syria

Overview

Amidst the ongoing Syrian conflict, new opportunities for illicit profits have emerged. This article explores how corruption has taken on various shapes in different areas of control, leading to the rise of a new breed of business tycoons.

New Forms of Corruption in War-Torn Syria

With the emergence of four distinct areas of control, corruption has assumed novel forms in Syria. In areas under both the Assad government and opposition groups, corruption includes:

  • Administrative graft
  • State connivance in organized crime

State Capture and Predatory Corruption

Despite the weakening of the Syrian state, it has not vanquished completely in government-held territories. Instead, the state apparatus has undergone a metamorphosis, giving rise to predatory corruption, and allowing actors to exploit the crisis for personal gain.

The Rise of War Economy Tycoons

In the chaotic climate of war, both state and non-state entities have seized new opportunities to amass wealth through illicit means. Schemes employed by these actors include:

  • Extortion
  • Protection rackets
  • Exchange rate exploitation
  • Narcotics, arms, and human trafficking

Diversion of International Assistance Funds

The conflict’s impact on pre-war political-business relations has led to the emergence of a new breed of business tycoons. These individuals have made their fortunes by capitalizing on the war economy, predominantly in key sectors like:

  • International aid distribution
  • Public procurement
  • Security
  • Justice
  • Healthcare

Corruption in Syria is particularly pronounced when it comes to the diversion of international assistance funds, which often find their way to local powerbrokers and de facto authorities instead of their intended recipients.

Role of Foreign Stakeholders

Apart from the government and opposition groups, foreign powers and corporations also play a role in perpetuating corruption in Syria by:

  • Providing assistance to preferred groups
  • Profiting from the instability

Conclusion

The complex web of relationships and power dynamics that have emerged from this conflict ensures that corruption remains a pervasive force, shaping the political and economic landscape of the Syrian Arab Republic.

References

  • Khaddour, M. (2015). The political economy of Syria under Bashar al-Assad: Neo-patrimonialism and the developmentalist state. Cambridge University Press.

About the Authors

Peer Reviewers

  • Hazem Alnamla and Matthew Jenkins, Transparency International
  • David Jackson, U4 Research Fund

Date

March 27, 2024