Syrian Business Tycoons Thrive in War Economy: Corruption Reaches New Heights

By Miloš Resimić

Reviewed by Hazem Alnamla and Matthew Jenkins, Transparency International and David Jackson, U4 Research

Background: Syria’s Political-Business Nexus Reshaped

• Syrian conflict drastically altered the country’s political landscape
• War economy fueled endemic corruption, further cementing the political-business nexus

Syria’s New Normal: Corruption in a Fragmented Landscape

In the tumultuous Syrian Arab Republic:

• Four distinct areas of control
• New normal: Corruption-laden, predatory political economy

Areas of Control: Government and Opposition

• State apparatus morphed into something more predatory
• Certain state functions still present, leading to a range of corrupt practices

Opportunities for Corruption Abound

• Constraints on corruption dissipated amidst war’s pandemonium
• State and non-state actors exploit chaos for illicit profit

Main Sectors Affected by Corruption

International Aid

• Corruption diverts funds meant for Syrian people to local power brokers/de facto authorities

Public Procurement

• Lack of transparency enables corrupt actors to manipulate contracts

Security, Justice, and Health

• Corruption in justice system allows those with deep pockets to manipulate outcomes
• Security forces can be bought to look the other way

Drivers of Corruption: Civil War and the New Elite

• Conflict disrupted pre-war political-business relations
• New group of business tycoons emerges, capitalizing on war economy

Other Stakeholders: Syria’s Predatory Elite

• External entities involved in organized crime contribute to the corrupt cycle

Final Thoughts

• Corrupt practices in Syrian political economy violate the rights and wellbeing of the Syrian people

Date: 27/03/2024