Assad’s Cash Problem: Will Syria’s Dwindling Reserves Bring Down the Regime?
With more than 40,000 people killed in Syria’s devastating war, and about three million people driven from their homes, Western and Arab leaders are grappling with one question: How and when does all this end? The answer, say some, might lie not in the horrific bloodshed but in a simpler factor: money. Economists say President Bashar Assad’s regime has effectively gone broke, and is running out of ways to raise revenues and keep most of its soldiers properly fed and paid. “The economy is the basis of everything,” says Samir Seifan, a prominent Syrian economist who fled last year. He spoke by phone from Dubai. “Without services, boots, money, you cannot do anything. If the government cannot finance the army, they [soldiers] will simply go away.”
That tipping point, in which the government faces all-out financial collapse, seems to be drawing near—between three to six months from now, according to the calculations of Seifan and others who have examined Syria’s finances. Already, Assad has abandoned about 40% of the country’s territory to rebel forces, withdrawing his troops from the ground while his jets continue aerial bombing, apparently because the army is too thinly stretched to defend both rural areas and the government-held pockets of Damascus and Syria’s most populous city, Aleppo. And while Assad appears still to have considerable resources in Damascus, the economic indicators suggest his country is in free-fall, and that he has little way to generate fresh cash—at least not without appeals to allies.