DOI: 10.36347/sjebm.2019.v06i10.002

Pages: 501-516

The debate over the triggering factors of the Syrian crisis in 2011 has not yet been resolved. The literature dealt with possible natural, economic, institutional, demographic, social and political causes. Most of these references have quickly stated the economic reform in the last decade in the country, but no one has deeply discussed the decisive economic factor led to collapse the agriculture in the country. The Syrian government has seen rapid economic openness, part of them was careless and arbitrary and it has taken some selective steps and decisions in order to adapt to globalization. The subsidy cut was the turning point in the economic reform. This study aims to highlight the consequences of diesel subsidy cut, in particular on the economic sectors and living standards and to evaluate its influential role in triggering the Syrian crisis in 2011. The results show that the new diesel price policy in May 2008, has radically affected the whole national economy. The sudden increase of the diesel price (about 257%) led in the agriculture to increase production costs of crops by more than 50% which caused a huge decline in gross margins and pushed the farmers in the irrigated region to leave their villages and migrated from the north-eastern region to the cities searching for new jobs. The diesel subsidy cut led to shutting down hundreds of private factories, domestic and foreign trade dramatically declined, and the inflation rate reached 15%. These fluctuations led to an increase in unemployment and poverty rates across the country. The loss of support, incomes, and jobs resulted in the decline of living standards and widespread poverty. These socio-economic outcomes lastly created a public resentment against the government and represented a blatant appeal to unite the people in opposition.