Times for war-battered Syria seem to be rapidly changing as its officials attend G7 meetings in France. But while gains are being made abroad, the dire economic conditions on the domestic front curb enthusiasm for the future.
Syria is set to attend the G7 summit in France next month as a guest nation and will be represented by President Ahmed al-Sharaa , three sources told Reuters . "The meeting is part of a continuous process to legitimise this government and reintegrate it regionally and internationally, as evidenced in the last few weeks, for example, by the issuance of visa cards and allowing international transactions," Joseph Daher, a Swiss-Syrian political economist, told The New Arab. But Daher warned that widening economic hardship inside Syria risked overshadowing those diplomatic gains.
"Only a small minority of Syrians can use visa cards; there are widening economic issues within the country. The Syrian people are clearly not on the agenda for these meetings; this is about consolidating a state that serves [foreign] interests," he remarked.
This would be Syria's first participation since the G7 summit was founded in 1975.
An invitation to Sharaa to attend the 15-17 June summit in Évian-les-Bains, southeastern France, was hand-delivered to Syrian Finance Minister Yisr Barnieh, who attended the group's financial talks earlier this week in Paris, one of the sources, a Syrian official, told Reuters.
Syria's participation in the talks would likely focus on the country's role as a "potential strategic hub for supply chains" following the closure of the Strait of Hormuz, the source said.
Shipping through the Strait has been largely halted since the US-Israeli war on Iran began at the end of February, shocking the global economy. Moreover, Syria, emerging from civil war, is seeking to rebuild an economy shattered by years of conflict and sanctions.
For authorities in Damascus, participation in the G7 meetings marks another step toward re-engaging with the international system, attracting capital for reconstruction, and, crucially, cementing their legitimacy and control over the country.
Regional powers, particularly the Gulf Arab states, and international interests, notably Western states, are converging on Syria, all seeking stability and commercial opportunities, facilitated by a government willing to serve their needs.
At the same time, the ruling authority headed by Ahmed al-Sharaa seeks to embed itself within Western hegemonic infrastructure, while hedging its bets by pursuing ties with Russia and other alternatives.
The economy in Syria has taken a major battering after a 14-year-long civil war and the end of a totalitarian regime. Regional events, particularly the US-Israeli war on Iran, have strained things even further.
More than 90 per cent of Syrians live below the poverty line, and over 75 per cent are hungry and lack adequate access to food and nutrition. According to the World Bank, Syria needs about $216 billion for reconstruction.
Within the past month, gas prices have exploded from around $14 to more than $24 to fill up one's car in Damascus. The Syrian pound also dramatically depreciated from 13,400 liras per dollar to more than 14,700 liras per dollar, then swung back to 14,000 liras per dollar over the week.
The massive currency exchange issue, some analysts argue, led to the recent reshuffling of the Syrian central bank's administration . Safwat Raslan, head of the Syrian Development Fund, was appointed as the country's new central bank governor, while former governor Abdelkader Husriyeh was named ambassador to Canada, state media reported last week.
“The economic frustration reflects political needs, which in turn need a political answer that does not exist,” Daher remarked. “Another issue that concerns me is that without alternatives, people start turning to extremist parties, which are more organised.”
These swings and widespread poverty have led to protests across the country, still limited in scope, contained locally, and lacking coordination to pose a meaningful threat to authorities. They signal that conditions could quickly unravel for the ruling authorities if the promises of economic prosperity do not pan out soon.