The Science of Microeconomics and the Necessity of Establishing It in Syria

Academic economic studies that monitor the reality and provide answers in Syria are notably absent. These studies should ideally be used by the de facto authorities to shape their economic policies. Unfortunately, in Syria, economic policy is lacking and operates chaotically, leading to the observed chaos, corruption, and strategic economic vacuum.

It is redundant to mention that economic studies focus solely on the economic reality, not on the political situation, ideological stances, or revolutionary aspects. They are concerned with the Syrian economy regardless of the political context.

Microeconomics:

Microeconomics focuses on studying the economic behaviors of individuals, companies, and small markets. It emphasizes how individuals and companies make decisions related to spending, production, distribution, and trade, and considers factors that affect these decisions, such as prices, income, preferences, and expectations.

By analyzing these behaviors, microeconomics aims to understand how individuals and companies interact in markets and how these interactions affect prices and quantities traded. This analysis helps in understanding how to allocate scarce resources to achieve the maximum satisfaction of human needs.

Microeconomic Theories:

Microeconomics relies on several fundamental theories to understand the behavior of individuals and companies in markets. Some of the most prominent theories are:

• Theory of Supply and Demand: This explains how prices and quantities traded in the market are determined based on the interaction between supply (the quantity of goods producers are willing to sell) and demand (the quantity of goods consumers are willing to buy) at different price levels.
• Theory of Utility: This focuses on how individuals make purchasing decisions to maximize their satisfaction or utility from the goods and services they buy. This theory is divided into total utility and marginal utility.
• Theory of Production and Costs: This examines how companies make production decisions based on various costs (such as fixed and variable costs) and how to achieve production efficiency to maximize profit.
• Theory of General Equilibrium: Developed by Léon Walras and Alfred Marshall, this theory aims to represent human behavior in markets using mathematical models, allowing economists to develop models that can be tested computationally. These theories help in analyzing and understanding how to allocate scarce resources and achieve economic efficiency in different markets.

The Northern Syrian Model:

Given that the Syrian Future Movement is currently present in northwestern Syria, our economic office is attempting to study the reality of northern Syria on the ground. From this, we emphasize the need to apply microeconomics from northern Syria to the entire country.

To study the reality of microeconomics in northern Syria, the theories discussed in microeconomics can be applied to analyze the behavior of individuals and companies in this region through some steps and theories that could be useful:

1- Analysis of Supply and Demand:

• Study how changes in prices affect the quantities demanded and supplied of goods and services.
• Analyze the impact of external factors such as security and political stability on supply and demand.

2- Theory of Utility:

• Understand how individuals make consumption decisions based on their preferences and limited budgets.
• Use (indifference curves) to analyze consumer preferences and how they achieve maximum possible utility.

3- Theory of Production and Costs:

• Study how companies make production decisions based on production costs and expected revenues.
• Analyze the impact of changes in production costs on supply and prices.

4- Theory of General Equilibrium:

• Analyze how equilibrium is achieved in the market between supply and demand under different economic conditions.
• Study the impact of economic policies and government interventions on market equilibrium.

5- Market Analysis:

• Study the market structure in northern Syria, such as perfect competition, monopoly, and duopoly.
• Analyze how the market structure affects prices and quantities traded.

6- External Impacts:

• Study the impact of external factors such as military and political interventions on the local economy.
• Analyze how these factors affect the behavior of individuals and companies in the market.

These theories and tools can, and should, be used to analyze the state of microeconomics in northern Syria and understand the challenges and opportunities available in this region. This serves as a foundation for developing an economic strategy that halts or mitigates the current economic deterioration as much as possible. This is the responsibility of the current authorities to support economic studies, and we at the Economic Office of the Syrian Future Movement are working to contribute to expanding the perspectives of decision-makers. There are some studies that have addressed the economy in northern Syria, although research may be limited due to the difficult conditions in the region. However, there are some points that could be useful from these studies:

1- Reports from International Organizations:

The World Bank and the International Monetary Fund publish periodic reports on the economy in the Middle East and North Africa, which sometimes include analyses of Syria.

2- Academic Studies:

There are some academic studies that have addressed the impact of conflict on the local economy, including the effects of internal displacement and the destruction of infrastructure on local markets.

3- Reports from Non-Governmental Organizations:

Some non-governmental organizations, such as Human Rights Watch and Amnesty International, have published reports on the economic and social conditions in northern Syria.

4- Market Analyses:

Some consulting firms have conducted market analyses in northern Syria, particularly concerning the agricultural and industrial sectors

Conclusion:

In the absence of economic studies, especially through the use of macroeconomic and microeconomic analysis, the Economic Office of the Syrian Future Movement recommends the following:

• Supporting Syrian and international economic experts to conduct field studies inside the country and provide their insights to assist the existing authorities in halting economic decline.
• Allowing the use of all modern economic theories to study the Syrian reality to ensure that studies are not directed towards accommodating the preferences of the current authorities.
• Encouraging the Syrian people to be economically aware, so they can contribute to economic revival and understand the general importance of economic visions for effective and popular economic development.
• Developing economic strategies that benefit from economic studies to align actions with theory.
• Believing in the importance of research, study, and genuine theorization based on objective, unbiased scientific analysis.

Ammar Al-Omouri
Economic Office
Research and Studies Department
Studies
Syrian Future Movement

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