An economist's role in the fall of Syria's government

An economist's role in the fall of Syria's government

Released Thursday, 12th December 2024
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An economist's role in the fall of Syria's government

An economist's role in the fall of Syria's government

An economist's role in the fall of Syria's government

An economist's role in the fall of Syria's government

Thursday, 12th December 2024
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0:00

N -P -R This

0:03

is the

0:06

Indicator from

0:08

Planet This

0:11

is I'm Tarian Yeah, yeah, yeah,

0:13

yeah, yeah, yeah, yeah, yeah,

0:15

yeah. On Sunday, half half

0:17

a century of the Assad

0:20

family ruling Syria came to

0:22

an end. Syria's brutal civil war

0:24

that war that led to

0:26

this moment many players. And

0:28

today put to put a spotlight

0:30

on one of them, An

0:32

an economist. It's like a dream. Honestly,

0:35

it's like a dream. Today

0:37

show, the story of one Syrian exile who

0:39

made a real contribution to

0:41

the resistance while on the other

0:43

side of the world. of the

0:45

He tells us how lines of

0:47

computer code and spreadsheets can

0:49

help bring down a long -standing

0:51

dictatorship. This

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2:04

NPR. Karam Shar is an an old

2:06

economist friend of mine. mine. hello,

2:08

hello. Karam, it's so nice to nice to

2:10

see you. and I met and I

2:13

met while we were colleagues years

2:15

ago in New Zealand you were

2:17

here the the New Zealand Treasury. Yes, but

2:19

but now we meet professionally again,

2:21

but this time to talk about

2:23

the Syrian economy, which economy, all

2:25

over the news right now because

2:27

of what's just happened. of what's

2:29

exactly. mean, the exactly. I mean, the days

2:31

or so have been been... Insane.

2:34

Very momentous. We chatted momentous. We chatted

2:36

about all the events that

2:38

he is to where he is

2:40

today of the front lines

2:42

of Syrian research and advocacy. up

2:45

in Karim grew up in

2:47

Aleppo, which is one of

2:49

Syria's two big cities. his And

2:51

after studying his economics degree,

2:53

he got involved in anti

2:55

protests. This This was in 2011

2:57

when the Arab was was

2:59

awakening pro -democracy movements all over

3:01

the Arab world. world. Karam tell

3:04

his family family though. to avoid

3:06

and tell our loved ones

3:08

about these protests these also and

3:10

mean mainly to ensure their

3:12

safety. So I So I remember

3:14

actually in one of the

3:16

protests in Aleppo, we were

3:19

shouting shouting the downfall of

3:21

the regime of the most liberating

3:23

moment I think in my

3:25

life. I think in my life. feeling is

3:27

so exceptional, it's liberating. And

3:29

I remember actually someone tapping

3:32

me on the shoulder and

3:34

saying, the shoulder and as in Abu

3:36

Adib, my like, that's my nickname. turned my

3:38

head my head and saw I was my

3:40

brother. my brother. So. it turns out he

3:42

was also protesting, but we were

3:44

not telling each other. My sister was

3:46

also protesting. I came to realize

3:49

this later on. later The protests

3:51

were met with heavy crackdowns

3:53

by the Assad by the Assad and

3:55

as rebel groups gained a foothold,

3:57

a Syria descended into civil war.

3:59

war. 2012, Karam's father told him

4:02

he should leave the country for

4:04

his safety, especially given his activism.

4:06

Karam flew to Malaysia, then to

4:08

New Zealand, where he studied for

4:10

his economics PhD and was granted

4:13

asylum. That's about the same time

4:15

that I met you when you

4:17

were working at the New Zealand

4:19

Treasury, working on the economic policy

4:22

problems of a high-income peaceful country.

4:24

How was that for you? Yeah,

4:26

it was like working on another

4:28

planet, you know, it's a completely

4:30

different context. But after working there

4:33

for like three and a half

4:35

years, I just couldn't deal with

4:37

the guilt, you know, with the

4:39

guilt that I can do something

4:42

for Syria and I should do

4:44

it. So how could a young

4:46

economist on the other side of

4:48

the planet possibly make a difference

4:51

in one of the bloodiest conflicts

4:53

of recent memory? Karam put all

4:55

his time into working on Syrian

4:57

issues. He hired analysts and open-source

4:59

intelligence experts to help out. He

5:02

started looking into how countries were

5:04

using economic tools to pressure Syria,

5:06

and he found some pretty major

5:08

flaws, like in how humanitarian aid

5:11

money was leaking to the Assad

5:13

regime. like a lot of troubled

5:15

economies, Syria has two exchange rates,

5:17

the official exchange rate according to

5:19

the government and the black market

5:22

exchange rate, which is basically determined

5:24

by supply and demand. In Syria,

5:26

the government was claiming the Syrian

5:28

pound was worth more than it

5:31

actually was. So anyone wanting to

5:33

buy Syrian pounds would need to

5:35

pay the central bank more than

5:37

those pounds were actually worth. And

5:40

in 2021, when Karam was looking

5:42

at the Syrian Central Bank's website,

5:44

he saw a footnote that said

5:46

that this inflated exchange rate was

5:48

used for foreign aid. And I

5:51

was like, this is unbelievable. I

5:53

mean, the level of stealing is

5:55

just mind boggling. Yeah, so let's

5:57

break down how this played out.

6:00

Let's say I'm a UN agency,

6:02

working in Syria and I want

6:04

to rebuild a school. to pay

6:06

a local construction company in Syrian

6:08

pounds. And to do that legally,

6:11

I need to use the official

6:13

exchange rate. I exchange a million

6:15

dollars at a bank for Syrian

6:17

pounds, but I get weighed less

6:20

Syrian pounds than I would have

6:22

if I'd used the black market

6:24

exchange rate. And by Karam's calculations,

6:26

maybe $500,000 of that million would

6:29

have been eaten up through that

6:31

money exchange. Who gets to keep

6:33

all that extra money? The Assad

6:35

government. So basically it's a kind

6:37

of levy on humanitarian aid and

6:40

that is the aid that is

6:42

paid by Assad's enemies basically. It's

6:44

predominantly Western countries. Karam wrote your

6:46

report, the problem got picked up

6:49

by the Guardian newspaper, and from

6:51

there it snowballed. It just went

6:53

viral, you know, all over. We

6:55

got members of US Congress to

6:57

sign a letter to President Biden

7:00

to put pressure. There were parliamentary

7:02

questions in Europe. The US, Germany,

7:04

the UK, and some other countries

7:06

put pressure on the UN telling

7:09

them, look, we are providing these

7:11

funds. You talk to the central

7:13

bank, they either accept it or

7:15

it. it will be withheld and

7:17

Yeah, the Central Bank of Syria

7:20

reached a point after resisting for

7:22

so long, you know. They agreed

7:24

to close the gap. Did you

7:26

and your team celebrate at all?

7:29

Actually, we did celebrate, and you

7:31

can go on Twitter and see,

7:33

I was over the moon when

7:35

it happened. Of course, a lot

7:38

of remote work requires digital celebrations.

7:40

Garam estimates this action stopped about

7:42

$65 million a year going into

7:44

Assad's coffers and funding its army.

7:46

which in the context of the

7:49

tens of billions of dollars in

7:51

aid or military support given by

7:53

countries like Iran, is small. But

7:55

it was one victory over a

7:58

range of fronts trying to bring

8:00

down Assad. Other economic analysis that

8:02

Karam worked on involved reviewing who

8:04

the aid agencies were contracting with.

8:06

was horrified to learn a lot

8:09

of people who had committed some

8:11

grave crimes who were receiving these

8:13

contracts. In one case a militia

8:15

group tied to Iran that had

8:18

destroyed a city was allegedly being

8:20

paid to rebuild it. We just

8:22

showed that 31% of UN procurements

8:24

from Syria actually come from sanctioned

8:27

individuals, you know, so that is

8:29

basically Western governments funding the Syrian

8:31

government with one hand and sanctioning

8:33

it with the other simultaneously. His

8:35

analysis led to more scrutiny of

8:38

these contracts, but not all of

8:40

Karam's efforts have had heavy results.

8:42

To support his accountability work, he

8:44

relied on people inside Syria. About

8:47

seven months ago, he learned two

8:49

of them had been arrested. One

8:51

of them on some pretty serious

8:53

charges related to his work with

8:55

Karam. I mean, I think that

8:58

was truly the ugliest nightmare in

9:00

my entire life, you know, when

9:02

he was arrested, and I couldn't

9:04

sleep. This man was kept in

9:07

the notorious Seydnaya prison, where tens

9:09

of thousands of people have been

9:11

tortured and executed. He was sentenced

9:13

to death. His execution date was

9:16

set for the end of this

9:18

month. And so that meant that

9:20

with the downfall of the Assad

9:22

regime, Karam was relieved to learn

9:24

this man was among the people

9:27

leaving Sadnair prison just a few

9:29

days ago. It feels like it's

9:31

magic, you know? I mean, we've

9:33

been waiting for 54 years, you

9:36

know, for this regime, and it

9:38

just collapsed at exactly the right

9:40

moment. the right moment that saved

9:42

his contact from death. Karam spoke to him

9:44

soon after. When he was out and we

9:46

had a call on WhatsApp, I just started

9:48

crying immediately. I couldn't believe my eyes, you

9:50

know, that he's out. And while Karam is

9:52

overjoyed, he's... his judgment about

9:54

whatever government gets formed

9:56

next. gets In the

9:58

meantime, the he will keep

10:00

writing reports. He'll keep

10:02

he'll keep the numbers, because

10:05

who knows what impact

10:07

that might have. This episode

10:09

was produced by Cooper Cats This

10:11

episode was produced by

10:13

Cooper by Neil with engineering

10:15

by fact-checked was fact -checked

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by Ciro Kagan Canon Cannon

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edits the show The the

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indicator is a production

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