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Syria’s New Rulers Overhaul Economy with Firing ‘Ghost Employees’

A government employee works at a government building in Damascus suburbs, Syria January 8, 2025.REUTERS/Khalil Ashawi
A government employee works at a government building in Damascus suburbs, Syria January 8, 2025.REUTERS/Khalil Ashawi
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Syria’s New Rulers Overhaul Economy with Firing ‘Ghost Employees’

A government employee works at a government building in Damascus suburbs, Syria January 8, 2025.REUTERS/Khalil Ashawi
A government employee works at a government building in Damascus suburbs, Syria January 8, 2025.REUTERS/Khalil Ashawi

Syria's new leaders are undertaking a radical overhaul of the country's broken economy, including plans to fire a third of all public sector workers and privatizing state-run companies dominant during half a century of Assad family rule, Reuters reported.
The pace of the declared crackdown on waste and corruption, which has already seen the first layoffs just weeks after opposition fighters toppled Assad on Dec. 8, has triggered protests from government workers, including over fears of a sectarian jobs purge.
Reuters interviewed five ministers in the interim government formed by former opposition group the Hayat Tahrir al-Sham (HTS). All described the wide scope of plans to shrink the state, including removing numerous "ghost employees" - people who got paid for doing little or nothing during Assad's rule.
Under Assad and his father, Syria was organized as a militarized, state-led economy that favored an inner circle of allies and family members, with members of the family's Alawite sect heavily represented in the public sector.
There is now a major shift to "a competitive free-market economy," Syria's new economy minister, 40-year-old former energy engineer Basil Abdel Hanan, told Reuters. Under transitional president Ahmed al-Sharaa, the government will work on privatizing state-run industrial companies, which Hanan said totaled 107 and were mostly loss making. However, he vowed to keep "strategic" energy and transport assets in public hands. He did not provide names of companies to be sold off. Syria's main industries include oil, cement and steel.
Some state companies appeared to exist solely to embezzle resources and would be closed, Finance Minister Mohammad Abazeed said in an interview.
"We expected corruption, but not to this extent," Abazeed said.
Only 900,000 of 1.3 million people on the government payroll actually come to work, Abazeed said, citing a preliminary review.
"This means there are 400,000 ghost names," Abazeed, an energetic 38-year-old, said in his office. "Removing these will save significant resources."
Mohammad Alskaf, the minister for Administrative Development who oversees public sector headcount, went further, telling Reuters the state would need between 550,000 and 600,000 workers - less than half the current number.
The goal of the reforms, which also aim to simplify the tax system with an amnesty on penalties, was to remove obstacles and encourage investors to return to Syria, Abazeed said.
"So that their factories within the country can serve as a launchpad" for global exports, said Abazeed, previously an economist at the Al-Shamal private university before serving as a treasury official in the opposition stronghold of Idlib in 2023.
IDLIB MODEL
Until sweeping into Damascus in the lightening offensive that ousted Assad, HTS had ruled Idlib as an opposition breakaway province since 2017, attracting investment and the private sector with less red tape and by clamping down on hard-line religious factions.
The new government hopes for a nationwide increase in foreign and domestic investment to generate new jobs as Syria rebuilds from 14 years of conflict, three ministers told Reuters.
However, to replicate the Idlib model, HTS will have to overcome widespread challenges, not least international sanctions that severely impinge on foreign trade.
Maha Katta, a Senior Resilience and Crisis Response Specialist for Arab States at the International Labor Organization, said the economy was currently in no condition to create enough private jobs.
Restructuring the public sector "makes sense," Katta said, but she questioned whether it should be a top priority for a government that needs first to revive the economy.
"I'm not sure if this is really a wise decision," she said.
While acknowledging the interim leaders' imperative to move fast to get a grip on the country, some critics see the scale and pace of the planned changes as overreach.
"They are talking about a transitional process but they are making decisions as if they were a government that was legitimately installed," said Aron Lund, a fellow at Middle East-focused think-tank Century International.
Transitional president al-Sharaa has promised elections, but said they could take four years to organize.
SHOCK ABSORBED
Economy minister Hanan said economic policy would be designed to manage the fallout of rapid market reforms, to avoid the chaos of recession and unemployment that followed 'shock therapy' imposed in the 1990s on post-Soviet nations in Europe.
"The goal is to balance private sector growth with support for the most vulnerable," Hanan said. The government has announced a 400% increase to state salaries, currently around $25 a month, starting February. It is also cushioning the blow of layoffs with severance, or by asking some workers to stay home while needs are assessed.
"To employees who were hired just to receive a salary, we say: please take your salary and stay home, but let us do our job," said Hussein Al-Khatib, Director of Health Facilities at the Ministry of Health. However, discomfort is already visible. Workers showed Reuters lists circulating in the labor and trade ministries that pared Assad-era employment programs for former soldiers who fought on the government's side in the civil war.
One such veteran, Mohammed, told Reuters he had been laid off on Jan. 23 from his data entry job at the labor ministry and given three months paid leave. He said around 80 other former fighters received the same notice, which he shared with Reuters. In response to Reuters questions the labor ministry said that "due to administrative inefficiencies and disguised unemployment" a number of employees had been placed on three-month paid leave to assess their job status, after which their situation will be reviewed.
The plans spurred protests in January in cities including Daraa in southern Syria, where the rebellion against Assad first erupted in 2011, and Latakia on the coast. Such protests were unthinkable under Assad, who responded to rebellion with repression that sparked the civil war.
Employees at the Daraa Health Directorate held placards declaring "No to arbitrary and unjust dismissal" during a demonstration by some two dozen people.
Adham Abu Al-Alaya, who took part, said he feared losing his job. He supported eradicating ghost employment, but denied he or his colleagues were paid for doing nothing. He was hired in 2016 to manage records and settle utility bills.
"My salary helps me manage basic needs, like bread and yoghurt, just to sustain the household," Abu Al-Alaya said, adding that he also works another job to make end meet.
"If this decision goes through, it will increase unemployment across society, which is something we cannot afford," he said.
MILES OF FILES
Finance Minister Abazeed said that since taking over, the former opposition fighters had found monumental corruption and waste, including at Syrian Trading Establishment, a public consumer goods distributor he said received government money for a decade, until a few days before Assad's departure, without ever providing official statements of revenues.
He did not disclose how much money was involved. Reuters could not verify the allegations.
The new government has closed the company, Abazeed said.
For now, the administration has no reliable record of government employees. It is building a database of public sector staff, asking employees to complete an online form. Alskaf, the minister for Administrative Development, said it would take about six months to set up, with a team of 50 people on the job.
Acknowledging the difficulties of the task ahead, Labor Minister Fadi al-Qassem said "renovations are more difficult than new building."
The government also plans to digitize employee records, currently stored in about 60 dusty and neglected rooms containing over a million folders, many tied with string and dating back to the Ottoman era that ended more than a century ago.
To Hiba Baalbaki, 35, a labor ministry digitization specialist, the drive was surprising and encouraging.
Under the previous administration, management shunned her efforts to bring record keeping into the 21st century, including an online platform she had been working on for two years, she said.
"It introduced unwelcome changes and closed avenues for corruption and bribes," she said.

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Features

China's Memories of Mao Fade to Nostalgia 50 Years after His Death

The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village". Pedro PARDO / AFP
The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village". Pedro PARDO / AFP
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China's Memories of Mao Fade to Nostalgia 50 Years after His Death

The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village". Pedro PARDO / AFP
The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village". Pedro PARDO / AFP

The crimson flags on Nanjie village's "East is Red" Square hang limp in the sweltering summer heat as a trickle of tourists take photos with a towering statue of Chairman Mao Zedong, still gleaming white almost 50 years after he died.

The Great Helmsman, who died September 9 1976, is still very much a fixture in central Henan province's Nanjie -- often dubbed "China's last Maoist village", said AFP.

Nostalgia for Mao's egalitarian ideals is growing in China as memories of his turbulent rule fade and the country grapples with a slowing economy and inequality.

Mao, who led the 1949 communist revolution against the ruling nationalists, ushered in an era of collectivized ownership he argued would drive industry and unite the country, but his drastic policies are also blamed by historians for mass starvation and millions of deaths.

While the ruling Chinese Communist Party maintains Mao was a revolutionary hero, it publicly acknowledged after his death that his devastating Cultural Revolution was a "grave mistake" -- a verdict upheld by subsequent leaders.

In Nanjie, countless murals of the former Chinese leader are plastered around the village.

Residents still live under Maoist principles of shared ownership, while the rest of the country moved on from that economic model.

"I still revere him very much," Xie Kaiyue, a 22-year-old local university student, said of Mao, who died almost three decades before she was born.

"I think young people in the village and, actually, myself, aren't as strong-spirited as in the past... People were purer," she said.

Nearby, electric carts whisked visitors past uniform apartment blocks plastered with socialist slogans as guides explained how cooperative ownership in local enterprises funds free housing for residents.

- Party line -

Around 500 kilometers (310 miles) north, in the mountain village of Dazhai in Shanxi province, once promoted by Mao as a national model after locals terraformed its arid hills into irrigated fields, tourists reminisce about an era when the Great Helmsman dominated political and social life.

"(People) didn't have enough to eat or to wear," Li, a 64-year-old tourist from Xi'an, said of his childhood.

"But... the whole country was full of vigor, and there was a spirit of struggling with heaven, earth, and people to change every aspect of China," the retiree said.

"Of course I miss it."

Now, Dazhai is overflowing with shops selling items that support Mao's personality cult -- posters, playing cards, and crockery emblazoned with his image, and the "Little Red Book" of his quotations.

Still, references to dark chapters of his decades in absolute power are tightly censored in public discourse.

The decade-long episode instigated by Mao in 1966 saw intellectuals brutally targeted as "class enemies" and schools shuttered, setting China back for years in education and development.

Private property and land were collectivized, while economic management pushed the country to the Great Famine, which the government says killed around 15 million people, while historians estimate around 20-43 million.

In one museum, text mentioning the Cultural Revolution had been crudely scraped off signage.

"Everything you see in the public domain... is the party line. No one is allowed to deviate from this," said scholar Xu Chenggang, who was targeted as a child in Beijing during the Cultural Revolution because his father was labelled a "rightist".

Mao's face is printed on banknotes, his portrait overlooks Tiananmen Square, and his body is preserved in a mausoleum.

Every year new movies and TV shows dramatizing Mao's life beam the message of his great deeds to public.

Public discussion has been squeezed further under current leader Xi Jinping, who warns against "historical nihilism", or narratives contradicting the party's own.

"The Communist Party told people there were mistakes, but what's the meaning of 'mistake'? No one knows," Xu said.

- 'Great figure' -

The sanitized history has left space for romanticized interpretations among youths frustrated by long working hours and intense competition in education and the job market.

In December, a viral video series on Bilibili -- a platform popular with those under 30 -- argued that the 2017 movie 'Youth', which follows young performers in a military dance troupe during the 1970s, was a subtle ode to the Cultural Revolution.

The videos, which praised Mao and blamed capitalist elites for crushing the movement, were removed after gaining over 35 million views in less than a week.

"Today, there is more of a sense that the Cultural Revolution was a period of idealism, where society was fired by ideals and not by the relentless pursuit of money and material goods," said to Kerry Brown, head of the Lau China Institute in London and author of a recent book on Mao.

"This is, of course, a total fabrication," he said.

Many also credit Mao with laying the foundation for China to become a modern, technologically advanced nation, said Mobo Gao, professor of Chinese studies at Adelaide University.

"They ask, where did (today's China) come from? It came from the establishment of the PRC," said Gao, who lived through the Mao era in rural Jiangxi province.

"Who was the one who really established the PRC? It must be Mao."

In Shijiazhuang, an industrial city of seven million northeast of Dazhai, 20-year-old Wang Zhihao and his classmates posed with a giant Mao statue opposite the municipal government.

"We admire and revere Chairman Mao very much. He is a great figure," Wang said, as the sound of elderly residents singing songs praising the Communist Party drifted over from the nearby square.

"He led the founding of New China."

 

Features

Is US Military Cooperation with Ethiopia Driven by Anger over Egypt-China Rapprochement?

US President Donald Trump during his meets with Egyptian President Abdel Fattah al-Sisi on the sidelines of the 73rd session of the UN General Assembly in September 2018. (Egyptian Presidency)
US President Donald Trump during his meets with Egyptian President Abdel Fattah al-Sisi on the sidelines of the 73rd session of the UN General Assembly in September 2018. (Egyptian Presidency)
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Is US Military Cooperation with Ethiopia Driven by Anger over Egypt-China Rapprochement?

US President Donald Trump during his meets with Egyptian President Abdel Fattah al-Sisi on the sidelines of the 73rd session of the UN General Assembly in September 2018. (Egyptian Presidency)
US President Donald Trump during his meets with Egyptian President Abdel Fattah al-Sisi on the sidelines of the 73rd session of the UN General Assembly in September 2018. (Egyptian Presidency)

A US defense agreement with Ethiopia was announced days before an important visit by Chinese President Xi Jinping to Cairo that saw agreements and memorandums of understanding signed in several fields and coincided with joint Egyptian-Chinese air exercises.

The timing raised questions over whether Washington’s military cooperation with Addis Ababa was driven by “US anger at Cairo” and what objectives it serves amid tensions in the Horn of Africa.

The United States and Ethiopia signed a defense agreement on Aug. 21 during an official visit by an Ethiopian military delegation to Washington. Both sides described it as a strategic framework aimed at strengthening military and security cooperation, protecting national interests and securing mutual benefits.

Raafat Mahmoud, head of the African Affairs Research Unit at the Egyptian Cabinet's Information and Decision Support Center (IDSC), told Asharq Al-Awsat that Washington was seeking to rebuild ties with Addis Ababa after years of tension, particularly over the Tigray war and US criticism of Ethiopia’s human rights record.

He argued that the agreement showed Ethiopia had become part of broader US calculations involving Red Sea security, countering Chinese and Russian influence and combating armed groups in the Horn.

Ethiopian lawmaker Mohammed Al-Arusi noted that Washington views the Horn as directly linked to Red Sea security, international trade and maritime routes, while also facing terrorist threats.

“Ethiopia lies at the heart of this geography, with its demographic, political and military weight across a broad region, and it hosts the permanent headquarters of the African Union,” he told Asharq Al-Awsat. Washington, he added, was not seeking a temporary stance but it is “rebuilding its position in a region where the balance of power is changing.”

US Republican and strategic affairs expert Adolfo Franco cautioned that the agreement lacks formally binding treaties and direct financial funding, adding that future defense exports remain subject to strict restrictions and case-by-case assessments, including human rights considerations.

Al-Arusi pointed to a US-Ethiopian dialogue launched in May covering economics, trade, investment, defense and security. The defense track advanced just three months later, a sequence he said showed Washington was approaching Ethiopia with long-term considerations.

Mahmoud said growing US support could strengthen Ethiopia’s negotiating position not only on water but also in its efforts to secure maritime access and expand its presence in the Red Sea region.

Recent media reports have portrayed the US-Ethiopian rapprochement as Washington’s response to Egypt’s growing ties with China, highlighted by Xi’s visit to Cairo this week.

Mahmoud countered that Egyptian-Chinese rapprochement was not new, although recent developments naturally raised sensitivities in Washington, particularly amid expanding economic and security cooperation.

In January 2026, Ethiopia and China elevated their relations to an “all-weather strategic partnership,” nearly two years after Egypt and China upgraded their ties to a “strategic partnership” in 2024.

Al-Arusi argued that Washington’s expanding partnership with Addis Ababa should not be viewed as replacing one partner with another, but rather as evidence of Ethiopia’s growing strategic value.

Former US diplomat Henry Ensher told Asharq Al-Awsat that Washington wants a security partner in the Horn and that Ethiopia is the best option given its capabilities.

While China and the United States compete in Africa, Egypt is the more important partner, he said, making it unlikely that Washington would use this approach to confront or punish Cairo.

Features

Syrian Official to Asharq Al-Awsat: Integration Process Following SDF Dissolution Is Moving Toward Completion

A convoy of Syrian security forces and Special Operations Forces enters the headquarters of the “Vanguards Camp” Regiment in Hasakah (Hasakah Media)
A convoy of Syrian security forces and Special Operations Forces enters the headquarters of the “Vanguards Camp” Regiment in Hasakah (Hasakah Media)
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Syrian Official to Asharq Al-Awsat: Integration Process Following SDF Dissolution Is Moving Toward Completion

A convoy of Syrian security forces and Special Operations Forces enters the headquarters of the “Vanguards Camp” Regiment in Hasakah (Hasakah Media)
A convoy of Syrian security forces and Special Operations Forces enters the headquarters of the “Vanguards Camp” Regiment in Hasakah (Hasakah Media)

Ahmad al-Hilali, deputy governor of Hasakah, told Asharq Al-Awsat on Friday that the integration process stipulated in the “January 29, 2026 Agreement” has moved, following the dissolution of the Syrian Democratic Forces (SDF) and the former Kurdish Autonomous Administration, from “the stage of understandings and negotiations to actual implementation, whether in civilian institutions or in the security and military sectors.”

He described the security situation as “much better” and said “stability is gradually strengthening,” stressing that the process “is moving toward completion, and what we want is for it to take place calmly.”

Since SDF commander Mazloum Abdi announced from the presidential palace in Damascus on August 25 the dissolution of the SDF and the Autonomous Administration, Hasakah has witnessed a series of developments and changes signaling the emergence of a new phase in the governorate. Its defining features are the restoration of state authority across all sectors, stronger security and stability, the unification of institutions, and the end of administrative duplication, in accordance with the January 29 Agreement.

In his remarks, al-Hilali said that “the integration process is not simply a matter of transferring buildings or changing names. It is about reunifying institutional authority, administrative decision-making, and security and military command under the umbrella of the Syrian state.”

He said significant steps had already been completed in this direction, while work was underway to address the remaining files in an orderly manner that would prevent any institutional or security vacuum and preserve stability in the governorate.

Before the announcement of the SDF's dissolution, most cities and areas in Hasakah had experienced security disorder involving the Revolutionary Youth. Such incidents increased after the signing of the January 29 Agreement, when members of the group prevented the handover of institutions to the government. That situation, however, has now disappeared.

Al-Hilali attributed the disappearance of the previous unrest primarily to the fact that “the phase has changed.”

“Previously, there were attempts to obstruct the process of transferring state institutions, and some activities emerged aimed at disrupting this course. But as implementation of the agreement progressed and the direction toward ending institutional and security duplication became clear, these manifestations declined significantly,” he said.

According to al-Hilali, “There is now a growing conviction among everyone that state institutions should not be a subject of conflict or confrontation, and that the integration process is moving toward completion.”

“What we want is for this process to take place calmly, away from provocation and tension, and for all residents of the governorate to feel that the return of state institutions means the return of services, the rule of law and stability, and is not directed against any component of society,” he said.

Asked when the integration of military, security and civilian institutions would be fully completed, the deputy governor said: “I do not want to set an artificial date for a process of this scale and complexity, because some files require technical, administrative and security procedures before they can be formally closed.”

He added: “But I can say that we are at a very advanced stage and that the overall direction is clearly toward completing the integration as soon as possible.”

He noted that “the bulk of the work is now in the implementation phase, while what remains consists of detailed files requiring the completion of arrangements, verification and coordination among the ministries and relevant authorities.”

Women fighters from the Women's Protection Units (YPJ) take part in military traning in Hasakah, Syria, August 22, 2026. REUTERS/Orhan Qereman

Pending Files

Al-Hilali said: “What matters most to us is that the integration be complete, genuine and sustainable, rather than merely a political announcement whose impact fades after a short period.”

Asked about the main outstanding issues preventing the completion of the integration process, al-Hilali said the remaining files could be divided into three main tracks.

“First is the military and security file, involving the completion of the restructuring of personnel and cadres and the integration of those who meet the requirements into the Ministries of Defense and Interior in accordance with the established procedures,” he said.

“The second is the administrative and civilian file, particularly the status of employees and staff, the mechanisms for confirming their positions and paying their entitlements, and the integration of institutions and departments whose transfer to the state has not yet been completed.”

“The third involves a number of service-related, technical and administrative files linked to the transfer of powers and the reunification of operating systems, databases and resources.”

Al-Hilali said these issues “do not represent an obstacle to the integration process so much as they are implementation files that need to be completed.”

“The political decision is clear and the overall direction has been settled: state institutions will be unified, authority will rest with the Syrian state, and the rights of all citizens and components of the governorate will be preserved,” he said.

The rise of the Autonomous Administration

The first foundations of the Kurdish Autonomous Administration, which sought to establish a “Kurdish project in Syria,” emerged through the formation of the Kurdish Supreme Committee. It was established by Syria's Kurdish Democratic Union Party (PYD) and the Kurdish National Council following the signing of the Erbil Agreement on July 12, 2012.

A military wing was subsequently established for the committee, comprising the People's Protection Units (YPG), the Women's Protection Units (YPJ) and the Asayish security forces. The SDF was later formed in 2015, under predominantly Kurdish leadership.

The geographic footprint of the Autonomous Administration expanded from three cantons in 2014 to six in 2016 and seven by 2023. This territorial expansion was accompanied by the growth of its military and security apparatus and civilian institutions, which collectively included tens of thousands of personnel.

The SDF subsequently lost a significant portion of its territory during armed clashes that erupted between its fighters and the Syrian army in late 2025 and early 2026. The fighting lasted about two weeks and was followed by the signing of the January 29, 2026 Agreement.

The agreement between the Syrian government and the SDF called for a ceasefire and the gradual integration into Syrian state institutions of the military and civilian institutions established by the Kurds during the years of conflict. It also called for the handover of border crossings and oil and gas fields, as well as the withdrawal of foreign fighters from the region.