International Monetary Fund: War in the Middle East Has Destroyed a Generation's Progress

The head of the International Monetary Fund stated on Friday, coinciding with the release of the institution's report on the impact of war and crisis on the economic situation of Middle Eastern countries, that wars in countries like Iraq, Syria, Libya, and Yemen have 'destroyed the progress and development of a generation' and significantly increased poverty and unemployment rates. According to the Associated Press, Christine Lagarde, the head of the IMF, added that the international community must prepare to assist in rebuilding infrastructure and long-term development in the region. She noted that the $11 billion crisis fund promised by donor countries for aid to Syria and other Middle Eastern countries by 2020 would not be sufficient. These funds should be provided as grants and low-interest loans to alleviate financial pressure on recipient countries. Lagarde reminded that over 20 million displaced persons in Middle Eastern countries and more than 10 million refugees who have fled to other countries represent a larger migration crisis than any since World War II. She emphasized that 'the international community has a heavy responsibility to assist the countries in the region in facing these critical conditions, and the IMF is also ready to fulfill its share.' The IMF report and Lagarde's statement were released ahead of an important United Nations summit on refugees and migrants scheduled for next week. The IMF states that since the mid-20th century, the Middle East and North Africa have experienced more severe wars and crises than any other region in the world. Lagarde added that the crises and wars have made countries like Iraq, Syria, Libya, and Yemen more vulnerable and unstable, completely destroying the development achievements of the previous generation. According to a new report from the IMF, over the five years of the Syrian civil war, the country's economy has shrunk by 55%, and restoring it to 2010 levels will take at least a generation. The report indicates that even if the economic growth rate of war-torn Middle Eastern countries reaches 4.5%, rebuilding their economies to pre-war levels will take an average of at least 10 years. Specifically for Syria, the IMF estimates that economic recovery and returning to pre-civil war conditions will take at least 20 years. The institution warns that the economic reconstruction process in Syria, if the war ends, is not guaranteed, as a period of instability typically follows the end of wars in any country. The report states that 'the post-war period is usually accompanied by phases of instability and political and economic crises that disrupt and even reverse the reconstruction and economic growth process, and examples of such delays can be seen in several Middle Eastern and African countries like Afghanistan, Somalia, Libya, Iraq, and Sudan.' The IMF report reminds that shortly after the start of the reconstruction phase, policymakers and economic officials are often forced to revise their plans and priorities for rebuilding the country due to these factors.