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At its peak, the Islamic State of Iraq and the Levant (ISIL) controlled vast portions of territory in Iraq and Syria with several million inhabitants. The Islamic State’s territorial ambition and desire to conduct state-like governance over this territory are integral to its global ideological appeal. By examining the group’s impact on local economic activity in Iraq and Syria, this report seeks to assess the effectiveness of ISIL’s governance over its self-styled caliphate.

This report leverages publicly available remote sensing data and low-cost commercial satellite imagery to develop a unique, data-driven assessment of the impact that ISIL control and governance have on local economies within ISIL’s territory. It paints a bleak picture of economic life under the Islamic State, replete with shortages of electricity, massive refugee flows, reductions in agricultural output, and upticks in violence all associated with ISIL control.