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Economic reforms moving Syria towards social market

Global Arab Network - - Hannan Taha

Sunday, 18 July 2010 11:39

Syria (Damascus) - Over the past ten years, the national strategy adopted in the process of development and economic reform in Syria has been built on a precise study of the needs and priorities such as the gradual transformation to the social market economy, the activation of the private sector and establishing partnerships with neighboring countries.

The national economy has achieved a high growth rate in the Gross Domestic Product (GDP) despite of the drought and the repercussions of the global financial crisis where the annual growth rate hit 5,5 percent in 2009, the contribution of the private sector amounted to 65, 5 percent and the general state budget multiplied to increase from SP 460 billions in 2005 to 754 billions in 2010 (1USD is equivalent to 46 SYP).

The volume of the non-oil exports and investments in the major industrial cities across the Syrian provinces has also considerably increased over the past few years.

Many legislative reforms have been performed to match up with the international economic developments to ensure the competition, prevent mobilization and adopt the international standards.

The Syrian market has also witnessed great developments such as opening Damascus Securities Exchange in March 2010 and allowing the companies of real estate development and finance and the funding institutions to make investments in Syria in addition to opening private banks and insurance and stock firms in line with the changes witnessed by the global economy.

The number of banks in Syria has reached 18 private and public banks, and 13 insurance companies have been established in addition to 22 banking offices and companies and two microfinance institutions.

The remarkable steps achieved by the Syrian economy reflect the success of the process of economic and administrative reform as the country enjoys an attractive investment atmosphere, particularly after passing the laws No.8 and No.15, establishing the Syrian Investment Commission and organizing investment conferences and forums to discover the available investment opportunities across the Syrian provinces.

The Syrian Investment Commission covered 232 projects at a cost of SP 46, 26 billions in the first half of 2010.

The economic reform in Syria has achieved remarkable steps through the economic programs and the development policies adopted by the 10th five-year plan 2006-2010 such as the transformation to the social market economy, the liberalization of foreign trade and the development of the systems and legislations which encourage investments.

The economic openness has contributed to enhancing the potentials of the Syrian economy, diversifying its resources, increasing the GDP volume and increasing the rate of economic growth in addition to opening the door wide before the private sector to be a partner in the development process and providing an inviting investment atmosphere before foreign investments to contribute to enhancing the capacity of the national economy to achieve growth in the GDP, the value added and the workforce.

Tourism revenues have also increased as many tourism projects have been carried out and several tourism colleges have been established where tourism contributes to 11 percent of the GDP.

The agricultural sector has been given a great attention by the development programs and plans due to its importance in securing food and the raw materials for food industries.

Many measures have been taken to push this sector forwards such as building many dams, reclaiming lands to increase area of the irrigated lands, using modern techniques and establishing agricultural support fund for 2010 to increase the volume of the agricultural production, achieve food security and enhance the national decision.

The economic reforms have contributed to increasing the GDP per capita as it reached SP 1422 billions in 2009 in comparison to 1343 billions in 2008, and the deficit in the state budget and the inflation decreased to less than 3 percent while the industrial sector has enjoyed an annual growth estimated at 14 percent.

The salaries and pensions have been raised by 100 percent over the period between 2000 and 2008.

The partnership between the civil society and the public and private sectors has played an important role in the economic and humanitarian progress as the 1st Development Conference was held in Syria at the beginning of 2010. The Conference highlighted the role that could be played by the civil society in the process of development through establishing high-level educational institutions and reforming the social insurance system.

Syria seeks to better the living standards of the poor and achieve social justice through providing equal and sustainable job opportunities in addition to realizing institutional reform.

The industrial cities which were built five years ago in Adra, Aleppo, Homs and Deir Ezzor have played a key role in attracting investors and businessmen as the number of the factories under construction has hit 4000 factories with SP 290 billions investments and 80,000 workers.

The Syrian economy has become more dependent on goods exports which have a higher value added than oil and raw materials, and the contribution of the private sector in the GDP has increased by 65,5 percent in 2009 while the deficit and the public debt were controlled.

Syria has taken several measures to liberalize foreign trade and to promote the economic activities as the demand on the Syrian products has increased, and in this framework Syria signed the Free Trade Agreement with Turkey and joined the Greater Arab Free Trade Area (GAFTA).

Many business councils have been established to build best relations with Arab and foreign countries through making joint investments, increasing the volume of trade exchange, providing job opportunities and achieving economic integration.

Syria's relations with the neighboring countries have witnessed a great development over the past few years as the Syrian-Turkish-Jordanian-Lebanese Strategic Cooperation Council and the Syrian-Turkish Higher Strategic Cooperation Council were established. The Councils have played an important role in developing and establishing strategic partnerships and achieving economic integration.

Syria is looking forwards to connect the Mediterranean Sea, the Arabian Gulf, the Caspian Sea and the Black Sea to open a wide space for strategic partnerships and to enhance cooperation with Asian countries. (SANA)

Global Arab Network

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Last Updated on Thursday, 22 July 2010 19:52

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