|
Syria PERIOD OF ECONOMIC RETRENCHMENT, 1986-90
In 1987 Syria's economy had a well developed agricultural and
industrial base, unlike some of its Arab neighbors that depended
almost exclusively on oil. Although agriculture remained nearly
as dependent on rainfall as at independence, the government's
renewed commitment to agricultural development, the expansion and
extension of irrigation systems throughout the country, and
application of new cultivation technologies provided incentives
to stimulate agricultural output. Industry, too, had expanded
considerably in terms of value, both in the range of products and
in their sophistication. During the Assad years, Syria's
infrastructure grew rapidly, as the state channeled resources
into the building of new electric, water, telecommunications, and
other development projects. Nevertheless, in the late 1980s, the
Syrian economy faced a number of serious difficulties. The
collapse of world oil prices, weak markets for Syrian exports,
large trade deficits, foreign exchange shortages, declining
workers' remittances, unreliable sources and amounts of donor aid
from the Gulf states and Iran, rapid depreciation of the Syrian
pound, and massive defense expenditures forced Syria into a
period of economic retrenchment. A mood of austerity pervaded the
economy as the state struggled to adjust to lower rates of
economic growth.
Although the government adopted measures designed to
forestall an economic crisis by sharply reducing imports, cutting
spending, stabilizing local currency and foreign exchange
markets, encouraging the private sector by introducing more
market-oriented mechanisms into the economy, and limiting black
market activity, the Syrian economy faced a long and difficult
road to recovery. Observers were agreed that in the 1990s,
economic recovery would depend in part upon the state's ability
to initiate and implement major economic reform programs, improve
public sector management, and overcome bureaucratic inertia and
corruption. Continued internal stability and external elements,
such as the outbreak of an Arab-Israeli war or a severe world
depression would also affect Syria's prospects for economic
recovery. However, through the end of the 1980s only the
discovery of sizable quantities of high grade oil at Dayr az
Zawr--by generating much needed foreign exchange and reducing
expenditures for oil imports in the balance of payments-- offered
the possibility of economic relief.
* * *
The Syrian government publishes a variety of statistics; the
one most frequently available in the United States and adequate
for most purposes is the annual Statistical Abstract,
published by the Central Bureau of Statistics. The Quarterly
Bulletin, published by the Central Bank of Syria, and
Syrie et Monde Arabe, published by Office Arabe de Presse
et de Documentation in Damascus, contains useful information.
International Monetary Fund publications, such as the
International Financial Statistics and the Balance of
Payments Yearbook, usually include considerable statistics
for Syria. The UN and affiliated agencies issue a variety of
publications that include statistics for Syria. The World Bank's
annual World Development Report also contains useful
statistics. The United States government publishes a number of
reports containing information about the Syrian economy. Most
useful are the Department of Commerce's Foreign Economic
Trends series on Syria and the Department of Agriculture's
Middle East and North Africa Situation and Outlook
Report. Several broad surveys, such as The Middle East and
North Africa and the Middle East Annual Review, cover
Syria's economic development. Middle East Economic Digest
and the Economist Intelligence Unit's Quarterly Economic
Review of Syria provide detailed descriptions of key economic
events. Much of the information on aspects of Syria's economy is
in small, fragmented bits published in a variety of forms.
(For complete citations and further information
see
Bibliography.)
Data as of April 1987
|
