Different perspectives on priorities of Syrian economy; their implications

More than one year and eight months since the collapse of the Ba'athist regime and entering a new phase by the Syrian interim government, the Syrian economy is still confronted with increasing difficulties including decrease in production capacity and financing problems as well as reduction in purchasing power. At the same time, debates on the priorities of economic recovery go on.

Despite steps being taken towards putting forward investments and economic reforms, economists, experts, and scholars consider that the absence of an official economic vision and exclusion of experts and qualified people from policy-making processes have been the cause of divergent views about the priorities that will shape the process of economic recovery.

Economist Abdullah Hussam (pseudonym) believes that the priorities for the next phase lie in restarting the production cycle and developing small and micro enterprises by securing the necessary funding and injecting capital to bring them back into production. This includes establishing genuine marketing channels for distributing products, moving beyond mere "wishful thinking and media posturing."

He emphasizes that resuming production, even at a slow pace, will improve the economic situation and create the conditions for gradual recovery. He argues that focusing on Western investments and large-scale projects could lead to increased difficulties, given their high costs and the current lack of investors, in addition to being beyond the means of more than 90 percent of Syrians.

Moreover, he wonders why the public in Syria and the professors from universities are not being involved in discussions about the country’s future and listening to different perspectives. He criticizes the way that anyone who has ever worked in Syria before the current regime is considered “remnant of the old regime,” and calls this approach “an inaccurate and unacceptable judgment.” He says that Syria will not be able to rebuild itself under such an attitude. As for development expert Iyad Zeitouneh, he thinks that Syria is mainly an agricultural state, and the economic identity of Syria lies in the agricultural industry and food industry in which they export olive oil, pistachio, walnuts, and soap.

He says that the improvement of economic condition starts with obtaining all agricultural requirements and offering them some low-interest loans or means of getting modern agriculture equipment. He says that the self-sufficiency of the country can have a positive effect on its economy. Moreover, he says that the broiler breeding takes six weeks, but sheep's farming takes six months, and the potato season in Syria includes four growing seasons.

He added that greenhouse farming is available, but suffers from weak exports, deficiencies in packaging, and the continued use of rudimentary agricultural tools. Furthermore, wheat farmers face a liquidity problem, which causes them losses instead of encouraging them to expand production. A university professor at the Faculty of Economics at Damascus University, who preferred to remain anonymous, believes that Syria has historically been renowned for its textile industry, and that reviving cotton cultivation is an economic priority due to its potential for a complete production cycle and ample job opportunities.

He emphasized that Syrian cotton is "unrivaled globally," and that restoring this crop represents a return to Syria's economic identity and a significant economic return, in addition to contributing to reducing the drain on the public treasury caused by imported fabrics and yarns.

The professor criticized what he described as the "significant marginalization" of university professors and experts, noting that only a few, whom he described as "sycophants of the current regime," are invited to events or press conferences. He added that ignoring their expertise reflects a problem in the state's perception of this group, failing to consider them partners in the reconstruction phase or classifying them as "remnants of the old regime."

In a related context, lawyer Jumana Kateb believes that leveraging Syria's geographical location in the trade sector would boost foreign investment, and that the priority, once security conditions stabilize, should be to enhance transparency and governance in investment-related institutions. She added that improving the investment climate requires designating a single government entity with which investors should interact, along with establishing a commercial arbitration system in Syria, to be managed by established legal professionals, not those newly entering the field.

More than a year and eight months after the fall of the Ba'athist regime, those holding these views agree that the continued fragmentation of priorities, the absence of a clear economic vision, and the failure to involve the Syrian public and qualified individuals in formulating economic policies raise questions about the course of the next phase and threaten to prolong economic recovery, with the potential for continued setbacks, increased poverty rates, and escalating rural-to-urban migration.

On the other hand, the government, once in power, has stressed that their first aim is the economic reconstruction on new bases based on a market economy, investments from both within and outside the country, and integrating Syria into the economy of the region and the world, noting that years of war, sanctions, and isolation had reduced the ability of the state to fund the economic reconstruction process. The government, through their statements and economic policies, has stressed the need to change the investment legislative framework, simplify bureaucratic processes, and make partnerships with companies from the region and the world in the energy, infrastructure, and transportation sectors.

At the same time, the government states that the restructuring of state institutions aims to build a more efficient and effective administrative apparatus, and that appointments are based on the criteria and requirements of the transitional phase. Officials deny the existence of a systematic policy to exclude qualified individuals, asserting that participation is open to all.

On the other hand, the official narrative insists that the reform of the state structure serves the purpose of establishing an efficient and effective administration and that appointments are made according to the standards and needs of the transitional period. No attempt is made to justify a deliberate exclusion of qualified people from government jobs, as it is insisted that everyone who wishes to participate in the reconstruction and building process is welcome.

The month of May 2025 saw changes in the external economic environment for Syria due to the removal of economic sanctions and issuing of general exemptions by the United States. This move was complemented by the decision by the European Union to lift economic sanctions against the country but maintain sanctions related to security and human rights issues as well as individuals associated with the Ba’athist regime on May 28, 2025.

ANHA