Development

Syria is struggling with spiraling inflation, food shortages and increased poverty, prompting a series of government moves to offset these challenges. Nonetheless, it remains committed to its programme of economic reform, which aims at easing state involvement and liberalizing the economy, leaving the country looking for a delicate balance. 
Though the official inflation rate for last year was just 5.5%, unofficial studies have suggested it was closer to 15%. Whichever figure is nearer the mark, it is sure to be eclipsed in 2008 as rising international fuel and food costs look set to continue.  

After a half-decade absence from Syria, I anxiously returned home only to find myself stuck in unimaginable traffic, admiring a slew of new buildings and shopping malls that had popped up all over the capital and its surrounding areas on my way home from Damascus International Airport. This was just the initial impression the country imparted; one that complemented the information that was abundantly available via the Internet on the other side of the world. Although I had made a concerted effort to stay up to date with Syria’s socio-economic events, driving through Damascus’ streets first-hand led me to the immediate conclusion that although much had changed, some things were just as I had left them.

I recently attended a seminar in Damascus hosted by the United Nations Economic and Social Commission for Western Asia (ES-CWA). It was aimed at some stocktaking on the recent development strategies and experiences in the region. The theme of the seminar was “rights-based development,” that is, the problem of how to combine growth with equity in such a way that ordinary people are able to realize basic human rights to jobs, education, a minimum standard of living, etc. The seminar began with a presentation by the Deputy Prime Minister for the Economy, Abdullah al-Dardari, and speakers included ESCWA team leader Ali Kadari and the President of the Syrian Economic Society, Dr. Issam al-Zaim.

For Syrians in the Diaspora, the exact state of the Syrian economy has always represented somewhat of a mystery. At a particularly turbulent time in the history of the region—coupled with a highly unstable and uncertain international climate both on the economic and political fronts—we are especially anxious to discover the ramifications of these events on the lives or ordinary people. We are therefore, always on the look out for any news items coming from the homeland regarding the health and future direction of the economy. The last few months have been rather abundant in telling signs indicating some dramatic changes within the economy in the not so distant future.

Dr. Nada Kobeissi is currently an assistant professor in the Department of Management at the C.W. Post Campus of Long Island University in New York. She has a Ph.D. and an MBA in Organization Management from Rutgers University, a Master of International Management from Baylor University. Her publications and research interests are in the areas of International Management, especially in the fields of emerging and transitioning MENA countries; Entrepreneurship, and the relationships between micro-enterprise, small business development, and gender; and Social Issues in Management, defining corporate social responsibilities, governance, policy and regulation. Before joining Long Island University, Dr. Kobeissi worked as a consultant at the United Nations Development Program. She recently sat with FW: to discuss her most recent presentation, “The role of religion in gender entrepreneurship development in the MENA region.”

Tying the knot between job makers and job seekers in Aleppo

“In the middle of difficulty lies opportunity.” This is a motto that has been inspirational for members of the Syrian Young Entrepreneurs Association (SYEA). This April, they organized their second job fair in Souq Alintaj in Aleppo, creating a conduit to connect job seekers with local employers, represented by 30 companies, two NGOs, and two radio stations. Diala Haj Aref, the Minister of Social Affairs and Labor, attended the opening ceremony and gave a speech affirming the government’s support for SYEA’s activities, mainly boosting entrepreneurial achievements.

With its identified oil reserves declining, Syria is increasingly looking to natural gas as a means to earn foreign currency and meet its own energy needs.

While domestic oil production is expected to fall to 360,000 barrels per day (bpd) this year, down from 380,000bpd in 2007, Syria has proven gas reserves of 300bn cubic metres, with a number of onshore and offshore blocks yet to be fully surveyed.