Promoting trade and economic reforms are badly needed to push up the decreasing economy of the past two years. The question is how quickly the new president will be able to pursue the development of a modern open economy in Syria. Syria's predominantly statist economy is on a shaky footing because of Damascus's failure to implement extensive economic reform. Although Syria has sufficient water supplies in the aggregate at normal levels of precipitation, the great distance between major water supplies and population centers poses serious distribution problems. The water problem is exacerbated by rapid population growth, industrial expansion, and increased water pollution.
Private investment is critical to the modernization of the agricultural, energy, and export sectors.
Oil production is leveling off, and the efforts of the non-oil sector to penetrate international markets have fallen short. Syria's inadequate infrastructure, outmoded technological base, and weak educational system make it vulnerable to future shocks and hamper competition with neighbors such as Jordan and Israel. The government recognizes the need to open the economy to additional domestic and foreign investment. East-West Debt has made every effort to ensure the accuracy of this publication. This publication is not a substitute for professional advice and all information is for guidance only.