Syrian Economy Reforms Accelerated
On the occasion of the blessed 40th Anniversary of the Baa’th Arab Socialist
Party (BASP) March8, 1963 Revolution, the Syria Times has interviewed Dr.
Mohammad Al-Hussein, the Syrian Deputy Premier for Economic Affairs and the BASP
Economic Bureau Regional Leadership Chairman and the member of the National
Progressive Front Central Leadership, in a comprehensive interview about the
ongoing process of reform and modernization, Investment and other
economy-related issues; here is the full text of the interview:
“First of all, I would like to congratulate the Syrian and Arab Masses on the
blessed 40th Anniversary of March 8 Revolution, which has put Syria on the right
way of reconstruction, building, and development. “ “March 8 Revolution is
considered as the transitional turning point in our history; where the march of
huge evolution, development and achievement in all aspects of our society and
economy was started" said Dr. Mohammad Al-Hussein. “The Revolution was, seven
years later, boosted by late President, Hafez Assad’s Correction Movement,
mainly considered as the first step on the long way of the Baa'th Arab Socialist
Party (BASP) strenuous efforts under the leadership of the BASP former Secretary
General, late President Hafez Assad, as to rid Syria from isolation, restore
close relation between the BASP and the Masses, and to start the process of
Economic and Social Reforms. Thus, all-out changes and huge achievements have
been accomplished as to better and improve every sector of Syria’s life. New
formulas were developed as to upgrade all economic sectors including the
private, public, joint and cooperative ones. “Syria has realized
self-sufficiency and food security following the March Revolution and Correction
Movement depending on her own resources” stated Dr. Al-Hussein, in an exclusive
interview with the Syria Times.
To demonstrate the great achievements achieved in Syria, Dr. Al-Hussein, cited
some statistical indicators referring to Syrian Economy growth rates and
development compared to /1963/, the year in which the 8 of March Revolution took
place. For example, the National Income rose from / 4258/ Million Syrian Pounds
in /1963/ to / 866465/ Million SP in / 2001/, at current prices, National Income
Per Capita, at market prices, from / 853/ SP to / 51822/ in / 2001/, Gross
Domestic Product (GDP) from /161913/ Million SP to / 934669/ Million SP in /
2001/ at constant prices of / 2000/, GDP per capita at market prices from /
32434/ SP in 1963 to / 55901/ SP, in 2001, at constant prices of /2000/, Exports
of Goods and Services from / 49192/ Million SP to / 369564/ Million SP at
current prices, Gross Production, at producers prices, from / 243410/ SP to /
1624974/ SP in / 2001/ at constant prices of year /2000/. Further, State Budget
rose from / 2.78/ Billion SP in / 1970/ to / 420/ Billion SP in / 2003/, at
current prices, of which / 211/ billion pounds were allocated for investment
projects added Dr. Al-Hussein, citing the gradual increase of State Budget;
saying: “For example, the State Budget of the Fiscal Year /1999/, was / 255/
Billion SP, Year / 2000/ was / 275/ Billion SP, Year / 2001/ was / 322/ Billion
SP, Year /2002/ was / 356/ Billion SP.
Furthermore, the Deputy Premier spoke of the government efforts as to provide
every corner of the country with necessary services pointing to hundreds of
executed projects in the fields of electricity, services infrastructure,
education, health, transport, social care, tourism not to mention reform and
economic projects, citing the increasingly mushroomed numbers of physicians,
engineers, teachers, workers and professionals of all crafts, schools, academic
institutions, syndicates, unions, hospitals, sport, and cultural centers
covering all walks of life and activities.
In reply to a question about the ongoing process of reform and modernization in
Syria, Dr. Al-Hussein recalled late President Hafez Assad's statement in his
March 8, 1978 speech that “Growth, with all its economic, social and cultural
aspects, is a national urgent need, and should continue accelerated. We want to
make of our country prosperous one like developed countries’’. Dr. Al-Hussein
said: “Actually, this process was initiated by late president, Hafez Assad,
since the 90’s of the past century within the frame of the continued evaluation
of our national economic interests. Many important economic decrees and
legislative laws were issued including Investment Law Number 10, year 1991,
which opened the door wide before Arab and foreign investment,” noting that this
process has been further accelerated in 1999 with late President’s Address to
the People’s Assembly (Parliament). “Syria has been transformed into a beehive
workshop and in all fields, in a sincere bid as to translate President Bashar
Assad’s inauguration speech directives and visions” added the Syrian Deputy
Premier citing as an example that population growth for the year 2002 was /2,
45/ percent, a percentage lower than that of Syria’s economic growth, which
exceeded 3 percent, when it was, for example in / 1999/ /-1,8/ percent, /0,6/
percent in /2000/, /2.8/ percent in / 2001/, disclosing that the Government
plans to achieve a double economic growth rate compared to population growth by
the year / 2006/, the end of the First phase of the ongoing Economic Reform
Project.
“We work hard to implement the directives and visions of President Bashar Assad;
we have achieved some good results as far as the objective of reform and
modernization is concerned.” Thus, scores of laws, decrees and decisions were
taken, added Dr. Al-Hussein, citing Syria’s 9th 5-year plan for economic and
social development, for the period from 2001 till 2005, and Syria’s economic
reform project which aims , with an eye on increasing economic growth, to “
achieve the definite objectives, mainly outlined by President Bashar Assad in
his Inauguration Speech on July 17, 2000; namely "a fair distribution of Gross
National Product in a balanced fashion, to the increase of job opportunities and
to the improvement of the livelihood of citizens in the light of the increase of
their lively needs and the constant increase in the cost of living.” The
formulation of a "common strategy for development” and of a“ specific framework
for steps and measures" to be taken as to improve “ performance in the economic
field” to “encourage export and to help find markets” taking "steady, though
gradual, steps, towards performing economic changes through the modernization of
laws, the erosion of bureaucratic obstacles standing in the way of internal and
external investment flow, the recruitment of both private and public capital,
and the activation of the private sector and granting it better opportunities to
work,”. Thus, the improving of the citizens standards of living and deepening
social justice and care have been the sublime objective, underlined Dr.
Al-Hussein. To this effect, many decrees, laws and legislation, bolstering of
reform process, were issued citing Decree Number /26/ for the year /2002/
providing for a 20 percent increase of employees salaries and wages, Decree N. /
33/ year / 2002/ increasing family compensation allocations, Decree number /34/
year / 2002/ increasing heating compensation allocations, Law N. / 71/ year /
2001/ setting up the National Board for Fighting Unemployment, and Decree N. /
8/ year / 2001/ reducing income taxes, and other decrees including Social
Insurance and Security ones. Further, the Government has revised the basic law
for workers, which is to be referred to the would be elected soon new People's
Assembly.
On investment issue, His Excellency said “During the evaluation process of
Investment Law N. 10, year 1991, we have found that it is a very good one
compared to other investment laws in the region,’’. He disclosed the number of
projects carried out under this law at / 3052/ by the end of year /2002/ with an
amount of /403,835,840/ Billion Syrian Pounds of invested capital, as follows:
Agricultural Sector projects were /66/ ones with a cost of /4,4/ percent of the
said total sum, Industrial Sector projects: /985/ projects with percentage of /
77,2/ percent of the overall sum of invested capital, Transportation Sector
projects: /1984/ projects with /15,8/ percent of the total invested sum, stating
that such invested in projects had a labor force of / 121,114/ employees.
“We are determined, however, to simplify some administrative procedures. So, we
have implemented a one-stop-shop procedure in the Investment Bureau.” Said Dr.
Al-Hussein and added: “We need to establish Industrial Zones. So, we have
achieved good results in this side. For example, we have started to establish 3
Industrial Zones: in Adra ( near Damascus), Hissiah in Homs Governorate, and in
Aleppo Governorate” with a cost of approximately /30/ Billion Syrian Pounds
declaring that the Government announced calls for investors to buy shares in
these three zones, which have every necessary infrastructure, utility, facility
and service. Out of Syria's keenness on promoting investment climate and
opportunities in the country, Dr. Al-Hussein cited the issuance of some laws and
decrees by President Bashar including Decree N. /40/ year 2003 initiating a new
Investment System in Syrian Free Zones, Decree N. /315/ year / 2002/ stipulating
the setting up of a Port Free Zone in Lattackia. In bolstering of the ongoing
economic reforms, Dr. Al-Hussein detailed some of the measures and steps taken
by the Government like the concluded Trade, Economic and Technical Cooperation
Agreements with scores of countries, Double Taxation Evasion Agreements with
some other countries.
Transparently, Dr. Al-Hussein pointed out some obstacles hindering investment in
the country citing the “ urgent need for developing and modernizing Banking
System” asserting that the government follows a two-track way for this purpose;
first, to modernize the Banking Public Sector including the development of
management systems, modernization of operation systems, rehabilitation and
training of personnel. The second track is through the serious efforts exerted
by the Government as to establish Private Banks in the country. “We have granted
approval to 5 juristic entities to open private banks, in so doing, the
Government has approved the five applications submitted as to establish private
banks in the country.” stated Dr. Al-Hussein.
An open minded straight forward man, Dr. Al-Hussein cited further some of the
standing obstacles hindering Investment in the country. He cited “Foreign Trade
Systems”, for example, saying “ We are in a dire need as to simplify and
facilitate foreign trade systems including customs laws” promising a very soon
revision of these laws." "Another problem is the complication of Taxation System
in Syria” said Dr. Al-Hussein asserting that the Government “ has put the final
touches on a new soon-to-be-issued taxation law, where the amount of taxes is to
be very close, if not less, to the existing ones in many countries in the
region”.
In implementation for President Bashar Assad’s pledged reform and modernization
objectives, Dr. Al-Hussein also disclosed that a new investment law is to be
issued, with even more incentives, privileges, franchises, and facilities. Dr.
Al-Hussein disclosed some merits of this law including the Government’s
intention to allow investors, of Arab or foreign nationals, to re-transfer
abroad their profits, and revenues, and the Foreign Capital in hard currency in
accordance with the Law. The would be issued Law is to have a “ General Board of
Investment” as a substitute for current Investment Office, and is, further, to
geographically consider new areas of investment; in light of President Bashar
Assad's inauguration speech call for “a balanced and comprehensive development
in all provinces of the country and in rural as well as urban areas.” “ Hence
the geographical distribution of the Law N. 10 executed Projects was mainly
centered in four governarates: Damascus, Damascus Countryside, Aleppo and in
Homs,” noted the official.
In reply to a question about the role of Syrian Expatriates in the ongoing
process of reform and modernization, Dr. Al-Hussein emotionally spoke about such
a pivotal role recalling President Bashar Assad's Decree N. /21/ year / 2002/
stipulating the formation of Expatriates Ministry as to keep and strengthen the
Expatriates’ continued links and bonds with the Mother Homeland. “The most
important thing is to keep good relations with our brothers and sisters abroad
not only as far as investment is concerned. We want them to share their part and
important role in the ongoing process in every field of life” addressing a word
of appreciation and respect to all of them and that they “would never find a
safer place better than their Motherland, Syria, to invest their money in” hence
it is said, “East or West, home is the best; your country does need you all”
added Dr. Al-Hussein with a promise as to “leave no stone unturned to facilitate
every thing for them”.
As for Arab and foreign investors, the Deputy Premier outlined some of the
prevailing conducive climates for investment in Syria citing: stability,
security, hard work and cheap labor force, distinguished geographic location,
asserting that the Syrian Constitution, arbitration and jurisdiction do uphold,
safeguard and protect private ownership and investment. Thus, investors may, in
a case of any dispute, resort to Arbitration to the Syrian jurisdiction, Arab
Investment Court formed under the Corporate Agreement For The Investment of Arab
Capitals in the Arab Countries in 1980, or get any dispute sorted out according
to the provisions of Investment Protection and Guarantee Agreements concluded
between Syria and country of the investor noting that investors may also insure
their money invested in the approved projects with The Arab Establishment For
Guarantee of Investment or with any other establishment through the approval of
competent authorities, stating, further, that Syria is a member of the
Multilateral Investment Guarantee Agency (MIGA).
He added that Syria is a good marketing place taken into consideration that 85
percent of the Syrian exports are of raw materials, which could be manufactured
locally by investors especially knowing the fact that “Syria has many signed
agreements and Free Trade Zones with many Arab countries including Lebanon,
Jordan, Iraq, United Arab Emirates and Saudi Arabia” and knowing that “by
January, 2005, the Grand Arab Free Trade Zone will have been realized”.
DR. Al-Hussein cited some areas of possible and profitable investment sectors in
Syria including those in Mining, Quarrying, Manufacturing Industries like
textiles, clothes, electric appliances, medical equipment, pharmaceutical
industry, construction materials, food stuff and beverages, metallic, mineral
products, engineering industry, rubber, wood, paper and plastic products, not to
mention others like those in the fields of Tourism, Transportation, Education
and Banking. As for Agro-Industry Investment, both animal and food products; he
noted “Syria produced , in the year 2002 alone, more than /700/ thousand tons of
Cotton, / 900/ thousand tons of Citrus, / 400/ thousand tons of Olives.
Considering the booming sector of Information Technology and Internet in the
country, Dr. Al-Hussein also cited many opportunities for investment in
software, hardware, computer assembling and related industry. Furthermore,
considering the rich heritage archaeology and tourism importance of Syria, as
the crossroad country, where all civilizations melt and met, he called on
investors to invest in Syria’s booming tourist sector citing the need for more
hotels, resorts and restaurants. Dr. Al-Hussein added that the Ministry of
Tourism plans to set up a Free Tourist Zone in the famous Syrian City of
Palmyra.
On the long awaited for issuance of credit cards and stock market exchange, the
Deputy premier declared that the Real Estate Bank has started to issue Credit
Cards in Syrian Pound, and other State Banks are soon to issue the same at
domestic level asserting that the Government is “preparing the necessary
infrastructure before the issuance and circulation of international credit
Cards’’ and is “working to establish Stock Market Exchange.
In reply to a question about some fears and concerns by the citizens regarding
the consequences of the ongoing policy of Economic reform, Dr. Al-Hussein
underlined that the Reform Project in Syria, as outlined by President Bashar
Assad, basically depends on “ No Privatization”, “ No sacking of employees”
asserting “ our project is tailored to the needs of the Syrian Society and
Economy,” adding “ We have benefited from the experience of other countries”.
With regard to the Syrian-Euro Partnership, Dr. Al-Hussein said “we are in the
final stage of negotiations. As for economy related matters, there are some
aspects which need more clarifications like our agricultural export to the EU
Countries” citing some “ precise” problems as for the “ agricultural components
in our industrial exports”, “ transitional period”, “ the protection of our
National Industry including the budding one” stressing the need for a “ balanced
agreement in the interest of all sides” saying “ We are very serious, determined
and work hard to get this partnership Association signed”. Dr. Al-Hussein stated
that Syria, in / 2001/, for example, exported more than 64 percent of its total
exports to the EU Countries, and imported more than 33 percent of its imports
from these countries. “Syria seeks to strengthen her relations and her strategic
economic cooperation with the rest of world countries in Asia, Eastern Europe,
Africa, South America and with many others.
In reply to a question about Syria’s foreign debts, Dr. Al-Hussein said: “ we
pay our debts back on regular bases. We, in fact, have no problem with foreign
debts, which form a very small amount of our Gross Domestic Product, unlike
other countries whose debts, at times, exceed their total GDP”.
In reply to a question about the role of the National Progressive Front, a
gathering of Syria’s political parties, Dr. Al-Hussein said: “The National
Progressive Front was founded by late President, Hafez Assad; we are strongly
committed to this political pluralism formula. In fact, President Bashar Assad
has accorded special importance to this Front and provided every support and
facility for such a unique political pluralism. Thus, all the member parties
have their ministers, members of parliament, headquarters, publications,
newspapers and the like” disclosing that even parties, which are not members of
the Front have been considered for the Front Parliament Elections’ List, like
the Syrian Nationalist Social Party, and the Democratic Arab Union, of whose
members some candidates were enrolled, and at the expense of BASP seats, for
Parliamentarian elections, on the lists of the National Progressive Front”.
Furthermore, Dr. Al-Hussein welcomed “the participation of all sectors and
strata of the Syrian society to participate, cooperate and shoulder the
responsibility in the Syrian Life, as long as the objective is the homeland
interest, independence, bettering the civilians’ standards of living, progress
and welfare”.
In reply to a question about conditions in the region and the consequences of a
possible strike against Iraq, Dr. Al-Hussein, reiterated Syria’s firm commitment
to just and comprehensive peace, based on the implementation of related
international legitimacy resolutions, stipulating the full Israeli withdrawal
from the 1967 occupied Arab territories to the line of June4, 1967, from the
remaining of the Lebanese occupied territories and the setting up of an
independent Palestinian State, with Al-Quds as its capital. He noted that the
ongoing Israeli daily aggressions, provocations and the massacres against the
unarmed Palestinian civilians do not, however, help as to achieve the noble
objective of peace and create a stumbling block before development, growth and
prosperity in the entire region. Dr. Al-Hussein called on the United States to
refrain from its flagrant bias to Israel, and to evenhandedly tackle the region
issues in the interest of just and comprehensive peace realization. Dr.
Al-Hussein reiterated Syria’s rejection of war against any people or country and
her call for a peaceful solution to the Iraqi Issue saying that such a strike,
if to happen, “ would have negative impacts on the people of Iraq as well as on
the economy, not only of Syria and region countries but on that of the entire
globe” calling for an evenhanded implementation of international legitimacy
resolutions away from selectivity and multi- standard approaches, hence economic
growth, reform and development, which the region does direly need, necessitate a
proper conducive climate of peace, tranquility and stability.
Interviewed by
Mohammad Abdo Al-Ibrahim
Back
INTERVIEWS
SPEECHES DOMESTIC ISSUESNATIONAL ISSUESINTERNATIONAL ISSUESNEWS & ANALYSESPICTURES
HOME