Wednesday, 13 October 2010

A new step to the hill: Syrian Economy as worse as it shouldn't be

According to Syrian officials , Syria is going to spend about 85 $ billions in the coming 5 years to develop its infrastructure and the agriculture sector which has been almost destroyed In the recent years because of draught which hit mainly the eastern provinces in the recent 5 years .
Adding more taxes or lending money will be the main source of this money.
The international bank will be one of the lenders according to Syrian officials . After the decades of social ruling and centralized planning ,Syria is asking for the help of this international organization to finance its mega projects .
The main problem in all this issue is the matter of the accumulation of governmental debt and the consequences of this debt on the future of Syrian economy .

Debt itself is not a problem but when it accompanies with lack of transparency and corruption , there will be doubts in who will really get the benefits from all this interesting issue .
Few has the keys of the Syrian Economy nowadays . They are the key masters of the economy and are playing in a protected field . Most of value-full projects are contracted to them.
They have formed a new class in Syria as that had been formed in Russia and all ex-social camp countries after the collapse of USSR .It is something typical about what happened there in the early 1990's.

There is no gurantee where this huge amount of money will be spent.With the dissolving of the middle class in syria , the things are goinge worse than expected. Walking in the streets of Damascus or Aleppo(The second largest city) will give us an idea about what is happening. A slice of the society is living in a luxury life and the rest are trying to survive.


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