The Political Economy of Syria Under Asad.

• Author: Aoude, Ibrahim G.

This rigorous book relies essentially on a structural-functionalist framework that makes for tedious reading in an otherwise well researched work. According to the author, Syria's political economy demonstrates that crisis is inevitable in an authoritarian state trying to adapt to new domestic realities. Syria is a strong state with social forces and relations existing within a corporatist structure where economic transformation has been essentially a political affair with a large degree of Syrian independence in decision making.

Chapter One argues for the use of "class" as a concept to shed light on the infitah (opening to the West). But Perthes, still regards regionalism, tribalism and confessionalism as important.

Chapter Two discusses the development of the statist economy. The crisis of the 1980s (precipitated by import substitution industrialization in the 1970s) made economic reform imperative and was "a function of economic need, social change, and political structures" (p. 15). By 1970, Syria became a net importer of food stuffs, which eventually, along with industrialization and consumer goods imports, increased the trade deficit and developed a serious foreign exchange crisis. Despite its recently more diversified economy, Syria remains agrarian.

Asad's regime is not ideological; "socialist transformation" was abandoned and reliance on the socialist bloc reduced as the regime opened up to the West and to conservative Arab regimes. This first "infitah of abundance" (1971) liberalized through state-led growth; although banking, insurance, mining, oil, and manufacturing of strategic goods were off limits to the private sector. A mixed sector in tourism was created. By 1977, however, a deteriorating balance of payments forced some restrictions on the private sector. Import substitution industrialization (state-capitalist under Asad) continued in the 1970s; but its turnkey feature kept Syria dependent upon foreign expertise, raw material and parts.

By 1981, the economy shifted toward exports to solve the foreign exchange crisis. The second "infitah of poverty" has had four stages: (1) the private sector to secure and the state to increase the foreign exchange each needs; (2) currency devaluation and trade regime liberalization; (3) liberalization and encouragement of investment and private production; and (4) the ongoing liberalization of import regimes. The second infitah has resulted in private sector growth and increasing...