The Role of the Private Sector in Economic Reform in Syria

The private sector is considered a key driver of economic growth in any country, and Syria is no exception. After years of conflict, the Syrian economy faces significant challenges that require rebuilding and development. In this context, the private sector plays a crucial role in the economic reform process.

The private sector in the economy consists of private institutions and companies not owned by the government and is known in English as the “Private sector.” It refers to businesses owned by individuals personally, not connected to the state government or any of its institutions. The private sector is an essential part of the economy, contributing to job creation and the development of industries and services beneficial to individuals. This sector includes various fields, such as individual work and collective work.

In individual work, people work independently, while collective work relies on a group of people working together in an institution or company.

The Importance of the Private Sector’s Role:
The private sector is one of the most active sectors in enhancing and diversifying the economy. It contributes to increasing productivity levels and stimulating national exports, revitalizing local markets and creating investment and employment opportunities. The private sector is one of the pillars of development in any country, whether through its contribution to GDP or the implementation of development projects. This area includes various individual activities, contributing to building the economic sector and developing society.

The importance of the private sector is evident in several factors that boost the economic reality:

1. Job creation: The private sector contributes to creating new jobs, helping reduce unemployment and providing income for families.
2. Investment: The private sector attracts local and foreign investments, increasing productivity and raising living standards.
3. The private sector also encourages innovation and the development of new products and services, enhancing the economy’s competitiveness.
4. The private sector drives increased efficiency and productivity, leading to lower costs and improved product and service quality.
5. The private sector enjoys greater flexibility in adapting to economic changes, helping it respond to the changing needs of consumers.

The private sector contributes to enhancing the competitiveness of the Syrian economy through investments and innovations, as private companies can contribute to developing industries and improving productivity.

The private sector can play a role in improving infrastructure and public services, such as communications, electricity, and healthcare. The partnership between the public and private sectors also strengthens these efforts.

The private sector also works to increase economic activity rates and stimulate economic growth, contributing to achieving local development goals.

Currently, the challenge remains to strengthen the role of the private sector in Syria’s reconstruction and achieving sustainable development.

Challenges Facing the Private Sector in Syria:
The private sector in Syria faces significant challenges due to the economic crisis and civil war, such as the increasing costs of energy and raw materials negatively impacting the private sector. The decline in wages and rising inflation reduces spending and affects the demand for goods and services. Additionally, restrictions on importing necessary materials hinder production. Due to the difficult economic conditions, many factories and plants have closed in recent years. There are some major challenges that the Economic Office of The Syrian Future Movement highlights to draw the attention of decision-makers to overcome:

1. An unstable economic environment, such as inflation, currency devaluation, energy shortages, and a lack of legal security.
2. The private sector suffers from a lack of liquidity due to conflict and economic sanctions.
3. Companies also suffer from complex bureaucracy and lengthy procedures to obtain licenses and approvals.
4. The spread of corruption increases business costs and reduces trust in the government.
5. Deteriorating infrastructure also negatively affects business efficiency.

How Can the Private Sector Be Supported in Syria?

1. Improving the business environment: Simplifying procedures, fighting corruption, and providing a stable legal environment.
2. Providing financing: Offering funding for small and medium-sized projects and encouraging foreign direct investment.
3. Developing infrastructure: Investing in infrastructure development, such as roads, ports, and airports.
4. Training and qualification: Providing training and qualification programs for the workforce.
5. Public-private cooperation: Strengthening the partnership between the public and private sectors to implement investment projects.

The Governance Role in Supporting the Private Sector:
Strengthening the private sector requires joint efforts from current de facto governments, institutions, and investors to achieve sustainable development. The private sector in Syria faces significant challenges, but there are measures that can support and enhance its role, such as investing in infrastructure, supporting research and development, and adopting technology to boost companies’ competitiveness and innovation. Additionally, focusing on sectors with significant potential, such as light industries, agriculture, and domestic tourism, simplifying administrative procedures, providing financial support and training to companies, and enhancing transparency can attract more investments. Moreover, there are key efforts to support the private economy, including:

1. Establishing clear and stable economic policies to encourage investment.
2. Offering incentives to investors, such as tax exemptions and customs facilities.
3. Simplifying bureaucratic procedures and providing efficient government services.
4. Combating corruption and enhancing transparency and accountability.
5. Providing essential services such as electricity, water, and sanitation.

Conclusion:
The private sector plays a vital role in rebuilding Syria’s devastated economy by creating jobs, attracting investments, and fostering innovation. The private sector can significantly contribute to achieving sustainable economic growth and improving the standard of living for Syrian citizens. However, this requires providing a favorable economic environment and strong government support, which we recommend prioritizing by de facto authorities. In an effort by our Economic Office at The Syrian Future Movement to alleviate the economic hardships faced by the Syrian people, we strongly emphasize the need to transition towards economic privatization as the real lever to overcome the burdens of economic deterioration.

It looks like I missed incorporating “Syrian Future Movement (SFM)” in the translation. Here’s the corrected translation:

Ammar Al-Omari
Economic Office
Research and Studies Department
Articles
Syrian Future Movement (SFM)